Watumishi Housing Company (WHC) is planning to construct 500 housing units for public servants in Dodoma as the government relocates there.

The public entity which is a licensed fund manager for management of the WHC Real Estate Investment Trust (WHC-REIT) has already bought 50 acres and expects to start with 100 houses in the current financial year, according to the company’s chief executive officer Fred Msemwa.

“The WHC board has endorsed the move after we acquired land at Njedengwa near University of Dodoma, which is conducive for the project. The area has tarmacked roads, water supply and electricity.”

He said the houses will be sold to public servants at between Sh35 million and Sh65 million.

WHC-REIT is the main implementor of the Tanzania Public Servant Housing Scheme.

The programme is tasked with building 50,000 housing units in five phases — from the 2014/2015 financial year.

So far, the firm has constructed 700 houses.

The first phase of constructing houses in Dodoma will start this financial year. Other phases will depend on the availability of funds.

He called on public servants to purchase WHC houses which are sold at reasonable prices instead of constructing their own houses which will involve a lot of money.

Meanwhile, WHC sold its units to pension funds through collective investment schemes.

The Presidency has said that the country’s ailing economy would bounce back fully after the 2016 statutory budgets of corporations and agencies are passed by the National Assembly and subsequently assented to by President Muhammadu Buhari.

This is even as the President assented to the N241 billion FCT budget for 2016 fiscal year.

The government attributed the difficulty it was having in revitalizing the troubled economy to the delay by the National Assembly to treat and pass the budgets for urgent assent and implementation.

It also said the development was negatively affecting job creation and as a result, tasked the legislature to brace up towards doing the needful.

President Buhari’s expectations on the passage of budgets of the 38 agencies among which include Nigerian National Petroleum Corporation, NNPC, Central Bank of Nigeria, CBN, Federal Inland Revenue Service, FIRS, Nigeria Customs Service, etc, was stated yesterday by his Senior Special Assistant on National Assembly Matters ( Senate ) Senator Ita Enang, at a media briefing in Abuja.

Enang at the briefing said passing of budgets of the statutory corporations and agencies was a requirement of the law that must be carried out by the National Assembly .

According to him, the urgent need for the passage of the budget of the statutory agencies was imperative because the total expenditure of their collective budgets almost equal the total budget profile of the country which stands at N6.06trillion.

Hear him:”Now, if the corporations and agencies’ budget is up to about N4 trillion, that means we will be having a budget of about N10 trillion in the country to implement for this year and when approved, it will make additional money available in the economy with its positive multiplier effects”, he said.

He added that passing the budget of government corporations would also create and open up employment opportunities in different agencies and parastatals.

He noted that the Federal Capital Territory Appropriation Act, which has been assented to by President Buhari will also create job opportunities in formal and informal sectors of the economy.

He said: “The Federal Capital Territory Appropriation Act, 2016 passed by the National Assembly has been assented to by Mr. President.

“The legal implementation of the Budget, therefore comes into effect now, which will result in employment in the formal and informal sectors within the territory through projects implementation.

“Some Nigerians have asked questions as to the legal and Legislative grounds for the laying of the Budget of Statutory Corporations before the National Assembly for consideration and passage.

“The Fiscal Responsibility Act, 2007 requires that the Budget of the Agencies among others be laid before the Assembles by Mr. President, in addition to, and independent of the annual Appropriation Act.

“The rationale are: It is a requirement of the law that the National Assembly as a Legislative body should consider and pass the Budget of each of them.

“It is what is spent in the National Budget together with the totality of the expenditure of the collective of the Government Corporations that amount to the total Annual Expenditure of the Country.

“The vacancies created by retirement in each of these parastals and the new employable vacancies are determined by the Budgetary requirement of the Agencies as will be approved by the National Assembly. Therefore the other rationale for this is to create, regulate and open up employment in the different parastals.

“It is also to stimulate the economy, in that there are so many capital project in the parastals which when approved by the National Assembly, the parastals will award thus releasing money and stimulate cash flow into the economy.

“It will also ensure accountability by the Corporations because they will only raise and spend as approved by the National Assembly and will increase activism of the National Assembly in her oversight Responsibility because they will be overseeing implementation as approved, and know surplus Revenue to capture for subsequent years, Appropriations.

“It will increase Non – Oil Revenue internally generated. The Agencies are under the Law to keep 20% their operational surplus and remit 80% to the Federal Government”.

Prime Minister Kassim Majaliwa will not move his office from Dar es Salaam to the designated capital today as earlier announced, it has been revealed.

Regional Commissioner Jordan Rugimbana said yesterday the Premier would move to Dodoma after completion of the Bunge Sitting which starts on Tuesday next week.

Speaking to The Citizen there yesterday, Mr Rugimbana said the Prime Minister opted for brief delay to move to Dodoma to enable ministers and other relevant authorities to concentrate on issues pertaining to the Parliament sitting.

“As we announced earlier, during Bunge sessions, we would not like to see Dodoma hosts an event of great magnitude, or ministers and some Members of Parliament engage in other activities that can compel them to miss some sessions,” said Mr Rugimbana.

He said the decision by Mr Majaliwa was also aimed at providing the regional authorities with ample time to work on some important isues before the government shifts its seat from Dar es Salaam to Dodoma.

“Moving the Premier’s office from Dar es Salaam to Dodoma will go down in history as one of the major events to happen in our country,” said the RC.

“We, therefore, need ample time to address some of the challenges the region faces before his arrival,” he added.

According to the RC, regional authorities have planned for a grand reception for the Prime Minister.

The Dodoma residents, he said, were to host a special ceremony for him at Mtumba Municipality premises, a few hours after his arrival.

A number of artistes and traditional dancing groups were to spice up the event.

“The Premier was to address a public rally at the Jamhuri Stadium here in the afternoon,” he said.

For her part, Dodoma District Commissioner Christina Mndeme appealed to residents here continue with their preparations for the Premier’s arrival.

On July 25, this year, Mr Majaliwa said he would move his office from Dar es Salaam to the new capital on September 1, this year (today).

Addressing the Dodoma residents during the Heroes Day, Mr Majaliwa said he was setting the pace for the execution of President John Magufuli’s directive of moving the government to Dodoma before 2020, when his first term ends.

He said he had instructed relevant authorities to ensure his residence is ready for him to move in today. “On that note, I order all Cabinet ministers to pack their bags with me. I know they all have houses and sub-offices here in Dodoma,” he said.

The PM also challenged residents here to make the best out of the mass shifting of the government offices by investing in service provision.

prepare enough to welcome the premier said his arrival and stay here would play a pivotal role at boosting the region’s economic status.

“We are continuing well preparing to welcome Mr Majaliwa with much fanfare,” she briefed.

President John Magufuli promised that the government will shift to the country capital, when he was accepting CCM chairmanship in June.

President Magufuli said he would ensure his government moves to Dodoma before the end of his first five-year term in 2020.

Mr Majaliwa is moving to Dodoma to fulfill President John Magufuli’s order that the government must shift its seat from Dar es Salaam over the next four years.

Speaking during the Heroes Day on July 25 in Dodoma, Premier Majaliwa pledged to move to Dodoma in September and asked other ministers to start thinking of how they were going to follow suit.

Regional authorities have organised a special welcoming ceremony for September 1, in honour of Prime Minister, who will permanently shift his office here from Dar es Salaam.

Minister in Prime Minister’s office (Policy, parliament, employment, youth and disabled) Jenister Mhagama moved to Dodoma to prepare for the premier’s arrival.

South African businessman Mr Niko Shefer is reportedly siphoning millions of dollars from the Zimbabwe National Roads Administration as facilitation fee for the $206 million loan accessed from the Development Bank of Southern Africa (DBSA) to refurbish the Plumtree-Mutare Highway. It emerged Zinara is depositing a staggering $300 000 in Mr Shefer’s FNB account in South Africa monthly and that contract is running for 10 years.All Mr Shefer did to deserve such a golden handshake was to link Zinara and DBSA.

He charged 2 percent of the loan amount extended to the road fund.

At the lapse of the 10-year contract between Zinara and Mr Shefer, the road fund would have paid him $36 million.

The money that Mr Shefer is receiving is over and above the interest that Zinara is paying to DBSA for the $206 million loan.

Papers in possession of The Herald showed that Mr Shefer used four different companies to claim money from Zinara.

These firms are Sela, Sentinelle, Santanah and Golden Road.

In some of the internal communications among Zinara executives, the issue was raised as far back as 2014 when it was agreed that Mr Shefer was being overpaid.

Former Zinara chief executive officer Mr Frank Chitukutuku sent the then financial director, Mr Thomas Mutizhe, and company secretary Ms Mathelene Mujukoro to South Africa to renegotiate the deal.

According to a report by Mr Mutizhe, Mr Shefer was only supposed to get 2 percent of the $206 million on a reducing balance until the full loan had been disbursed.

The minutes that Mr Mutizhe compiled and submitted to Zinara management after meeting Mr Shefer said: “Sela was being paid two percent of the principal amount regardless of the fact that some amounts had been disbursed which the financial director queried with the CEO (Frank Chitukutuku) and he agreed that there was overpayment.

“Mr Chitukutuku then sent finance director and Mathelene Mujokoro to South Africa to represent him in bringing and documenting this issue.

“We did that and minutes were done to the fact that there has been overpayment and that from 2015 the proper interpretation was supposed to be followed until the loan had been fully disbursed. The current Zinara executive continued to overpay administration fee to date (and) this indicates that there is something going on since the loan has already been disbursed and what is left is repayment.”

Transport and Infrastructure Development Minister Joram Gumbo, yesterday said he was aware of the issue and measures were being taken to correct it.

“I was not minister then. I have heard about that and Cabinet has directed us to look into the whole agreement between Zinara and Univern,” he said.

“At the top there is Zinara and Univern and Infralink is just a kid of those agreements.”

In another case of extravagance, Zinara board members and top managers claims board fees when they attend Infralink meetings.

Infralink is a special purpose vehicle formed by Zinara and Group Five for the Plumtree-Mutare Road project.

In one of the payments to the board members on Infralink business seen by the The Herald, board chairman Mr Albert Mugabe was paid ($1, 900), acting CEO Engineer Moses Juma ($1, 710), Mr Jeffrey Nkomo ($1, 400), director human resources Mr Precious Murove ($1, 710) and Mr Davison Norupiri ($1, 400).

The ANC has denied claims that it received R80m from the Passenger Rail Agency of South Africa (Prasa).

The political party announced outcomes from its national working committee meeting, which sat on Monday to discuss a number of issues, including the public spats between Finance Minister Pravin Gordhan and specialised policing unit the Hawks as well as between Treasury and energy provider Eskom.

“The ANC has not received any money from Prasa. Whoever took the R80m’ it never arrived here. The ANC has never received R80m'” said the ANC’s secretary general Gwede Mantashe at a media briefing at its headquarters in Johannesburg.

An exclusive News24 exposé implicated the ANC as a beneficiary in the purchase of the rail agency’s new trains where entities who were not creditors to Prasa received R80m.

“Unless we do that then corruption will be committed in the name of the organisation and our view is that it is this, use of the name of the organisation for individual benefit that drags the organisation through the mud,” he said.

The political party warned those involved in public spats, including Gordhan and the Hawks as well as treasury and Eskom that the controversies were not good for South Africa and its economy, while at the same time reaffirming its belief in Gordhan.

“We do, however, caution them against taking a public posture that seems to isolate them from the rest of government and position them as victims to be protected by society.”

Regarding the electricity supplier, the ANC said it was unfortunate that it has also decided to address its challenges through the media and called for an urgent meeting between the ministries of public enterprises, treasury and energy to decisively deal with this matter in a manner that promotes public confidence.

ANOTHER massive protest is looming on Wednesday (today) with a view to force President Robert Mugabe to step down.

Coordinators of the protests called #Tajamuka/Sesijikile insists they were going ahead with the massive protests despite police’s heavy-handedness on innocent civilians.

The protests for Wednesday are set to take place in the country’s five mjor cities with the view to make a complete shutdown of business in the capital Harare, Bulawayo, Gweru, Mutare and Masvingo.

The #Tajamuka/Sesijikile’s coordinator, Hardlife Mudzingwa, said enough was enough with abject poverty arguing the suffering was being caused by corrupt ZANU PF leaders, disappearance of R225 billion, abuse of power, police brutality and worsening unemployment in the country.

However, the group pointed out the protests would not go violent sincethey believed in peace and stability, but were quick to say when attacked by police would retaliate.

“We are not a violent campaign and we will not involve ourselves in violence,” Mudzingwa said.

He said president Mugabe was expected to step down from power before December arguing no amount of police brutality would intimidate them nor stop the organised protests from going ahead.

Speaking at the same media briefing, #ThisFlower campaign leader Stern Zvorwadza, who came out from police cells following his arrest last week said the coalition would continue piling relentless pressure on the Zanu PF and Mugabe until they relinquish power.

“This day should be historic and be a day that we say enough is enough. As we participate in this process, we should not be deterred by the brutality of the State. We should stay clear in mind and clear in heart that the fight is on and this fight will end the game,” Zvorwadza said.

Meanwhile, war veterans have warned Mugabe from risking eroding his legacy by refusing to step down even when he is old.

The former freedom fighters said Mugabe’s refusal would also expose his wife Grace Mugabe and children when forced to leave office.

Zimbabwe National Liberation War Veterans’ Association (ZNLWVA) secretary-general Victor Matemadanda said Mugabe’s wife was allowing herself to be used by ‘vultures’ within the ruling Zanu PF to make reckless statements that created many enemies around the country.

“Mugabe is soiling his own legacy by overstaying. There is no need to force things. He is creating trouble for his children by antagonising everyone, we feel for his wife and children,” Matemadanda said.

“Grace is allowing herself to be abused by criminal elements in Zanu PF to create enemies. She is being used by people with an ulterior motive to destroy Zanu PF and she should be warned,” he said.

PRESIDENT Robert Mugabe on Tuesday abandoned the ongoing Sadc summit in Swaziland after his health reportedly deteriorated.

Government sources said Mugabe arrived back in Harare late Tuesday evening and then left the capital just before 11pm. He had travelled to Swaziland on Monday.

The SADC summit was due to end on Wednesday.

“He came back today because of health issues. It has to do with prostate cancer and is due to fly out early on Wednesday to Dubai,” one source said.
Another source added: “He will be treated for urinary tract infection”.

Online flight trackers showed his Zim One Air Zimbabwe plane leaving Harare at 22:45 hours. The plane was last seen above the Indian Ocean, headed towards the Far East.

Mugabe has reportedly been battling prostate cancer and regularly travels to the Far East for treatment although his handlers claim the trips are just for eye surgery.

Pressure has been mounting on the 92-year-old Zimbabwean leader within and outside his ruling Zanu PF party.

Opposition parties and rights activists engaging in protests almost every week demanding that he steps down due to old age.

Veterans of the liberation struggle, a key Zanu PF affiliate, have also rejected Mugabe and declared they would not support him at the next elections which are due in 2018.

The Nigerian economy is in recession, figures released by the National Bureau of Statistics officially confirmed Wednesday.

Although various government officials, notably the Central Bank of Nigeria (CBN), Godwin Emefiele, and the Minister of Finance, Kemi Adeosun, had over a month ago said the economy was in “technical” recession, the official confirmation came with the release of the new figures.

The statistics bureau said the second quarter 2016 Gross Domestic Product (GDP) declined by -2.06 per cent.

Annual inflation rose to 17.1 percent in July from 16.5 percent in June, and food inflation rose to 15.8 percent from 15.3.

“The pace of the increase in the headline index was however weighed upon by a slower increase in three divisions, namely health, transport, and recreation and culture divisions,” the NBS said.

The statistics agency said the onset of the harvest season was yet to significantly impact on food prices, with food sub-index rising by 15.8 per cent (year-on-year basis) in July, about 0.5 per cent points lower from rates recorded the previous month.

Equally, the agency said energy prices accounted for the rise in inflation for the month, with energy and energy related prices recording some of the largest increases reflected in the core sub-index.

“In July, the core sub-index increased by 16.9% during the month, up by 0.7% points from rates recorded in June (16.2%).” the report said

“During the month, the highest increases were seen in the electricity, liquid fuel (kerosene), solid fuels, and fuels and lubricants for personal transport equipment’ groups.

Despite the figures confirming Nigeria’s worst economic recession in over a decade, the federal government on Wednesday said it remained optimistic of a turnaround.

In a reaction, the Presidency said although the gross domestic product (GDP) figures released by the NBS in its 2016 second quarter confirmed a temporary decline in the economy, it also indicated “an hopeful expectation in the country’s economic trajectory.”

A statement from the office of the Vice President, Yemi Osinbajo, said beside the growth in the agriculture and solid mineral sectors, the Nigerian economy was doing better than estimates by the International Monetary Fund (IMF).

The Vice President said with the present administration’s policies, there were clear indications the second half of the year would be even much better.

“The Buhari presidency will continue to work diligently on the economy and engage with all stakeholders to ensure that beneficial policy initiatives are actively pursued and the dividends delivered to the Nigerian people,” he said.

In his reaction to the NBS report, Special Adviser to the President on Economic Matters, Adeyemi Dipeolu said “The just recently released data from the National Bureau of Statistics showed that Gross Domestic Product declined by -2.06% in the second quarter of 2016 on a year-on-year basis.

“A close look at the data shows that this outcome was mostly due to a sharp contraction in the oil sector, due to huge losses of crude oil production as a result of vandalisation and sabotage.

“However, the rest of the Q2 data is beginning to tell a different story. There was growth in the agricultural and solid minerals sectors, which are the areas in which the Federal Government has placed particular priority.”

Mr.Dipeolu noted, agriculture grew by 4.53 per cent in the second quarter of 2016, compared with 3.09 per cent in the first quarter.

Besides, he said the metal ores sector showed similar performance, with coal mining, quarrying and other minerals also showing positive growth of over 2.5 per cent, while the share of investments in GDP increased to its highest levels since 2010, growing to about 17 per cent of GDP.

Although the manufacturing sector was yet truly out of the woods, the adviser said the sector was beginning to show signs of recovery, with the service sector similar improvement.

The inflation rate remains high but the good news is that the month-on-month rate of increase has fallen continuously over the past three months.

He noted the high unemployment rate, which she said was usually the case during growth slowdowns.

“The emerging picture, barring unforeseen shocks, is the areas given priority by the Federal Government, are beginning to respond with understandable time lags to policy initiatives,” Mr. Dipeolu said.

“Indeed, as the emphasis on capital expenditure begins to yield results and the investment/GDP numbers increase, the growth rate of the Nigerian economy is likely to improve further,” he said.

As these trends continue, he said the outlook for the rest of the year pointed at the Nigerian economy beating the IMF prediction of -1.8% for the full year 2016.

“The IMF had forecasted a growth of -1.8% for 2016. However, the economy is performing better than the IMF estimates so far. For the half year, it stands at -1.23% compared to an average of -1.80% expected on average by the IMF.”

A Research Analyst with FXTM, Lukman Otunuga, noted the 2.06 per cent contraction of the economy in the second quarter, saying the signs of an imminent slowdown were already visible with the Central Bank of Nigeria (CBN)’s foreign reserves falling to $19 billion.

“While Naira’s vulnerability was highly expected following the official floating foreign exchange policy, external risks, such as a resurgent dollar has accelerated the devaluation of the local currency, consequently pressuring the nation further.

“With inflation and unemployment hovering around worrying levels, the CBN has been placed under immense pressure to act, which may weigh on investor sentiment.

“While the news of Nigeria entering a recession may be painful, it should be no surprise as the incessant declines in oil prices have punished heavily oil export nations, with Nigeria being no exception,” Mr Otunuga said.

While Eskom said it remains committed to sign all of the remaining renewable energy independent power producer (REIPP) contracts under the current bid window, it reportedly backtracked on this pledge last week.

Eskom CEO Brian Molefe reportedly refused to sign an agreement for a government approved concentrated solar project with Acwa/Redstone in the Northern Cape last Wednesday. It was the second time he had refused to sign the agreement, signalling a move to disrupt the successful REIPP programme.

However, Eskom said this was not the case.

“Eskom has not decided to put on hold any renewable energy contracts,” said Eskom spokesperson Khulu Phasiwe on Monday in an emailed response.

“On the contrary, we have signed power purchase agreements with all successful bidders and we’re committed to sign all the remaining contracts under the current bid window 4.5 of the Department of Energy (DoE).

“All that Eskom has done was to write a letter to the DoE asking for clarity or a dialogue regarding the next contracting phase of independent power producers (IPPs) beyond bid window 4.5. That does not mean that a decision has been taken to abandon the IPPs.”

However, Business Day reported on Monday that by withholding this agreement Eskom had backtracked on its commitment to sign bid window 4.5 agreements and was therefore in defiance of government’s policy set by the DoE.

“Since July, (Eskom CEO Brian) Molefe and Eskom’s head of generation, Matshele Koko, have objected to the arrangement, as it means that they are obliged to buy power from independent producers, even when it is not required by the grid,” explained Business Day deputy editor Carol Paton on Monday.

“This is especially so with renewable energy, which is available only when the sun shines and the wind blows, and does not always coincide with peak-demand periods.”

Koko, Eskom’s group executive for generation, said in an opinion piece sent to Fin24 on Monday that over the next 20 years, R1.2trn in nominal terms is forecast to be spent on approximately 7 300 MW from co-generation, DoE peaker plants, renewables, the small renewable programme and bid windows 1 to 4.5.

“It is within this context that the chairman of Eskom (Ben Ngubane) has asked for a dialogue,” he explained. “He is merely exercising his fiduciary duties. Why is he being told to shut up? It is in the national interest to have this debate.

“Who stands to benefit when this debate is swept under the carpet? After all, the current expansion plan will bring unnecessary higher cost to consumers and will ultimately increase the cost of doing business in this country, impacting country competitiveness.”

Koko said the introduction of IPPs was partly based on the assumption that Eskom would only be able to build enough generating capacity by 2022.

“But through disciplined implementation of the plant maintenance programme, Eskom has been able to stabilise the power system, resulting in no load shedding in more than one year,” he explained.

“This turnaround is a game-changer. It will have a significant impact on the expedited IPP Bid Windows which are based on Eskom not being able to turn around its operations by 2022. It significantly improves the medium-term capacity outlook. Most importantly, it has a positive impact on the price that the consumer will pay for electricity going forward.”