Tanzania Government takes over Sh1trillion housing debt

Dar es Salaam. President John Magufuli brought a smile to soldiers’ faces yesterday when he directed the Treasury to take over the servicing of over Sh1 trillion in debt the military owes a Chinese company which built houses in barracks.

President John Magufuli said the Treasury should take over the debt and leave the soldiers stress-free. The Head of State, who is also the commander in chief of the armed forces, was informed that Shanghai Construction Group of China had built 6,064 residential houses for the military, and deductions are made from soldiers’ salaries to pay for the houses.

The Chief of Defence Forces, General Venance Mabeyo, said deductions are made from military officers’ Ngome allowance, which was meant to pay for housing for soldiers who are not offered residence by the army.

According to the contract signed with the company, upon completion of the debt, the officers would permanently own the housing units where they lived in the military barracks.

“Basically, this is difficult and we request the government to take it over,” said General Mabeyo who was speaking at the launch of the construction of the new national defence headquarters in Dodoma.

“It does not click for a soldier to pay from his pocket considering their challenging duties. They cannot understand and it’s really impossible,” said General Mabeyo.

“By the way the allowance is little. The Ministry of Finance and Planning told us to start deducting the money this month but it’s not possible. How can they own the houses in the barracks which are supposed to be for soldiers of the time?” he asked.

President Magufuli accepted the plea and ordered the Treasury to make sure the government takes over the debt to relieve the military officers staying in the houses.

“It’s true that the government of that time signed such contract and it was our fault but from now, I assure the chief of defence forces that the government will take it over,” he said.

“We cannot allow our military officers to start thinking of repaying the loans instead of concentrating on defence issues,” added Dr Magufuli. I’m saying the soldiers will not pay anything and this will never happen in my time. I wonder how the previous leaders signed such a contract in 2012/13,” emphasized President Magufuli.

The construction of new national defence headquarters located at Kikombo area is part of the government relocation to Dodoma, which is now the capital of Tanzania.

Already ministries have been relocated and recently President Magufuli announced to officially shift there. The new defence headquarters which is financed by Chinese army will contain an office for the president who is also the commander in chief of the armed forces in Tanzania.