Tanzanian President Samia Suluhu has warned parastatal heads in the country that non-performing state corporations will be deregistered.
Suluhu says the government has begun assessing the performance of all government-owned corporations in the country.
The president spoke in the commercial capital, Dar es Salaam, on June 17, when the National Microfinance Bank (NMB) was celebrating 25 years of existence (silver jubilee).
“There is no turning back on this issue (parastatals’ performance). There are those that will be deregistered; some will be given a boost to be able to break even, and others will be given guidelines that will enable them to generate profits,” Suluhu said in her speech.
Closely monitoring
The president also warned that she will be closely monitoring state corporations that enjoy monopoly.
“[For instance], the Tanzania Forest Services Agency has no competition, but that does not mean that it should not perform,” she said.
Suluhu said state corporations should not be money pits that only consume, instead of helping in raising revenue.
“The Tanzania Revenue Authority (TRA), you have my blessings. Go after all corporations. I am waiting for a report about [loss-making] entities that should be deregistered, and those that should be commended for helping to raise revenue.”
Suluhu said if a corporation dies, “it dies with its people”. There are at least 270 state-owned corporations in Tanzania managed by the Office of the Treasury Registrar.
In 1998, several parastatals in Tanzania were closed down after a commission recommended they be deregistered due to non-performance and role redundancy.
Other corporations were merged and rules governing membership on boards of directors changed in efforts to reduce public sector wastage.
