Tanzania : Magufuli to close all unprofitable public companies

Treasury Registrar Athumani Mbuttuka gave investors of unprofitable firms until end of August to revive the companies and complete full due payments as per signed contracts. © RR

Casablanca, (ADV) – Tanzanian President John Magufuli on Monday ordered all unprofitable public firms that have for years failed to remit dividends to the government to be shut down.

“The government has invested more than 21.5 billion U.S. dollars in various public firms but it has been receiving very little amount in return. All the 90 public institutions should pay dividends annually and they should be shut down if they fail to do so,” said Magufuli.

Speaking in the commercial capital Dar es Salaam shortly before he received 319 million U.S. dollars dividends from 43 public firms, Magufuli said most of the public firms were not performing well due to factors like poor management.

Magufuli warned public firms over foul play in declaring assets, profits, management fees and operational costs.

© Bur-csa – ADV