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Tanzania: Ex-EAC Retirees Camp At Ikulu
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The Citizen (Dar es Salaam)
8 May 2008
Posted to the web 8 May 2008
Bernard James
Desperate retirees of the old East African Community yesterday assembled at the gates of the State House to demand that President Jakaya Kikwete intervene over the long drawn out issue of their terminal benefits.
They want the president to reverse what they say was a decision by former finance minister Basil Mramba to reduce the total amounts of their terminal benefits from Sh450bn/- to Sh117bn/-. The angry retirees who arrived at the place at around 7:30am vowed not leave the place until they get an assurance as to when the government would pay them the delayed benefits in full.
"This time we want the president to tell us where the Sh333bn/- that was set aside for our benefits has gone. We are not going to leave this place. Go and inform the Red Cross to bring us tents," angry Reuben Thomas, former EAC Railways Corporation employee said outside the State House gate.
Three weeks ago, the old workers had written to President Jakaya Kikwete pleading with him to push for advance payment of Sh20million to each of them while more complex issues regarding their actual and full payment were being sorted out by authorities.
As of yesterday, no reply had been made as to the letter presented at the State House on April 16. "We have resolved not to leave this place empty handed. Many of us are old and dying everyday because they are unable pay for food and medication while the government is sitting on their rights," said Thomas. Police arrived at the place a few hours later but the old workers rejected a call to leave the place.
It is their contention that the payments made by the government in 2005 were "peanuts." They say that key components of the payment agreement including the consideration of the real value of their payment and the compounded interest in terms of the prevailing exchange rate were deliberately omitted by the authorities to rob them of their rights.
"This time we are determined to see that the government releases our rightful payments. We do not want further delays. We want our full payment," said Asia Shabani who seeks benefits left behind by her late husband.
Mr Jones Musokwa, the secretary of the ex-EAC Workers Association (EACWA) who was among representatives of the retirees allowed to meet State House officials, later told the Citizen on telephone that State House officials requested them to come back on June 7 for an answer.
The said officials were not in a position to decide on their case for it should first go through proper financial authorities, he said.
Most of the workers received Sh2million when the government started paying the workers after a promise by former President Benjamin Mkapa before he left office.
But the workers claim that the amount was peanuts as it was less than 10 percent of their actual and just claims.
Sophia Simba, the minister in the President's Office (Good Governance) promised to work on the retirees' claims when reporters wanted to get her comment on the matter.
However, the minister was clear enough to say it was unlikely that the payment would be effected at a go. In September 2005, Mr Mramba announced that the government would begin payments amounting to $117m. He said the amount was all that the government could afford.
Mr Mramba had in 2004 formed a 20 person committee to work on a solution for the benefits dispute which has remained on the statute books for over 30 years now.
The committee agreed that the 28,000 workers were supposed to get Sh450bn/-, and the workers now wonder why the government decided to dish out only Sh117bn/- to 38,000 workers.
"There is a dirty game here. There is an additional 10,000 ghost retirees apart from the eligible retirees," another retiree said bitterly.
A 48 years old Mwanaharusi Kassim who seeks the benefit of her husband who died without receiving the money said they want to meet the president face to face so that he gives a final word.
"We want to meet the president. Short of that we are not going to vacate this ground today," an angry Mwanaharusi said.
Ex-EAC (T) Workers Association (EACWA) secretary Jones Musokwa says the government robbed them of Sh333bn. When the government started paying the retirees in 2005, many of them ended up getting Sh2million benefits.
"To cover up their dirty game the government dished up Sh2million to each Dick, Tom and Harry the so called transport allowance which did not take into consideration even ranks and distance," he said.
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He accused the government of using the value of the Tanzania shilling as it stood in 1977 salaries to calculate their benefits today.
"This is utter rubbish because the value of the shilling which is supposed to be used to calculate the benefits is clearly enshrined in article 1 (n) of the EAC Mediation Agreement of 1984," he said.
The article clearly states the formula to be used to calculate their benefits which shall consider the prevailing exchange rate, he added.
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