Ghost workers must cease

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Ghost workers must cease
The government has been losing billions of hard earned money through fraudulent means and few of these cases have been taken to court and the defaulters duly punished. 
Recently, it was reported in the press that the National Insurance Corporation (NIC) of Tanzania lost over Tsh.250 million through ghost workers.
Funny enough, according to the former Director of Internal Control of the NIC, out of the Tsh.256 stolen through ghost workers, Tsh.227 million were stolen at the corporation's headquarters. 
The remaining balance of Tsh.8.7 million was stolen at Kigoma, Lindi, and Mbeya branches. Also over Tsh.223 million was stolen by 55 employees who were overpaid while over 36 million was paid to seven non-existence employees.
Again, the theft was detected following a special audit conducted between July 1997 and March 1999 as nothing wrong was detected between July and December 1997. 
The mode of overpayment was through two bank accounts, which the said employees maintained in two different banks while the remaining money was stolen through non-existent employees.
We should not cry over spilt milk but the financial institutions in the country should exercise special care in handling the public funds. The funds in question do not belong to a group of Tanzanians but to all of them. 
The funds were probably sourced from revenue in the form of taxes, which are paid by every Tanzanian, only to end into the pockets of few individuals unjustly. The government should make sure that such mistakes are not repeated.

Beware of competition, Musiba warns
Last week, the Chairman of Tanzania Private Sector Foundation (TPSF) Elvis Musiba gave an early warning that with the signing of East Africa Customer Protocol, Dar es Salaam businessperson will experience stiff competition.
The protocol is expected to be signed next month after EAC countries-Kenya, Uganda and Tanzania arrive at core tariff agreements.
Musiba said: "We (Dar business community) are in support of the protocols. But our industrialists and traders must know that the protocols will usher in cut-throat competition." 
Musiba is also the President of Tanzania Chamber of Commerce, Industries and Agriculture (TCCIA).
He said members of the business community must brace themselves for a trick and tough scenario, since their Kenyan and Ugandan counterparts will be amongst the Tanzanians chasing same customers. 
Both Tanzania and Uganda are reportedly worried about Kenya, which has the strongest industrial base in the region. The EAC market after singing the protocol will have over 85 million consumers. 
Under the union, the three EAC members states will have to apply similar external tariffs on imports and gradually phase out tariffs on domestic products.
The market opportunities offered by the union are great and there is no question on its importance to the nations and businesspersons. But for sometime now the treaty signing was postponed a number of times due to what is termed as fear of Uganda and Tanzania that Kenya will over shadow them, which is true. 
Musiba's precaution thus should be taken with great consideration. Planning is the key to success. We all know that it will take time for industries to catch-up with Kenyans. 
Due to recent trade liberalisations, industries, banks and insurance companies locally are not as old compared to Kenya's sector. Even before the signing of the Custom Union Protocol, over 300 Kenyan firms have crossed the boarder and invested or opened branches in the country. Tanzanian insurance sector is heavily relying on Kenyan insurer, most of PR firms are also from Nairobi and Dar bears the Kenya Commercial Bank. 
Comparatively, how many Tanzanian firms have crossed to Kenya? Less than five percent. 
Also Tanzania imports massively from Kenya, it's among Kenya's top five importing countries.
Thus is why the warning from Musiba must not just pass by. Musiba's cry should be taken as a forewarning for Tanzania to stand the EAC competition.

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