I hope JK is listening.
Unqualified appointees hinder state-run businessesUnqualified appointees hinder state-run businesses
2009-02-01 11:05:43
By Staff Writer
Politically motivated appointments of individuals to manage state-run institutions were the government`s main blunder that resulted in the killing of public ventures or operating inefficiently, an expert has said.
Dr Haji Semboja said both capitalist and communist economic ventures should be well managed, and warned that appointments of unqualified managers leads to stagnation of firms irrespective of the country`s economic policy.
He gave the experience of Norway where the state still controls a number of well run companies like Statol which is now doing oil exploration in Tanzania.
Dr Semboja who works with the Economic Research Bureau of the University of Dar es Salaam was speaking to The Guardian on Saturday recently on whether Tanzania should review its privatisation of the economy in the face of global financial crisis.
The US, Britain, Germany and France have currently introduced measures to bail out their major banks owing to the world`s economic down turn.
``Politicians are to blame for the mismanagement of state-run companies or even those that are under public-private partnership. What was the point to authorise the selling of the then NBC [National Bank of Commerce],`` Semboja asked.
``You give it to the so-called investors at throw away price on claims that the bank is making loss. After takeover, they make profit in six months. Is that a miracle?``
Giving the example of Air Tanzania, he said the person appointed to lead the troubled airline has neither worked in aviation industry nor has he any technical know-how in that particular field.
``Does it need an economist to know who is fit for the job? Semboja queried, adding: ``If the government wants to see good performance, it must engage a professional job search system for a particular position and stop politicking.``
He said any company be it private or state owned serves the interest of the state, adding that when its business closes down, it is the nationals who will face the negative impact.
``If a company like Air Tanzania or Precision Air stops flying who will be affected? Obviously, it`s the citizen. What if an oil company fails to distribute fuel to consumers? It`s precisely the consumer who will suffer,`` explained Semboja