MPs want heads to roll over ATCL saga

[BAK]

2009-02-05 06:40:00

MPs want heads to roll over ATCL saga
By Faraja Jube, Dodoma
THE CITIZEN​

The Government yesterday came under pressure from MPs to take a decisive action against all those responsible for managerial inefficiency of the national carrier, Air Tanzania Company Limited (ATCL).

MPs Lucas Selelii (Nzega-CCM), Hamad Rashid Mohamed (Wawi-CUF) and Lazaro Nyarandu (Singida North-CCM) wondered why it had taken so long for the Government to take action against such public servants.

In his response, the deputy minister for Infrastructure Development, Mr Hezekiah Chibulunje, said the Government will take proper action after studying recommendations by a task force.

This was formed by the minister for Infrastructure Development, Dr Shukuru Kawambwa, to probe reasons behind ATCL inefficiency.

"The Government, through PriceWaterHouse Coopers and Ernest and Young is conducting an assessment and evaluation.

The latter is assessing ATCL's properties and debts while the former is evaluating its accounts ending June last year, said Mr Chibulunje, noting:

"The Government is in the process of putting in place all important documents which will in turn enable the sale of ATCL shares before signing an agreement with a potential investor."

Efforts to enable ATCL have enough capital for its operations have already been made by entering into partnership with China Sinangol International Limited (CSIL), he said.

Upon the completion of procedures it would buy 49 per cent of Government shares in the national carrier, he said.

However, he went on, the investor had required an opportunity to conduct a management evaluation of ATCL. This will be done by a French firm called Aerogestion Company, he said.

He explained: "The agreement for the management evaluation whose costs will be met by the investor has already bee signed and the work will commence soon."

He told the House that upon completion of the survey, the Government would officially sign the agreement with CSIL to enable ATCL secure reliable capital.

ATCL's partnership with South African Airways (SAA) ended in August 2006, leaving the local firm with a Sh13.2 billion debt.