MILLIONS LOST IN TANZANIA
Posted on 20 September 2009
“Billions of Tanzania shillings of taxpayers’ money is being used to subsidise the privatised Tanzania Railways Limited in salaries – so much so that Tanzanians are questioning the value of the joint venture between the government and Rail India Technical and Economical Services (Rites),” Leah Brown writes from Dar-es-Salaam in an article published in East African Business Week (based in Kampala) “The Tanzanian government holds 51% shares in TRL and Rites holds the other 49% in a 25-year contract. The TRL joint venture has failed to survive on its own, a situation that has forced the government to pay the salaries for TRL workers using taxpayers’ money.” She quotes infrastructure minister Dr Shukurani Kawamba saying: “The government has been using taxpayers’ money to pay TRL workers since 2008. We thought the company would stabilise and manage on its own but to no avail.’ “This situation has seen TRL workers staging strikes twice within a period of two months. Thousands of passengers were stranded in Dar-es-Salaam and many other stations along the railway line from Dar to Mwanza on Lake Victoria and to Kigoma on Lake Tanganyika. “Most travellers to Tabora and Kigoma depend on the TRL railway services for lack of tarmac roads to these destinations and it is also the cheapest way to get there. The workers laid down tools since they had not been paid the salaries totalling TShs520 million ($US390,000). The minister persuaded the workers to resume work after promising to address their grievances. “The workers complained that their salaries were not being paid on time for reasons that weren’t revealed to them by Rites management. Though the workers have resumed working, there are fears that the operations may paralyse again following a notice that Rites issued on 1 September, asking TRL to settle over $US12 million for leasing locomotives and coaches within days since the note was served. “Despite the fact that TRL is a joint venture, Rites leased some locomotives and coaches which is outside the contract. Speaking at a news conference recently, the Rites managing director said: ‘The locomotives and coaches are outside the contract. If the government fails to pay, we shall bar TRL from using them.’ “According to the notice that was put on Rites board, if the amount is not paid by 10 September, TRL will be barred from using the locomotives and coaches.”
[ The article would have been more useful (and convincing) had journalist Brown spelled out TRL’s version of failures within the joint venture, specifically shortcomings on the part of the TanzanIan government. This seems to have forgotten that the railway had all but collapsed until Rites arrived and brought in rolling stock that actually runs. – editor
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