Tanzanian People Should Stop Funding ATC (ATC is not necessary!! Socialist Mentality!!) | JamiiForums | The Home of Great Thinkers

Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

Tanzanian People Should Stop Funding ATC (ATC is not necessary!! Socialist Mentality!!)

Discussion in 'Jukwaa la Siasa' started by Kamundu, Nov 13, 2011.

  1. K

    Kamundu JF-Expert Member

    Nov 13, 2011
    Joined: Nov 22, 2006
    Messages: 2,109
    Likes Received: 455
    Trophy Points: 180
    The goverment should focus on increasing business in with more private Air companies instead on increasing investment and corruption in ATC. Why Tanzania is poor is because of this type of socialist mentality!. We have Tanzanians who are conducting business in Airline why should the goverment work with them and other new ventures instead of this type of stupidity!!

    Tanzanian taxpayers are set to pay a Lebanese aviation company a total of Sh22.64billion ($12.58 million) for service that wasn’t delivered, The Guardian on Sunday can reveal today.
    The amount, which is more than what the government gave Air Tanzania two months ago, is another instance of poor contracting signed by the national airline when former Chief Executive Officer David Mattaka was at the helm, and a Lebanese aviation firm, Wallis Trading Company Inc.
    While Mattaka was the CEO of ATCL, Andrew Chenge, a former Attorney General and now Bariadi East MP was the Minister for Infrastructure, during 2007 when the bogus contract was signed.
    Ironically, those responsible for the costly and dubious contracts walk freely as taxpayers feel the pinch, amid skyrocketing prices of basic commodities. In September this year, the government gave Sh16 billion as a bailout package for the troubled national airline, ATCL. The allocated money however, is yet to be released by the Treasury.
    The $12.5 million which is due to be paid is the leasing cost for Airbus 320 -214 for the past 34 months where the plane was grounded, The Guardian on Sunday has established.
    Reliable sources from ATCL and within the Treasury confirmed to The Guardian on Sunday about the hefty payments to be paid to a Lebanese company anytime soon.
    They told The Guardian on Sunday at different moments this week that there was a push to have the payments made soon, though there was opposition on the legitimacy of the massive payments.
    The said aircraft, A320-214 was leased from Wallis Trading in October 2007 but in a questionable set of circumstances it was immediately grounded for major technical maintenance in France, where it remained there for seven months until May 2008, when it was deployed to fly the Dar- Johannesburg route.
    Officials of the Ministry of Communications and Transport as well as the Treasury disclosed to this paper: “This aircraft operated for seven months from May to December 2008 but as per agreement the lease bill of $370,000 a month begun to accumulate right away from the date of signing that agreement and no difference on that bill regarding the period the aircraft was operational or grounded for maintenance.”
    Thus the government is compelled to cater for $15.17 million for lease fee of non-operational aircraft, used for seven months out of 48 months of the lease period from 9th October 2007 to 27th October 2011, when the aircraft was officially released by ATCL to the leaser - Wallis Trading.
    “The contract lease agreement was for a duration of six years and since the aircraft has been released before completion of the agreed period, the government is also responsible for paying compensation in view of that early termination of the agreement, bringing the total amount of money to be paid to Wallis to more than $32million (Sh57 billion)”.
    The Gurdian on Sunday has established that the exact amount due to be paid is $32,659,316.12.
    It has also been established that although there are some government officials posing serious questions on the authenticity of the accumulated debt, several senior officials at the Ministry of Transport and Finance were ready to see the payment effected soon.
    An independent expert in the airline business told this paper that the market value of leasing aircraft like the one leased by ATCL could not go higher than $250,000 a month and wondered as to why the operational and non-operation leasing bill remained the same.
    “During maintenance period the aircraft is entirely rested therefore there is no operational cost, how comes then the charges remain the same. This is a straight forward point; what I know is that the cost could have been renegotiated and brought down to about $30,000 a month when the plane was on the ground. A contract like this is a poor one,” the expert intoned.
    Due to the fact that ATCL was once partly privatised to South African Airways which had bought 49 percent of ATCL shares back in 2002, negotiations for the debt payment also included the Consolidated Holding Corporation (CHC), which oversees all state owned firms earmarked for divestiture. As it stands it is a matter of time before the staggering amount of money could be fully paid to the leaser-Lebanese Company as it only awaits the signature of the Permanent Secretary at the Ministry of Finance.
    One the key paragraphs in aircraft (Airbus 320-214) release agreement reads: “……Additionally a lump-sum of compensation is payable to the leasing firm for early termination and for failure by the lessee to deliver the aircraft in the condition required under schedule 3 paragraph 6 and (10-13) of the lease agreement.
    The Other Cost remain outstanding (OA) and TA amount and the period of other terms for payment have been agreed today between us, you, the Ministry of finance and Technical Committee, appointed by the government-CHC subject to the letter signed by the Permanent Secretary of Finance as per the discussion between him and Wallis at the ministry on October 27th 2011 at 9.30.”
    And as the government prepares to pay $32.6 million accrued from leasing the aircraft, The Guardian on Sunday has been reliably informed that the same plane was sold by Wallis Trading to Zimbabwe at $16 million, less than 50 percent of lease bill payable by Tanzania.
    Also according to an official document at the Ministry of Transport and CHC the airbus debt forms more than half of the total ATCL debt which by end of October 2011 stood at Sh90 billion. Total Airbus 320 – 214 lease debt is Sh57 billion.
    The said aircraft was leased in 2007 in the preparation for a second divestiture of ATCL, to be partly sold to the Chinese company Sonangol, which never signed a formal contractual agreement with the Government but had pledged to buy ATCL not less than five Airbus aircraft by 2012.
    In line with the then eagerly awaited ATCL take-over by Sonangol, the ATCL management rushed to obtain lease of the A320-214 from Wallis Trading, a company said to have a close working relationship with Sonangol.
    The plane operated in Liberia on a lease basis and then leased to South American state of El Salvador, the sources indicated.
    By the time Tanzania entered into lease agreement in October 2007 the aircraft was due to go for a major technical maintenance, known as ‘Check C’ plus 12 years but that fact was only established after the agreement was penned leading to the aircraft be grounded in France for seven months.
    Experts inside the troubled airline had earlier advised ATCL management to instead acquire a Boeing 737-300, which consumes 15 percent less fuel than an A320 but it carries 128 passengers unlike A320 which has a 150 seat capacity.
    To start with, the 737-300 would have been suitable to operate regional and domestic routes, considering the current business outlook for ATCL, in the view of an ATCL official.
    The two aircraft have similar types of engines but the 737-300 has less power than the A320.
    Since ATCL has already been operating the Boeing 737-200, it would have been cheaper and easy for the latter to adjust to the 737-300 in terms of training and developing the same calibre of pilots and engineers familiar with Boeing technology.
    Air Tanzania Company Limited (ATCL), a limited liability company, was established under the Companies Act to take over the operating assets, and specified rights and liabilities of ATC, as well as the creation of a new company, Air Tanzania Holding Company (ATHCO), to take over the non-operating assets and all other liabilities of ATC.
    South African Airways was the winning bidder and in December 2002, after signing an agreement with the government, it bought a 49 per cent stake in ATC for $20m, of which $10m was the value of the shares and the remaining $10m for the capital and training account for financing its proposed business plan.
  2. B

    Borat Member

    Nov 13, 2011
    Joined: Oct 27, 2011
    Messages: 22
    Likes Received: 0
    Trophy Points: 0
    Wanvongea utadhani hizo pesa zipo
    Hilo deni ni la baba Riz1 kwa kutoa kizi kwa kujuana
    Sasa hivi deni litakuwa la Nundu yeye ndio kampa mshikaji wake Chizi, unafikiri maintenance cost ya CRJ mchezo hata ya Airbus haioni ndani
    Yote yatajulikana 2015 na wote watalipa hizi pesa
  3. ubun2

    ubun2 Senior Member

    Nov 14, 2011
    Joined: Jun 23, 2011
    Messages: 145
    Likes Received: 1
    Trophy Points: 0
    (While Mattaka was the CEO of ATCL, Andrew Chenge, a former Attorney General and now Bariadi East MP was the Minister for Infrastructure, during 2007 when the bogus contract was signed.)

    This says it all. One particular name that keeps popping up repeatedly in most of these bogus contracts that have cost the TZ taxpayer unnecessarily but ended up being CASHCOWS for fewTZ officials. No Accountability for this this particular official, who has cost Tanzania colossal LOSS. Even when a million dollars were found in his offshore account and he dismissed the money as peanuts, NOTHING, NO ACCOUNTABILITY. Even when SFO presented credible evidence against this official for his role in BAE, NOTHING was done, NO ACCOUNTABILiTY! Some Good Governance official gave him a clean chit!!! GO FIGURE!
    These officials are elected to serve the public, they are publicly elected by your vote. It is their fiduciary duty to serve you in the position they occupy. If that trust in broken, they Are ACCOUNTABLE!!! But here NOTHING!!! THEY roam FREE as Vultures.
    This is called massive leadership FAILURE! Core Governance Failure!! If NOTHING is done concerning endemic corruption in this country, TANZANIA's feet and hands are shackled. Tanzania will not be able to move forward!
    The former AG played an immense role in continuing the VALAMBHIA case, where few TZ officials & friends made millions each day the case was in courts. INSTEAD of obeying RULE of LAW, these individuals continued to repeatedly blatantly disregard it. AND continued to steal from Valambhia and the Tanzania taxpayer. Its called DAYLITE ROBBERY, its still continuing today. November 14, Monday, at the High Court of Dar es Salaam, the most longest, historic, expensive case in DAR's history continues. An Unconstitutional, bogus case against a dead man by the AG continues. A case which has provided the means to fill the pockets of few TZ officials & lawyers who befriend them.

    Massive Governance and Leadership FAILURE! Whether people want to believe it or not, this country is in development crisis.
  4. Inanambo

    Inanambo JF-Expert Member

    Nov 14, 2011
    Joined: Jun 26, 2011
    Messages: 2,864
    Likes Received: 1,148
    Trophy Points: 280
    Air Tanzania ya nini? kwani tanzania kuna tatizo la usafiri wa Anga kwa vile Air Tanzania haipo? Ishaurini serikali iwekeze kwenye huduma nyingine. Wanaoitaka ATC wanakumbukia safari za Dubai za kila mfanyakazi na familia yake kufanya shopping ya viatu na suti kwa ajili ya maduka yao. Imarisheni sekta binafsi acheni mtimanyongo kwa kisingizio cha National Flag Carrier! Ndege yoyote inayoanzia TAANZANIA inabeba bendera ya Tanzania.
  5. Fredrick Sanga

    Fredrick Sanga JF-Expert Member

    Nov 14, 2011
    Joined: Jan 27, 2011
    Messages: 3,148
    Likes Received: 19
    Trophy Points: 135
    Tununue hisa precision air, inatosha.
  6. J

    Jasusi JF-Expert Member

    Nov 14, 2011
    Joined: May 5, 2006
    Messages: 11,484
    Likes Received: 165
    Trophy Points: 160
    Tungejifunza kutoka ndugu zetu wa Ethiopia. Naunga mkono kuwepo ATC lakini lisiendeshwe jinsi linavyoendeshwa sasa hivi.
  7. t

    timbilimu JF-Expert Member

    Nov 14, 2011
    Joined: Sep 2, 2010
    Messages: 4,779
    Likes Received: 151
    Trophy Points: 160
    Mkuu hata mimi naunga mkono uwepo wa ATC tena imara. Kampuni binafsi ziwepo na zitengenezewe mazingira mazuri ya biashara na ushindani.
  8. Mizizi

    Mizizi JF-Expert Member

    Nov 14, 2011
    Joined: Mar 8, 2008
    Messages: 1,266
    Likes Received: 9
    Trophy Points: 135
    "Angekuwa aliyefanya haya ni muislamu mngesikia "Madrassa" mara oh shule hakuna. Acheni kuzungumzia dini kwa hoja zote ili tuungane kwa kila swala linalohusu nchi yetu. Kwani taasisi ikiwa inaongozwa na muislamu hata ikifanya vizuri mnaponda kwa kusingizia dini! Haya bebeni wenzenu hao!
  9. ubun2

    ubun2 Senior Member

    Nov 14, 2011
    Joined: Jun 23, 2011
    Messages: 145
    Likes Received: 1
    Trophy Points: 0
    Its not about religion. Its about LEADERSHIP. Face the facts! Its about serving the people who elected you to office. Study history.
  10. K

    Kamundu JF-Expert Member

    Nov 14, 2011
    Joined: Nov 22, 2006
    Messages: 2,109
    Likes Received: 455
    Trophy Points: 180
    Here in US they have 87,000 planes in the air daily but they are all Private. Why should we start to compare Tanzania with poor Ethiopia?. The Goverment should not run any company period!. ATC is not a company is a scam! how many planes do they have? how many employees do they have and what are they doing at the first place?. Brand New 737 cost $40M-$50M so why are they paying for $12M for leasing for a shame company?. I feel Me and most people here we are lucy some here are very educated, in foreign contries and we are going to do well but most of Tanzanians back home they dont have water, power, teachers and we have known Tanzanians who are corrupt and our communities respect them and call them business people. If we are going to let it go over and over again Tanzania is going to be like old Brazil you must have a gun and wall in your house!! Brazil changed and now Brazilians are happiest people in the world with GDP higher than Russia and India because Brazil realized that what is important is the country.