Bill Endorsed in Parliament to Reform Tanzania Postal Bank

Parliament passed the Tanzania Postal Bank (TPB) (Repeal and Transitional Provisions) Act, 2015 which paves the way for the bank to transform and reclaim its former glory.

Deputy Minister for Finance, Mr Mwigulu Nchemba, told the House that the Act seeks to incorporate the bank under the Companies Act in line with the Banking and Financial Institutions Act, (BAFIA), 2006.

“The Act also provides for the vesting of assets and liabilities and transfer of employees of the Tanzania Postal Bank to TPB Bank Limited and to provide for transitional provisions and other related matters,” said Mr Nchemba.

The deputy minister said the government, as the main shareholder with 86 per cent stake, would bankroll the bank in its expansion programme to reach more customers especially in rural areas.

He also revealed that a consultant had completed working on a microfinance regulatory regime which will guide micro finance institutions, VICOBA and SACCOS. Responding to a suggestion by Capt John Chiligati (CCMManyoni East ) for TPB and Property and Business Formalisation Programme- Mkurabita to work together to serve the rural population, Mr Nchemba said the government would work on the proposal.

“We’ll analyse the situation to see if the two institutions could work together in future,” said the deputy minister. The Parliamentary Economic, Industries and Trade Committee had earlier commended the government on coming up with the Bill during the current session, but wondered why it had taken so long to table the document.

“For the sake of good governance, the government ought to have led by example to ensure its institution adhered to BAFIA Act,” observed the Committee’s Vice-Chairperson, Mr Dunstan Kitandula.

The TPB was the only bank in the country operating under the Act of Parliament contrary to BAFIA, which requires all banks to be incorporated under the Companies Act.

Ministry of Finance’s Opposition Spokesman, Mr Mohamed Mnyaa, challenged TPB and other local banks to think big and open branches outside the country.

“Our neighbours have opened their banks on our soil why don’t we do the same and have our banks’ branches in Kenya, Uganda, Rwanda, Burundi, Malawi and DR Congo?” wondered Mr Mnyaa.

Contributing to the Bill, Mr Deogratias Ntukumazina (CCM -Ngara) and Michael Lekule Laizer (CCM -Longido), hailed the contribution of TPB in serving low income customers and challenged the bank to invest more in rural areas where majority of Tanzanians live.

Originally published on DailyNews Tanzania

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