...with monthly payments of 4 billion shilings to IPTL and 152 million shilings a day to Richmonduli, netgroup problems solutions and songa payments, this was expected Daily News; Monday,April 14, 2008 @00:01 Tanesco suffers 1378bn/- loss TUMA ABDALLAH in Dodoma Daily News Monday, April 14, 2008 THE Tanzania Electric Supply Company (Tanesco) suffered a 137.9bn/- loss last financial year, the Controller and Auditor General (CAG) said in a latest report on public firms. The CAG report for 2006/07 financial year notes that the loss is almost thrice the company's loss of 54.5bn/- recorded in 2005/2006. It attributes the trend to expensive purchases from independent power producers - the Independent Power Tanzania Limited (IPTL) and Songas Limited. The cost of power purchase during the year under review, it says, exceeded revenue generated by over 4bn/-. "This is a result of prolonged drought which has limited the company's hydro-power generation capacity, forcing it to resort to independent power producers", reads the report. It says as of December 2006, the company's liquidity was in critical phase, as the level of debts reached 87bn/- and the overdraft facility used had reached 65.2bn/-, which was an increase of 42.8bn/- from the previous year. The company also continued to experience a surge in its debts, due to interest charges and delay in settlements of bills by some clients. The report listed six other public corporations in the red as the Board of External Trade (BET), Dar es Salaam Water Supply and Sewerage Company (DAWASCO) and the National Insurance Corporation (NIC). Also in the red are Mtwara Urban Water Supply and Sewerage Authority (MTUWASA), Tanzania Posts Corporation (TPC) and the Tanzania Railways Corporation now Tanzania Railways Limited (TRL). TRL has, however, been privatised and operates under the new operator. Apart from incurring losses for a number of years, the report says the entities have also been experiencing deteriorating working capital, increased operational costs against decreased revenue. It has recommended for efforts to increase revenue and reduce operating cost, identify and recommend for closure, divestiture or restructuring of loss making units. It has also advised enhancement of employees' motivation to improve performance. The CAG further calls for thorough research prior to privatization of state-owned firms.