World Economic Forum Hits Tanzania on Corruption

[Highlander]

World Economic Forum Hits Tanzania on Corruption

Corruption remains a major concern for foreign companies and investors in Tanzania, the now famous World Economic Forum Global Competitiveness report says it is worrisome and government should act with urgency and seriousness. According to development partners like the World Bank, IMF and Development partners Public Finance management they are watching carefully and some have already sent their feelers of discontent in as to how Tanzania wants to manage its debt portfolio. We are watching carefully and once its crosses the red line; we will have no choice but to raise high our red flag with our colleagues in government. So far we are not yet there According to the World Economic Forum Global Competitiveness Report 2012-2013, corruption is economy-wide, and measures to combat it should be strengthened to attract foreign and domestic investors. It is both petty corruption as well as grand corruption that have been identified by foreign companies as an obstacle to investment. The report shows that business executives see corruption as the most problematic factors for conducting business in Tanzania. Status of Business Corruption Although there is no exact figure mentioned as to how much corruption is costing the business community and the investors in Tanzania, it is estimated that the cumulative figure collected in bribes, rents, kickbacks and lost man hours in chasing documents ranges way above in billions of shillings per year. According to the report, companies consider the occurrence of irregular payments and bribes in Tanzania as common. In addition, companies behave unethically in interactions with public officials, politicians and other companies to the point that their behaviour constitutes a competitive disadvantage for the country. On the other hand the procedures for registering a company in Tanzania are described as non-transparent, time-consuming and arbitrarily applied, thus discouraging companies from entering the formal sector. Ministers and high-level officials can exercise a significant amount of discretion, and well-connected companies may obtain unfair advantages. In the World Economic Forum Global Competitiveness Report 2012-2013, the surveyed companies also identify the favouritism of government officials in rewarding contracts to well-connected companies and individuals, and the ethical behaviour of companies operating in Tanzania as competitive disadvantages. One of the main problems regarding business corruption is the lack of enforcement of the various anti-corruption initiatives. Business-relevant areas in which corruption persists include government procurement, licensing, privatization, taxation, ports, and customs clearance. The report cites traffic police, the revenue authority and immigration officials as being very prone to corruption. Public procurement is an area of business activity where foreign companies are very likely to encounter corruption. According to the report, the surveyed business executives do not consider the Tanzanian legal framework for settling disputes and for challenging regulation to be sufficiently efficient. However, the report shows that there has been a slight improvement in this perception as compared to previous years. Companies are advised to be aware that the judiciary is generally seen as corrupt and inefficient, and poses a hindrance for settling commercial disputes in the country. In recent times there have been a lot of talk around the war against corruption yet according to the report no serious actions has been taken to contain the problem. Tanzania's resource and investment potential for development Corruption is a large problem and a major public issue in Tanzania. Although the law penalises official corruption and the government has increasingly begun to investigate offenders, some pubic officials still continue to engage in corrupt practices demanding bribes and kickbacks in exchange for delivery of public services with impunity. With current report card coming from the WEF Global Competiveness report, Tanzania has no choice but to act robustly and quickly to contain the vice as the latest findings from this report damage the Country's promotional efforts as an investment destination of 1[SUP]st[/SUP] choice. The country's strategy foreign policy emphasis on ‘commercial diplomacy' is also at stake and thus making corruption a national security matter requiring immediate address. Despite the fact that Tanzania is endowed with varieties of natural resources that if carefully managed and harnessed would help transform the economy of the country for the better, yet the majority Tanzanians are still treading in extreme poverty. Tanzania needs investors (local and foreign) to invest and transform the potential natural resource base into wealth and income for development. The country has no choice but to fight corruption. Painful facts extracted from various reports SOURCE FACTS 1 The World Bank & IFC: Doing Business 2013: Enforcing commercial contracts requires a small or medium-sized company to go through 38 procedures, taking an average of 462 days at an average cost of 14.3% of the claim. 2 World Economic Forum: The Global Competitiveness Report 2012-2013: Business Executives give the Tanzanian judiciary's level of independence from influences of government, citizens, or companies a score of 3.5 on a 7-point scale (1 'heavily influenced' and 7 'entirely independent'). Business executives give the efficiency of the legal framework for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 3.7 and 3.6 respectively on a 7-point scale (1 'extremely inefficient' and 7 'highly efficient'). 3 Afrobarometer : Preliminary Results Tanzania 2012: 84% of citizens responding to a survey believe that judges and magistrates are corrupt 4 Transparency International: Global Corruption Barometer 2010-2011: Citizens give the judiciary a score of 4.1 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt'). 5 The Bertelsmann Foundation: Transformation Index - Tanzania 2010: Only 5% of corruption cases reported to the Prevention of Corruption Bureau from 2000 to 2005 were heard by a court of law. 6 The World Bank & IFC: Enterprise Surveys 2006: 47% of companies believe that the court system is fair, impartial and uncorrupted. 6% of companies identify the functioning of the courts as a major business constraint. Source: World Economic Forum Global Competitiveness Report 2012-2013 Concerns as burgeoning national debt VS public expenditure The increasing Tanzania's national debt and public expenditure profile has recently evoked debate for wrong reasons as members of the public, civil society, academia and some developments partners raise concerns and caution that the Country has to check its national borrowing appetite or risk taking the infamous road to calamity. According to the Tanzania Coalition on Debt and Development (TCDD), misuse of public funds is killing the nation and putting the future of the country at risks and the increasing national debt is a major factor. Sources from the Bank of Tanzania (BoT), the current national debt now stands at Sh22 trillions, out of which the external debt stood at USD 10.5 billion (Sh 15.9 trillion) and internal debt is USD 3.2 Billion (Sh 5.1 trillion). Based on the facts released by the Bank of Tanzania (BoT), the country's debt increased by about $4 billion between 2007 and 2010, from $6.1 billion in June 2007 to $10.2 billion in June 2010. By October 2010 it stood at $10.8 billion. The BoT says 84 per cent of the total debt stock is owed by the government and public corporations. This is equivalent to $9.1 billion (Sh12.7 trillion). The remaining 16 per cent ($1.7 billion) is owed to the private sector. The debt is higher than the national budget for the whole financial year. It also means that if shared out equally to the over 40 million Tanzanians, each would owe about $214 (Sh 450,000. Figure 1: Tanzania recorded a Government Debt to GDP of 46.80 per cent of the country's Gross Domestic Product in 2012. From 2002 until 2012, Tanzania Government Debt to GDP averaged 50.94 Per cent reaching an all- time high of 66.60. According to a renowned economist and analyst, Dr Prosper Honest Ngowi, a lecturer at Mzumbe University's Dar es Salaam Business School, is worried that the rising debt which in many cases is contributed by bad governance and misuse of funds was not supported by increasing revenues from various government sources. This could raise the country's risk level and affect its creditworthiness. "What worries me is that taxpayers are the ones who suffer most."Tanzania received debt relief amounting to $3 billion in 2001 thorough the Heavily Indebted Poor Countries (HIPC) Initiative. Coupled with improved revenue collections and reduced government expenditure, the total debt stock decreased from $10 billion in 2006 to $6 billion in 2007. But as revenue started falling due to the power crisis of 2006 the debt stock started increasing from $7.5 billion in 2008 to the current levels. YEARS 2005 2006 2007 2008 2009 2010 2011 2012 PUBLIC DEBT (% OF GDP) 63.2 62.8 63 37 35 37.1 39.9 45.4 Figure 2: Graph showing trend of the Government Public Debt as of July 26, 2012.

 

[CHAMVIGA]

RUSHWA NI TATIZO LA KIDUNIA NA SI TANZANIA PEKEE.
HAKUNA KIPINDI CHA RUSHWA ILIYOKITHILI KATIKA HISTORIA YA TANZANIA KAMA AWAMU YA TATU KWANINI SASA AWAMU YA NNE IMEPEWA PROMO MNO?
AU INTREST ZAO ZIMEBANWA NDIO MAANA WANAISHAMBULIA TZ?
MADHAIFU YALIOPO YANATUMIKA KISIASA ZAIDI.
Report ni ndefu nitarudi kujisomea another tym.

 

[Highlander]

RUSHWA NI TATIZO LA KIDUNIA NA SI TANZANIA PEKEE.
HAKUNA KIPINDI CHA RUSHWA ILIYOKITHILI KATIKA HISTORIA YA TANZANIA KAMA AWAMU YA TATU KWANINI SASA AWAMU YA NNE IMEPEWA PROMO MNO?
AU INTREST ZAO ZIMEBANWA NDIO MAANA WANAISHAMBULIA TZ?
MADHAIFU YALIOPO YANATUMIKA KISIASA ZAIDI.
Report ni ndefu nitarudi kujisomea another tym.

Ni kweli Grand corruption imetokea awamu wa tatu katika zile issue za Privatization na Wizi BoT. Ila sijui kwa nini WEF wamekuja na report so extensive safari hii. Lakini ujue Corruption katika Awamu zote tatu zilizopita ni Characteristic ya "Utawala Mmoja" uliopo madarakani, ambao kwa kweli ni uleule. Hawa watu ni mapacha wa mama mmoja. Hakuna mwenye afadhali hapo.

 

[CHAMVIGA]

Ni kweli Grand corruption imetokea awamu wa tatu katika zile issue za Privatization na Wizi BoT. Ila sijui kwa nini WEF wamekuja na report so extensive safari hii. Lakini ujue Corruption katika Awamu zote tatu zilizopita ni Characteristic ya "Utawala Mmoja" uliopo madarakani, ambao kwa kweli ni uleule. Hawa watu ni mapacha wa mama mmoja. Hakuna mwenye afadhali hapo.

Yes inanifanya nisiendelee kuwaamini WB, IMF Na other international organizations kwakuwa sioni uhusika wao katika kutetea utawala bora, uwajibikaji, human right na political torelance katika member wake instead wanatanguliza interest zao kwanza.
Siria watu zaidi 70 elfu wameshafaliki iko wapi UN, NATO na washilika wake? Mbona mauaji ya watu takriban 270 pale Iraq imewafanya kupeleka jeshi, kadhalika hujuma dhidi ya utawala wa Gaddaf n.k.

 

[Highlander]

Yes inanifanya nisiendelee kuwaamini WB, IMF Na other international organizations kwakuwa sioni uhusika wao katika kutetea utawala bora, uwajibikaji, human right na political torelance katika member wake instead wanatanguliza interest zao kwanza.
Siria watu zaidi 70 elfu wameshafaliki iko wapi UN, NATO na washilika wake? Mbona mauaji ya watu takriban 270 pale Iraq imewafanya kupeleka jeshi, kadhalika hujuma dhidi ya utawala wa Gaddaf n.k.

Nakupata, ingawa umenichanganya kidogo hapo: Are you saying Interest za IMF na World Bank kuwapo katika taifa letu ndicho kinajustify Rushwa na wizi mkubwa wa mali ya umma? Kwamba watu wafanye wizi mkubwa na rushwa kubwa, uchumi uvurugike, watu wafanye riot wakilalamikia hali mbaya ya uchumi na nyinyi mpate sababu kusema sera za Soko huria hazifai? is that what you are saying?

Is it possible ku-discuss two different subjects independently?

a) Grand Corruption in Tanzania as a separate topic

b) Sera za Soko Huria as a separate topic

Au wewe unaona hizi topic mbili in inseparable....

 

[CHAMVIGA]

Nakupata, ingawa umenichanganya kidogo hapo: Are you saying Interest za IMF na World Bank kuwapo katika taifa letu ndicho kinajustify Rushwa na wizi mkubwa wa mali ya umma? Kwamba watu wafanye wizi mkubwa na rushwa kubwa, uchumi uvurugike, watu wafanye riot wakilalamikia hali mbaya ya uchumi na nyinyi mpate sababu kusema sera za Soko huria hazifai? is that what you are saying?

Is it possible ku-discuss two different subjects independently?

a) Grand Corruption in Tanzania as a separate topic

b) Sera za Soko Huria as a separate topic

Au wewe unaona hizi topic mbili in inseparable....

No brother what i was trying to show is hypocratiness of these international organization in different paspective contrary na hili la rushwa hapa kwetu.
These international organization they have their own objectives(hiden) ukichilia mbali zile zilizomo kwenye charts zao ambazo ni known internationally. Failing to fill their demand basi report kama hizi na nyinginezo za ukweli na za uongo utaziona.
Rushwa ipo at high rate to our government, private instituitional n so on na jambo lisilokubalika kwani hii ni misuse of human resources for few/personal benefits.
Its true that grand corruption in country and in free market polices are twn separately topics to discuss may be tunaweza jadili hili rushwa hapa kwetu na kuacha hili lengine au unasemaje?

 

[Highlander]

Umenena vema Mkuu. Katika kuanza huo mjadala wa corruption, kubwa na ndogo, natamani kujua WEWE kama wewe unadhani rushwa inaathiri vipi uchumi wa taifa letu? Ukizungumza kama Mtanzania bila mtizamo wa IMF.

No brother what i was trying to show is hypocratiness of these international organization in different paspective contrary na hili la rushwa hapa kwetu.
These international organization they have their own objectives(hiden) ukichilia mbali zile zilizomo kwenye charts zao ambazo ni known internationally. Failing to fill their demand basi report kama hizi na nyinginezo za ukweli na za uongo utaziona.
Rushwa ipo at high rate to our government, private instituitional n so on na jambo lisilokubalika kwani hii ni misuse of human resources for few/personal benefits.
Its true that grand corruption in country and in free market polices are twn separately topics to discuss may be tunaweza jadili hili rushwa hapa kwetu na kuacha hili lengine au unasemaje?

 

[CHAMVIGA]

Umenena vema Mkuu. Katika kuanza huo mjadala wa corruption, kubwa na ndogo, natamani kujua WEWE kama wewe unadhani rushwa inaathiri vipi uchumi wa taifa letu? Ukizungumza kama Mtanzania bila mtizamo wa IMF.

Rushwa simply ni moja katika maadui wakubwa sana wa uchumi wa nchi yeyote hasa nchi maskini kama ya kwetu.
-Rushwa inapotumika katika ukusanyika wa mapato ya kodi let say kusamehe baadhi ya compony kulipa kodi tayari itakuwa imepunguza pato ambapo itapelekea pia kuwa na bajeti isiojitosheleza na mwisho wa siku tutaomba jambo linapolekea thamani pesa yetu kupungua.
-Rushwa katika kusajili private componies it may lead kuwa kampuni zisizo na uwezo hatimaye kuitia hasara serikali hasa pale kampuni inaposhindwa kujiendesha.
Rushwa kifupi inaharibu uwajibikaji mzima wa serikali na kwa misingi hiyo itakuwa ni kumuathili mwananchi wa kawaida ambaye anategemea msaada wa serikali katika kupelekewa huduma za hospital, maji, barabara n.k.
Rushwa athari yake ni sana isiosemwa ikaisha.

 

[CHAMVIGA]

Rushwa inathiri uwekezaji katika nchi,
inaathiri mwanamchi wa kawaida kwani ndie mlipa kodi mkuu au mdau mkuu katika government revenue.

 

[Highlander]

Rushwa inathiri uwekezaji katika nchi,
inaathiri mwanamchi wa kawaida kwani ndie mlipa kodi mkuu au mdau mkuu katika government revenue.

Nakubaliana kabisa na wewe Mkuu Chamviga. Utawala unapoendekeza Rushwa unakuwa hauna tofauti na wahujumu wa uchumi. Mi nashindwa kabisa kuelewa kwa nini taswira ya kuwafanya wala rushwa wajulikane ni wahujumu uchumi haionekani hapa Tanzania.

 

[CHAMVIGA]

Nakubaliana kabisa na wewe Mkuu Chamviga. Utawala unapoendekeza Rushwa unakuwa hauna tofauti na wahujumu wa uchumi. Mi nashindwa kabisa kuelewa kwa nini taswira ya kuwafanya wala rushwa wajulikane ni wahujumu uchumi haionekani hapa Tanzania.

Chini ya serikali hizi zenye utawala wa kuiga wa democrasia ni ngumu suala hilo kufikiwa may be tunai taji serikali ya kidikteta tunaweza fikia hapo.
Serikali zote zilizoiga utawala wa democrasia afrika tumeshindwa.

 

[Highlander]

Chini ya serikali hizi zenye utawala wa kuiga wa democrasia ni ngumu suala hilo kufikiwa may be tunai taji serikali ya kidikteta tunaweza fikia hapo.
Serikali zote zilizoiga utawala wa democrasia afrika tumeshindwa.

Kuweka udikteta kama mpango kazi wa kupita mi naafiki. Mitizamo ikibadilika na watu wakaanza kuogopa rushwa tunafuta udikteta. China wanafanya hivi, ingawa sijui ratiba yao ya mpango kazi wa kutumia nguvu katika vita imekaaje.

 

[CHAMVIGA]

Kuweka udikteta kama mpango kazi wa kupita mi naafiki. Mitizamo ikibadilika na watu wakaanza kuogopa rushwa tunafuta udikteta. China wanafanya hivi, ingawa sijui ratiba yao ya mpango kazi wa kutumia nguvu katika vita imekaaje.

Sasa tukitumia udikteta then watu wakitia akili tunarudi kwenye demokrasia tena, mbona tutakuwa hatufanyi kitu.
By the way demokrasia kwa zama hizi haikwepi hasa kwa sisi watembeza mabakuli sasa tutaendelea hivi mpaka lini? Uzembe wa nani. Dhana uwajibikaji ndani ya ubepari imebakia nadharia tu.

 

[Highlander]

Sasa tukitumia udikteta then watu wakitia akili tunarudi kwenye demokrasia tena, mbona tutakuwa hatufanyi kitu.
By the way demokrasia kwa zama hizi haikwepi hasa kwa sisi watembeza mabakuli sasa tutaendelea hivi mpaka lini? Uzembe wa nani. Dhana uwajibikaji ndani ya ubepari imebakia nadharia tu.

Nadhani tatizo letu ni ukosefu wa elimu kuhusu soko huria. Linatuatia shaka kwa sababu hatulielewi elewi hivi.

 

[CHAMVIGA]

Nadhani ni wakati wa kuwa na serikali ya umoja wa kitaifa ambayo itausisha viongozi kutoka vyama tofauti huenda uwajibikaji ukaimalika kwakuwa wale watakaopewa dhamana wataogopa kutumia madaraka vibaya na dhana ya kulindana itaisha.

 

[Highlander]

Mkuu CHAMVIGA, wazo la serikali ya umoja wa kitaifa si baya, lakini kufanya hivyo kunaleta tatizo la utekelezaji wa Ilani ya uchaguzi. Unatumia ilani ipi hapo sasa.