A new report released by the Controller and Auditor General (CAG) has put fourteen Government entities including Air Tanzania Company Limited (ATCL), Tanzania Railways Corporation (TRC), and National Development Corporation (NDC) among others on spotlight for posting huge losses during the financial year 2021/2022.
Speaking during an event to handover the report to President Samia Suluhu Hassan at State House in Dar es Salaam yesterday, the CAG Charles Kichere said ATCL suffered a 35.2bn/- loss in 2022 as compared to a 36.18bn/- loss posted earlier in 2021.
TRC on the other hand posted a 22.8bn/- loss in 2021 as compared to a 31.29bn/- loss posted last year while the National Development Corporation (NDC) posted a financial loss of 26.3bn/- in 2021 as compared to a 11.9bn/- loss posted last year.
Meanwhile, Government owned banks also posted huge losses during the financial year 2021/2022 with the TIB Development Bank posting a loss of 131.07bn/- in 2022 attributed to an increase in Non-Performing Loans (NPLs).
“The rate of NPLs stood between 5.8 percent to 20.3 being above the 5 percent rate set by the Bank of Tanzania (BoT).
Kichere noted that the report has also established that many Government institutions are continuing to receive subsidies from the Government whilst posting huge losses year-on-year.
“Without Government subsidies these companies would be posting even more huge losses. The losses posted by Government entities affect share capital thus such companies are not able to give back dividends to the company,” he noted.
Kichere noted that many Government entities have not been able to meet their set performance targets in line with their strategic objectives that undermined their ability to compete with private players.