Zitto Kabwe (Kigoma-North, Chadema), who also doubles as chairman of the Parliamentary Committee on Public Organizations Accounts Committee (POAC).
Most investors eyeing the Usafiri Dar es Salaam (UDA) are only interested in acquiring the entity and turn its headquarters land into Inland Container Terminal (ICD), it has been revealed.
Reliable sources have confirmed that two investors have so far started to create their own clearing and forwarding companies as they prepare to change the yard’s use. UDA’s premises are few metres from the Dar es Salaam Port which makes it a perfect site for containerization.
“To be honest, whoever wants to invest in UDA is only interested in acquiring the land to use it for other purposes, especially to make it an ICD,” said one of the sources. The sources said there was no way such big-money-investors would be interested in investing in the ailing corporation with only seven running buses. It is believed that one of the interested parties is a Dar es Salaam based real estate mogul who is pushing for nullification of SG’s ownership so that he can step in.
UDA, which was first established in 1974, has since mid July, 2011 been embroiled in controversial privatization whereby Simon Group (SG) acquired some 51 stake from Dar es Salaam City Council. It has ever since remained under pressure from other bidders and the general public questioning the way the privatization process was handled.
Some failed bidders went as far as using Members of parliament to question the transparency in bidding process, with some calling for the process to start anew in the interest of some individuals. Last August, the Organisation Accounts Committee (POAC) of Parliament led by the MP for Kigoma North (Chadema), Mr Kabwe Zitto admitted that one prominent businessman had written to the committee contesting the process.
Mr Zitto also confirmed that his committee had written to the Minister of Finance and Economic Affairs Mustafa Mkulo, inquiring how 49 per cent of the government’s stake in UDA had been sold. He noted the minister had not responded to their request and that he would be in a better position to comment after getting the full report on the deal. As regard to 51 per cent of un-allotted shares which the City of Dar es Salaam sold to SG, he said he was waiting for the report from Controller and Auditor General (CAG).
“CAG will tell us whether the process was transparent or not and my committee, which is vested with power to make decisions on the business of public entities will decide accordingly when the report is out,” he explained. He said the POAC’s concern was the 49 per cent stake belonging to the government which after the sale of un-allotted shares to Simon Group the government would remain with about 23 per cent stake,” he noted.
Dar es Salaam Mayor Mr Didas Masaburi also confirmed to have received a letter from Treasury inquiring the process of privatization following a letter of complaints from the businessman. UDA came under spotlight when the SG controversially deposited some 270m/- to the former chairman of UDA, Mr Iddi Simba’s private bank account as a purchase price.
UDA is said to has assets worth 12bn/-.
Source Tanzania Daily News
