ngoshwe
JF-Expert Member
- Mar 31, 2009
- 4,131
- 931
If at all the Governement has its stake in the realtioship between TFF and NMB by way of guarantee, these may be few issues to be considered...
THE GOVERNMENT LOANS, GUARANTEES AND GRANTS ACT, 1974
AS AMENDED BY ACT NO. 9 OF 2003
Section 13. Where on the advice by the National Committee (National Debt Management Committee)[1], the Minister (resposnible for Finance) is satisfied that it is in the public interest that the repayment of any principal money and the payment of the in loans To and other charges on any loan raised either within or outside Tanzania by a local government authority or parastatal body requires a government guarantee, the Minister, shall proceed to issue such a guarantee for and on behalf of the Government.
Section 13A.- (1) The guarantee to be issued under section 13 shall be issued under the following terms and conditions that –
(a) the proceeds of a loan being guaranteed shall be utilized in furtherance of the priority
areas as set out in the regulations made under this Act;
(b) the extent of the guarantee covered shall be not more than seventy per cent ( 70%) of the
amount borrowed: Provided that, under exceptional circumstances,
the Minister may, upon the recommendations of the National Committee waive this requirement;
(c) the parastatal organization or body corporate for whose benefit such a guarantee is given,
demonstrates to the satisfaction of the Minister, that it has provided adequate securities to
cover the loan in the event of default by such parastatal organization or body corporate.
Section 18 of the Act provides for the composition of the Committee which is
(a) Permanent Secretary- Treasury who shall be thel Chairperson;
(b) Permanent Secretary- Ministry of Finance;
(c) Permanent Secretary-Ministry of Finance Zanzibar;
(d) Permanent Secretary-President's Office Planning and Privatization;
(e) Attorney General;
(f) Permanent Secretary Prime Minister's Office;
(g) Permanent Secretary Ministry of Foreign Affairs and International Co-operation;
(h) Governor- Central Bank of Tanzania;
(i) Accountant General - Ministry of Finance; and
(j) Accountant General - Ministry of Finance Zanzibar.
The term ''Parastatal Organization" is defined under section 2 of the Act to means -
(i) a body corporate established by or under the Public Corporations Act, 1992 or by or under any other written law in which the Government owns the majority of shares or is the sole shareholder; or
(ii) a body corporate established by or under any written law of the Revolutionary Government of Zanzibar, but does not include any company incorporated under the Companies Ordinance the Company Decree of Zanzibar:
Provided that, where a company is limited by guarantee, a controlling interest is deemed to be established in the company when the amount that the Government or a parastatal organization which is a member of the company has undertaken to contribute in the event of the company being wound up is not less than fifty per centum of the aggregate amount which all members have undertaken to contribute; and reference in this paragraph to a parastatal organization includes references to any such company;''
WHAT IS TFF (this is according to TFF WEBSITE)
The Tanzania Football Federation (TFF) (au Shirikisho la Mpira wa Miguu Tanzania kwa kiswahili), previously Football Association of Tanzania (FAT), is the governing body of football in Tanzania. and controls the Tanzania national football team. It was founded in 1930 and has been affiliated with FIFA since 1964.The Current TFF Constitution came into force 15th January 2006 following the General Assembly held in Dar es Salaam on 14th and 15th January2006.
ISSUES ON THE MATTER
(a) If at all the Government had guaranteed the loan by TFF from NMB, what was the nature of understanding between TFF, NMB and the Government? Was it through the Government Loan Guarantee Act or other undisclosed approaches?
(b) If at all the basis of guarantee is on the Government Loan Guarantee Act as amended, then the questions will be:
(i) Is TFF a parastatal organisation? And if YES,
(ii) Was the guarantee had a blessing of the National Debt Management Committee (from specific date of meeting); and if YES,
(iii) Was all members including from the other part of the Union present, if YES
(iv) Is the issued guarantee having any public interest.
[1] National Debt Management Committee is established under section 16 of the Act as an advisory body to the Minister on all matters relating to external and domestic borrowing, issuing of government guarantees and acceptance of grants on behalf of the Government (see also section 17 on functions);
