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JF-Expert Member
- Jul 30, 2008
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Mkanyageni MP, Mohamed Habib Mnyaa (CUF)
The Official Opposition Camp in the National Assembly has warned the government against paying Bharti Airtel 14bn/- to purchase the 35 per cent stake the firm had in the Tanzania Telecommunications Company Limited (TTCL).
They argue that the Indian company did not make any significant investment in the TTCL making the parastatal incur 334.5bn/- loss.
Reading the opposition statement while debating the 2015/2016 budget estimates for the Ministry of Communication, Science and Technology, the Mkanyageni MP, Mohamed Habib Mnyaa (CUF) said Bhartis failure to invest had caused damages to TTCL and poor service provision.
It is unfortunate that the Indian company want payment of 14bn/- despite having invested nothing just like the predecessors, Celtel Tanzania, Celtel International and Zain, he said.
The opposition MP clarified that the mobile companies of Celtel International, Zain Kuwait and now Bharti of India inherited shares but had caused problems to the government, workers and customers while the company runs at loss.
He argued that Bharti Airtel failed to construct 800,100 telephone lines that it had promised. He said instead the firm reduced the number of telephone lines TTCL had to 158,000 from 270,000.
The Opposition camp also argued that Airtel was established using capital, licence and resources belonging to TTCL, adding that to date the company still uses TTCL infrastructure like generator, buildings and land, among others.
They also took issue with what they termed as corruption at TTCL, saying, one of the employees, according to the Controller and Auditor General (CAG) had 1bn/- in his account.
The Opposition camp want the government to explain to the public how such a bad contract was implemented, he noted, adding that they were saddened by the government move despite knowing the truth about the 35 per cent shares who monetary value equals 15 per cent of the shares, still approved payment of 14.9bn/-.
Early this year for Finance minister, Saada Mkuya said the government finally agreed with Bharti Airtel over 35 per cent of shares which the India-based company owns in the TTCL.
She pointed out that after prolonged and frustrating talks, the company finally agreed to sell its stake at 14bn/- to the government.
For several years MPs, especially members of the Public Accounts Committee (PAC) have been urging the government to repossess the shares to regain 100 per cent ownership of once state company.
But while tabling ministrys budget for the 2015/2016 fiscal year, the Minister for Communication, Science and Technology, Prof Makame Mbarawa said the government would continue implementing the five year TTCL business transformation process.
The plan, among others, aim at increasing the number of voice and data services customers from 255,519 in 2014 to 556,000 in 2016, being 118 per cent increase. It also aims to introduce and distribute 4G LTE mobile phones, currently used globally.
Despite the noted challenges, TTCL will in the 2015/2016 continue connecting the rural based population with mobile network through support from the Universal Communications Service Access Fund (UCSAF) said the minister.
The minister requested the parliament to approve 66,939,615,000/- for the 2015/2016 financial year. Out of this 20,398,888,000/- has been budgeted for development projects.
In the financial year, the government plans to continue with the national ICT infrastructure development programme which includes connecting all district headquarters to the national fiber optic cable network.
The infrastructure will enhance usage of ICT applications for sustainable socio-economic development, including implementation of e-government, e-learning, e-health, e-commerce and much more locally and globally.
In January this year, Deputy Minister for Communication, Science and Technology, January Makamba told the National Assembly that the long-drawn-out blame game between Tanzania Telecommunications Company Limited (TTCL) and Bharti Airtel over shares had ended, with the latter surrendering its 35 per cent stake it had in the state-run telecom firm.
We have held talks with Airtel and I am glad to tell the House that now the government will have 100 per cent shares in TTCL as the latter had agreed to surrender its shares, he said.
The deputy minister refuted claims published by some media outlets that the company was running bankrupt, insisting that firms growth was on sound footing. He said that between 2010 and 2013, TTCLs revenues grew at praiseworthy speed.
For instance, he pointed out that in 2010 it generated about 80bn/- and in 2013, the companys revenue increased to 93bn/-.
The company also managed to cut down losses from 28bn/- recorded in 2010 to 16bn/- in 2013/-, the Deputy Minister noted.
SOURCE: THE GUARDIAN
