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Treasury Registrar warns public institutions with poor performance
🇹🇿 Tanzania /Economy & Trade

Treasury Registrar warns public institutions with poor performance

From Mwananchi · () Swahili

Translated from Swahili, summarized and contextualized by DistantNews.

At a glance

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  • Tanzania's Treasury Registrar, Nehemiah Mchechu, warned public institutions with unsatisfactory performance to improve immediately.
  • Institutions failing to meet profit targets and contribute adequately to government revenue face consequences.
  • Mchechu stressed that public entities are citizens' property and remitting revenue is a duty, not an option.

Tanzania's Treasury Registrar, Nehemiah Mchechu, has issued a stern warning to public institutions exhibiting poor performance, demanding immediate self-assessment and improvement. He emphasized that the government will not tolerate underperformance indefinitely, particularly from entities failing to meet profit objectives and contribute sufficiently to national revenue.

Our institutions must live up to the profit objectives we set for them. A leader who continues to fail to deliver dividends for an extended period is not suitable.

— Nehemiah MchechuTreasury Registrar warning underperforming public institutions.

Mchechu stated that all institutions required to submit dividends and other contributions to the government must do so punctually. He clarified that public corporations are not the private property of their boards or management but belong to the citizens through the government. Therefore, remitting expected revenues is a mandatory obligation.

"Our institutions must live up to the profit objectives we set for them. A leader who continues to fail to deliver dividends for an extended period is not suitable," Mchechu declared. He further cautioned against institutions borrowing funds to pay dividends, as this creates a false impression of their operational health and deceives leadership and the public.

If you borrow to pay dividends or other contributions to the government, you are deceiving the President and even yourself.

— Nehemiah MchechuTreasury Registrar criticizing the practice of using loans to pay dividends.

Regarding the fate of underperforming institutions, Mchechu explained that dissolution or mergers follow specific procedures and are not solely determined by dividend performance. The government grants these entities time to implement reforms, and further action is taken only if they fail to show improvement. Despite collecting a record Sh1.028 trillion in 2024/25 through dividends and other contributions, Mchechu believes there is significant potential to increase collections by enhancing public institution performance and managing government investments more effectively.

We expect to start with new energy, this year we will break last year's record and next year we will break this year's record.

— Nehemiah MchechuExpressing optimism about future revenue collection from public institutions.
DistantNews Editorial

Originally published by Mwananchi in Swahili. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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