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Salary arrears burden Chinese built railway

Salary arrears for the Tanzania and Zambia Railways Authority (Tazara) workers have accumulated to Sh 1,8 billion, which will be a heavy burden to the financially beleaguered venture this financial year, writes Tanzanian daily “The Citizen” Tuesday.

The deputy minister for Communication, Science and Technology, Dr Maua Daftari told parliament in Dodoma Monday that 1.422 workers have now been paid their salary arrears accumulated between 2004 and 2007.

Responding to question asked by MPs on behalf of the minister for
Infrastructure, Dr Daftari said the majority of Tazara workers have reached retirement age.

She told MPs that on the Tanzanian side, 1.077 workers have retired, 623 have died while seven others resigned and have not yet been paid their benefits.

Dr Daftari said the workers total claims have reached 51,6 million US dollar (Sh 68,11 billion), including 20,7 million dollar (Sh 27 billion) for retired workers.

However, she said between April last year and June this year, the Government has continued to pay salary arrears.

Responding to question asked by Mbozi East MP, Godfrey Zambi (CCM), Dr Daftari said experts from both Tanzania and Zambia Governments were still evaluating the debts including claims of arrears to establish the exact amount.

Dr Daftari said both Governments are exploring ways to improve the venture through the private sector to improve the railway, built to give Zambia an alternative route to the sea in the wake of the Unilateral Declaration of Independence (UDI) by the Ian Smith regime in the former Southern Rhodesia, now Zimbabwe.

– Tazara has taken some measures, including selling some of its assets in order to raise money for paying salary arrears, she said.

During the 2009-10 financial year, Tanzania and Zambia will sign the 14th protocol with China for a soft technical loan to enable reviving the corporation. The railway was built with Chinese assistance in the seventies (1970erne).