LGAs told to stick to financial regulations

The government has called upon local government authorities (LGAs) to stick to financial discipline of banking all revenue collections prior to institute expenditures.

The general trend is that some LGAs start spending before depositing the money at the banks against the directive of the government and contrary to good financial discipline.

The Minister of State in the Prime Minister’s Office for Regional Administration and Local Government, Ms Hawa Ghasia told some 300 LGAs officials here that banks had a wide network of branches hence there was no excuse of not banking the money.

“There is no reason for starting using the money while banks branches are within your localities,” Ms Ghasia who officiated the one day CRDB’s awareness seminar to LGAs said.

“Actually some have rented some of the LGAs premises… now you (LGAs) should deposit the money on daily basis prior to the expenditures.”

The bank organised the seminar for central zone LGAs, where they brought together officials from Dodoma, Morogoro, Manyara, Tabora and Singida regions to learn about CRDB’s services and opportunities for developing their municipalities and councils.

The minister said about 80 per cent of the LGAs in central zones has opted to choose CRDB bank services.

The minister, opening a second round of CRDB’s seminar for LGAs, told bank officials to enquire from municipal and council directors when they miss to deposit their revenue collections even for a single day.

Speaking during the seminar, CRDB’s Managing Director, Dr Charles Kimei said the bank promises to deliver quality banking services next to none in the country.

“The bank is ready to accommodate municipalities and councils when it comes to loan for developments…some have taken loans from us for various development reasons,” Mr Kimei said.

“Since the government welcomed competition on banking services, fees and charges have gone down tremendously,” Dr Kimei said without saying by what levels.

He also assured those municipalities and councils that have chosen CRDB that the bank assured them of timely salary payments even when the government delays to send them funds.

CRDB’s Director of Corporate Banking Philip Alfred said the bank was discussing with the government on how they could relax some regulations when it comes to government loan guarantee to municipalities and councils. He said some municipalities and councils have benefited from their loan scheme.

He mentioned some of beneficiaries as to include Mbeya City which secured a 17.5bn/- loan for constructing the Mwanjelwa Market and Mwanza Municipal which got a 2bn/- loan for construction of secondary school laboratories.

Others are Njombe 1.2bn/- and Dodoma 15.7bn/- for plot survey and infrastructure constructions.
Source: Daily News, reported by Abduel Elinaza, from Dodoma, Tanzania
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