Collect unpaid rent, loans board ordered

PAC vice chairman Hillary Aeshi.

What you need to know:

Treasury Registrar recently said delays by government entities to pay for services was the cause for the collapse of the State service providers.   

Dodoma. The Parliamentary Public Accounts Committee (PAC) has instructed the Local Governments Loans Board to serve demand notice to tenants occupying its five houses located at Area D in Dodoma Municipality.

The Committee gave the directive after the Loans Board reported that the tenants owed it a total of Sh36 million in unpaid rent.

The secretary to the Board, Ms Apolonia Chagaka, named the tenants as including the President’s Office-Public Service Management, ministry of Health, Community Development, Gender, Elders and Children, Vice President’s Office and LAPF Pension Fund.

The directive comes only days after Treasury Registrar Lawrence Mafuru told PAC that the government was responsible for the collapse of some of its institutions because of defaulting payment of various charges and fees.

Reading resolutions reached by the Committee after meeting the Board management yesterday, PAC vice chairman Hillary Aeshi said the notice should compel the tenants to pay the areas by end of September.

“These institutions have not paid because they don’t have money. Each year Parliament endorses budgets for payment of various charges including rent,” he said. He asked the Board to forward to Parliament copies of the demand notice. The Committee also instructed the Board to conduct a research for the identification of new revenue sources, modalities of issuing as well as recovery of loans.

Mr Aeshi said the Committee has instructed the Board to present to the Controller and Auditor general (CAG) documents to validate payment of over Sh8 million before the end of business today.

In order to ensure that the Board collects money owed by various government institutions, Mr Aeshi said, they have instructed them to work closely with respective ministries.

The issue of Sh36 million debt was raised by Ms Felister Bura (Special Seats – CCM), who wanted to know when the money would be paid.