These government entities operate on loans

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CAG Kichere said the institutions rely on loans to operate because they have low capital compared to their actual needs.

Dodoma. The Controller and Auditor General (CAG), Charles Kichere report has revealed that operations of 16 government entities rely on loans.
Speaking to reporters in Dodoma on April 12, 2022 CAG Kichere said the institutions rely on loans to operate because they have low capital compared to their actual needs.
In the list he has named, Tanzania Petroleum Development Corporation (TPDC), Tanzania Electric Supply Company (Tanesco), Tanzania Ports Authority (TPA), Tanzania Telecommunication Company Limited (TTCL) and National Insurance Cooperation (NIC).
Others are National Development Corporation (NDC), Tanzania Standard Newspapers (TSN), Tanzania Investment Bank (TIB), Tanzania Forestry Research Institute (Tafori), Arusha Water and Sewerage Authority and State Mining Corporation (Stamico).
The CAG also named others as Tax Revenue Appeals Board, Medical Stores Department (MSD), Tanzania Institute of Education, Petroleum Upstream Regulatory Authority (PURA) and Cashewnut Board of Tanzania (CBT).
In the report, the CAG said that due to the situation the financial capacity of the 16 institutions could be affected due to the high cost of such loans.
"The high debt ratio for capital, among other things, was due to increased loans and costs after failure of paying loans and interest rates on time,” he said.
The CAG advised the institutions to seek funds from the government to increase their capital so that they can repay their loans.
“They should also review their capital structures and monitor loan repayments to avoid interest rates due to delays in payments,” he said.