Dodoma — UBUNGO MP (Chadema) John Mnyika on Monday faulted the privatization plan, arguing it was high time the government shelved the decision as it has failed to revamp the country's industrial sector.
Mr Mnyika told the National Assembly here that many factories that were privatized were either closing shop or inadequately operating for a number of years, denying Tanzanians of employment opportunities, among other shortcomings.
Mr Mnyika flawed a statement made by retired president Benjamin Mkapa that privatization has greatly contributed to the country's development, claiming that the move has apart from failing to create employment, has also led to a decrease in revenue as most privatized factories failed to take off.
The MP mentioned Ubungo Garments, Ubungo Spinning Mills, Polysacks, Tanzania Sewing Thread and Coastal Dairies as among the privatized factories that were inadequately operated. He questioned the government as to why it has failed to pay pension to former employees of the privatized companies.
Responding on behalf of Industry and Trade Minister, the Deputy Minister for Home Affairs, Mr Pereira Ame Silima, said that all workers were lawfully pensioned. He said that in some privatized factories, workers did not have their employment contracts terminated, instead continued working under the investors.
For example, the deputy minister said that in Ubungo Garments, total of 25 workers were paid pension, Ubungo Spinning Mill (283) and Polysacks (145). However, Mr Pereira said that despite giving pensions to such workers, others emerged and claimed to have been lowly paid.
Mr Pereira said that the ministry of Industry and Trade and the Tanzania Holdings Corporation (THC) went through all privatized companies and found out that others were closed while others changed business profiles. He said such companies were to be discussed by relevant authorities before further steps are taken.
"The analysis made by Industry and Trade Ministry and THC revealed a number of factories had been closed for years while others operated contrary to their business profiles" Mr Pereira said. Mr Pereira also said that to make these companies operation transparent, those with more than 40 per cent shares had their accounts audited by the Controller and Auditor General (CAG).
The audited reports were then channeled to treasury registrar office for further steps, a thing which Mr Pereira said that did not exist in the previous days. Ms Rebecca Mngodo (Special Seats-CHADEMA) also criticized the privatization system claiming that it has led to nothing than natural deaths of many textile factories including Mutex, Sunguratex and Mwatex.