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Magufuli Presses Public Entities To Pay Dividends

Business

Magufuli Presses Public Entities To Pay Dividends

President John Pombe Magufuli has ordered several public entities in his country to pay dividends are required saying the current collections are still very little.

He issued the instructions to Tanzania’s treasury registrar on Monday during a presentation at a public sector earnings conference in Dar es Salaam, the President said it is “unacceptable” that only 43 public entities had made payments to the government when “90 public institutions and companies are required by law to pay dividends.”

He warned that public entities that fail to pay ‘dividends’ to government should be deregistered – or their management should step aside.

The edict comes despite a 586.9 per cent increase in public institutes’ payouts to the government in 2017/18 compared to fiscal year 2013/14.

Over the last year, government took in Sh736.36 billion in dividends from 43 public firms. In the 2013/14 period, total inflows were just Sh107.2 billion.

Nonetheless, President Magufuli believes these gains do not reflect the total payout owed to the government.  “Despite this positive trend,” he said, “government is not getting the dividends it deserves.”

According to the President, government has invested TSh49.05 trillion in public entities. That investment, he said “does not correlate with what we (government) have received in return.”

“We need money to implement various development projects and social services. The only sources for government are tax and non-tax streams, including dividends,” said President Magufuli.

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