Je, ni busara serikali kuipatia pesa Precision Air?

[Prisoner 46664]

I happened to be going through a front page news item on the citizen today. This was on nothing other than the Government of Tanzania's seemingly intent to bail-out Precision Air Services Limited, a DSE listed company, currently in a god-knows-how-we-got-here sort of financial turmoil. According to Citizen, the bailout is expected to be of approximately TZS 51 billion, yes, tax payer's money.

I should say I completely believe that this, if it happens, will have been another case of absolute misuse of public funds. There are several reasons to this.

First, in its current operations, Precision is almost completely falling short of its current immediate competitors fast jet, whose coming has meant sleepless nights to Precision. I am yet to see precision come up with its own business survival strategy. Since the coming of fast jet, it has all been a down-hill-fall for PW.

What does one call a stock-listed company that could not resist even one year of competition in a market that it had solely controlled since forever? I remember 2011 when I would cautiously encourage prospective investors to buy precision air stocks only because it had been a monopoly in local flight destinations. I realized that such would not necessarily be the case if a strong competition arose.

Secondly, and even more importantly, in a very strange way, Precision seems to be lacking a knowledgeable board of directors. It is shames to have had the company's Chairman of the board, Mr. Michael Shirima admittedly say that the board has been irresponsible for the company's failure.

I fail to know which board will now be managing the bail-out funds from the Government. In his interview with the Citizen, Mr. Shirima, blamed the former CEO of the Company, Mr. Kioko of leading the company to its current state of affairs.

"He (Kioko) deserves credit for steering the airline during a long transition period, but he had some weaknesses which are to blame for the problems we are now encountering" Mr. Shirima said. He cited as an example the ambitious plan that saw the airline lease three Boeing 737 jets to fly to new destinations in Africa, adding that the decision did not take into account the risks involved.

Well, here I am, thinking, could the CEO have taken the business expansion decisions on his own? Did the members of the board review the proposed plans before approval? Is it the same board that is going to sit and approve how the TZS 51 billion, Tanzania tax payers' money will be utilized too? I see a bubble growing.

This case reminds me of what happened in 2005 when a shadowy company going by the name of Tan Power Resources limited managed to undertake a number of Government-guaranteed deals which ultimately ended up being a loss to the nation.

Tan Power Resources Limited, having managed to have the whole of Kiwira Coal & Power Limited (KCPL) sold to it by the Government of Tanzania for a tiny TZS 700 million, went on to acquire from CRDB, PSPF and NSSF, Government-guaranteed loans amounting to $ 15m (including accrued interests only up to year 2008).

As those who had visited the mine site since its privatization will tell you, there has never been a capital investment done on the mine, even though such huge sums were summoned by Tan Power Resources Management. Strange? That is how smart people rob a nation. A friend of mine once said, the best way to rob a bank is to actually own it.

 

[FUSO]

si ndiyo inayobeba nembo ya utaifa wenu ikiwa nje ya nchi, na ndiyo airline kubwa ya nchi kwa sasa lazima upate Ruzuku.

Mliamua kwa moyo mmoja kuimaliza the Wings of Kilimanjaro, sasa haya ndiyo matunda yake!

 

[Inside10]

Wenye nayo ndio hao waliopo serikali

 

[Kaa la Moto]

Nchi ya kuliwa na kusubiri CAG kuja kubariki ulaji!

 

[Prisoner 46664]

Wenye nayo ndio hao waliopo serikali

Nimeshangazwa sana jamaa wamekaa bagamoyo ati kujadili kama waipe ama wasiipe pesa..na wakaishia kukubaliana kwamba hiyo pesa itolewe. Kwanini tusianze kwanza kui-bailout Air Tanzania?

 

[Genekai]

This is insanity so to speak. Air Tanzania, 100% owned by the government is on its deathbed, why not try to awaken it instead of this other privately owned airline co.? I cry for my country Tanzania.

 

[Mwanamayu]

NO! wanaomba hela kutoka kwa serikali ya nchi maskini wakati Fastjet inashuka bondeni, je na wao wanataka hiyo pesa ili washuke bondeni? Kama huna kifua hacha kushindana!!!

 

[Prisoner 46664]

Nchi ya kuliwa na kusubiri CAG kuja kubariki ulaji!

Na baadaye, wananchi watakapoamka na kuuliza,
tunatafuta wachawi, tunawaundia tume,
baada ya matokeo ya uchunguzi,tunawahamisha vituo vya kazi watuhumiwa.

 

[Stroke]

sio vibaya kwa serikali kuisaidia kampuni iliyokua ikifanya vizuri katika kipindi hiki kigumu cha kifedha wanachopitia, ila si vibaya na wao wakajaribu kuwa na competitive rates ili kurudi kwenye soko, na wakimaintain their normal stat..

 

[Tanzania Kwanza 2015]

Shirima aliwaamini sana wakenya sasa kilio. Ukiwa na monopoly ya soko lote la nchi, KQ walikuwa wa nini? Kama walikuwa wema si wa kubail out now. Ndege zenyewe kwa kucancel na kuchelewa ndo zenyewe. Yaani zinaendeshwa kama mabasi ya enzi zile ya Tanganyika basi, abiria wasipo tosha basi ndege inahailishwa, hawajali kama walio takiwa kasafiri na ukawachelewesha ndo abiria wako wa kesho.

Jina precision halitendewi haki kwa ucheleweswaji mnaoufanya. Kifupi pamoja na uzawa nilio nao, kwa kweli nimehamia fast jet. Inflight magazine ya fast jet inaonyesha wameweza kuondoka kwa muda kwa 99.7%. Nna uhakika precision hizi data hawawezi zitoa maana wanaweza kuwa chini ya 50%.

Tunaipenda precision kama shirika la home lakini mmiliki aliona wa Kenya ni bora zaidi yetu aende zake kwa Uhuru ndo am bailout. .sorry

 

[Komeo]

Kuna mambo mengine ukiyasikia yanakutia hasira kiasi kwamba unatamani uwakute hao viongozi wanaoidhinisha huu upuuzi, uwasambaratishe kwa bakora huku matusi yakikutoka mfululizo!

Yaani tumefikia hatua hii kwamba Viongozi hawaogopi wala hawaheshimu walipa kodi kwa kiasi hiki! And nobody senior to them bothers to intervene this. Halafu ukiwasema wanakuambia wewe ni mchochezi, ni mpinzani kutoka CHADEMA, na hata kesi ya ugaidi wanakupikia.

 

[mshunami]

This is insanity so to speak. Air Tanzania, 100% owned by the government is on its deathbed, why not try to waken it instead of this other privately owned airline co.? I cry for my country Tanzania.

Who else cares if the government is careless!!!

 

[Prisoner 46664]

This is insanity so to speak. Air Tanzania, 100% owned by the government is on its deathbed, why not try to waken it instead of this other privately owned airline co.? I cry for my country Tanzania.

I tell you there are many reasons why that unrest in Egypt will not end so soon,
Once an average citizen has acquired enough knowledge base to assess the decisions of their Government, a country shall be difficult to contain.
We owe all these loss-making decisions by our Governments to our own inability to challenge decision makers.

 

[Getstart]

Kwenye mfumo wa kibepari tuliokubali, bailout kwa kampuni binafsi na pesa za umma siyo dhambi ili mradi tu kuwe na sababu na masharti mahsusi ya kuzirejesha pesa hizo.

Wakongwe wa mfumo huu (Marekani) wanayafanya haya. Huko Marekani kwenye usafiri wa anga hakuna shirika hata moja ambalo linamilikiwa au Serikali ina hisa hata moja, lakini kila yakiingia kwenye matatizo (ambayo ni ya kawaida katika biashara hii) usaidiwa - ikiwemo kwa kutumia mfumo wao wa kuwekwa chini ya uangalizi maalumu (Chapter 11).

Maoni ya mtoa mada mengine ni sahihi lakini si kweli kuwa matatizo ya Precision Air yanatokana na ushindani na hasa kutoka kwa FastJet. Kwa wale walioko katika sekta hii watakueleza kuwa wateja wengi wa FastJet siyo wale waliokuwa wateja wa Precision air. Kiukweli idadi ya wateja wake haijateteleka.

Tatizo lao kubwa ni kutokuwa makini katika uwekezaji wao na kiwango cha ukuwaji ambao haukuzingatia uwezo wa kampuni.

 

[Prisoner 46664]

sio vibaya kwa serikali kuisaidia kampuni iliyokua ikifanya vizuri katika kipindi hiki kigumu cha kifedha wanachopitia, ila si vibaya na wao wakajaribu kuwa na competitive rates ili kurudi kwenye soko, na wakimaintain their normal stat..

Mkuu stroke..kwanini ATC hawakupewa walipopitia "kipindi kigumu cha uchumi"?
Halafu si vyema ikachunguzwa kwanza sababisho la hicho kipindi kigumu cha uchumi ni nini?!la hasha imeshaamuliwa..

Ukichukua mfano wa General Motors America, hawa walikuwa bailed-out sababu ni kampuni kubwa sana na yenye impact kubwa kwenye uchumi wa marekani, kuanzia kwenye kuzalisha ajira, kwenda kwenye exportation etc..sidhani kama precision in uwezo wa kuathiri uchumi wetu kwa namna mtambuka namna hii.

 

[LUSAJO L.M.]

A million and one reasons to love Tanzania.

 

[Getstart]

Mkuu stroke..kwanini ATC hawakupewa walipopitia "kipindi kigumu cha uchumi"?
Halafu si vyema ikachunguzwa kwanza sababisho la hicho kipindi kigumu cha uchumi ni nini?!la hasha imeshaamuliwa..

Ukichukua mfano wa General Motors America, hawa walikuwa bailed-out sababu ni kampuni kubwa sana na yenye impact kubwa kwenye uchumi wa marekani, kuanzia kwenye kuzalisha ajira, kwenda kwenye exportation etc..sidhani kama precision in uwezo wa kuathiri uchumi wetu kwa namna mtambuka namna hii.

Same reason - Precision Air leo ikifa tutakuwa hatuna Shirika la Ndege kabisa! Kwa hiyo impact yake ni kubwa kwenye sekta hiyo. Kuhusu ATCL sijui kwa nini, lakini nafikiri haikuhitaji bail out kwani ilikuwa inapata pesa toka Serkalini wakati wote. Swali litakalobaki ni ikiwa pesa walizokuwa wanapewa zilitosha na kusimamiwa vizuri.

 

[Bulesi]

Nimeshangazwa sana jamaa wamekaa bagamoyo ati kujadili kama waipe ama wasiipe pesa..na wakaishia kukubaliana kwamba hiyo pesa itolewe. Kwanini tusianze kwanza kui-bailout Air Tanzania?

This can only happen in a country where its leaders have no sense of priorities!!! Air tanzania is in urgent need of capital injection so that it can at least manage its domestic routes but this government which is the 100% owner of the Airline thinks it is better to bail out its competitor precision Air than its own airline!!! There is no economic rationale for such a decision and Kikwete should veto it. Wakina Mramba warudishe fedha walizoficha Uswiss waisaidie Airline yao badala ya kutuumiza sisi walipa kodi. In a capitalist economy which we are trying to emulate; it is free entry and free exit, those who are strong survive and the weak are left on the way side in this case let us leave precision on the way side. Why should our tax payers bail out Kenyan shareholders who own part of PC?

 

[Mpanzi]

This is insanity so to speak. Air Tanzania, 100% owned by the government is on its deathbed, why not try to waken it instead of this other privately owned airline co.? I cry for my country Tanzania.

It is simple, ATCL will not wake up from its deathbed no mater how much fund will be injected to it, it is better to bail out PW because at list there are great signs of recovering. All in all Airline is a risk business especially in today's business environment. Most Airlines have closed their businesses while others have been restructured. Even Kenya Airways, is in a turmoil, it has been recording loses over the past two years. Emirates and Quarter are surviving because of their countries oil money. Precision Air should change its strategy and become a budget airline, that is the only way it can compete with the fast growing Fast Jet.

 

[Prisoner 46664]

This can only happen in a country where its leaders have no sense of priorities!!! Air tanzania is in urgent need of capital injection so that it can at least manage its domestic routes but this government which is the 100% owner of the Airline thinks it is better to bail out its competitor precision Air than its own airline!!! There is no economic rationale for such a decision and Kikwete should veto it. Wakina Mramba warudishe fedha walizoficha Uswiss waisaidie Airline yao badala ya kutuumiza sisi walipa kodi.

200% agreed mkuu,
Ubinafsi ni sumu kubwa kwa viongozi wetu.
One can almost tell with certainty that 10% of the TZS 51 bil. will go straight into pockets of these 'wawezeshaji'. Lord have mercy.