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- Apr 10, 2008
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Sigisbert Komba
The Citizen Newspaper Columnist
Now, events in the railway contract saga, between the Tanzania government and Rail India Technical and Economic Services (Rites) of India is now taking a new twist with the Managing Director of the Tanzania Railway Limited (TRL), Hundi Choudhary blaming the government for failing to adhere to its contract obligation.
In short Mr Choudhary is complaining that the government is not contributing to the running of the Tanzania Railway Limited and that only one side (Rites) is running the railway system.
In its three years of existence since starting operations in 2007 the new management of TRL has been in the centre of a barrage of blames and accusations from the public for shoddy train services that have been against public expectations.
Nevertheless, before the coming of the new investor, train services were equally poor, but people were in high spirits when the investor took over, expecting that services would improve to make train commuters forget the agony of the past.
But while Tanzanians were waiting to see things improve with the ailing services in central line, they were stunned to learn that the management was making plans to uproot some of the railway lines, ostensibly for better services.
However, the TRL contract between the government with 49persent shares and Rites with 51persent shares in the deal looks controversial from accusations and counter claims between the two parties.
While one would expect the 49percent government shares in the deal to be government contribution in terms of infrastructures, that's, railway lines, train engines and wagons, workshops and all the working tools, other plants and machineries with of course buildings and other assets, the investor blames the government for not providing cash to run the services.
On two separate occasions the government has provided TRL with 3.6 billion and 522 million shillings respectively as loans to the company for workers' salaries.
But the public has questioned the government's hand on this, citing the development as clear inability by the investor to run the railway services.
But the government has been defending itself on the move, saying that the investor's financial position right now is not good enough to meet salary obligations, prompting the investor to say that this is part of the government obligation to the contract.
Nevertheless, notwithstanding its accusations on the government's alleged failure to live up to its (government) contract obligations, the management of TRL is alleged to have taken measures of soliciting for a big loan from a foreign bank without informing or involving the Tanzania government.
However, upon learning the management's move, the government intervened to block it, and President Jakaya Kikwete warned them from taking such big risks without informing the government, saying that failure to repay the loan will put the government in trouble.
In the same vain, the president who appeared highly disturbed by what is going on with the TRL management directed immediate return to Tanzania from India two train engines which were alleged to have been shipped to India for repair.
Certainly, one fails to understand the management's move as TRL is believed to have enough workshops which are well equipped to make minor and major repairs, especially at its Morogoro station.
However, the move was seen by many Tanzanians as one way of trying to weaken the company and cause unemployment to railway workers. For failure to use the workshops in the country means that our own mechanics are made redundant, although artificially created, for the interest of mechanics in a foreign land.
However, while Tanzanians were looking forward for improved services by getting new engines and wagons, the company management brought in the country 25 engines and 23 train wagons which are believed to be used. But judging from the way the investor is pressing the government; one is forced to believe that the government is not transparent on the TRL contract deal.
Nevertheless, some of the reports allege that when the contract was signed the government said it had about ninety engines, but on handing over to the investor the engines were less than originally declared.
Sigisbert Komba is a Freelance Journalist based in Dar es Salaam.
The Citizen Newspaper Columnist
Now, events in the railway contract saga, between the Tanzania government and Rail India Technical and Economic Services (Rites) of India is now taking a new twist with the Managing Director of the Tanzania Railway Limited (TRL), Hundi Choudhary blaming the government for failing to adhere to its contract obligation.
In short Mr Choudhary is complaining that the government is not contributing to the running of the Tanzania Railway Limited and that only one side (Rites) is running the railway system.
In its three years of existence since starting operations in 2007 the new management of TRL has been in the centre of a barrage of blames and accusations from the public for shoddy train services that have been against public expectations.
Nevertheless, before the coming of the new investor, train services were equally poor, but people were in high spirits when the investor took over, expecting that services would improve to make train commuters forget the agony of the past.
But while Tanzanians were waiting to see things improve with the ailing services in central line, they were stunned to learn that the management was making plans to uproot some of the railway lines, ostensibly for better services.
However, the TRL contract between the government with 49persent shares and Rites with 51persent shares in the deal looks controversial from accusations and counter claims between the two parties.
While one would expect the 49percent government shares in the deal to be government contribution in terms of infrastructures, that's, railway lines, train engines and wagons, workshops and all the working tools, other plants and machineries with of course buildings and other assets, the investor blames the government for not providing cash to run the services.
On two separate occasions the government has provided TRL with 3.6 billion and 522 million shillings respectively as loans to the company for workers' salaries.
But the public has questioned the government's hand on this, citing the development as clear inability by the investor to run the railway services.
But the government has been defending itself on the move, saying that the investor's financial position right now is not good enough to meet salary obligations, prompting the investor to say that this is part of the government obligation to the contract.
Nevertheless, notwithstanding its accusations on the government's alleged failure to live up to its (government) contract obligations, the management of TRL is alleged to have taken measures of soliciting for a big loan from a foreign bank without informing or involving the Tanzania government.
However, upon learning the management's move, the government intervened to block it, and President Jakaya Kikwete warned them from taking such big risks without informing the government, saying that failure to repay the loan will put the government in trouble.
In the same vain, the president who appeared highly disturbed by what is going on with the TRL management directed immediate return to Tanzania from India two train engines which were alleged to have been shipped to India for repair.
Certainly, one fails to understand the management's move as TRL is believed to have enough workshops which are well equipped to make minor and major repairs, especially at its Morogoro station.
However, the move was seen by many Tanzanians as one way of trying to weaken the company and cause unemployment to railway workers. For failure to use the workshops in the country means that our own mechanics are made redundant, although artificially created, for the interest of mechanics in a foreign land.
However, while Tanzanians were looking forward for improved services by getting new engines and wagons, the company management brought in the country 25 engines and 23 train wagons which are believed to be used. But judging from the way the investor is pressing the government; one is forced to believe that the government is not transparent on the TRL contract deal.
Nevertheless, some of the reports allege that when the contract was signed the government said it had about ninety engines, but on handing over to the investor the engines were less than originally declared.
Sigisbert Komba is a Freelance Journalist based in Dar es Salaam.
