Why some public institutions recorded losses in three consecutive years

Dodoma. Lack of an investment policy as well as business and strategic plans plunged some public institutions into losses in three consecutive years that led to a downward trend.

The institutions include the Tanzania Petroleum Development Corporation (TPDC), Tanzania Fertilizer Company (TFC) and National Development Corporation (NDC).

Speaking on Saturday, February 2, 2019, the Parliamentary Public Investment Committee (PIC) chairman Raphael Chegeni said TPDC’s loss declined to Sh157.2 billion in the 2016/17 financial year, well below Sh293.7 billion in 2014/15.

He added that TFC recorded a reduced loss of Sh1.9 billion in the 2016/17 fiscal year compared to Sh4.2 billion in 2014/15.

For its part, NDC posted a loss of Sh4.1 billion in 2016/17 compared to Sh4.7 billion in 2015/16.

Mr Chegeni said the company’s investment policy was of paramount importance in taking measures that would root out portifolio risk

“It is high time these institutions changed the way they are doing business so that they can operate profitably,” suggested Mr Chegani.