18 July 2018

Tanzania: Debt Repayment to Suma-JKT Still Slim

REPAYMENT of debts to the investment wing of the National Service, Suma-JKT, is still low with latest figures showing that only six per cent and 24.8 per cent of debts for tractors and security services, respectively, have been cleared so far.

In May, this year, President John Magufuli issued an ultimatum to public and private institutions as well as individuals to settle the debts amounting to 38.3bn/-.

Of the total amount 38bn/- is for tractors and 3.4bn/- is for security services. Owing to the snail's pace of repayment by the defaulters, the corporation has issued a notice to all the defaulters warning that its debt collection unit, Suma-JKT Auction Mart will proceed with legal procedures to recover the money.

The Executive Director of Suma-JKT, Brig. Gen. Charo Yateri, warned the defaulters of administrative and legal actions lest they fail to settle the debts.

"Suma-JKT continues to remind those who have not paid their debts to fulfill their obligations," the Suma-JKT boss said through a statement issued by the corporation's department of communication.

Speaking during an event to launch a factory owned by Suma-JKT at Mgulani barracks in Dar es Salaam in May, this year, President Magufuli issued a 30-day ultimatum to the debt defaulters.

He further directed security and defence organs including the Tanzania People's Defence Forces (TPDF) to swing into action to recover the amount due.

Dr Magufuli as well directed the Minister for Defence and National Service, Dr Hussein Mwinyi, to serve all the public institutions with letters to demand that they pay their debts for SUMA JKT security services provided to them.

Available figures show that tractors worth 40bn/- were loaned out to public and private institutions as well as individuals, some of whom are Members of Parliament, but only 2bn/- had been recovered by the corporation so far.

Just last month, the Speaker of the National Assembly, Mr Job Ndugai, had urged Members of Parliament who are part of the defaulters to fulfill their obligations.

Speaker Ndugai revealed that he had considered forwarding their names to the accounts department of the National Assembly to directly deduct the funds from their salaries only to find out that their packages were subjected to deductions for other loans.

He explained further that Suma-JKT had written to the Office of the Speaker, to remind Members of Parliament who acquired the tractors on loans to repay the funds.

Speaking in the National Assembly on Monday, June 04, 2018, the Speaker said he had the names of the all MPs who have not honoured their repayment terms and asked them to repay as required.

The Suma JKT tractor project in 2010 was aimed at complementing the government's Kilimo Kwanza (Agriculture First) initiative by providing Tanzanian farmers with tractors and other farm equipment at affordable prices.


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