SISI WATANZANIA NI CHAKULA CHA SIMBA TU!

Sisi Watanzania ni chakula cha simba tu. Hatuna kimoja tunachokiweza isipokuwa ufisadi. Nchi ndogo ndogo wala hazina rasilimali kama sisi wana-national airlines imara na sisi kila siku tunashindwa!

Kila kinachotiwa kwenye ATC kinapotea kama kimetiwa lindini!

Hatari hii jamani. Hivyo kweli tutafika huko tuendako au tutakufia njiani?

No instant plans to rescue ATCL

The government seems to have no immediate plans to liberate Air Tanzania Company Limited (ATCL) from the Sh133bn accumulated debt that scares away investors.

 

Despite many questions being raised by Members of Parliament about the national carrier in the ongoing parliament session, the government has kept mum.

 

The 2015/2016 national development plan tabled last week is also silent on plans to uplift the parastatal that is on its knees.

In the 2014/2015 budget session it was revealed that ATCL’s Sh133bn accumulated debt was the main cause why prominent international investors shy away from investing in the company.The massive amount was cited as a major reason that all past efforts to privatize the airline again have failed, with investors shying away from inheriting such legacy debts and having to pay them off or be faced with immediate court cases to recover outstanding amounts.  

Minister for Transport Dr Harrison Mwakyembe then told parliament that discussion with investors will only be sealed after the government’s taking over the debt.

 

“The ministry has submitted business plan on how to revive ATCL and we are just waiting the process to be completed,” he said.

The minister said after all processes, the government will complete negotiation with investors like Oman based company, the Al Hayat Development and Investment LLC that is willing to inject $100m into the company.

 

The prospective investor is also planning to build a centre for ATCL to train pilots.

 

Several past efforts to have Chinese airlines take a stake in ATCL  failed to yield any positive results, suggesting that indeed, after due diligence, potential investors see more problems than potential yields.

 

Air Tanzania, after receiving a leased Bombardier CRJ200 jet a few months ago, is now also under pressure to further increase their fleet as they promised in order to roll out additional domestic and regional destinations, justifying ongoing financial support by government.

 

Recent news that state-owned ATCL will soon acquire eight aircraft thanks to an Omanese investor next year was welcomed by local professional pilots who have been sidelined by private airlines operating in the country for a long time.

 

But when this paper reached the minister to know immediate plans to improve ATCL, Dr Mwakyembe declined to discuss the matter, saying he could not discuss the matter yet though admitting that the government had not cleared a longstanding debt.

 

“The government is yet to clear the debt, but it is not something I can discuss now, just wait,” said Dr Mwakyembe.

  In 2006, South African Airways gave up a 49 percent stake in the airline for $20 million after only five years of being a shareholder.

 

The government announced in 2009 that a Chinese firm, China Sonangol International, was interested in a 49 percent stake in the national flag carrier but the deal could not materialise.

 

But, responding to some issues raised by MPs during the 2015/2016 national plan debate, Dr Mwakyembe concentrated so much on developments in the railway line and plans to improve rail transport.

 

He said the government has bought five locomotive engines which are currently being converted in Morogoro and that the World Bank had also promised to provide three more such engines soon.

 

According to the minister, the government has bought five shunting locomotive engines that are at the Morogoro based workshop.

 

Another 13 locomotive engines, he said, would arrive in the country in January next year, all in efforts to improve rail transport.  

He said the Tanzania Railways Limited (TRL) is strongly picking up and will soon stand on its own without depending on funding from the government.

 

“Honourable speaker, I have requested the treasury registrar to remove TRL from the list of corporations that need funding from the government as from the next financial year,” he said, adding that until that time, the parastatal would be self financing.

 

The minister said if that target is not met top TRL leaders, as well as him, would be ready leave the task to  ‘ more competent people to run the rail company. “If I fail there will be no other option but to pack and go,” he said amid applause.

SOURCE: THE GUARDIAN