Mwalimu Bank faces closure, says JPM

Dar es Salaam. President John Magufuli has said today that the Mwalimu Bank is on the list of banks, which are likely going to collapse due to poor performance.

The President made the remark in Dodoma today, December 14, when speaking during the launch of the Annually General Meeting for the Tanzania Teachers Union (TTU).

Ironically, the bank, which was established in 2012 has its capital decreasing steadily despite monthly contribution from the teachers, the president disclosed.

“Teachers wanted me to officially open their bank, but after going through their financial report, I felt sad because it was making loss rather than generating profit,” said the President.

He added that people who have been appointed to run the bank are not there for the teacher's interests.

He said: “When you owe us your money, you should also think about your bank, which denies you income because of poor management.”

In another development, he made a promise on teachers’ salary arrears totaling Sh25 billion, saying it would be paid after the government completes verification of certificates.

“In the past two years, we have already paid a total of Sh56.92 billion whereby Sh14.23 was for salaries and the remaining went for other debts. We understand the teachers’ concerns, but I promise that everything will be fine,” he said.

He warned those who submitted wrong information on arrears to make correction soon because they will not be paid, stressing that shortly after the varication process ends, money will be released.

He further told the AGM that during the earlier verification, report showed that there were 3,000 ghost teachers.

Earlier, acting TTU President Leah Ulaya promised the president that teachers will work patriotically to ensure the government’s goals are achieved.