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Ufisadi na Wizi wa Mali Ya Umma: Hata Watanznaia Hawa!

Discussion in 'Jamii Intelligence' started by Sophist, Dec 26, 2011.

  1. Sophist

    Sophist JF-Expert Member

    Dec 26, 2011
    Joined: Mar 26, 2009
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    Kutoka Taarifa Ya CAG ya 2009/2010
    "....Potential Non Recoverability of Members Funds at NSSF
    Our review of the NSSF investments in loans revealed non compliance withcontractual terms, hence casting doubt as to their recoverability. Quite anumber of loans were issued and as of now they are not being serviced whichindicates
    that there were no thorough analysis before granting the loans. Because ofthe irrecoverability of the loans, the management has started providing some asbad debts ready for write off. The loans include the following:-

    a) Kiwira Coal and Power Ltd
    Principal Loan issued to M/s Kiwira Coal and Power Ltd. by the NationalSocial Security Fund amounting to Shs.9.009 billion of which the repaymentperiod expired on 8th January, 2008. The Fund issued a demand notice to the borrower. TheBorrower requested for an extension of payment period because the syndicationarrangement was yet to be completed. At its 44th meeting held on the 17th November, 2008, the Board of Trustees approved an extensionof payment period up to 31 December 2008. To date no payment has been made bythe borrower. As a result, interest on the loan has accumulated to Shs.2.689 billion.The total loan as at 30th June, 2009 stood at Shs.11.698 billion.

    b) General Tyre East Africa
    Principal loan amounting to USD 10 million was advanced to M/s General TyreEast Africa in 2005 and the first interest payment was supposed to be made inDecember 2005 while the principal repayment was supposed to be made inNovember, 2007. The loan has 85% government guarantee to cover for theprincipal amount. On 4/7/8/2008 the Fund wrote to the Government to call forthe guarantee. The remaining balance will be recovered by the proceeds from thesale of the pledged security. As at 30th June 2009 the loan amount stood at Shs. 6.576 billion. Areminder
    letter was sent to the Ministry of Finance and Economic Affairs on December15th 2008. On April 24th 2009 the Ministry wroteto NSSF requesting the Fund to be patient while the government finalizes liquidationprocess. In order to know the current value of the collateral, the Fund, videletter with Ref. No. NSSF/LA/F.507/08/2004/VOL.II/164 dated 10/07/09 requested ArushaMunicipal Valuer to carry out valuation of the property offered as securityagainst the loan. Interest of Shs.3.461billion was provided for as bad debts infull.

    c) MediTech Industrial Co
    The Fund issued loan amounting to USD 1.45 million to M/s MediTech Industrialcompany for manufacturing syringes. The company failed to meet its loanservicing
    obligation when due. To solve the problem, the company entered into a jointventure with investors from Denmark M/s Emunio Tanzania limited who agreed toinject Euros 1.8 million. On 29th January 2007, the borrower approached the Fund with a request forcapitalization of interest up to 31st December 2007 and extension of repayment of the loan fortwo years. The request was approved by the Board of
    Trustees at its 44th meeting and interest of USD 74,645 was paid. The loan was restructured andwas supposed to be fully repaid by year 2011 instead of 2009. Due to lack of workingcapital, the company has not started full commercial production. Therefore, itonce again failed to fulfill its loan obligation. On 8th of May 2009 the Fund issuedDefault Notice. The Notice expired on the 8th of August 2009. The total amount outstanding wasShs.2.653 billion as at the 30th June, 2009.

    d) Kilimanjaro Bazaar
    e) The principal loaned amounting to Shs.105 million was issued in threeinstallments to M/ Kilimanjaro Bazaar between 1990 and 1992. By February 1999,the accumulated sum was Shs.788,752,431. Since the borrower had failed to meetits obligation, in February 1999 the borrower was taken to court. The Fundfiled a case which sought to liquidate the loan by attaching security that was offeredagainst the loan. The borrower had however won the case and NSSF was instructedto pay defamation of Shs. 600 million. The Fund appealed against the decisionof the
    High Court - Moshi and the ruling has been given on the preliminaryobjection raised by Kilimanjaro in favour of NSSF. Hearing of the appeal wasmade on the 27th of May
    2009. The judgment day is being awaited. The total amount outstanding is Shs. 850 million. Theprincipal and interest amount provided for were provided as doubtful
    debt in full.

    f) Mbowe Hotels
    The loan amounting to Shs.15 million was advanced to M/s Mbowe Hotel in1990.The borrower failed to service the loan resulting in accumulation ofinterest to Shs.229.898 million by June 2001. The Fund instituted legal actionagainst the borrower. Although the Fund won the case, the borrower failed torepay the loans as
    instructed by the Court. Subsequently in December 2006 and January 2007 theborrower paid a total of Shs.55 million. Therefore, the outstanding amount is Shs.174.898million. At the 14th Special Board meeting held on 21/07/2001, the Board of Trustees approved suspensionof growth of interest on this loan with effect
    from 30th June 2001. The interest amount as at 30th June 2009 was Shs.174.898 million and was provided as baddebt in full.

    g) Continental Ventures
    Principal loan amounting to USD 3.5 millon was advanced in 2005 to M/sContinental Ventures. This loan was supposed to be guaranteed by the Governmentby 85% of the principal loan amount. However, to date, the guarantee has notbeen granted despite of assurances from the Minister of Finance. The borrowerhas closed down
    production activities. Despite several follow ups, the borrower has notpaid the interest and principal amount. The Fund has called for the guaranteebasing on the
    commitment letters from the Government. The Fund has already sent a DefaultNotice. The Notice expired on 26th June 2008. The Fund is now in the process of selling the assets. This loanof USD 3.5 million was provided as bad debt for in full.

    4.3 Unpaid (Stolen) Stipend Costs to Tanzanian Studentsin Algeria (Euros 10,137.55)
    We noted that USD 12,539.32 (Euro 9,154.05) disbursed to Tanzanian studentsstudying in Algeria via the Tanzania Embassy in France in April 2009 to coverstipend costs to five students was not paid to the recipients. The amount wastransferred by the Embassy of Tanzania in France to Account No.0163300019/68 ofRweikiza
    Rugeyamba Erasto by then a leader of the Association of Tanzanian Studentsin Algeria for the sole purpose of distributing the amounts to the intendedstudents.
    Rweikaza Rugeyamba Erasto swindled the whole amount leaving thebeneficiaries living a miserable life. Moreover, Rweikiza took the advantage ofbeing entrusted
    with the student’s funds by forging the original documents sent to him fromthe Tanzanian Embassy in France by making another payment list in which heindicated lesser amounts sent to the students by the Board. In February 2009the Board disbursed USD35,644.11 (€27,897.36) equivalent to Shs.46,872,000 butthe culprit made another list short of € 70.25 to each student and took the differencesamounting to € 983.50. However, Rweikiza was discontinued from studies and hasbeen deported to Tanzania and the case was brought to the attention of the
    police and investigation is still in progress.

    4.4 Disbursement of Loan Fund to Overseas Continuing StudentsWithout Progress Academic Reports
    Audit in India, Russia and China revealed that all continuing students arebeing paid tuition fees and accommodation funds without their academic progressresults having been reviewed by the Board. It was not made clear the basis thatHESLB uses to disburse overseas loan funds to students who might have beenexpelled due to various reasons like poor performance in academics or due toother reasons that
    students may decide to abscond their studies. In China, Magimila ShamoroAhmad the student of Tianjian Medical University absconded studies after thereceipt of direct deposit from HESLB of Shs.12,468,280.":A S 465:
  2. B

    Bulesi JF-Expert Member

    Dec 26, 2011
    Joined: May 14, 2008
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    Kwa staili hii the potential kwa wastaafu kukosa mafao yao ni kubwa wakati huo huo wahusika wakina Dau watakuwa wamejificha kwenye mahekalu yao waliojenga kwa kutumia hizo 10% wanazohongwa kwa kutoa hiyo mikopo mibovu!!