Tanzania President Magufuli Suspends BOT Payment Of TZS 925.6 Billion – USD 423 Million – To Ensure Legitimate Supplies

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The President of the United Republic of Tanzania, Dr. John Pombe Joseph Magufuli has paid a surprise visits to the Bank of Tanzania (BOT) on 10th March, 2016, directing the Bank to immediately cease arrears to the Ministry of Finance and Planning, until further verification.

BOT was in the process of making payment of TZS 925.6 billion (USD 423 million), which the Ministry of Finance authorized, for the payment of supply of good and services to the various government agencies and bodies.

But on his visit, President Magufuli ordered a new audit by the Treasury to identify genuine claims.

According to a statement by the Acting Director for Presidential Communication, Mr. Gerson Msigwa, to TanzaniaInvest “The purpose of the president is just to make sure the verification is done in accordance to the regulation”.

“Investors should not be scared, those who supplied goods and services to the government according to the regulation, will be paid. Also government officials should consider the circular issued by the government in 2004.” Mswigwa added.

From his appointment, President Magufuli has clamped down on unnecessary governmental expenses. He turned the opening of Parliament into a no-frills event and on Tanzania Independence Day he invited Tanzanians to clean up the streets, to which he personally participated.