Je, ni busara serikali kuipatia pesa Precision Air?

[Chacha Kisiri]

Buku saba guys where are you? Karibuni kwenye thread mbona hamchangii? Au mpaka msikie Dk Slaa katajwa au CHADEMA imetajwa ndio mnajitupa!

CC: Ritz, HAMY-D, chama & Co. Ltd

 

[butron]

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.

Let precision Air perish as her elder sister ATC,someone somewhere might be puzzled as to why why am I saying so,am saying so based on the comment of Mr.Shirima on his former CEO kioko.His complains features prominently that his company had hired an incompetent CEO,funny enough even the Board of Directors was incapable,then a simple quetion comes across,why should the government risk the tax payers money by investing in a company with visionless and unclear line of authority like Precision Air?.Anyway Mr.Shirima you are warmly welcome to standard chartered Bank for borrowing just as our government has been doing.

 

[Kidzude]

Wenye nayo ndio hao waliopo serikali

Insane Tanzanians so tunadilute shareholding zote za KQ amabzo ni 49% percent kama sikosei. Kwa nini msimpe mwakyemebe hizo pesa akodi japo ndege mbili. Kenya wanastake kubwa precision. Mangi;s mnapigwa bao huku mnaona rudidni migombani makijipange mwaibiwa mbona?.

 

[Kidzude]

Mazee mi naona kama kuna kamchezo strategicaly kalichezwa hapa. Naomba sana akina shirima potezeni kama hata dola laki mili tafuteni consultanat areview strategy zenu na kureshafle management yenu. Sioni sababu ya nyie kufiliska hivyo. Naamini sister company KQ atawasaidia kama hatawasidia my intution will be right.

 

[SDP_TZ_Mpya]

The only appealing strategy is to bail out the carrier through purchase of the KQ shares. I understand that KQ owns 49% of the shares. So, it would a more justifiable decision for the Government to buy foreign-owned stake and make it pure Tanzanian.

Then, Precision Air and the national carrier ATCL can have complementarity specialization such that Precision have domestic with EAC region concentration while redeemed ATCL have regional (SADC) and international concentration.

Let the Government own both carriers na mipango ya kibiashara na uchumi iwe wazi. Otherwise, kufa kwa Precision ni kuiua seka ya Utalii kwani Fast Jet haina extensive commercial presence bado nchini.

 

[Shark]

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?

Who says ATCL was not given a bail-out?
May be you can give it another name, but over a Year, over 200 ATCL staff were given salaries and other benefits without having a single operating airline.

Kifupi ATCL ilikua kama ZIGO LA MWIZI

 

[VUVUZELA]

No company in Tanzania is too big to fail.

 

[Mphamvu]

Huwezi kula bila na wewe kuliwa kidogo.

Ndiyo wale wale walioua Reli ya kati ili malori yao yapate tenda kusafisha mizigo ndani na nje ya nchi kama Rwanda, Burundi na Zaire!!

Tulia uliwe!!

 

[VUVUZELA]

Nchi ya kuliwa na kusubiri CAG kuja kubariki ulaji!

Ritz, William Malecela, Kobelo, Rejao, Faiza Fox
Wakuu mbona mmeuchuna? Siku zote naheshimu opinions zenu whether nazipenda au la.
Hebu nipeni perspectives zenu ktk hili

 

[August]

Who says ATCL was not given a bail-out?
May be you can give it another name, but over a Year, over 200 ATCL staff were given salaries and other benefits without having a single operating airline.

Kifupi ATCL ilikua kama ZIGO LA MWIZI

ATCL ilikuwa shirika la serikali na mgt yake ilikuwa public, hivyo ilikuwa jukumu lake kufanya hivyo, hii Precision air ni Public in the sense shares zake zinauzwa to the public, lakini ni Private in the sense mngt yake ni ya mtu binafsi, hivyo faida au hasara ni zake na hao walio nunua shares, hawakutushirikisha wala kuishirikisha serikali walivyo kuwa wanagawana faida na mishahara pamoja na ajira, leo wame fail ndio wanatuona sisi ni wenzao, halafu Deni la KQ atalibeba nani? au shares zao zitauzwa at a discount, na Deni la hao share holders wengine itakuwaje?
ni vizuri likafa natural death wagawane hao madeni na mali kufuatana na share holding zao na kuanza upya na wakiwa waangalifu, aliye umwa na nyoka akiona unyasi ana shtuka.

 

[broken ages]

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.

ni vema na haki ikiwa ATCL haikuwahi kuomba ama kuililia serikali kuhusu kubebwa na tena kwa staili hii ya PW
na ikanyimwa.basi serikali inayo haki ya kusikiliza kilio na maombi ya PRECESSION na kuyatendea haki inayostahili kama kampuni ya kizalendo

 

[Rufiji]

Hivi Bunge letu linafanya kazi gani? Nani aliyeamuru hizo hela zitolewe bila ya baraka za Bunge?

 

[VUVUZELA]

Hivi Bunge letu linafanya kazi gani? Nani aliyeamuru hizo hela zitolewe bila ya baraka za Bunge?

Ni jambo la kushangaza sana mambo kama haya ndio maana yanampa kiburi Kagame kutudharau

 

[Prisoner 46664]

For your information Precision Air is an incorporate organization that employs more than 700 Tanzanians

Mkuu,

Forgive my saying, but you seem to have completely lost touch with numbers. Do you know what 700 people means? That is the average number of people who get invited to one wedding function in Dar es Salaam each saturday,..in fact, those people will not even fill up one of the two Nyerere lecture theaters at University of Dar es Salaam.

So you need us to use hard-earned tax payers' money to bail out 700 people. Do you know how may new schools could have been built using TZS 51 billion?Have you any idea how cross cutting that investment would be? Anyways..think again.

 

[VUVUZELA]

Mkuu,

Forgive my saying, but you seem to have completely lost touch with numbers. Do you know what 700 people means? That is the average number of people who get invited to one wedding function in Dar es Salaam each saturday,..in fact, those people will not even fill up one of the two Nyerere lecture theaters at University of Dar es Salaam.

So you need us to use hard-earned tax payers' money to bail out 700 people. Do you know how may new schools could have been built using TZS 51 billion?Have you any idea how cross cutting that investment would be? Anyways..think again.

700 employees? ATC had more than 3000 employees back then and nobody gave a dam.n

 

[Pastor Achachanda]

Ari mpya nguvu mpya kasi mpya yenye maisha bora kwa kila kiongozi wa TANZANIA

 

[kuku87]

bwana shirima acha kuweweseka, wakati wa kukopa mbona hukutushirikisha sahv ndo walilia watu kununua hisa, uza ndege, lipa deni then you start from the scratch instead of fooling around with people's money

 

[Baba V]

"Ikiwezekana watanzania wale NYASI lakini pesa lazima itolewe kwa PA" hivi Mramba si ndo mmiliki wa asilimia kubwa ya hisa za PA?? bado anataka tuendelee kula NYASI kwa ajili ya Ndege!??? anazipenda sana ndege...!??? As for my government, I keep my fingers crossed, They always go for the WORST..!

 

[kuku87]

"Ikiwezekana watanzania wale NYASI lakini pesa lazima itolewe kwa PA" hivi Mramba si ndo mmiliki wa asilimia kubwa ya hisa za PA?? bado anataka tuendelee kula NYASI kwa ajili ya Ndege!??? anazipenda sana ndege...!??? As for my government, I keep my fingers crossed, They always go for the WORST..!

that z passion, I think he z passionate with planes

 

[sixgates]

bwana shirima acha kuweweseka, wakati wa kukopa mbona hukutushirikisha sahv ndo walilia watu kununua hisa, uza ndege, lipa deni then you start from the scratch instead of fooling around with people's money

Hiyo ndiyo option aliyobakia nayo. Hana sababu ya kung'ang'ania ndege ambazo anaziendesha kw hasara. Akiziacha zikachukuliwa na benki atabakia na ndege zake nne ataendelea na biashara vizuri.