DAR ES SALAAM, (Xinhua) --
Tanzanian President John Magufuli on Monday
ordered all unprofitable public firms that have for years failed
to remit dividends to the government to be shut down.
“The government has
invested more than 21.5 billion U.S. dollars in various public
firms but it has been receiving very little amount in return.
All the 90 public institutions should pay dividends annually and
they should be shut down if they fail to do so,” said Magufuli.
Speaking in the
commercial capital Dar es Salaam shortly before he received 319
million U.S. dollars dividends from 43 public firms, Magufuli
said most of the public firms were not performing well due to
factors including poor management and corruption.
public firms over foul play in declaring assets, profits,
management fees and operational costs.
Athumani Mbuttuka gave investors of unprofitable firms until end
of August to revive the companies and complete full due payments
as per signed contracts.
“We are going to
take back all the poor performing firms. Three investors have so
far surrendered their projects over failure to develop them,”
He said that only 20
out of the recently reviewed 85 privatized public companies and
industries were performing well.
He said 51 of them
were not operational while 14 were lagging behind. He said there
were other 158 public institutions that solely depend on