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TANESCO in drive to recover $190m in debt. The firm is cash strapped!

Discussion in 'Jukwaa la Siasa' started by nngu007, Aug 18, 2012.

  1. nngu007

    nngu007 JF-Expert Member

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    Aug 18, 2012
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    News

    Tanesco in drive to recover $190m in debt

    By JOSEPH MWAMUNYANGE


    Posted Saturday, August 18 2012 at 17:43

    In Summary

    • Executives at the power utility said the firm was planning to bring court actions against defaulters to strengthen its weak cash position, which has left it unable to pay its debts.
    • The parastatal needs at least Tsh1 trillion ($635 million) to stabilise its cash position and offer reliable services, according to a recent report submitted by the company to the Energy and Water Utilities Regulatory Authority.
    • At least 21 per cent of the 850 MW generated is being stolen or lost through technical problems in the distribution line. This is far above the internationally accepted rate of 12 per cent.
    • The bulk of Tanesco's large debtors are companies, factories and institutions.



    Thousands of people and institutions could end up in court as the cash-strapped Tanzania Electric Supply Company embarks on a countrywide exercise to curb power thefts and recover $190.5 million owed by power consumers.

    Executives at the power utility said the firm was planning to bring court actions against defaulters to strengthen its weak cash position, which has left it unable to pay its debts.


    "Our financial position isn't good. We have warned customers who owe us a lot of money to pay up or face court action. We also plan to crack down on theft of electricity," said Tanesco public relations manager Badra Masoud.


    Tanzania's Criminal Procedure and Civil Procedure Codes allow Tanesco to attach properties of defaulters.

    The parastatal needs at least Tsh1 trillion ($635 million) to stabilise its cash position and offer reliable services, according to a recent report submitted by the company to the Energy and Water Utilities Regulatory Authority.

    At least 21 per cent of the 850 MW generated is being stolen or lost through technical problems in the distribution line. This is far above the internationally accepted rate of 12 per cent.

    However, electricity supply in the country is not a major issue for investors, as recent projects have added more power to the national grid, with the country attempting to switch from reliance on hydro-power by using gas sourced locally to generate electricity.

    The new projects, funded from the Millennium Challenge Account, have ensured sufficient supply and eliminated rationing, a common trend in some of the East African countries.

    Tanzania's electricity tariffs are relatively low compared to those of other East African countries. But investors complain about the unreliability and quality of electricity.

    Tanesco acting managing director, Felchesni Mramba, has given defaulters two weeks to pay up before the crackdown starts. The electricity supplier's offices will remain open on Saturdays to give more people a chance to pay up.

    Tanesco currently collects Tsh70 billion ($44.4 million) to Tsh80 billion ($50.8 million) every month, but new Minister for Energy and Minerals Prof Sospeter Muhungo is emphatic that the utility must collect all pending bills, which would enable it pay debts totalling Tsh308 billion ($104 million).

    The bulk of Tanesco's large debtors are companies, factories and institutions.

    In his address to Parliament, the minister mentioned prominent institutions that were "stealing power" as including St Mary Schools and Access Bank.

    Tanesco says the crackdown will be different from the half-hearted exercises customers have become accustomed to.

    "If a customer is found to have bypassed, tampered with, or cut the seal off the meter or made illegal connections by using unauthorised technicians, they will be heavily penalised," warned Ms Masoud.

    In addition, the culprits' names will be published in the media. "This will be done regardless of what station, position, status they hold, so that the general public is made aware of the saboteurs in their midst. We shall then take them to the police and ultimately the courts," said Ms Masoud.

    Journalists will be invited to witness the crackdown on electricity thieves while police will provide security for the electricity firm's staff as they conduct the raids.



     
  2. BAK

    BAK JF-Expert Member

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    Waanzie Zanzibar kule kuna deni la zaidi ya shilingi 50 billioni ukiweka na penalty for late late payment na interest charges basi linaweza kufika zaidi ya shilingi 60 Billioni....itasaidia sana katika kupambana na ukata mkubwa katika shirika hilo.
     
  3. nngu007

    nngu007 JF-Expert Member

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    Seriously Mmmm... Ask them Wabunge's to Help... Some of your directors know them...
     
  4. r

    rodrick alexander JF-Expert Member

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    Kweli kama wamepania kukusanya madeni wasichague watu binafsi Taasisi za serikali pamoja na kupitishiwa bajeti ya kulipia umeme kwa makusudi hawalipi na pia Zanzibar walipie umeme wasitegemee kubebwa ama sivyo wawakatie
    mwisho ni wafanyakazi wenyewew wa Tanesco ambao wakati shirika linahangaika kusurvive wao account zao zina zaidi ya bilioni 1
     
  5. U

    Ubungo JF-Expert Member

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    Mama Lwakatare amelipa?
     
  6. a

    afwe JF-Expert Member

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    Hata hivyo wamechelewa sana. Walitakiwa kufanya hivyo siku nyingi
     
  7. N

    Nguto JF-Expert Member

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    They should not plan but they should take them to court!! What are they waiting for?
     
  8. Narubongo

    Narubongo JF-Expert Member

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    "Tanesco currently collects Tsh70 billion ($44.4 million) to Tsh80 billion ($50.8 million) every month" hapo bado hawajawalipa symbion, songas, iptl + makampuni mengine yanayowauzia umeme, mafuta mazito, mishahara, na mengine kibao ... kazi kwenu mlioaminishwa na kukubali shirika linajiendesha kwa faida
     
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