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Mengi supports JK on politicians in business
2008-02-25 08:27:25
By Guardian Reporter
The Chairman of the investment committee of the National Investment Company (NICOL), Reginald Mengi, has said he fully supports President Jakaya Kikwete`s recent remarks that politicians doubling as businesspersons were caught in a serious conflict of interests.
He concurred with the President that such people could not offer efficient enough public service and it would be most prudent for them to choose between politics and business.
Mengi, who is Chairman of the Confederation of Tanzania Industries and IPP Executive Chairman, made his stand known in Dar es Salaam on Friday when speaking at the launch of the second phase of NICOL’s sale of shares to the public.
He defended his position, saying experience had shown that most politicians also engaged in business are usually overwhelmed by their ventures at the expense of their commitment and service to the people.
``When those people got into politics we expected them to help us but, instead, most of them have become more of businesspeople than politicians,`` said Mengi, stressing that it would be a lot better if they quit politics.
But he cited former cabinet minister Idd Simba as an exception who once served in various positions in the public service but was never derailed from helping his fellow businessmen `without drawing them into politics`.
In his recent monthly televised address to the nation, President Kikwete advised cabinet ministers and Members of Parliament directly engaged in business to choose between public service and their ventures.
He said holding a political post entailing serving the people and being actively involved in business, which was essentially a private affair, led to conflicts of interests those concerned would do much better without.
Turning to the need for the participation of the local population in economic investments, Mengi said no meaningful development was possible without sustainable private sector involvement in the running of the national economy.
``I congratulate you (NICOL board chairman Felix Mosha) on the success of this company because when you started it was just like a dream and when you have such dreams and hopes sometimes people might think you’re crazy,`` he noted.
The NICOL committee chairman described the local investment company as a liberator for Tanzanians `because of its role in improving the development of the people`.
He recalled that President Kikwete once toured the firm`s investments in Mwanza and asked that he be kept periodically posted on the progress made so that he could consider buying shares.
``There will be a noticeable difference if President Jakaya Kikwete implements his plans to buy shares in the company,`` he added.
In earlier remarks, Mosha had said the company had decided to start selling its shares again after making encouraging profit-making strides.
He said the firm`s investments over the last two years in the National Microfinance Bank (NMB) had earned them more than 800m/- in dividends.
``By working together, Tanzanians have been able to earn money through this company that would otherwise have ended in the pockets of foreign investors,`` he observed further.
He said the company`s success was made possible by the support of Tanzanians `who help improve the lives of many others by buying share`.
Putting the achievements made in perspective, Mosha said many of the most successful international firms were not the property of individuals but run through shares bought and owned by members of the public.
He pointed out that NICOL was through with the sale of its shares since many Tanzanians had failed to obtain them ``mainly because they harboured serious doubts about the company`s future viability and sustainability``.
``Very many Tanzanians feared buying our shares because they had doubts after having seen many companies fail after taking off,`` he added.
The NICOL chief said that during the just-launched phase, they would be offering 50,000,000 shares for sale at a 300/- each, thus being in a position to collect a total of 15bn/- that would be spent on investment expansion.
He stated that they would be investing in the oil industry, a modern slaughterhouse and food processing industry, adding:``Our company has a long way to go and Tanzanians will have to cooperate with us accordingly in order to improve investments in the infrastructure, finance, tourism and mining sectors.``
Mosha said NICOL boasts 25,000 Tanzanian shareholders and, after the first year of its existence, has earned a profit of 600m/- and managed to pay its shareholders a dividend of 11/- per share. It earned a 341m/- profit in the second year.
He noted that the value of the firm’s shares had risen from 250/- to 689/, or by some 175 per cent, within a short span of two years.
In brief remarks at the launch, NICOL board vice chairman Judge Mark Bomani said some people have been discouraging others from buying shares in the firm.
However, he urged the company to soldier on with its investment drive ‘since it had surmounted so many daunting obstacles’.
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