Tanzania graduates told to go internationally
Tanzanians have been advised to compete for jobs at international level instead of depending on the local market alone.
The statement was made by the former President Ali Hassan Mwinyi, who is also KIU Vice Chancellor during the 11th graduation ceremony of the Kampala International University, Dar es Salaam Constituent College.
Mwinyi decried the rush of the majority public for material wealth at the cost of others in the society advising young elites not to get involved in illegal practices.
He told the outgoing students to be aware of their potentials to the nation and family members by ensuring that the education they have obtained at the college enables them to become role models in the communities they live.
“You should use the education and knowledge you have acquired at the college with diligence to achieve your lives expectations” he said.
Speaking in the same line, Foreign Affairs Minister Bernard Membe said there was a need for the government to re-establish local manufacturing industries in order to create enough employment opportunities to majority young graduands.
Membe said the university alumni have for long been left without jobs despite being surrounded by unexploited job opportunities.
“We will only reduce unemployment rate if we re-introduce industrial sector in the country. Tanzania Commission for University (TCU) needs to grant a status of fully fledged University to KIU to allow the Constituent College in Dar es Salaam to issue certificates to graduands” he said.
He said it was absurd for students to travel to Kampala just to get their certificates while there is possibility for such certificates to be issued at its campus in Dar es Salaam.
He advised graduands to search for jobs despite challenges facing the labor market saying they should never give up the exercise.
The ceremony that saw more than 1000 graduates from different faculties at its Dar es Salaam campus, 523 being females and 608 males, also witnessed the former President Mwinyi being conferred with an honorary Doctor of Science degree.
The statement was made by the former President Ali Hassan Mwinyi, who is also KIU Vice Chancellor during the 11th graduation ceremony of the Kampala International University, Dar es Salaam Constituent College.
Mwinyi decried the rush of the majority public for material wealth at the cost of others in the society advising young elites not to get involved in illegal practices.
He told the outgoing students to be aware of their potentials to the nation and family members by ensuring that the education they have obtained at the college enables them to become role models in the communities they live.
“You should use the education and knowledge you have acquired at the college with diligence to achieve your lives expectations” he said.
Speaking in the same line, Foreign Affairs Minister Bernard Membe said there was a need for the government to re-establish local manufacturing industries in order to create enough employment opportunities to majority young graduands.
Membe said the university alumni have for long been left without jobs despite being surrounded by unexploited job opportunities.
“We will only reduce unemployment rate if we re-introduce industrial sector in the country. Tanzania Commission for University (TCU) needs to grant a status of fully fledged University to KIU to allow the Constituent College in Dar es Salaam to issue certificates to graduands” he said.
He said it was absurd for students to travel to Kampala just to get their certificates while there is possibility for such certificates to be issued at its campus in Dar es Salaam.
He advised graduands to search for jobs despite challenges facing the labor market saying they should never give up the exercise.
The ceremony that saw more than 1000 graduates from different faculties at its Dar es Salaam campus, 523 being females and 608 males, also witnessed the former President Mwinyi being conferred with an honorary Doctor of Science degree.
SOURCE:
GUARDIAN ON SUNDAY
UTT official says fund grows impressively
The
Unit Trust of Tanzania (UTT) said the country’s good economic growth
has significantly increased UTT-AMIS fund in fiscal year 2013-2014.
Prof Joseph Kazaula, the Board Chairman of fund stated this during the UTT investor’s Annual General Meeting in Dar es Salaam yesterday.
Other factors contributing to UTT-fund growth is inflation rate, which is well controlled, as well as good performance of the Dar Stock of Exchange (DSE).
According the chairman these conditions have attracted many investors, making Tanzania the eighth sub-Saharan county in attracting investors. In the EAC region it leads other members.
Under UTT there are sub-funds namely Umoja Fund, Wezesha Maisha Fund, Watoto Fund, Jikimu Fund and Liquid Fund.’
For one-year period all five UTT funds have together grown from Sh118.3 billion to Sh178,471 billion for the period of 2012/13 to 2013/14, while investors increased from 106,266 up to 107,376.
The chairman called on Tanzanians to invest in UTT, saying such a move would help them increase their incomes within a short time.
“I urge Tanzanians to invest for their future, which will help them send their children to school or cay out development activities.
Speaking with this paper, Peter Materu said since he started to invest at UTT four years ago he experienced ‘positive changes in his economic.’
Materu said the fund has good interest that has facilitated them to open a big business.
UTT aims at efficient investment facilitating divestiture process and empowering Tanzanians to become effective stakeholders in their country's economic development.
The Unit Trust of Tanzania (UTT) was incorporated on June19, 2003 and incorporated under the Trustees Incorporation Act (Cap. 318).
Prof Joseph Kazaula, the Board Chairman of fund stated this during the UTT investor’s Annual General Meeting in Dar es Salaam yesterday.
Other factors contributing to UTT-fund growth is inflation rate, which is well controlled, as well as good performance of the Dar Stock of Exchange (DSE).
According the chairman these conditions have attracted many investors, making Tanzania the eighth sub-Saharan county in attracting investors. In the EAC region it leads other members.
Under UTT there are sub-funds namely Umoja Fund, Wezesha Maisha Fund, Watoto Fund, Jikimu Fund and Liquid Fund.’
For one-year period all five UTT funds have together grown from Sh118.3 billion to Sh178,471 billion for the period of 2012/13 to 2013/14, while investors increased from 106,266 up to 107,376.
The chairman called on Tanzanians to invest in UTT, saying such a move would help them increase their incomes within a short time.
“I urge Tanzanians to invest for their future, which will help them send their children to school or cay out development activities.
Speaking with this paper, Peter Materu said since he started to invest at UTT four years ago he experienced ‘positive changes in his economic.’
Materu said the fund has good interest that has facilitated them to open a big business.
UTT aims at efficient investment facilitating divestiture process and empowering Tanzanians to become effective stakeholders in their country's economic development.
The Unit Trust of Tanzania (UTT) was incorporated on June19, 2003 and incorporated under the Trustees Incorporation Act (Cap. 318).
SOURCE:
GUARDIAN ON SUNDAY
MPs honour premature babies
Deputy
Speaker of The National Assembly Job Ndugai on Monday this week led MPs
to light candles in honour of premature babies at an advocacy event
targeting them.
The function was organised jointly by the Ministry of Health and Social Welfare, Jhpiego, Save the Children, Tanzania Midwifery Association, UNICEF, World Health Organization, Evidence for Action/Mama Ye, Children’s Investment Fund Foundation and UNFPA to mark World Prematurity Day (WPD). UN has earmarked November 17 to mark WPD.
This is the fourth year WPD is being observed globally and the event is taking place in Tanzania for the first time.
Thanks to Jhpiego, Save the Children, Tanzania Midwifery Association, UNICEF, World Health Organization, Evidence for Action/Mama Ye, Children’s Investment Fund Foundation and UNFPA for organizing the advocacy event targeting MPs.
According to Ndugai, who officiated the event, the advocacy event targeting
The event was largely an eye opener to the MPs, as most of them were unaware of challenges facing newborns, particularly premature babies.
Ndugai hailed the alliance for organizing the event aimed at raising the profile of new-born babies’ survival in Tanzania.
The alliance, according to the Deputy Speaker has brought a new thing to MPs because ‘premature issues’ were not known by many of them.
“For all the years I have been here I never heard people talking about premature babies,” Ndugai said and challenged men to be involved in the matter instead leaving it to mothers only, especially when the babies are ill.
“There are so many things fathers can do to help, for instance, holding a premature baby at your chest popularly, known as kangoroo mother care, to provide heat to the baby born too soon,” Ndugai told the MPs.
Speaking at the same event Deputy Minister for Health and Social Welfare Kebwe Stephen Kebwe said Tanzania ranks 12th in the world to have the largest number of premature babies.
He said although the day has not officially been commemorated in the country the newborns’ survival is an important development issue for Tanzania.
Overall, while child deaths have decreased dramatically, progress for newborns’ survival has been much slower.
Every year according to Kebwe 39,000 Tanzanian babies do not survive their first month of life, ‘tragically this is the 11th highest number of newborn deaths in the world.’
In the context of World Prematurity Day, complications to premature babies, now contribute to one in every 10 deaths of children aged under five years in Tanzania.
The deputy minister said every year 213,500 babies are born prematurely. One in every nine babies according to Kebwe is a premature baby.
On behalf of the event organisers Craig Ferla said that 47,000 babies are stillborn every year (with no signs of life) - nearly half of them dying during delivery.
Newborn deaths alone now account for 40 per cent of all deaths to children under-five years old, but 80 per cent of all stillborn and newborn deaths result from preventable and treatable conditions.
According to Craig, despite the alarming situation of stillborn and newborn deaths in Tanzania there are various plans, strategies and commitments in place.
Sharpened One Plan which if implemented could save up to 9,400 newborn lives and avert 2,500 stillbirths, he said.
Magareth Sitta, chairperson of the Parliamentary Standing Committee for Social Services whose committee hosted the event, said the horror of the toll on babies’ survival is an issue that few MPs really have an in-depth understanding of – hence the voices of newborns remain largely muted.
She said collectively, event organizations have seen this as an opportunity “to raise the profile of the largely reversible situation prevailing for our babies, and catalyse a greater awareness, advocacy and accountability for transforming the survival chances of our babies and significantly reduce the newborn mortality rate.”
The function was organised jointly by the Ministry of Health and Social Welfare, Jhpiego, Save the Children, Tanzania Midwifery Association, UNICEF, World Health Organization, Evidence for Action/Mama Ye, Children’s Investment Fund Foundation and UNFPA to mark World Prematurity Day (WPD). UN has earmarked November 17 to mark WPD.
This is the fourth year WPD is being observed globally and the event is taking place in Tanzania for the first time.
Thanks to Jhpiego, Save the Children, Tanzania Midwifery Association, UNICEF, World Health Organization, Evidence for Action/Mama Ye, Children’s Investment Fund Foundation and UNFPA for organizing the advocacy event targeting MPs.
According to Ndugai, who officiated the event, the advocacy event targeting
The event was largely an eye opener to the MPs, as most of them were unaware of challenges facing newborns, particularly premature babies.
Ndugai hailed the alliance for organizing the event aimed at raising the profile of new-born babies’ survival in Tanzania.
The alliance, according to the Deputy Speaker has brought a new thing to MPs because ‘premature issues’ were not known by many of them.
“For all the years I have been here I never heard people talking about premature babies,” Ndugai said and challenged men to be involved in the matter instead leaving it to mothers only, especially when the babies are ill.
“There are so many things fathers can do to help, for instance, holding a premature baby at your chest popularly, known as kangoroo mother care, to provide heat to the baby born too soon,” Ndugai told the MPs.
Speaking at the same event Deputy Minister for Health and Social Welfare Kebwe Stephen Kebwe said Tanzania ranks 12th in the world to have the largest number of premature babies.
He said although the day has not officially been commemorated in the country the newborns’ survival is an important development issue for Tanzania.
Overall, while child deaths have decreased dramatically, progress for newborns’ survival has been much slower.
Every year according to Kebwe 39,000 Tanzanian babies do not survive their first month of life, ‘tragically this is the 11th highest number of newborn deaths in the world.’
In the context of World Prematurity Day, complications to premature babies, now contribute to one in every 10 deaths of children aged under five years in Tanzania.
The deputy minister said every year 213,500 babies are born prematurely. One in every nine babies according to Kebwe is a premature baby.
On behalf of the event organisers Craig Ferla said that 47,000 babies are stillborn every year (with no signs of life) - nearly half of them dying during delivery.
Newborn deaths alone now account for 40 per cent of all deaths to children under-five years old, but 80 per cent of all stillborn and newborn deaths result from preventable and treatable conditions.
According to Craig, despite the alarming situation of stillborn and newborn deaths in Tanzania there are various plans, strategies and commitments in place.
Sharpened One Plan which if implemented could save up to 9,400 newborn lives and avert 2,500 stillbirths, he said.
Magareth Sitta, chairperson of the Parliamentary Standing Committee for Social Services whose committee hosted the event, said the horror of the toll on babies’ survival is an issue that few MPs really have an in-depth understanding of – hence the voices of newborns remain largely muted.
She said collectively, event organizations have seen this as an opportunity “to raise the profile of the largely reversible situation prevailing for our babies, and catalyse a greater awareness, advocacy and accountability for transforming the survival chances of our babies and significantly reduce the newborn mortality rate.”
SOURCE:
GUARDIAN ON SUNDAY
Bilal to open financial institutions` meeting
Vice-President
Dr Mohamed Gharib Bilal is tomorrow expected to address the 17th
Conference of Financial Institutions (COFI) meeting to be held at the
Arusha International Conference Centre (AICC). The two-day event has been organized by Bank of Tanzania (BoT). COFI is a biennial forum created in 1980 by the central bank.
“It brings together heads of financial institutions and other stakeholders to exchange views and experiences on matters related to the financial system and the country’s economy.”
This year’s conference theme is ‘Financing Agriculture and Agribusiness in Tanzania: Challenges and Opportunities.’
It is expected to reflect the need to increase financial resources to agriculture, the major activity of the majority of Tanzanians.
Currently, there is remarkable financial innovations , accompanied by elimination of geographical barriers to some financial services, particularly money transfer services.
Mobile money and several other innovations in the country have become part of the changing financial sector landscape, playing a ‘transformative role’ in extending affordable financial services, particularly to the rural populations.
Policy makers and practitioners in the financial sector are eager to understand the forces behind these developments and their implications to the provision of financial services.
SOURCE:
GUARDIAN ON SUNDAY
Dar Catholics pray for peace during referendum
Hundreds
of Catholics gathered at Msimbazi Centre grounds in Dar es Salaam
yesterday to pray for peace and harmony ahead of the referendum to
approve the proposed draft constitution next year.
Polycarp Cardinal Pengo celebrated Mass on this colourful thanks giving occasion for the Catholic Archdiocese of Dar es Salaam.
The thanksgiving event brought to Msimbazi several representatives from parishes in Coast and Dar es Salaam regions as well as Zanzibar
They prayed for the country’s entire referendum, specially praying for God’s mercy so that peace prevails during the process as opposed to ongoing quarrels among politicians as well as misunderstandings in the public.
The believers called on authorities to ensure the new constitution respects life, protects citizens’ rights and lessens potential conflict that may arise if the process goes contrary to what the public expects.
Cardinal Pengo thanked the believers for their prayers while he was being treated in hospitals within and the outside country.
“Thank you all for prayers that have enabled me today to stand before you… pray more so I continue to recover more as well and do more good as a sign of thanks,” he said.
The Cardinal said: “Today we gather here to deliver our thanks to Almighty God, with each parish making progress in contributions compared to previous years.”
He promised to protect the contributions, saying: “I will be at the forefront to look after the money collected from you to ensure it goes to right place.”
It will not be used for unnecessary activities or personal use, he added.
Polycarp Cardinal Pengo celebrated Mass on this colourful thanks giving occasion for the Catholic Archdiocese of Dar es Salaam.
The thanksgiving event brought to Msimbazi several representatives from parishes in Coast and Dar es Salaam regions as well as Zanzibar
They prayed for the country’s entire referendum, specially praying for God’s mercy so that peace prevails during the process as opposed to ongoing quarrels among politicians as well as misunderstandings in the public.
The believers called on authorities to ensure the new constitution respects life, protects citizens’ rights and lessens potential conflict that may arise if the process goes contrary to what the public expects.
Cardinal Pengo thanked the believers for their prayers while he was being treated in hospitals within and the outside country.
“Thank you all for prayers that have enabled me today to stand before you… pray more so I continue to recover more as well and do more good as a sign of thanks,” he said.
The Cardinal said: “Today we gather here to deliver our thanks to Almighty God, with each parish making progress in contributions compared to previous years.”
He promised to protect the contributions, saying: “I will be at the forefront to look after the money collected from you to ensure it goes to right place.”
It will not be used for unnecessary activities or personal use, he added.
SOURCE:
GUARDIAN ON SUNDAY
Varsities in humanitarian law contest
Students
from three Tanzanian universities are among eight African countries
taking part in this year’s moot court competition on international
humanitarian law (IHL).
The competition was mandated by the International Committee of the Red Cross (ICRC) in Arusha.
An ICRC official, Lynette Kamau told reporters here that the final round will take place at the International Criminal Tribunal for Rwanda (ICTR) based here, which is slated to shut its doors by late next month.
ICTR president, Judge Vagn Joensen was slated to adjudicate the session with two other judges.
“This year, 36 students are participating in the All Africa Moot Court Competition on IHL. The ICRC has been organising the competition for 14 years in Arusha,” she elaborated.
The ICRC’s regional legal advisor, Umesh Kadam said the competition generates a lot of interest among law students in Africa.
“This often inspires them to pursue a career in international law,” Kadam said, noting that this is one among initiatives implemented by the ICRC to raise awareness about international humanitarian law.
Undergraduate students from Makerere University in Kampala, Moi University in Eldoret, will be participating along with those from Strathmore University, a UK university with a branch in Nairobi, Ruaha Catholic University of Iringa, Uganda Christian University, University of Rwanda at Kigali, University of Abuja in Nigeria, University of Zanzibar, University of Johannesburg, University of Zimbabwe and University of Bahir-Dar Amharic National University of Ethiopia at Addis Ababa.
“The competition has been going on for one week. Students compete for five preliminary rounds, semi-finals and the final round.
Students are placed in a fictional conflict situation in which they are assigned different roles to play in diverse scenarios to demonstrate their legal knowledge and skills,” the ICRC official noted.
The competition is accompanied by lectures from ICRC and Rwanda Tribunal staff as well as discussions on topics related to various case studies. Since its inception in 2001, more than 400 students from different African universities have taken part.
The competition was mandated by the International Committee of the Red Cross (ICRC) in Arusha.
An ICRC official, Lynette Kamau told reporters here that the final round will take place at the International Criminal Tribunal for Rwanda (ICTR) based here, which is slated to shut its doors by late next month.
ICTR president, Judge Vagn Joensen was slated to adjudicate the session with two other judges.
“This year, 36 students are participating in the All Africa Moot Court Competition on IHL. The ICRC has been organising the competition for 14 years in Arusha,” she elaborated.
The ICRC’s regional legal advisor, Umesh Kadam said the competition generates a lot of interest among law students in Africa.
“This often inspires them to pursue a career in international law,” Kadam said, noting that this is one among initiatives implemented by the ICRC to raise awareness about international humanitarian law.
Undergraduate students from Makerere University in Kampala, Moi University in Eldoret, will be participating along with those from Strathmore University, a UK university with a branch in Nairobi, Ruaha Catholic University of Iringa, Uganda Christian University, University of Rwanda at Kigali, University of Abuja in Nigeria, University of Zanzibar, University of Johannesburg, University of Zimbabwe and University of Bahir-Dar Amharic National University of Ethiopia at Addis Ababa.
“The competition has been going on for one week. Students compete for five preliminary rounds, semi-finals and the final round.
Students are placed in a fictional conflict situation in which they are assigned different roles to play in diverse scenarios to demonstrate their legal knowledge and skills,” the ICRC official noted.
The competition is accompanied by lectures from ICRC and Rwanda Tribunal staff as well as discussions on topics related to various case studies. Since its inception in 2001, more than 400 students from different African universities have taken part.
SOURCE:
GUARDIAN ON SUNDAY
TRA bills Red Cross for Sh1.5bn
Tax avoided on imported vehicles Says buyers pay the tax, not TRCS
Tanzania
Red Cross Society (TRCS) is faced with a challenge of paying over
Sh1.5bn to the Tanzania Revenue Authority (TRA) by December 31 or see
its tax exempt status scrapped, with obvious consequences for various
stakeholders.
TRCS, a leading humanitarian agency each year imports relief items and equipment meant for communities affected by disasters, risks and emergencies in scores of containers.
TRA has placed a demand to TRCS to pay that amount saying it accrues from vehicles it has been disposing off for the last 10 years.
The tax note stipulates that over 100 vehicles have been sold and each is supposed to fetch TRA between Sh15m and Sh22m in taxes.
TRCS has been selling used vehicles without conditioning the buyers to clear TRA tax dues before taking them. “Red Cross as an auxiliary to the government has failed to do the needful, causing the government to lose millions of shilling in unrealised income,” TRA maintains.
Reliable sources affirm that TRA has written to TRCS demanding it to clear the debt with fines and penalties by December 31or else its tax exempt status shall be at risk.
Some TRCS vehicles meant for the Blood Safety project have for months been languishing in TRA parking yards pending TRCS clearing of previous taxes owed to the tax authority.
Next year is an election year, with TRCS expecting consignments from Red Cross International and other partners to help volunteers and communities responding to election related violence, but TRA is placing the whole situation in a dilemma.
TRCS sources affirmed to The Guardian on Sunday that used vehicles in good order have been shared among senior staff, some freely and others at just takeaway costs, some sold to relatives and friends of society officials, an issue complicating following up tax payment issues.
At the end of September this year when this paper started pursuing the issue Peter Mlebusi, the TRCS deputy secretary general, admitted that TRCS sold used vehicles to some staff members, noting that it was them who were required to pay tax dues to TRA and not the society.
In his response, TRCS President Dr George Nangale admitted tension with TRA, saying that the matter had not formally reached him or be placed in the hands of the Board of directors for discussion and seeking a remedy.
“I am aware of the challenge of paying over Sh1.5bn to the tax body, although the matter has not been brought to the Board of directors.
I have heard from the management that they had several meetings with TRA and they agree to find those who have bought the vehicles to start paying tax and fines as required,” he said.
Red Cross has been selling used vehicles after a certain project is completed, with the procedure being normal and was being conducted every time.
“Sometimes buyers have not been paying taxes by negligence or ignorance. This negligence puts TRCS in a difficult situation,” he said.
It is the duty of the Red Cross management to remind the buyers that they are required to pay tax before starting using the vehicles they have bought, he said.
TRA also needs to make it part of public awareness that any person who buys a used car from a tax exempted organisation must change the title of ownership, he further observed.
“All procedures of changing documents of the vehicle must be done under supervision of the authority which is TRA, so they should explain why buyers continue to evade tax while they have already undergone all intended procedures,” the TRCS executive demanded.
The TRCS management has to explain why they are conducting such business without following proper procedure as the society is a public institution which adheres to the law of the land, he said.
When approached for comment again this week, Mlebusi refused more disclosure, saying that it was a confidential matter between the TRCS and TRA and not for public consumption.
Speaking with emotion via telephone, Mlebusi refused to mention the amount owed to TRA. “Who gave you such ridiculous information? Those who had bought the vehicles are the ones supposed to pay taxes.
The society was not asked to pay the bill but it is helping TRA to find those who had bought the vehicles to redeem payments,” he declared.
Internal sources said Red Cross like other tax exempted institutions including government agencies and departments has an agreement with TRA where before disposing vehicles by selling the successful buyers should clear with the tax body before the vehicle is given out, an accord that doesn’t seem to have been consistently followed.
Mlebusi couldn’t divulge more details, intoning that “If you think what you know is enough and you are comfortable with it you can publish the article whenever you want.
I cannot comment anything regarding the issue. As the president who is the spokesperson has already said, it is better to ask him again for everything you want to know.”
However, he had told The Guardian on Sunday in September that they had vivid documents regarding those who have bought the cars and other documents from the TRA regarding the matter.
When contacted by telephone, the TRA Director for Taxpayers Services and Education Richard Kayombo said it was impossible to talk on the matter because of the agreement between the authority and its client.
“We don’t provide information on our clients. Call them to get more details because they are the ones who know everything,” he stressed.
But later on Friday during Taxpayers’ Day, Kayombo told The Guardian on Sunday that the Red Cross matter as well as on other institutions were being investigated and that exposing more information on the matter would risk affecting the process.
It is not Red Cross alone which faces such matters in relation to exceptions, as many other institutions use the same loophole to evade taxes, he pointedly stated.
TRA board chairman Bernard Mchomvu said that tax exemption is a major challenge since it hinders ability to effectively collect taxes.
During the Taxpayers’ Day event this week, Mchomvu said that in the last financial year, exemptions allowed reached over Sh100 billion, vowing that efforts will be made to bring down that level of tax waivers.
Early this week, MPs discussed and passed a motion that the government prepare alterations to the TRA Act whereby all tax defaulters would be revealed to the public.
TRCS, a leading humanitarian agency each year imports relief items and equipment meant for communities affected by disasters, risks and emergencies in scores of containers.
TRA has placed a demand to TRCS to pay that amount saying it accrues from vehicles it has been disposing off for the last 10 years.
The tax note stipulates that over 100 vehicles have been sold and each is supposed to fetch TRA between Sh15m and Sh22m in taxes.
TRCS has been selling used vehicles without conditioning the buyers to clear TRA tax dues before taking them. “Red Cross as an auxiliary to the government has failed to do the needful, causing the government to lose millions of shilling in unrealised income,” TRA maintains.
Reliable sources affirm that TRA has written to TRCS demanding it to clear the debt with fines and penalties by December 31or else its tax exempt status shall be at risk.
Some TRCS vehicles meant for the Blood Safety project have for months been languishing in TRA parking yards pending TRCS clearing of previous taxes owed to the tax authority.
Next year is an election year, with TRCS expecting consignments from Red Cross International and other partners to help volunteers and communities responding to election related violence, but TRA is placing the whole situation in a dilemma.
TRCS sources affirmed to The Guardian on Sunday that used vehicles in good order have been shared among senior staff, some freely and others at just takeaway costs, some sold to relatives and friends of society officials, an issue complicating following up tax payment issues.
At the end of September this year when this paper started pursuing the issue Peter Mlebusi, the TRCS deputy secretary general, admitted that TRCS sold used vehicles to some staff members, noting that it was them who were required to pay tax dues to TRA and not the society.
In his response, TRCS President Dr George Nangale admitted tension with TRA, saying that the matter had not formally reached him or be placed in the hands of the Board of directors for discussion and seeking a remedy.
“I am aware of the challenge of paying over Sh1.5bn to the tax body, although the matter has not been brought to the Board of directors.
I have heard from the management that they had several meetings with TRA and they agree to find those who have bought the vehicles to start paying tax and fines as required,” he said.
Red Cross has been selling used vehicles after a certain project is completed, with the procedure being normal and was being conducted every time.
“Sometimes buyers have not been paying taxes by negligence or ignorance. This negligence puts TRCS in a difficult situation,” he said.
It is the duty of the Red Cross management to remind the buyers that they are required to pay tax before starting using the vehicles they have bought, he said.
TRA also needs to make it part of public awareness that any person who buys a used car from a tax exempted organisation must change the title of ownership, he further observed.
“All procedures of changing documents of the vehicle must be done under supervision of the authority which is TRA, so they should explain why buyers continue to evade tax while they have already undergone all intended procedures,” the TRCS executive demanded.
The TRCS management has to explain why they are conducting such business without following proper procedure as the society is a public institution which adheres to the law of the land, he said.
When approached for comment again this week, Mlebusi refused more disclosure, saying that it was a confidential matter between the TRCS and TRA and not for public consumption.
Speaking with emotion via telephone, Mlebusi refused to mention the amount owed to TRA. “Who gave you such ridiculous information? Those who had bought the vehicles are the ones supposed to pay taxes.
The society was not asked to pay the bill but it is helping TRA to find those who had bought the vehicles to redeem payments,” he declared.
Internal sources said Red Cross like other tax exempted institutions including government agencies and departments has an agreement with TRA where before disposing vehicles by selling the successful buyers should clear with the tax body before the vehicle is given out, an accord that doesn’t seem to have been consistently followed.
Mlebusi couldn’t divulge more details, intoning that “If you think what you know is enough and you are comfortable with it you can publish the article whenever you want.
I cannot comment anything regarding the issue. As the president who is the spokesperson has already said, it is better to ask him again for everything you want to know.”
However, he had told The Guardian on Sunday in September that they had vivid documents regarding those who have bought the cars and other documents from the TRA regarding the matter.
When contacted by telephone, the TRA Director for Taxpayers Services and Education Richard Kayombo said it was impossible to talk on the matter because of the agreement between the authority and its client.
“We don’t provide information on our clients. Call them to get more details because they are the ones who know everything,” he stressed.
But later on Friday during Taxpayers’ Day, Kayombo told The Guardian on Sunday that the Red Cross matter as well as on other institutions were being investigated and that exposing more information on the matter would risk affecting the process.
It is not Red Cross alone which faces such matters in relation to exceptions, as many other institutions use the same loophole to evade taxes, he pointedly stated.
TRA board chairman Bernard Mchomvu said that tax exemption is a major challenge since it hinders ability to effectively collect taxes.
During the Taxpayers’ Day event this week, Mchomvu said that in the last financial year, exemptions allowed reached over Sh100 billion, vowing that efforts will be made to bring down that level of tax waivers.
Early this week, MPs discussed and passed a motion that the government prepare alterations to the TRA Act whereby all tax defaulters would be revealed to the public.
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