The Tanzanian government has acknowledged a substantial debt totaling TZS 1.52 billion, arising from unpaid benefits for former employees and outstanding payments to suppliers of the Kiwira Coal Mine before its privatization.
This announcement was made by Dr. Steven Kiruswa, Deputy Minister of Minerals, during today’s parliamentary session in Dodoma.
Responding to a question from Hon. Aly Mlanghila Jumbe, Member of Parliament for Kyela, Dr. Kiruswa detailed that the debt, which includes claims from employees and service providers, has been reviewed and is now on its way to the Treasury. He assured that the funds would be disbursed as soon as they become available.
According to Dr. Kiruswa, the verification process revealed that the total claims amount to TZS 1.024 billion for 893 former employees. Additionally, the debt to suppliers, including security service providers, stands at TZS 496 million, making the total debt TZS 1.52 billion.
The issue was initially flagged by the Kiwira Mine Workers’ Union (TAMICO), which reported discrepancies in the benefits due to employees.
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A special audit was conducted by the Controller and Auditor General (CAG) in November 2008, and further verification was carried out by the Internal Audit General in August 2021.
This development comes as a relief to many former employees and suppliers who have been awaiting resolution of their claims.
The government’s commitment to settling these debts reflects its ongoing efforts to address past grievances and ensure that affected parties receive their due compensation.
The payment process is expected to proceed once the necessary funds are allocated, with priority given to clearing the outstanding amounts.