Sunday 1 September 2013

Girl students speak out on new Constitution

Zanaki secondary school
Girl students in Dar es Salaam region have urged the constitutional review commission to make sure that the new constitution defends their rights to education and protects them from unconducive and vulnerable learning school environments.
Students from Jangwani, Zanaki and Kisutu secondary schools were contributing their views on the draft constitution during a meeting organized by Forum for African Women Educationists (FAWE-Tanzania Chapter), in Dar es Salaam this week and attended by reporters and teachers.

A form four student from Zanaki secondary school, Lilian Baton said that some school girls have dropped out of school and others raped because of living far away from school, having no accommodation facilities such as hostels.

“Some students are poor. They live very far from their schools and wake up a few hours after midnight to prepare to go to school and while on the road, they can meet thugs waylaying unprotected girls. Therefore, this constitution must clearly state girls’ rights to education regardless of their parents’ economic status,” she said.

Contributing to discussion on Article 41 (a) on the rights to education without obstacles, Monica Mwaipopo from Jangwani Secondary School said that the article was silent on types of obstacles being referred. According to her such obstacles should be clearly named and explained.

“Girls are faced with many obstacles such as early pregnancies, transport problems, gender violence and sexual corruption among others. These should be clearly stated so that girls can be effectively protected from such vulnerability,” she said.

Clara Kabyemera from Kisutu Girls, said that Article 41(b) should include education for self-reliance to produce competent graduates who could create jobs and stand on their own feet instead of being job seekers and wait for government employment.

Apart from commending the students’ fruitful contribution on the draft constitution, FAWE-Tanzania national coordinator Neema Kitundu urged the students to work hard in their studies, saying education was the best weapon to emancipate themselves and others from male domination.

“I urge you students to aim high. It is your education that would determine your status in the community you live, therefore you should work very hard and prove that you can do better,” she said.

Commenting on the meeting, FAWE Tanzania Chairperson Winifrida Rutahindurwa said that the purpose of organizing the meeting was to give an opportunity for girls in schools to participate fully in giving out their views on the draft constitution like any other Tanzanian, considering that most African girls have no access to a wide range of opportunities like other groups, such as boys.

“We want them to air their views on what is in the draft, what is missing and what to add to come up with the best constitution that could develop, defend and enhance their talents and potentialities with a gender eye in all fronts of life,” she said.

The Forum for African Women Educationalists (FAWE) is a Pan African non governmental organization founded in 1992 to promote girls’ and women’s education in sub-Saharan Africa in line with the quest for Education for All.

Like in other countries where FAWE works, in Tanzania FAWE works together with its partners to create positive societal attitudes, policies and practices that promote equity for girls in terms of access, retention, performance and education quality, through influencing the transformation of education systems.
 

Drug authority bans local 'Netragen'


The food and drugs watchdog (TFDA)
The food and drugs watchdog (TFDA) in the Lake Zone has banned the manufacturing, distribution and advertisement of a traditional medicine selling as “Netragen” which is claimed to cure peptic ulcers.
The move comes as TFDA, the Tanzania Bureau of Standards (TBS) and other relevant government instruments tighten controls on manufacturing and distribution of substandard and unauthorized drugs in the domestic market.

Netragen is manufactured by Herboworkx, a Mwanza based firm, operated by a herbalist known simply as Mwita Marwa. Production of the drug is conducted at the company’s workshop located at Ilemela, and then distributed to various outlets operated by Herboworkx.

Speaking after a surprise inspection at the company’s production sites and clinics on Friday, TFDA Lake Zone inspector Aggrey Muhabuki told a handful of reporters that there is gross violation of laws and regulations governing the drug sector on the part of Herboworkx.

The entire chain of production, distribution and advertisement of Netragen and other traditional drugs of Herboworkx do not meet requirements as provided for in the Traditional Medicine Act and TFDA laws.

TFDA’s scrutiny has revealed that Herboworkx has no licenses and permits (allowing it to provide services) from authorities governing the drug sector—either TFDA or the Traditional Medicine Council.

Secondly, the company had been advertizing its products in the media, something which the zonal inspector said was wrong and contrary to the law governing traditional medicine, which allow the traditional doctor to personally administer concoctions to his/her patients, and not open distribution branches.

Even the production of Herboworx drugs were done in environment which does not meet drug standards and safety.

“The production site is not clean, packaging and labeling of their products do not meet the set quality and standards requirements,” he declared.

Earlier, Herboworx owner Mwita Marwa said that Netragen drug was approved by the Government Chemist and that he had permits from the Traditional Medicine Unit of the Ministry of Health and Social Welfare at Mwanza, claims which TFDA inspectors said were not true and that he had no permits and licenses for the services.

“Because of these shortfalls, from today (Friday), the authority bans production, distribution and advertisements of Herboworx products, until the company complies with laid down procedures, rules, laws and regulations governing the drugs sector,” the inspector announced.

The authority also issued a stiff warning to traditional doctors to abide by the laws and regulations, failure of which stringent measures would be taken against them.
Meanwhile, the Tanzania Food and Drugs Authority (TFDA) has begun a massive operation to curb fake drugs and cosmetics which the authority believes to be harmful.

The operation, according to TFDA Zonal manager Moses Mbamba, would also track down local manufacturers of the sub standard and unlicensed drugs and food products.

“Targeted in this operation include locally-made drugs and food which have not been certified, while foreign ones include cosmetics, animal and human medical drugs,” the manager elaborated.
 

JK to officiate SADC meeting on PACs

Zitto Kabwe, Chairperson of Tanzania's Parliamentary Public Accounts Committee (PAC)
President Jakaya Kikwete is expected to preside over the 10th Southern Development Community Organizations of Public Accounts Committees conference which starts here tomorrow.
Briefing reporters yesterday, Chairperson of Tanzania’s Parliamentary Public Accounts Committee (PAC) Zitto Kabwe, said the meeting will involve more than 300 participants from across SADC member countries and the rest of Africa.

Members of Parliament, Speakers, Controller Auditor Generals and high-ranking government officials from SADC member countries are expected to attend the meeting.
He said President Kikwete is also expected to launch the African Organization of Public Accounts Committees (AFROPAC).

“The meeting would mark the 10th anniversary of SADCOPAC and witness officials of the launch of the African Organization of Public Accounts Committees (AFROPAC).”

The Kigoma North MP added: “The aim of establishing AFROPAC is to improve cooperation among member countries in relation to parliamentary oversight, in spite of differing political, economic and social systems.”

This would create a structure where members could network with the view to sharing best practices, and where appropriate, harmonising and standardising the work of PAC in Africa.

The meeting is expected to discuss new ways of empowering the committees including the offices of Controller Auditor General (CAG), in SADC region Zitto said.
SADCOPAC Chairperson Sipho Makama said the meeting would play a crucial role in shaping public accounts committees across the region.

More people want three tier government

Chadema Secretary General Dr.Wilbrod Slaa shows copies of his party's proposals on improving the new draft constitution. Photo: Tryphone Mweji
The opposition party Chama cha Demokrasia na Maendeleo (CHADEMA) yesterday submitted their views to the Constitutional Review Commission (CRC) for a new constitutional draft in which they included 66 matters for review, including supporting a three tier government.
Speaking after submitting their views, Chadema Secretary General Dr Willbroad Slaa told reporters that his party had submitted two documents that contain the opinions of more than 3.4 million people.

The views were obtained from the general public through open forums, council conferences and internal meetings totalling 3, 462, 805 million people in Tanzania, he said.

Dr Slaa added that the submitted documents cite 66 issues for review, explaining that there were other issues, namely those currently being supported by their party. Generally, he said, Chadema supported 80 per cent of the issues mentioned in the constitution draft.

He expressed concern about CRC’s lack of proper system to receive submitted opinions, referring to how the commission refused exhibits showing the way the people expressed their views at public rallies.

Meanwhile, Tanzania International Fellowship Programme Association (TIFPA) has said there should be a three tier government structure so as to give equal rights to both countries within the Union.

The NGO’s recommendation was presented in a 13-page report submitted to CRC on Wednesday this week, suggesting that there should be a Union President and a prime minister for each partner to head government activities in the respective parts of the nation.

TIFPA said a three government structure would consolidate the status of the union as each member state would have enough time to concentrate on their own economic matters without external interference.

Speaking in Dar es Salaam yesterday, TIFPA Chairperson Charles Mkude, reminded that Zanzibar has always had its own government since the union came into being in 1964 but that has not been the case for the Mainland.

He said the current government structure system discriminates against people on the Mainland, for instance, in that they are not allowed to own land in the isles whereas Zanzibaris can easily be given land on the Mainland.

Why govt withdrew Bills


Mahmoud Mgimwa, Finance and Economic Affairs Standing Committee chairman
The Government today withdrew two of its Bills on statistics and retirement benefits from Parliament amid speculations that the duration of the current 12th Parliamentary session could be cut to two weeks from the original three.
The Guardian on Sunday has established that the Statistics Bill, 2013 that was originally scheduled for tabling and eventual debated last Friday and the GEPF Retirement Benefits Bill 2013, scheduled for this Thursday and Friday, had been shelved until the next Parliamentary session slated for next October.

Both Bills had two-day slots in the Parliamentary business schedule that was released early this week, but there hasn’t been any official announcement by either the House Speaker’s Office or the Clerk to the National Assembly’s Office.

The Guardian on Sunday has learnt from authoritative sources privy to the Prime Minister’s Office and the Parliamentary Standing Committee for Finance and Economic Affairs that the Statistics Bill had been withdrawn due to major amendments, notably on the financial requirement of a new national statistics body, which under the proposed Bill should be autonomous from the Ministry of Finance.

A reliable source close to the Standing Committee for Finance noted that whereas the Bill, currently known as the National Bureau of Statistics to be governed by its own board, it lacks provisions for the body’s financial sustainability, a fact deemed as defeating the entire concept of autonomy.

Finance and Economic Affairs Standing Committee chairman Mahmoud Mgimwa confirmed that withdrawal of the Bill was made because his committee believed the government had run out of options.

Mgimwa also identified financial sustainability as a key area for the autonomy of the statistics body.

“There are good and useful proposals in the Bill but it is clear that absence of a section stipulating for financial sustainability would have adverse effects on the body’s operations,” Mgimwa, an MP for Mufindi North, noted.

He added: “In this modern era … statistics are a sensitive matter and key for development projects … the institution should be able to trade on those statistics within its mandate as stipulated in the law.”

When reached for comment, the Minister of State in the Prime Minister’s Office responsible for Policy, Coordination and National Assembly, William Lukuvi ,confirmed the withdrawal of the two Bills, saying they would be tabled during the October meeting.

However, Lukuvi declined more comment on the Bill’s withdrawal, arguing it wasn’t necessary.

However, the Director of Parliamentary Business, John Joel, said he was informed verbally about the withdrawal of the Statistics Bill, but maintained that his office new nothing of the reasons behind such a decision.

Joel indicated also that the current 12th Parliamentary session could be cut to two weeks from the originally scheduled three weeks for reasons yet to be made public.
The official House business schedule released mid this week shows that the meeting could end on Friday, September 13.

However, The Guardian on Sunday has been reliably informed that the National Assembly had provided money for travelling allowances and for other requirements for just two weeks, an indication of a shortened meeting.

After the withdrawal of the two Bills (Statistics and GEPF Retirement Benefits) there are now just three Bills – the Cooperative Societies Bill, 2013, The Constitution Review (Amendment), 2013 and The Referendum Bill, 2013.
Each of the three Bills has been allocated two days for presentation and debate.

Saturday 31 August 2013

Former Commissioner of Minerals defends large scale mining sector


Dr Dallali Peter Kafumu
Former Commissioner for Minerals Dr Dallali Peter Kafumu has strongly defended large-scale mining in the country, saying the sector has contributed a lot in terms of taxes and job creation.
Himself a former director of mines between 2007 and 2011 when he joined politics, Dr Kafumu filed a written reaction to The Guardian this week following a story published by this newspaper last Saturday, in which apart from defending the sector, he also claimed that the Tanzania Minerals Auditing Agency (TMAA) assumed an activist role in releasing unverified tax data sets and indicating that the miners evaded taxes.

According to Dr Kafumu, one may also assume that last week’s TMAA press conference was a campaign to substantiate its tax audits and assessment work … that it was taking steps in line with mandates of the TRA … the only legal entity mandated by the 2004 Income Tax Act to manage taxes in the country.

In his harsh reaction, Dr Kafumu stated that the data released by TMAA were misleading, adding that in reality, large-scale mining dominated by foreign investors had contributed more than what is currently being reported.

But apart from dismissing the TMAA data, Dr Kafumu couldn’t give actual data on how much was paid in terms of taxes during the period under review (2009-2012).

“It is a fact that large-scale gold mining and businesses worldwide are not only expensive but also complex in nature. A smart writer would need to research more before writing such a news report. Rather than rely on an unverified cluster of datasets from a single source to write a one sided story, more balancing information was needed,” Dr Kafumu wrote.

Though it isn’t clear whether he reacted as an expert, lawmaker, consultant or former Commissioner for Minerals, it is a fact that large-scale gold mining and businesses worldwide are not only expensive but also complex in nature.

Dr Kafumu added, “It is incomprehensible for the Staff Writers to assume that the US$7bn gross revenue is all gross profit and that corporate tax is charged from gross profit.”

But, in last week’s article, The Guardian stated clearly that the $7 billion was total exports for years, meaning this wasn’t the gross profit as claimed by one of the country’s best experts in mining.

The export figures are available from the Central Bank of Tanzania (BOT), which is one of the country’s respected institutions.
According to Dr Kafumu, about 60 percent of gross revenues in large scale mining go to operational cost.
If this is true, then $4.2 billion out of a total export earnings of $7 billion was the operational cost -- or in simple language -- the cost of production.

But, according to Dr Kafumu, operational costs in mining do not include taxes.

“It is also a fact about 20% of the revenue is used to pay for other imposts like royalties; fees; and loan repayments and other taxes like withholding, skills development levy, PAYE, service levy etc. Corporate tax is only calculated from the remaining taxable profits and not from gross revenue. In other words, after deducting all costs including operating costs and other charges that are charged from gross revenue, it is then corporate tax can be charged.”

Dr Kafumu further added, “The corporate tax may be low or high depending on the age of the mine and level of profitability of such a mine.”

“To understand what a profitable mine over the life of the mine worldwide would offer, let us assume that the total US$7bn export values were indeed gross revenues from very profitable mines and 60% of this revenue, which is US$4.2bn would be spend as operation costs. About 20% that is US$1.4bn would be spent as other imposts like royalties, other taxes, fees and loan repayments all charged on gross revenue.

The operating costs and others impost charges will all total into US$5.8bn and deducting from the total revenue we obtain a profit of US$1.4bn. Calculating 30% of profit as corporate tax we obtain US$420m.” Dr Kafumu wrote.

“Assuming the TMAA datasets was good quality, but still the difference between US$303m and US$420m is not significant. And this difference may be due to the fact that Tanzania's mines are at their infancy and profit is just beginning to trickle…At the height of profitability a US$7bn revenue may fetch up to close to half a billion; that is US$500m of corporate taxes. Getting only US$303m as corporate taxes as reported is not be alarming as portrayed by the news report.”

But even if this was reality, to Dr Kafumu, the difference of $197 million is nothing to worry about.
Last Saturday, The Guardian reported that major foreign gold mining companies earned gross revenues amounting to $6.967bn (Sh11.495 trillion) between 2009 and 2012, according to the current exchange rate of Sh1,650 against the US dollar, but paid the Tanzanian government corporate tax amounting to only $280million (Sh473.8billion) over that period.

Corporation tax is charged on gross profit of any company doing business in Tanzania under the current law, under which the Tanzania Revenue Authority (TRA) takes 30 percent of the posted profit.

Corporation Income Tax is levied on corporation taxable profit for all companies registered or carrying business in Tanzania. The applicable corporation income tax rate is 30 percent usually paid in two stages. The provisional tax is paid based on taxpayer’s own estimates at the beginning of the business year; and final tax is paid after the official assessment of the total income in the respective year of income.

According to Income Tax Act in arriving at taxable gains or profits a deduction is allowed for all expenditure incurred in such year of income wholly and exclusively for the production of such income.

According to the Act, annual wear and tear deductions are also allowed for machinery owned and used for the business. The linear method of depreciation is used and the following rates are applicable. 37.5 percent for class one machineries, which includes tractors, combine harvesters, heavy earth moving equipment and such other heavy self propelling machines of a similar nature. 25 percent for class two machinery which is other self-propelling vehicles including aircraft. 12.5 percent for all other machinery including ships.

Quoting data released by TMAA, the Guardian reported that Geita Gold Mine was the leading gold mine, which contributed about Sh299.4bn, followed by Resolute Tanzania Ltd which paid a handsome Sh97bn/-. Tulawaka gold mine, owned by African Barrick Gold, came third and paid Sh77.4bn/- during the same period.

Although African Barrick Gold is the largest gold producer in the country, its contribution in corporation tax remains abysmal because the company continues to declare losses at its North Mara, Bulyanhulu and Buzwagi mines. Using data from TMAA and BOT, the Guardian reported that the total taxes paid (corporate tax, royalties, withholding tax, fuel levy and local government levy) were $477 million, in which corporate tax was $280 million between 2009 and 2012.

This amount didn’t include Pay-As-You-Earn and skills development levies.
At the previous rate of 3 per cent in royalties, it means the government has earned a total of $174.17 million over the past four years in royalties from gold earnings of $6.967 billion.

Royalties are calculated on gross earnings regardless whether the mine has posted profit or not.

BOT data – reliably obtained by the Guardian -- show that in 2009 Tanzania’s gold exports rose to $1.076 billion in 2009, up from $932.4 million in 2008 when gold prices per troy ounce reached $972million.

In 2010, the value of gold exports rose by 31 percent, reaching $1.365 billion, thanks to world’s gold prices that reached $1,112 per troy ounce.

Data from the Tanzania Central Bank further shows that in 2011 gold exports rose by 47 percent, reaching $2.226bn/-, when the price per troy ounce also rose to a record $1,568.

In 2012, gold exports rose to $2.300bn as the price per troy ounce surged to $1,700.
Over the same period, production cost per ounce ranged between $650 and $890 per ounce -- depending on the type of the mine as well as the ore grade available.

But the gold prices ironically surged, raising the value of Tanzania’s export earnings, but the country’s corporate tax remained unconvincing as some of the largest gold mines continued to post losses.

Three governments idea driven by self interest, says Ngombale-Mwiru

Veteran politician Kingunge Ngombale-Mwiru speaks with journalists (not in picture) on the draft constitution at his home in Dar es Salaam yesterday. (Photo: Correspondent Atuza Nkurlu)
A long serving CCM cadre yesterday came out to register his objection against the proposed three-tier government structure in the first Constitution Draft, saying the proposal was geared to kill the Union.
Kingunge Ngombale-Mwiru called a press conference yesterday at his home in which he raised serious concern on the proposal in the draft, saying the propagators of the idea were more driven by self interest.

According to Kingunge, the propagators of the three government system ought to understand that such an arrangement would also bring about operational complaints as it is the case with problems facing the current union today.

“It’s strange to say without three governments the existing union will die. We managed to survive with the union under the two governments for the past 50 years and the union is still strong,” he argued.

He warned a few people who take the issue of union grievances as the main cause for demanding three tier governments by breaking the long existing system of two governments, arguing that the proposal is caused by lack of seriousness.

Kingunge explained that every country in this world has its constitutional nuisances and there is no system which will completely remove governmental and other inconveniences since the country is ruled by popular mandate. “Therefore three is no way you can stay away from those grievances,” he asserted.

Kingunge noted that some existing union nuisances are caused by failure of some public officials who have been weak in performing their duties.

“We leaders have the weakness of not liking to speak openly and transparently the problems that face the community, until crises happen, and that is when we start dealing with it and not early on.”

However, Kingunge has rejected adoption of dual nationality arguing that it will cause conflict of interest because the nationality issue goes together with patriotism.

“The matter of dual citizenship is really disappointing me considering that we were fighting to get nationality from the British and we were not freely given,” he said, expressing surprise at the ruling party’s decision of supporting dual citizenship in the constitution. “I strongly reject this proposal,” he declared.

Kingunge commented that those who propose dual citizenship have their interest because they want that nationality for financial interest.

He rejected the point that having dual citizenship will help local people living outside to support the country’s economy by investments, saying there are countries with single citizenship and they still support their countries.

The issue of dual citizenship will completely take out the patriotism as each country has its own policies toward patriotism, the veteran cadre maintained, espousing the values of stalwarts of the Arusha Declaration staunchly opposed to the proposal.
He similarly expressed his disappointment over the increasing gap between rich and poor, which makes the country begin to experience divisions.

He said he is surprised with the constitutional draft failing to address the situation, whereby the disadvantage group in the country was being left out, noting that the number of poor people in the country is increasing, as data show that more than 15 million people live below one dollar a day.

Senior people in Parliament had started campaigning for the presidency, he said, intimating that what happened in Parliament this week is to mislead the society, especially the youth.

In another development, the Tanzania Higher Learning Institutions Students Organization (TAHLISO) has proposed more time to discuss the terms of the union in detail rather than to rush to propose the structure of the union as people have not yet had the opportunity to discuss the union in detail.

TAHLISO chairman Amon Chakushemeire told a press conference yesterday that the union issue is still conflicting and is directly linked with the sense of national identity among Tanzanians.

He said that it is not a government or political parties’ issue but something that all Tanzanians should discuss especially on the importance of the existence of the union.
TAHLISO had suggested that the constitutional review commission (CRC) should advise the president to allow the constitution draft to proceed on other aspects except the element of union.

He however said that the rights of mentally retarded people should be included in the new constitution because they have basic rights like other citizens.

TAHLISO was also suggesting that in the new constitution the rights of men should be identified because men are slightly fewer in the country compared to women.

NCCR-Mageuzi Acting Secretary General Mosena Nyambabe suggested that the terms land and human resources are not explained well in the draft of the constitution, urging the commission to address the issue more directly.

He also thanked the commission for taking many of their recommendations included in the constitution draft, including the issue of having a three tier government system.
“On 7th January 2012 NCCR-Mageuzi recommended 31 issues which had to be included in the new constitution and we are pleased to see many of our recommendations are in the constitution draft,” he declared.