Malima: DCC holds 51 pct, govt 49,
Simon Group: We have 76 pct stake
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Deputy Finance minister, Adam Malima
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Deputy Finance minister, Adam Malima
yesterday asserted that the government hasn't sold any of its shares in the Dar
es Salaam Transport Company (UDA) to the Simon Group Company.
Malima gave the government’s stand when responding to a question raised by Kawe MP, Halima Mdee (Chadema) who sought government’s explanation on its shares in UDA.
Mdee also wanted to know the real owner of the Dar es Salaam transport firm and the distribution of shares.
Malima clarified that the Dar es Salaam City Council and the government through Treasury Registrar are the owners of the company.
Regarding the distribution of shares, the minister said: “Dar es Salaam City Council has 51 percent of shares in UDA while the government has 49 percent.”
He however said that in 2006 the government expressed intention to sell its shares in order to get a potential investor who would have the ability to improve UDA.
He said the Parastatal Sector Reform Commission (PSRC) was tasked to spearhead the exercise, though the commission failed to find an investor who would meet the requirements.
The minister said in January 2010, the Board of UDA notified the government on the possibility of getting an investor—Simon Group Limited, who would have bought the government’s stake and 7,880,303 unclaimed shares.
“After receiving the recommendations, the government directed the UDA board not to continue with the plan of selling shares to the Simon Group Limited because the procedures and regulations of obtaining the investor were violated,” he said.
UDA was established in 1974 with authorised share capital of 1,500,000,000/- which is equivalent to 15,000,000 shares at the price of 100/- each. Of the total shares, 7,119,697 were paid up while 7,880,303 unfixed.
According to the minister, on October 1, 2000 the government gave DCC about 3,631,045 shares out of 7,119,697 (51 percent) and retained 3,488,651 (49 percent) of the paid-up shares.
Speaking to The Guardian over telephone interview yesterday, Simon Group Executive Chairman Robert Kisena, said Malima’s statement is misleading.
“I am on my way from Dodoma to Dar es Salaam but as far as I know Simon Group own 76 plus shares in UDA while the government owns 23-24 percent of the shares. Soon we are taking the remaining shares that the government owns. We are at an advanced stage,” he said.
According to the MD, it is surprising to hear the deputy minister informing the public that the government and Dar es Salaam City Council own the firm 100 percent.
The Simon Group directed this paper to cross check with the Business Registration and Licensing Authority on the actual shareholders or how many shares each owns.
Malima gave the government’s stand when responding to a question raised by Kawe MP, Halima Mdee (Chadema) who sought government’s explanation on its shares in UDA.
Mdee also wanted to know the real owner of the Dar es Salaam transport firm and the distribution of shares.
Malima clarified that the Dar es Salaam City Council and the government through Treasury Registrar are the owners of the company.
Regarding the distribution of shares, the minister said: “Dar es Salaam City Council has 51 percent of shares in UDA while the government has 49 percent.”
He however said that in 2006 the government expressed intention to sell its shares in order to get a potential investor who would have the ability to improve UDA.
He said the Parastatal Sector Reform Commission (PSRC) was tasked to spearhead the exercise, though the commission failed to find an investor who would meet the requirements.
The minister said in January 2010, the Board of UDA notified the government on the possibility of getting an investor—Simon Group Limited, who would have bought the government’s stake and 7,880,303 unclaimed shares.
“After receiving the recommendations, the government directed the UDA board not to continue with the plan of selling shares to the Simon Group Limited because the procedures and regulations of obtaining the investor were violated,” he said.
UDA was established in 1974 with authorised share capital of 1,500,000,000/- which is equivalent to 15,000,000 shares at the price of 100/- each. Of the total shares, 7,119,697 were paid up while 7,880,303 unfixed.
According to the minister, on October 1, 2000 the government gave DCC about 3,631,045 shares out of 7,119,697 (51 percent) and retained 3,488,651 (49 percent) of the paid-up shares.
Speaking to The Guardian over telephone interview yesterday, Simon Group Executive Chairman Robert Kisena, said Malima’s statement is misleading.
“I am on my way from Dodoma to Dar es Salaam but as far as I know Simon Group own 76 plus shares in UDA while the government owns 23-24 percent of the shares. Soon we are taking the remaining shares that the government owns. We are at an advanced stage,” he said.
According to the MD, it is surprising to hear the deputy minister informing the public that the government and Dar es Salaam City Council own the firm 100 percent.
The Simon Group directed this paper to cross check with the Business Registration and Licensing Authority on the actual shareholders or how many shares each owns.
SOURCE: THE GUARDIAN
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