IPTL to pay Sh100bil accumulated by Tanesco

The new IPTL Managing Director, Mr Joseph Makandege,

What you need to know:

Mr Makandege said that up to now Tanesco has accumulated at least Sh270billion debts as capacity payment charges to the IPTL under the stipulated agreement.


Dar es Salaam. The crisis ridden Independent Power Tanzania Limited (IPTL) has a mounting task of paying debts of more than Sh100billion that have been triggered by the heavy debts accumulated by Tanzania Electric Company (Tanesco), the new IPTL Managing Director, Mr Joseph Makandege, has disclosed.

In an interview with The Citizen on Wednesday Mr Makandege said that the accumulated debts include the taxes owed to Tanzania Revenue Authority and other billions of shillings owed to various creditors, partners and stakeholders of such independent power firm.   

“It is true that we fail to pay salaries and several stakeholders, including taxes to government due to Tanesco accumulation of debts of Sh270billion. We are still communicating with them and the government at large,” he said.

Mr Makandege said that up to now Tanesco has accumulated at least Sh270billion debts as capacity payment charges to the IPTL under the stipulated agreement.

He is also optimistic that Tanesco is committed to pay such hefty debts, because up to February this year the public power utility company has paid Sh3.5billion to IPTL.

On Monday aggrieved workers of IPTL workers said they missed their salaries for three consecutive months, while accusing the tycoon who owns such energy company to pocket a heft payment of Sh533 million a month, which amounts to Sh6.39 billion annually.  

The Chairman of IPTL workers union, Mr Clemence Mtondoro alleged that apart from the hefty salaried funds set for the former owner’s foreign co-workers who are also pocketing millions of shillings.

The secretary of IPTL Emanuel Nkundi said that IPTL has been facing financial difficulties wih zero operating account, as Tanesco is no longer paying capacity charges.

The IPTL Human Resources Manager Ms Basila Elias also confirmed that the workers were bitter because of working without salaries and existence of wide pay disparities. 

Efforts to contact Tanesco boss, Dr Titus Mwinuka for clarification on payment of debts to IPTL was futilem while the Tanesco Public Relations Manager Leila Muhaji said it was premature for the parastatal to give a clear statement on that issue.