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Tanzania president reveals why he dissolved tax authority board

Friday November 25 2016

President John Magufuli revealed that he has dissolved the Tanzania Revenue Authority (TRA) board and sacked its chairman after its decision to deposit $13 million in fixed deposit accounts in three different banks.

The president accused the board, chaired by Mr Bernard Mchomvu, of irregularly diverting the money meant for the taxman's recurrent expenditure to fixed deposit accounts where it would generate interest that was to be shared among the agency's top brass.

“While we are working hard to fight ghost workers and people who illegally benefit from funds meant to help Tanzanians living in abject poverty, some senior officials have come up with new ways of personally benefiting from public funds,” Mr Magufuli said during a graduation ceremony at the Open University of Tanzania in Kibaha, Coast Region.

“Sometimes when we disburse money, these people deposit it in fixed deposit accounts under special arrangements with commercial banks.”

He said the government had at times had to borrow its own money deposited with the banks by dishonest officials to implement development projects.

Probe ordered

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President Magufuli also directed the Minister of Education, Science, Technology and Vocational Training, Prof Joyce Ndalichako, to investigate reports that the Tanzania Institute of Education had stashed away over $150 million in fixed deposit accounts in five different banks. The money, he said, was to be used to address various challenges in the education sector.

Since coming into office in November 5 last year, Magufuli has been cracking down on corrupt government officials seeking to increase efficiency and closing avenues for embezzlement of public funds.

Less than a month after he was sworn in, the president sacked TRA Commissioner-General Rished Bade and his deputy Lusekelo Mwaseba following loss of taxes of over $400 million and 349 containers at the Dar es Salaam Port.

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