Government earns hundreds of billions in dividends

Dar es Salaam. The government’s drive to improve financial discipline in the management of funds in regulatory and executive agencies, as well as in state-owned companies, has started to yield positive results.

One notable outcome of this has manifested itself in the increasing numbers of such public institutions that are now remitting cash to state coffers in one form or another.

There being no specific law requiring executive and regulatory agencies to remit part of their annual revenues to government coffers, most of them used excess funds as they chose – including erecting multiple-story buildings, conducting superfluous seminars and board meetings.

In due course of time and events, the government enacted miscellaneous amendments through the Finance Act, 2011 requiring public agencies to remit 15 per cent of their gross revenues to the national Treasury.

The law became even more binding with President John Magufuli’s anti-corruption crusade.

Receiving a total of Sh736.36 billion in dividends and revenue share from 43 corporations and regulatory agencies in Dar es Salaam yesterday, Dr Magufuli called upon the Treasury Registrar (TR) to deregister corporations and regulatory agencies that fail to remit dividends and the government’s revenue share as due.

The Sh736.36 billion is a 586.9 per cent increase over the Sh107.2 billion the government received during the 2013/14 financial year.

“Despite this positive trend, the government isn’t getting its rightful share. What we have invested in these institutions and companies does not correlate with what we have received in return,” Dr Magufuli said, revealing that the government has invested a total of Sh49.05 trillion in public institutions.

Noting that about 90 public institutions are required to remit dividends/revenues share to the government, the president said only 43 had done so as of yesterday.

Speaking earlier, Treasury Registrar Athumani Mbuttuka said more than a half of the public institutions could not pay dividends as required by law, adding that they need to pull up their socks.

For his part, Finance and Planning minister Philip Mpango said the government is set to increase the Treasury Registrar’s budget and manpower to strengthen his capacity to effectively monitor public institutions and companies.

He also said that the public institutions which fail to pay dividends to the government risk legal action being taken against them.

“I, therefore, order the executive managements of the institutions which have failed to pay dividends to assess themselves before severe measures are taken against them,” Dr Mpango stressed.

Commending the Tanzania Communications Regulatory Authority (TCRA), the Ngorongoro Conservation Area Authority (NCAA) and Tanzania National Parks Authority (Tanapa) for surpassing the targeted dividends, the minister urged other institutions to follow suit in the interest of the nation.

According to Dr Mpango, TCRA paid Sh59.86 billion in dividends to the government, against the set target of Sh30.69 billion. NCA paid Sh22.35 billion against the target of Sh13.4 billion – while Tanapa paid Sh34.74 billion, well above the targeted dividend of Sh30.69 billion.

“The three institutions have done a commendable job, and others should emulate them,” Minister Mpango said, to applause from the audience.

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