TTCL has been incurring losses for 15 years

BabuK · 2016-04-07T11:27:29+00:00

AS Tanzania Telecommunications Company (TTCL) plans to retrench 400 employees due to changes in science and technology, the Parliamentary Committee on Empowerment and Public Investment Capital has revealed that the state-run firm has been making losses for 15 consecutive years. The committee blamed the government, saying it had contributed to TTCL’s bankruptcy as the company was owed 7.3bn/- for services that it provided up to December, last year. The PIC chairperson, Lolesia Bukwimba, made the revelations yesterday in Dar es Salam when speaking to journalists after a meeting with the management of TTCL. The Busanda MP said that in 2012, TTCL incurred a net loss of 318bn/- and in 2013 the state-run firm suffered another loss that amounted to 334bn/-. “We have asked the government to invest more in the company, otherwise it will die indefinitely,” Bukwimba said, adding: “As PIC, we also requested the government to clear the debt.” On the issue of the National ICT Broadband Backbone (NICTBB), the committee chair said the facility was still administered by the Ministry of Infrastructure, Transport and Communications because TTCL had entered a joint venture with another company. She further revealed that TTCL owns a 65 per cent stock the company while Airtel owns the remaining 35 per cent of shares. “National Broadband cannot be handed over to TTCL because there is another shareholder in the mix, a situation which would make the operation to face challenge,” said Bukwimba. The committee also urged the government to invest in the company to enable it to generate revenues and make profit like other companies. The team also urged the government to ensure that it creates a room for TTCL to use some of its assets as a guarantee. This, the committe said, would help the company to access loans from financial institutions to finance its strategic plan and perform better in the market. Recently, some media outlets reported that TTCL was planning to reduce staff in order to increase efficiency and competitiveness to rival other companies that provide telecommunication services in the country. Source: IPPMedia

Thread starter BabuK
Start date Apr 7, 2016

BabuK

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TTCL has been incurring losses for 15 years

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