Only Sh100m project funds for ministry

Dodoma. Several development projects, planned for execution during the 2018/19 financial year by the Ministry for Minerals, may have suffered due to a lack of funds, figures show.

Parliament approved a total of Sh58.9 billion for both recurrent and development expenditure for the ministry of Minerals during the 2018/19 financial year.

Out of the money, Sh19.6 billion was meant for development expenditure.

But requesting Parliament to endorse Sh49.46 billion as budget for the ministry for the financial year 2019/20 here yesterday, the minister for Minerals, Mr Doto Biteko, said out of the approved development funds for 2018/19, only Sh100 million was actually disbursed.

Some of the projects that were earmarked for implementation during the 2018/19 budget include coming up with ways to increase government revenues accrued from the country’s minerals.

The government also promised to come up with strategies that would boost production in small and medium sized mining operations.

In the 2018/19 budget, which was presented to the National Assembly by the-then Minerals minister, Ms Angellah Kairuki, the government pledged to foster value addition for Tanzania’s minerals while also strengthening audits on the health, safety and the environment in mining operations across small, medium and large scale mining operations.

During the 2018/19 financial year, the government promised to promote investment into strategic mining operations while also improving the business environment for local investors to inject their money into the sector.

Apart from supervising, coordinating and improving policies, laws and regulations governing the mining sector, the ministry also pledged to come up with strategies that would ensure that Tanzanians are reaping maximum benefits from their country’s mineral resources.

But Mr Biteko told Parliament yesterday that since President John Magufuli instructed regional commissioners to open mining trading centres in their areas, a total of 22 such locations have been opened.

The Parliamentary Energy and Mineral Committee expressed dismay at the poor disbursement of budgeted funds to the ministry.

“The amount disbursed so far is below one per cent of the development budget that this Parliament approved last year. This has resulted in delay in implementation of a number of development projects,” said the committee’s deputy chairperson, Ms Mariam Ditopile.

She said the committee understands that some Sh8.6 billion was set aside for the processing of gold nuggets at Buhemba and that the money will now be spent as capital for the State Mining Corporation (Stamico) upon completion of negotiations for a joint venture between the state-owned firm and the investor.

“This committee sees that the negotiations between the two were taking too long to materialize, something that may affect execution of project,” he said, further reminding the government to release development funds as approved by the Parliament.

A total of 15 priority areas are in Mr Biteko’s budget for the financial year 2019/20 which starts on July 1. They include some that were lined up for implementation in 2018/19.