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UDA privatisation illegal, says POAC

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BabuK, Aug 6, 2011.

  1. BabuK

    BabuK JF-Expert Member

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    Aug 6, 2011
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    The Parliamentary Standing Committee on Public Organisations Accounts, (POAC) has declared all transactions entered into by Dar es Salaam Transport Company, (UDA) Board of directors illegal, saying the firm is still a public entity.
    POAC chairman Kabwe Zitto told a press conference here that his committee did not recognise the sale of government’s unallotted shares amounting to 49 percent to the local investor, Simon Group Ltd.


    “The entire process of selling the unallotted shares did not follow legal procedure. This is unacceptable and therefore UDA status as a public entity remains,” said Zitto.
    Flanked by the committee’s deputy chairman, Deo Filikunjombe, Zitto said according to Parliamentary standing orders, POAC is the sole committee charged with the oversight task of the public organisation and that there was no way the committee would accept such illegal transactions.
    He added: “According to laws governing the privatisation, once an organisation is specified for divestiture, its board has no powers to pass any decision in regard to its assets without approval from Consolidated Holdings Corporation (CHC), a state firm in charge of overseeing all specified public organisations for privatisation.
    Filikunjombe said there were several irregularities in the process of UDA privatisation including the fact that part of the initial payment termed as commitment fee amounting to 400 million/- was deposited into the personal and associated bank accounts to UDA.
    According to Filikunjombe 250 million shilling were deposited into a personal bank account in Dar es Salaam, 30 million at a Makambako’ NMB private account while 20 million was deposited into a private account at Songea NMB branch. The payment was made on September 2, November 26 and December 9 respectively.
    According to committee’s findings the money was deposited into those accounts by Simon Group Ltd following directions by the UDA board and was required to be transferred to UDA accounts.
    However the transfer had been not made until mid-June when Simon Group Ltd took over the UDA administration.
    POAC said the source of the problem was the office of Treasury Registrar which did not bother to appoint a government representative to the UDA board for 10 years.
    The POAC announcement came as the executive chairman of the Simon Group Ltd, Robert Kisena announced at a press conference here that his company had legally bought 52,353 shares for 1.260bn/-.
    Assets of UDA which was established in 1974, were valued at 12 billion/- in 2009.
    Kisena said: “My company followed all the procedures. We have already paid 760m/- and are going to pay 500m/- within this month of August.” Kisena also said Simon Group had plans to purchase 150 articulated buses with a carrying capacity of 150 passengers and 50 mini-buses.
    UDA confusion comes at a time when the budget estimates for the Ministry of Transport under which UDA falls are scheduled to be tabled in the House today.
    SOURCE: THE GUARDIAN
     
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