Tanzania Mining Act of 2010 (Vain Politics)

[Kichuguu]

I already said 'free loader interest' tafsiri yake ni free equity ama hisa za bure. Tafsiri ya kipengele kile ndio basis ya Serikali kusema wanataka kuona Stamico inapata hisa za bure. Sasa hivi kuna mazungumzo btn Serikali na TanzaniteOne, inawezekana Serikali ikakubali kwamba zisiwe bure lakini msimamo wa awali ni kwamba serikali ilitaka hisa za bure. Magazeti ya TZ na ya nje ya nchi zaidi ya 20 yalisham quote Naibu Waziri akiweka wazi msimamo wa Serikali.

Lakini basi mbona sheria iko wazi kuhusu interest za serikakali katika madini hayo? Kifungu hicho unachojaribu kutafsri kwa lugha yako ya economotional law pia hakisemi kuwa serikali ipewe 50%. Tatizo la Tanzaniteone labda wanashauriwa na mtu kama wewe anayetumia emotions zaidi ya kutafsiri sheria kikamilifu. Iwapo kuna Waziri analazimisha Tanzaniteone watoe shea za bure, basi waziri huyo anavunja sheria hiyo; ashtakiwe mahakamani siyo kulaumu sheria!

 

[H.S]

Ndg Zitto

please allow me to ask you two straightforward questions and give me a strasightforward answer.

1)hii sheria inamzuia mgeni mwenye $5m kuwekeza in gemstone mining bila ya 50 percent ownership ya Mtanzania?

2) mgeni akiwekeza in 'debt financing' at 80 percent of the investment cost badala ya 'equity' atakuwa kavunja sheria?

I would say no to both questions which implies the law is not truly designed to change anything of economic merit but pure politics.

What would you honestly say?

 

[John Mashaka]

Your post reflects the mindset that is loosing its grip after 30 years of increased loans, capital flow and grants from developed nations and foreign investors. Since 1993, We've been soft and very welcoming to the private sector, especially the multinationals that you were fighting against in a few of your articles that I happened to read.

I am never against foreign investors. I am only for equality. I have problem with MAFISADI preaching some hypocritical gospel while are the one causing suffering. They are the ones that have sold the country’s wealth. I have been sickened by the situation in which local communities suffer yet their wealth is being taken away. Take example of Tarime.

What’s the root cause? It is because of some corrupt officials sitting in Dar-es-salaam that received 10% or has interest in the company. It is because someone received millions of dollars prior to the investor coming in. That’s the problem; Tanzania will only be liberated once MAFISADI are voted out by the citizenry.

The problem is not the attitude. it's the global awakening (more like the wind of change) , especially from the less developed countries with much needed natural resources. From South America to the balkans and Asia Pacific, now Africa ..... people are starting to realize that the financing game is not as beneficial. Especially when you look at at the macro economic level.

Securing financing is very difficult for most of the investors investing in Africa. I do not see the reason why the government courts investors yet it does not need them. Based on your statement above. The global awakening you are talking about is need for better life. People need their natural resources to benefit them. They need jobs. If the government cannot enforce employment laws, allowing foreign to take local jobs who is to blame, the investor or the government?

Why haven’t you thought of that and petition the government? What you are creating is bad reputation for the country in the international community. Regardless of how developed a country is, Foreign Capital Inflow is unavoidable. The United States attracts lot of foreign investments yet it is the most developed nation on the face of the earth. Almost all major corporations in Tanzania are foreign owned. Do you want all of their owners to leave so the country can create its own Vodacom, Tigo, Kempiski etc?

Why are you guys realizing that financing has been the problem? If that was the case, they should not have been

How can financing be a problem and who said that? I said securing Financing is a big challenge in that, to finance a foreign project requires lot of security guarantee and that raises risk exposure. I support investors coming in, however, I support a fair playing field. The problem is the leadership! The problem is the corruption. Don’t share away from corruption. Face it head on, it is the reason Tanzanians are getting poor and poorer

There's no investor who will look at the normal village dweller from Nyamongo. They really don't give a damn about those people and it's ashame that there's still people who think that we need investment from outside.

Why should an investor care for Nyamongo people if the government itself does not care for its own? Why should investor care if you yourself care less of your countrymen, stashing money in Swiss bank accounts while your brothers, sisters and nephews cannot afford secondary education? That is the problem and why should you blame an investor for that?

We do't need investment from outside, we don't need loans and we definately don't need grants from China or NORDIC countries. What we need is a whole new set of "THOUGHT". A thought that we can do it by ourselves, together as a country and if we fall ,then we fall together. We can wait.

Who told you Chinese people love you or love your country? I boarded a plane in Dubai and 80% of the cabin was full with Chinese young men and women. I tried to talk to three of them, and none could speak Swahili or straight Engilish? Why were they coming to Tanzania and to do what Tanzanians cannot do? Who allows them to come in? A new thought starts from you to let the government know that Chinese mining in our game reserves needs to be jailed !

All along, my point was to let the natural resources remain untapped until our country develops its own capacity. Since investors have been invited, they should be treated fairly until their time expires. Otherwise the country is presenting itself negatively to the international community. If you cant tame and be brave enough to expose the corruption kings, then we can talk for years without any positive change in the country. Even if the country gets its own capacity all the wealth will go into the hands of a few persons already holding the country’s wealth.

I have hopes for Tanzania, very big hopes. Tanzanian youth is the most patriotic and well informed when it comes to world politics compared to other nations, I know this. All we need now is a revolutionary leader that we can rally behind, and not these so-called philanthropists roaming arround wall street floors.

Things will only change if you look at issues realistically. If you allow investors in, treat them fairly. Don’t ask them for 10% or bribe. If you don’t want them, don’t allow them to come, because many of them borrow to finance the project. They are invited to create jobs, pay taxes and contribute into our social programs. The so called Wall-Street philanthropists do not break into our country, we allow them. Close all investment opportunities will see none of them

Wall-street investor cannot bring you change. Change starts from you. You must be the change. You must say no to corruption. You and I have the moral obligation to spread the seeds of patriotism. You can’t simply say we need to develop our own capacity without showing the signs of doing that. Dr. Slaa opened the way for us in fighting corruption. Mwakyembe is doing it for us, Kagasheki, Muhongo and January, are all risking their lives for our good. These are some of the revolutionary leaders our country need

Just imagine, we need 10billion dollars just to break even as a nation. At the same time we are sitting on over a trillion $ worth of natural resources that so far, we havent seen even 1% of it coming our way. It's time to stop this, we can wait.

Where in the world would someone with Gold bars in his house go out to beg? It is only in Tanzania. If you are in the government, you should be awakened. Instead of treating investors in such a way, kick them out in a smart. Way don’t allow them in, don’t renew their contracts etc…. This is the only way, otherwise we are on the same page that Tanzania need to develop its own capacity. There are so many ways of doing that, and I know there are people in high offices with those ideas but can never articulate them because they fear reprisals from the powerful.

 

[John Mashaka]

There is nowhere in the law where govt is obliged to take 50% from anybody. The contention here is on TanzaniteOne renewal of licence.

It is government’s prerogative to renew or not renew a contract.however, has Tanzaniteone recover the Capital invested? Do you understand the economic repercussions of what is currently taking place between the government and Tanzaniteone?

The law says gemstone mining licence is given only to Tanzanians. Then, if huge capital needed foreigner allowed to own up to 50% of the entity.

How much capital is required to start a large scale mining that could benefit a country? We are importing mosquito nets, where is that capacity going to come from?

Who are those Tanzanians with the capacity similar to TanzaniteOne that will provide meangingful jobs to the locals?

What about legacy investors that invested billions? How long has TanzaniteOne been in Tanzania? Have they recovered their invested capital?

Hypothetical scenario, I am a new investor with $3billion, does it mean that, I will be able to get a Tanzanian with similar amount to inject in the startup?

If total direct foreign investment the country received last year was less than $680million, where in the world will an individual get even $50 million to invest in gemstones??

Now TanzaniteOne must find a best way to issue its 25% of shares currently not owned by Tanzanians and one of the best way is to float it at DSE (preferable way for transparancy due to disclosures).

How is floating of 25% of shares at the DSE going to help the communities surrounding the mines? Who are the potential buyers of the shares if not MAFISADI already in the board of Directors of TanzaniteOne?

How would you guarantee that no foreigners will buy any of the shares issued?
How can you enforce transparency through disclosures, while the country’s laws deterring corruption cannot be enfoced?

The other best of the best is Botswana model. But on Botswana Model the govt has to think of taking over all licences in Mirerani and have one company like Debtswana with investor havng 50% and govt 50%.

If this law, stipulated to the new entrants, who then agrees with it, well and good. But not after a company has invested so much. All I can see here is simple. If the government intent is to safeguard the stones, then it would be perfect to simply let them go, because 50/50 may prove to be problematic considering the fact that, some of them secured various loans under certain terms and conditions and that may force them to re-negotiate

These matters must be discussed with between govt and TanzaniteOne. The law is very clear. If a minister directed a private company to do something that minister is erring.

The law is not negotiable. It can only be negotiated in parliament in the form of amendment. In your opinion, what can the government discuss with TanzniteOne if the law is straight, they must float 25% its shares?

 

[Eric Cartman]

Can you please explain the benefit of this requirement?

If an investor comes in with $500m and does not find Tanzanian investors willing, able and interested to invest $500 he should not be allowed to invest, why?

Hypothetically, if his $500m can generate $50m in earnings annually what is wrong with demanding what we consider our fair share of the $50m every year without Tanzanians having to come up with $500m?

Kama tunajua muwekezaji kawekeza $500m, na tunajua anapata faida ya $50m kwa mwaka, kwa nini tushindwe kupiga hesabu tujue atuachie kiasi gani ili pande zote ziridhike na badala yake tunaweka siasa ya lazima Mtanzania amiliki nusu ya hisa zote?

Mradi A, nusu unamilikiwa na mgeni na nusu unamilikiwa na Mtanzania.

Mradi B, 100% unamilikiwa na mgeni.

How do the two situations change how much revenues the government gets?

Kama studies zinaonesha mradi wa uchimbaji gemstone utampatia mgeni 15% annual return na sheria inasema hawezi kumiliki hisa bila ya Mtanzania, kama akiamua amkopeshe Mtanzania afanye hiyo shughuli kwa interest ya 15% ina maana hiyo return in mining ataipata tu hata kama sio mwanahisa, kimsingi atakuwa amewekeza katika madini lakini sio mwanahisa wa kampuni ya kuchimba madini.sasa hapo sheria imemzuia vipi mgeni kufaidika bila ya kuhangaika na ukiritimba na 'sheria za kisiasa' zilizojaa nchini? In fact kwa mpango huu, Watanzania sio lazima na wao wawekeze 50% kwa sababu percentage ya funding and dividends will be dictated by negotiation, mtu anaweza kutafuta 10% ya capital required and he is in business na mgeni bila ya kuipita DSE lakini sheria inamlazimisha Mtanzania tafute 50% or else anapoteza fursa ya kuingia ubia na muwekezaji mgeni. Sasa huko ndio kumsaidia Mtanzania ama kumkwamisha?

It is pretty clear that leo hii mgeni na Mtanzania wanaweza kuingia ubia wa biashara in gemstone mining bila ya 50/50 requirement. Kuna faida gani ya kuwa na sheria ambayo ni kama mlango wenye masharti magumu wakati kuna milango mingine 12 isiyo na masharti magumu?

What is the benefit of this law so far besides kuwapa wapiga kura 'matumaini'?

Ndugu,

Sheria ni sheria na wala aimjali mwekezaji depending on other economic outputs. Watunga sheria wao wanachoangalia what serves best many katika jamii yao.

Mwekezaji yoyote ambae anaingia katika territories outside her boarders lazima aelewe how the policies work and what are the the political influences. Na serikali yeyote inaweza badilisha mawazo ya sera kutokana na uhalisia wa mambo au jinsi inaona watu wao wengi watakavyako katika sectors ambazo wao wanaona azina manufaa kwao that is politics (every party has a different political view and economical view, to serve best those who care).

Sasa basi kama serikali imeaamua kutoa percantage ya shares kumilikiwa na wenyeji ni hao wawekezaji kupanga jinsi ya kutimiza policies advocated by the government hawataki waondoke, maana so far aijaona athari ya sera zao na ndio maana hawataki kubadilisha. Hayo malalamiko yao ni kutaka vitu vifanywe kwa faida zao wao tu and so far the government has made its decisions on its mining policies clear.

Therefore either they comply or they go, and if the government felt they needed them desperately they would have changes their stance.

The policy had good intentions, but what it dint consider is the number of people that understood how these things work. Hence the government took the right measures ensuring if local people did not benefit they might as well hold on to that fifty percent and spend the profits on their polices aimed at improving people life chances.

Swala hapa ni serikali kulipa au uchangiaji wao hili kupata fifity percent based on fairness, kama walivyotaka watanzania kupata hisa na namna za kuingia ubia katika makampuni hayo. Hapo ndipo utata ulipo kwa mujibu wenu vinginevyo ni sera ambayo hipo kitaifa na ya kumjali mtazania na mlinzi akiwa serkali.

Na hapo waamuzi bado wana haki ya kuamua mambo ya ushuru kwa matakwa yao, that is just politics and what they see would serve the interest of many na jinsi ya kuongeza mapato yao. There is nothing wrong with that na kama hawataki waondoke and so far the government has not yet yielded to their demands meaning they got other economical growth programmes (if only they could describe them).

 

[H.S]

Lakini basi mbona sheria iko wazi kuhusu interest za serikakali katika madini hayo? Kifungu hicho unachojaribu kutafsri kwa lugha yako ya economotional law pia hakisemi kuwa serikali ipewe 50%. Tatizo la Tanzaniteone labda wanashauriwa na mtu kama wewe anayetumia emotions zaidi ya kutafsiri sheria kikamilifu. Iwapo kuna Waziri analazimisha Tanzaniteone watoe shea za bure, basi waziri huyo anavunja sheria hiyo; ashtakiwe mahakamani siyo kulaumu sheria!

kwa kuwa sheria iko wazi kwako nisaidie majibu ya maswali yafuatayo:

Sheria hiyo iliyo wazi inasema serikali ipate asilimia ngapi? Ipate wakati gani before IPO, during IPO of after IPO?

Inasema ipate hisa kwa kulipia ama bure? Kama kulipia how are the shares valued?

Nini maana ya 'free loader interest'?

Serikali iliyosema waziwazi lazima wapate hisa za bure nayo ina economotion?

 

[H.S]

Hence the government took the right measures ensuring if local people did not benefit they might as well hold on to that fifty percent and spend the profits on their polices aimed at improving people life chances.
.

Muwekezaji akisema yeye ana $50m na wewe ulete $50m muwekeze at 50/50 utaweza kuja na hivyo vijisenti?

Kama ungejibu maswali niliyouliza usingesema kwamba hii sheria ita improve life.

It is now over 3 years since the law was enacted, did this law improve your life? Do you know any one Tanzanian out of all 45m whose life is uplifted because of this law?

 

[H.S]

There is nothing wrong with that na kama hawataki waondoke and so far the government has not yet yielded to their demands meaning they got other economical growth programmes (if only they could describe them).

Kama hawataki sheria hii na wanataka kuwekeza watakuja bila ya wewe kuwaona pale DSE. All they need to do ni kuingia ubia binafsi na Mawaziri na familia zao, wao watatengeneza hela wewe utadanganyika kwamba wameshaondoka kwa huwa huoni jina la John Smith kwenye shareholder register.

Kwa nini munadanganyika kirahisi kiasi hichi?

 

[Eric Cartman]

kwa kuwa sheria iko wazi kwako nisaidie majibu ya maswali yafuatayo:

Sheria hiyo iliyo wazi inasema serikali ipate asilimia ngapi? Ipate wakati gani before IPO, during IPO of after IPO?

Inasema ipate hisa kwa kulipia ama bure? Kama kulipia how are the shares valued?

Nini maana ya 'free loader interest'?

Serikali iliyosema waziwazi lazima wapate hisa za bure nayo ina economotion?

Mbona unaongea kama amateur vile, when the rules are clear. Madini ni ya watanzania na serikali imesema kipaumbele ni wawekazaji wadogo. Knowing the facts kuhusu wawekezaji wadogo na uwezo wao there could be vast interpretations on the law (though the intention is to create local competition first or participation second).

Sasa basi if rules were followed those who invested before the new laws have to find ways of incorporating local people or they leave ndio maana serikali inataka ubia (we dont know the exact legal terms on those who did business before the new laws na kama kweli serikali inataka ubia wa bure).

And for those who want to come in, it's simple they cant participate without the fifty percent of the external shareholders or else the government comes in (Its just local politics na sera za chama na kila nchi inazake).

Lakini sheria aimtaki mtanzania kuwa na matakwa hayo, Meaning the government wants people to particapate or benefit in these resources dierctly (ask the government where are people going to get those investment funds au waulize CDM watafanyaje bila ya sera za socialism) that is the challenge but the intention is not questionable.

 

[Eric Cartman]

Kama hawataki sheria hii na wanataka kuwekeza watakuja bila ya wewe kuwaona pale DSE. All they need to do ni kuingia ubia binafsi na Mawaziri na familia zao, wao watatengeneza hela wewe utadanganyika kwamba wameshaondoka kwa huwa huoni jina la John Smith kwenye shareholder register.

Kwa nini munadanganyika kirahisi kiasi hichi?

that is not the matter of your quarry, hayo tena ni ya ufisadi. I thought you are issues were based on poor investment policies? ama una amia kwenye ufisadi maana those are two different topics inside JF na wachangiaji huwa tofauti kabisa panapo ushahidi.

 

[H.S]

that is not the matter of your quarry, hayo tena ni ya ufisadi. I thought you are issues were based on poor investment policies? ama una amia kwenye ufisadi maana those are two different topics inside JF na wachangiaji huwa tofauti kabisa panapo ushahidi.

Ufisadi unahitaji mazingira, moja ya sifa za mazingira ya ufisadi ni sheria zisizo na benefit.sheria zenye utata. sheria za kutegeshea watu. sheria zisizotabirika.

 

[H.S]

And for those who want to come in, it's simple they cant participate without the fifty percent of the external shareholders or else the government comes in (Its just local politics na sera za chama na kila nchi inazake).
.

Unafahamu nini maana ya debt financing? Hii sheria inazuia ushiriki kwa njia ya debt financing? Do you believe a foreign debt financer cannot invest in gemstone mining in Tanzania kwa mujibu wa sheria hii? Did you read this law?

 

[Eric Cartman]

Muwekezaji akisema yeye ana $50m na wewe ulete $50m muwekeze at 50/50 utaweza kuja na hivyo vijisenti?

Kama ungejibu maswali niliyouliza usingesema kwamba hii sheria ita improve life.

It is now over 3 years since the law was enacted, did this law improve your life? Do you know any one Tanzanian out of all 45m whose life is uplifted because of this law?

Huyo mwekezaji atakuwa mwendawazimu kwenda kuwekeza without understanding their legal requirements.

Kuna sababu za watunga sheria kufanya hivyo labda makusudi ni kutaka local people wafaidike kwanza (unless you can come up with how local people would benfit, i dont think you having a local political argument but rather a profiteers argument) by the way CDM wakiingia madarakani ndio kabsaa wao wanataka jamaa wajiaumulie sijui itakuaje.

Halafu mbona sio sehemu zote za maliasili zina sera hizo ama, na wewe unaangalia kamisheni yako (sikulaumu)?

 

[H.S]

Huyo mwekezaji atakuwa mwendawazimu kwenda kuwekeza without understanding their legal requirements.

Kuna sababu za watunga sheria kufanya hivyo labda makusudi ni kutaka local people wafaidike kwanza (unless you can come up with how local people would benfit, i dont think you having a local political argument but rather a profiteers argument) by the way CDM wakiingia madarakani ndio kabsaa wao wanataka jamaa wajiaumulie sijui itakuaje.

Halafu mbona sio sehemu zote za maliasili zina sera hizo ama, na wewe unaangalia kamisheni yako (sikulaumu)?

Si swala la profiteers argument, kuna kitu ktk uchumi na biashara kinaitwa 'value proposition'. Ukipata nafasi fanya utafiti kidogo on the concept and power of 'value proposition'.

 

[Eric Cartman]

Unafahamu nini maana ya debt financing? Hii sheria inazuia ushiriki kwa njia ya debt financing? Do you believe a foreign debt financer cannot invest in gemstone mining in Tanzania kwa mujibu wa sheria hii? Did you read this law?

wewe acha mikwara yako ya kitoto-toto, umezungumzia sera mbovu sasa unaanza hadithi uchwara kwani ku-google tabu (Debt Financing Definition | Investopedia).

By the way serikali aijali wewe hela yako inatoka wapi, sasa kama sheria za huko ulipo zinasema otherwise au lenders wanataka nini, or their opinions on investment towards our land. Hiyo perspective yako is not understood in our shores thousands of miles away.

We've got to formulate our own policies based on the modern market (na soko sio la marekani tu especially la finance ambalo kikubwa kwao ni returns) unachotakiwa ku propose ni jinsi ya kupambana nao hao wafadhuli kwa faida ya wengi wetu ndani ya Tanzania na sio bonuses zako.

 

[H.S]

wewe acha mikwara yako ya kitoto-toto, umezungumzia sera mbovu sasa unaanza hadithi uchwara kwani ku-google tabu (Debt Financing Definition | Investopedia). By the way serikali aijali wewe hela yako inatoka wapi, sasa kama sheria za huko ulipo zinasema otherwise au lenders. have there opinions on investment thinking in our land dont think your perspective is understood in shore thousands of miles away, we got to formulate our own policies based on modern market (na soko sio marekani tu).

Nakushauri ukaisome ile sheria.

Sheria ile haimzuii mwekezaji wa nje kuwekeza in 'debt financing', sheria ile inambana 'equity' investor. Muwekezaji anaweza kuwekeza katika kampuni na kuweka hata 80% ya mtaji wote na atakuwa hakukiuka sheria. Si swala la hela inatoka wapi, this is about how the financing is structured because difference structures have different obligations.

Kama sheria inambana equity financer lakini inamwachia debt financer and I am bringing that to your knowledge huoni kwamba I am telling you the law was poorly drafted and why it is poor?

Are you a diwani or something like that? You sound very political.

 

[Eric Cartman]

Nakushauri ukaisome ile sheria.

Sheria ile haimzuii mwekezaji wa nje kuwekeza in 'debt financing', sheria ile inambana 'equity' investor. Muwekezaji anaweza kuwekeza katika kampuni na kuweka hata 80% ya mtaji wote na atakuwa hakukiuka sheria. Si swala la hela inatoka wapi, this is about how the financing is structured because difference structures have different obligations.

Kama sheria inambana equity financer lakini inamwachia debt financer and I am bringing that to your knowledge huoni kwamba I am telling you the law was poorly drafted and why it is poor?

Are you a diwani or something like that?

Mbona ueleweki embu weka hicho kipengele ambacho unachodai sheria haitaki equity investor na inataka debt investors to your definitions of the policy (if the government cares so much were the FDI comes from maana hizo ni pumba za ajabu) halafu wewe kweli ni major investor au tia maji maji maana your political decision understanding says your not a PPE we, ni faida tu when it comes to business decisions whereby maamuzi yakisiasa yanaangalia jamii kwa ujumla and when it comes to mining policies the government has to be cautious and political thats how the cookie crumbles .

 

[Mzuvendi]

Kama hawataki sheria hii hakuna sababu ya wao kuondoka. All they need to do ni kuingia ubia binafsi na Mawaziri na familia zao, wao watatengeneza hela wewe utadanganyika kwamba wameshaondoka kwa huwa huoni jina la John Smith kwenye shareholder register.

Kwa nini munadanganyika kirahisi kiasi hichi?

H.S;

You have brought the topic to discuss the merit of the law. I think you should stick to that because adding what mawaziri could do and other sidework doesn't make the discussion better. It only invokes unwarranted emotions.

Now concerning the topic at hand, the act isn't perfect and wasn't designed to be perfect because investment and other variables change overtime. Since 2010, political and investment variables on the ground have altered. So the best way foward is to engage and discuss.

For example, in 90s and 00s the major buyers of our commodities, in particular Gems, were Northern Americans and Europeans. This market wasn't growing and in order to attract investors we had to sweeten our deals. This didn't help us financially.

However, in recent years, the rise of middle class in China and India have tremendously improved the demand for our commodities, and therefore there's a need to change the way we do business with foreign companies legally.

Tanzanians shouldn't afraid to take bold actions legally. Even in America, the government intervene on behalf of the people or consumers. Take for example AT&T. It was the lagest and the only Telephone company in the USA. In 1984, the government intervened, and the company was split into several companies in order to increase competitions.

Moreover. we should note that investors come to Tanzania to make money. The main reason we have allowed them to take 100% of ownership is poor infrustucture, financial institutions, our politics and our previous nationalization policies. If we improve in these areas, investors will be happy to take 20% of the stakes. So making the law itself doesn't make sense, if our power supplies, financial institutions, schools, judicial system, etc are dysfunctional.

 

[H.S]

H.S;

You have brought the topic to discuss the merit of the law. I think you should stick to that because adding what mawaziri could do and other sidework doesn't make the discussion better. It only invokes unwarranted emotions.

.

Mzuvendi, you do not believe there is a relationship between poorly crafted laws and corruption?

 

[Zitto]

Ndg Zitto

please allow me to ask you two straightforward questions and give me a strasightforward answer.

1)hii sheria inamzuia mgeni mwenye $5m kuwekeza in gemstone mining bila ya 50 percent ownership ya Mtanzania?

2) mgeni akiwekeza in 'debt financing' at 80 percent of the investment cost badala ya 'equity' atakuwa kavunja sheria?

I would say no to both questions which implies the law is not truly designed to change anything of economic merit but pure politics.

What would you honestly say?

1) Sheria inasema leseni ya gemstone itatolewa kwa Mtanzania tu na huyo Mtanzania anaweza kushirikiana na investor ilimradi hisa za Mtanzania huyo katika kampuni hiyo zisiwe chini ya asilimia hamsini. Sheria inazuia mgeni kupewa leseni ya kuchimba gemstones. Masharti ya kisheria kwa gemstones hayana suala la kiwango gani cha pesa.
2) Ndugu yangu inabidi usome sheria zote kwa pamoja. Hivi sasa thin capitalisation ni marufuku hapa Tanzania. Nakumbuka mimi binafsi nilimmove schedule of ammendments kwenye kubadili sheria ya kodi ya mapato ya mwaka 2004 na kusema wazi equity must not be less than 30% ya uwkezaji wote (katika kukokotoa kodi). Hivyo debt financing is largely restricted. Hata hivyo pia napenda ufahamu kuwa suala hapa ni umiliki wa kampuni kuwa 50% Watanzania na sio uwekezaji kuwa 50% Watanzania. Dont mix these two things