Karl Lyimo
4 February 2008
column
Dar es Salaam — Leona Helmsley of the US and Dr Shukuru Kawambwa of Tanzania may not ring a bell in many people's mind. But the two have something in common in their attitude towards paying taxes and utility bills.
Ms Helmsley (July 4, 1920-August 20, 2007) was a hotel operator and real estate investor of considerable means, but became notorious for tax evasion and other misdeeds.
EVENTUALLY, SHE WAS CONVICTED OF US federal income tax evasion and other crimes in 1989 and imprisoned. Apparently, she had been overheard boasting, "We (the rich) don't pay taxes.
Only the little people pay taxes " That finally proved her undoing.
Were Helmsley's statement not truth - meaning everybody "big and little" duly paid their taxes - half the socio-economic problems of most anaemic economies like Tanzania's would be solved in no time.
Tax evasion is the order of the day, with the affluent at best avoiding, and at worst evading taxes as a matter of course. In Tanzania, the situation is terrible.
Many of the flashy philanthropists who shell out millions of shillings in sponsoring social events have little to show in the way of civic duty via meaningful tax contributions to the national economy.
If only they paid half the amounts in taxes
AS I WAS SAYING, MS HELMSLEY SAW tax-cheating as a sport of the privileged few. Tanzania minister for Water Shukuru Kawambwa seems to have fallen into the same hole.
The only difference is, instead of taxes, it is urban water supply bills that are not being paid. He defends a certain class of water consumers who default on their monthly bills with gusto!
ON DECEMBER 23, 2007, THE DAR WA-ter utility Dawasco, embarked on a water supply disconnection campaign targeting major payment defaulters in Dar es Salaam. Disconnections are routine for defaulters in other parts of the city.
This time round, however, Dawasco descended on posh Dar where the really affluent and public leaders live, including government ministers.
CONSUMERS IN MSASANI, MBEZI Beach, Mikocheni, Ada and Regent estates owed Dawasco nearly Tsh3 billion ($2.86 million) in unpaid arrears. They hide behind high fences, steel gates, guard-dogs, armed watchmen - even their official positions - effectively denying Dawasco access to water-meters inside the premises.
Dawasco resorted to disconnecting supplies along the mains - thereby raising official hackles.
This, Dr Kawambwa said, disrupts the government's objective of "providing water to all citizens uprooting water-pipes should be the last resort for defiant customers who don't pay their bills."
Really?
Indeed, there is no effective way apart from blocking supplies to consumers who deny meter-readers access to their mansions. Legal action is lengthy and easily frustrated by court injunctions readily available to the financially and politically powerful.
IN ANY CASE, THE GOVERNMENT IS NOT supplying free water to its citizens; so why is it that only the poor pay for utilities? The powerful in Tanzania are notorious for defaulting on their civic duty, and become vengeful when cornered into compliance. Bravo, Dawasco; keep it up.
Tanzania needs the Leonas of this world the way it needs advocates and practitioners of economic sabotage.
Karl Lyimo is a freelance journalist based in Dar.
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