Government gets 23bn/- dividend boost from Tiper, NMB, Puma.

Finance and Planning Minister Dr. Phillip Mpango (Second left) receives a Tsh 2 billion cheque presented to him  by the Tanzania International Petroleum reserves Limited (TIPER) board chairman Mr. Abdulkarim Mruma as dividend accrued from its 2015 profits.

TREASURY coffers have received a boost of 23bn/- in dividends for the financial year 2015 from three companies in which the government has stake as the Treasury Registrar has warned to take action against non-performing entities that have failed to make returns on investments by public funds.

The three corporations, which Finance and Planning Philip Mpango hailed for boosting the government efforts in improving social amenities, include Tanzania International Petroleum Reserves Limited (TIPER), Puma Energy Tanzania and National Microfinance Bank (NMB). The financial institution dished 16.5bn/- while PUMA Energy Tanzania and TIPER injected 4.5bn/- and 2bn/-, respectively.

Dr Mpango received dummy cheques for the funds yesterday and directed the Registrar to make a close follow up on corporations in which the government has share but have for years failed to remit a penny in dividend. “These institutions ought to be transparent in their transactions.

It does not make sense that each year they claim to record losses and yet still operating. It is high time they started contributing to the national coffers,” he directed.

Dr Mpango went on to hail the Treasury Registrar, Mr Lawrence Mafuru, for his efforts that had enabled the government to boost non-tax revenues through payments of dividends by some profitable firms.

On his part, Mr Mafuru said managements and board of directors in firms that have failed to deliver should weigh themselves whether they deserve to continue serving in their capacities.

As per budget estimates for fiscal year 2016/2017 presented by the minister on Wednesday, the government expects to collect a total of 2.6 trillion/- in non-tax revenues during the year out of which 1.3tri/- will be garnered through entities under the Treasury Registrar.

“In view of the above, all companies in which the government has a stake should be run profitably to achieve the revenue target; otherwise managements and boards in non-performing corporations will be sacked,” Mr Mafuru warned.

For his part, the Deputy Minister for Energy and Minerals, Dr Medard Kalemani, said he will see into it that all institutions under the ministry declare profits and pay dividends to the government.

Dr Kalemani cited the Tanzania International Petroleum Reserve (TIPER), which he said had recorded profits to the tune of 11.5 million US dollars last year but whose shareholders had agreed to re-invest the large chunk of it to expand its storage capacity.

TIPER Board Chairman Professor Abdulkarim Mruma appealed to the government consider the firm’s facilities as a ‘single receiving point’ for petroleum products imported through the bulk procurement arrangement.

Prof Mruma said that through the use of TIPER facilities, the government will be able to trace revenues and at the same time reduce demurrage charges at the port.

“The single terminal at TIPER can receive a full 90,000 tonnes of fuel from the Single Point Mooring at 2,000 tonnes per hour meaning a full vessel can be discharged in two days while it takes eight days in other privately owned terminals,” he remarked.

The arguments were echoed by the Minister for Industry, Trade and Investment, Mr Charles Mwijage, who stressed that the country would benefit a lot by having in place a single receiving point.

Mr Mwijage, an expert in the oil industry, proposed an establishment for floating of stock of fuel to be sold at any given time to countries in the region.