Jamar Said
Member
- Sep 2, 2015
- 19
- 35
I hope this note has not been issued by a serious political party with a real chance of winning power in the forthcoming general election. The government is not bound to remain a shareholder in any company for ever and there is no economic argument to support the notion that remaining a shareholder is always the smartest thing to do notwithstanding the market conditions. When a company is listed on stock markets, there are times when it is prudent and indeed profitable to sell (when price is high and has probably reached its peak) and sometimes it is a good idea to hold onto your shares (if the prices are too low or rising but have not reached peak value)..
If this note has been authored by Chadema then it is written testimony of their political immaturity and ignorance of the way markets work. Another fact that is not mentioned here is that if it is true the government has sold its shares, then it is useful to know exactly to whom and for how much before rushing to cry foul? If for example government shares in these companies have been bought by Tanzanian companies and individuals,then it is a good thing for the economic empowerment of our people and the action should be commended and not condemned. After all the government has been holding these shares on behalf of Tanzanians and it is the right thing for the government to release these shares to the market when conditions are right. Tanzanians gain nothing by holding wealth in paper form only just for the sake of being counted as a shareholder of some commercial asset.
As to what use the proceeds of the share sale are being put, there is no need to rush to judgement. Government accounts are subject to audit by CAG and one of Kikwete's biggest achievements interestingly has been the creation of a fairly independent and empowered office of CAG that has unearthed government scandals such as Escrow and Jairo-gate just to mention a few. The CAG will have opportunity to audit the sale of these shares and the application of proceeds sometime next year and if they don't add up, the necessary action will be taken by whoever will be in power. No need to grandstand now without providing sensible evidence of the wrongdoings being claimed
Finally, it is politically immature and economically damaging for our country when a political party that is aspiring to take over the reigns of power in Tanzania starts issuing such serious threats against foreign investors, again without any credible evidence of any wrongdoing on their part. It shows that if Chadema wins this election, Tanzania's development risks being set back for several decades. It is my hope that voters are paying attention and will make wise choices come Election Day
If this note has been authored by Chadema then it is written testimony of their political immaturity and ignorance of the way markets work. Another fact that is not mentioned here is that if it is true the government has sold its shares, then it is useful to know exactly to whom and for how much before rushing to cry foul? If for example government shares in these companies have been bought by Tanzanian companies and individuals,then it is a good thing for the economic empowerment of our people and the action should be commended and not condemned. After all the government has been holding these shares on behalf of Tanzanians and it is the right thing for the government to release these shares to the market when conditions are right. Tanzanians gain nothing by holding wealth in paper form only just for the sake of being counted as a shareholder of some commercial asset.
As to what use the proceeds of the share sale are being put, there is no need to rush to judgement. Government accounts are subject to audit by CAG and one of Kikwete's biggest achievements interestingly has been the creation of a fairly independent and empowered office of CAG that has unearthed government scandals such as Escrow and Jairo-gate just to mention a few. The CAG will have opportunity to audit the sale of these shares and the application of proceeds sometime next year and if they don't add up, the necessary action will be taken by whoever will be in power. No need to grandstand now without providing sensible evidence of the wrongdoings being claimed
Finally, it is politically immature and economically damaging for our country when a political party that is aspiring to take over the reigns of power in Tanzania starts issuing such serious threats against foreign investors, again without any credible evidence of any wrongdoing on their part. It shows that if Chadema wins this election, Tanzania's development risks being set back for several decades. It is my hope that voters are paying attention and will make wise choices come Election Day