Special Seats MP Neema Lugangira highlighted that "without food, students struggle to concentrate, risking a generation of undereducated youth and hindering Tanzania's development. Photo: Courtesy
By Adonis Byemelwa
The National Assembly Legislators yesterday 4th November 2024, raised alarms over the alarming debts owed to contractors and suppliers who provide essential services to public schools, stressing the urgent need for government action. As many of these suppliers face potential foreclosure due to unpaid bills, the situation demands immediate attention.
Priscus Tarimo, representing Moshi Urban, questioned the government’s commitment to resolving this issue, particularly for those supplying food to schools. His inquiry comes in the wake of a mounting crisis that not only threatens the livelihoods of small-scale entrepreneurs but also jeopardizes the educational environment for students.
The government's response, which included an allocation of 949 billion Tanzanian shillings to settle various debts, raises critical questions about the inclusion of school service providers in these plans. Asia Halamga, a member of parliament, underlined the importance of transparency and urgency in the payment timeline.
The stakes are high; small business owners rely on timely payments to maintain their operations, and delays can lead to catastrophic consequences. Halamga’s insistence on a clear timeline for payments reflects the frustration shared by many, as the repercussions of these delays are felt beyond the business sector—impacting the quality of education.
Further compounding the crisis, Grace Tendegu pointed out that some suppliers and contractors have been waiting for payments for up to three years. Such prolonged delays are not just frustrating; they are unsustainable.
The verification processes the government employs, intended to ensure accountability, seem to be mired in inefficiencies that ultimately harm those who are supposed to benefit from it. This raises a pressing question: how long must these essential service providers endure financial strain before they receive their due?
Cecilia Pareso added another layer to the debate, highlighting the precarious position of road contractors, many of whom are turning to banks for loans to survive while waiting for government payments.
The reality is stark: as these businesses struggle, the risk of foreclosure looms larger, threatening the livelihoods of countless families and small businesses across Tanzania. This systemic issue has a ripple effect—when contractors cannot meet their financial obligations, it affects their ability to employ workers, thereby reducing economic activity and further exacerbating the country’s financial woes.
Neema Lugangira reinforced the argument by drawing attention to how the debts owed to food suppliers directly impact students’ access to meals at school. Without food, students are less able to concentrate and perform in their studies, leading to a generation of undereducated youth—an outcome that could hinder Tanzania's development for years to come.
The statement from Deputy Minister Zainabu Katimba, which indicated that 21.7 billion shillings are owed to school food suppliers, underscores the urgency of addressing these financial obligations.
In specific instances, like in Bukoba Urban, the situation is dire; six government secondary schools are owed a staggering 936 million shillings, with debts dating back one to six years. Such delays are not merely administrative inconveniences; they represent a fundamental breakdown in the system that supports education in Tanzania.
The implications of this debt crisis extend beyond the immediate financial hardships faced by suppliers. Economically, if the government continues to fall short of meeting its obligations, it risks fostering a climate of distrust and instability that could deter investment and hinder economic growth.
Deputy Finance Minister Hamad Hassan Chande sought to reassure concerned MPs, stating that the government is committed to settling outstanding debts and that payments will be contingent upon revenue availability and the ongoing verification process.
Nevertheless, this reassessment raises further concerns about the efficiency of governmental financial management. The stated commitment to adhere to the Budget Act and Public Finance Act is commendable, but it must translate into tangible results. The directive for local councils to ensure timely payments to suppliers is a step in the right direction, yet implementation remains a critical issue.
The reintroduction of the free education program was a beacon of hope for many Tanzanian families, signaling a commitment to accessible education. However, the financial implications of unpaid debts threaten to undermine this initiative.
If service providers cannot rely on the government to meet their financial obligations, they may be forced to withdraw their services. This would not only diminish the quality of education but could also force schools to seek alternative, possibly more costly, suppliers, thereby straining budgets even further.
The government must act decisively to rectify this situation. Immediate measures should include streamlining the verification process to ensure faster payments to service providers and establishing a transparent communication channel to keep all stakeholders informed. As well, the government could explore alternative financing options to meet urgent payment obligations, such as short-term loans or partnerships with private investors.
Behold, the debts owed to contractors and suppliers present a critical juncture for Tanzania. The economic implications of this crisis extend far beyond the immediate financial concerns, threatening the very foundation of the country's educational system. The time for action is now; failure to address these debts will not only cripple small businesses but also compromise the future of Tanzanian youth and the nation’s economic stability.