According to PAC, they decided to inquire for the work plan after the Controller and Auditor General (CAG) report advised to involve the Treasury Registrar on account that the country’s laws give his office mandate to deregister any public organisation based on performance.
PAC Chairman, Zitto Kabwe issued the directive at parliament offices in Dar es Salaam yesterday when his committee met up with Tanzania National Parks (TANAPA), Ngorongoro Conservation Area Authority (NCAA) and ATCL to deliberate on how to revive the financially troubled company.
Zitto told the Treasury Registrar, Lawrence Mafuru to form a team which will prepare a document that indicates how other stakeholders such as TANAPA and NCA will be involved in revamping ATCL. He insisted that all documents should be handed over to the committee before the end of this financial year.
“We are aware of the presence of other teams that were tasked by the government to work on reviving ATCL, but TANAPA proposed to the CAG that the Treasury Registrar should take the lead in this process because it is within his office,” he said.
Explaining further, Zitto said committee members advised the government to bring on board more stakeholders such as the national park authority as well as the public in efforts to boost ATCL’s capital instead of depending on external investors.
Zitto was optimistic that involving the Treasury Registrar will speed up the process of finding the way forward towards revamping ATCL.
Meanwhile, ATCL Board Chairman, Salim Msoma informed the PAC members that the government had in the past two years formed two teams to work on the same issue but to no avail as until now the company’s financial situation remains worse.
He said the impacts of suspending ATCL’s services suspension are now seen. He advised the government to consider bringing in local investors instead of focusing on searching for foreign investors, adding that experience has shown that some foreign investors are only after their personal gains.
“Let us look for capital from other sources like the tourism sector and other local investors who can buy shares from the company,” said Msoma. Soon after his appointment as Transport Minister in January this year, Samwel Sitta said the government intends to list the Tanzanian flag-carrier ATCL at the Dar es Salaam Stock Exchange (DSE) in efforts to increase the firm’s sources of revenues.
He said once listed at DSE, more people, especially Tanzanians will have opportunity to invest in the company. He said decision to list the firm at the stock market was chiefly due to the increasing financial crisis facing the company.
Late last year, the then Minister for Transport, Dr Harrison Mwakyembe told the parliament that discussions with investors would only be sealed after the government takes over the accumulated ATCL debt of 133bn/-.
Dr Mwakyembe said after all procedures, the government would complete negotiations with investors like the Oman based company, the Al Hayat Development and Investment LLC which was willing to inject USD 100 million into the ATCL.
The minister said the prospective investor was also planning on building a centre for ATCL to train pilots.
The 2015/16 national development plan which was tabled in parliament early this year is also silent on plans to uplift the parastatal that is on its knees.
In the 2014/15 budget session in parliament, it was revealed that ATCL’s 133bn/- accumulated debt was the main reason for keeping away foreign investors from investing in the company.
SOURCE: THE GUARDIAN
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