Special Seats MPs decry food suppliers’ debt pile

By Augusta Njoji , The Guardian
Published at 09:24 AM Nov 05 2024
Debt illustration
Photo: File
Debt illustration

LONGSTANDING debts owed to contractors and suppliers providing services in public schools need to be paid by the government as some of these clients face foreclosure by banks due to unpaid bills, legislators said yesterday.

Priscus Tarimo (Moshi Urban), issued this appeal in a question and answer session in the National Assembly, demanding clear explanations on the situation.

In a basic question, he queried the reliability of plans to settle debts owed to service providers, particularly those supplying food to government schools, highlighting the urgency of the situation as underlined by the financial strain the suppliers face.

Asia Halamga (Special Seats) raised a supplementary question, referencing a statement made during mid-year budget discussions, where the government affirmed that 949bn/- was allocated to settle various debts.

“Are school service providers included in this funding? How long will they need to wait for payment? It’s crucial for these small-scale entrepreneurs to understand the timeline,” the MP declared.

Grace Tendegu (Special Seats-Opposition) said that while the government verifies debts before making payments, some suppliers and contractors are owed money for up to three years. “How long does this verification process take? These delays are unacceptable,” she emphasized.

Cecilia Pareso (Special Seats-Opposition) highlighted the plight of road contractors, many of whom turn to banks for loans while awaiting payment from the government.

“What is the government’s position on these contractors? Some have faced foreclosure due to their financial situation,” she demanded, while Neema Lugangira (Special Seats) asserted that debts owed to food suppliers directly impact food availability in schools, affecting students’ ability to learn.

She referred to deputy minister (Regional Administration and Local Governments) Zainabu Katimba’s statement in the first post0-budget session that 21.7bn/- is owed to school food suppliers. “When will this process of verification be completed,” she queried.

“In Bukoba Urban, six government secondary schools are owed 936m/-, with debts dating back one to six years,” she said in illustration, where Finance deputy minister Hamad Hassan Chande sought to reassure MPs.

He said that the government is working to settle outstanding debts, including those owed to school food suppliers, noting that payment timelines depend on revenue availability and ongoing verification of debts by the government’s Internal Auditor General (IAG).

“The verification process aims to ensure proper management and control of public funds in accordance with the Budget Act No. 439 and the Public Finance Act No. 348. We have instructed all councils to pay suppliers on time to prevent accumulating debts and avoid troubling service providers,” he stated.

School service providers are included in the allocated funds from last year, with various payments being conducted, thus suppliers and service providers need to be patient as their payments will be made once verification is complete and funds are available, he added.