Zitto demands EAC probe into ‘cooked’ figures

Dar es Salaam. ACT Wazalendo leader Zitto Kabwe has recommended that an investigation be conducted to determine whether figures about the national economic growth in the second quarter of 2017 were genuine.

“If it’s established that the figures were cooked, those responsible should be punished,” he told journalists here yesterday.

“The East African Community, the African Development Bank and the World Bank can carry out an investigation to established whether Tanzania doctored its economic statistics or not. If it’s found that the figures were falsified action should be taken,” he said.

He also called on the government to review its policies so that more money can remain in Tanzania instead of taking it outside the country. He cited the purchase of Air Tanzania Company Limited aircraft as a case in point.

Mr Kabwe, who doubles as the Kigoma Urban MP, compared Bank of Tanzania (BoT) figures about the economic growth in the second quarter of 2017 with those in similar periods in the last four years.

He claimed it was evident that statistics in the second quarter of 2017 were wrong and defied key economic theories and sharply deviated from those of the previous four years.

“Statistics have been cooked to depict that the country’s economic condition is good while the truth is that the economy has shrunk,” he said.

Mr Kabwe compared BoT statistics about gross domestic product, growth of money supply, real price growth in the second quarter from 2013 to 2016 and calculated the GDP difference between rate nominal and real growth rate.

He argued that the four years had 0.7 average of money velocity compared with a velocity of -5.6 in 2017.

He said banks’ ability to lend money to customers was a way of increasing money supply in the economy. He cautioned the government against releasing more money for purchases abroad to undertake major development projects, warning that would kill the economy because money circulation would fall further.

According to him, it is difficult for the Tanzania Revenue Authority (TRA) to maintain its tax collection targets as the economy is shrinking and revenues from imported goods have fallen.

“The fifth phase government has made successes in plugging holes on tax evasion. But, at the same period we have witnessed a huge shrinkage of the economy. Therefore successes recorded in the war against tax evasion have been overshadowed by economic contraction.”

He suggested that the Controller and Auditor General audit government revenue collections between July and August 2017 and make them public.

He also advised TRA to give a breakdown of revenues collected in each department and clearly state whether there were refunds considered as revenue included in the report.

Last week, the outspoken MP raised a similar concern, doubting BoT economic statistics. He argued that they were likely “cooked to give a positive picture” about the economy.