Tanzania Investment Bank picked broker in recovery of CIS loans

The government has said it would now recover billions of money it disbursed to individuals, companies and institutions under the Commodity Import Support (CIS) programme through the Tanzania Investment Bank (TIB) and a broker.

Finance and Economic Affairs deputy minister Jeremiah Sumari issued the statement on Monday when responding to a supplementary question by Charles Keenja (Ubungo, CCM), who had demanded to know measures taken by the government to recover money loaned to individuals, companies and public institutions under the CIS arrangement.

``We have charged TIB with the duty of collecting all debts which previously were being followed up by the treasury, and also engaged a broker for stepping up efforts in recovering the debts,`` he told the House.

Responding to a follow-up question to the supplementary question by Anne Kilango (Same, CCM) on stern measures taken to recover the money, Sumari said TIB and the broker would now be tougher on defaulters.

``Following expiry of the agreed time to pay back the loans, TIB and the broker will now push them to pay back according to contracts they signed with the treasury�this will involve foreclosing their collaterals,`` he said.

Responding to the principal question posed by Keenja, Sumari said the government was on course in recovering the money and would apply all means possible to achieve the same.

Keenja, among other things, had wanted to know the total amount issued and collected so far, as well as problems encountered in recovering the debts.

``The amount allocated to the Commodity Import Support programme is 220,195,002,930/- �.and by September 2007, a total of 980 individuals, private companies and public institutions had benefited from the CIS loans,`` he said.

However, Sumari said the total amount recovered so far was 199,221,222,212/-, dismissing claims that problems encountered in recovering the CIS loans were similar to those faced in the recovery of the loot from the Bank of Tanzania's external payment arrears (EPA) account.

It's understood that under EPA, dishonest businesspeople and public officials plundered about 133bn/- through dubious deals involving phony companies. The government was still making efforts to recover the money.

``Under CIS, loans were issued to those who met required conditions and prescriptions. The treasury invited applications through newspapers and applicants were required to apply for loans under specific sectors,`` explained Sumari.

He mentioned the sectors involved as including agriculture, industry, trade, mining, transport, construction and energy.

* SOURCE: Guardian