PAC queries on ATCL books rather familiar

PAC says ATCL continues to run at a loss and called on the government to take steps to improve its operations so as to make that investment profitable. To this kind of proposition the question comes, as to whether the government listens to ATCL or to its critics.

PAC chairperson Naghenjwa Kaboyoka (Special Seats, Chadema) said in an interview that steps had been taken by the panel after speaking to ATCL and TGFA following audit queries raised by the Controller and Auditor General (CAG) for the 2019/20 financial year. The preliminary feature noticed is that there are two government agencies trying to make money from the planes, and this definitely brings up problems of accountability, fiscal strategies and options that ATCL in particular takes, as it is pushed to the ropes all the time. Both weren’t easy to engage for the parliamentary panel; it is unclear if this is a problem for ATCL, TGFA or the legislature as such.

When receiving a new plane from Canada lately, the ATCL board and management raised these same issues with President Samia Suluhu Hassan but she could not go as far as granting them their wishes. They find TGFA an unnecessary supplementary organization (the way there was DAWASA and DAWASCO earlier in city water supply) and that the government should make them ‘owners’ (say, custodians) of the planes, instead of commercial leasing. It is not clear if those in the government, for instance the Treasury Registrar, have clear answers to such issues.

The last time ATCL had serious problems in its commercial arrangements, when it was in a troubled joint venture or part-shareholding with South African Airways, the top authorities at least knew who to blame. When it is pitted against TGFA it is pointless for the ministry to take sides but look into the structure, if they need a holding corporation, or merely an operational agency. For once, the government has scrapped such agencies in water supply and railways.

It is however possible that ATCL deserves to have a controlling agency over its shoulder so as to rein in their more divergent options, virtually on behalf of the government. But the issue is whether the Treasury needs to maintain an organization for that purpose, unless TGFA has a fleet of planes where those leased to ATCL are merely a category. Being wholly tied to ATCL as a fees collector isn’t enough reason for existing; it is far too costly to maintain executive agencies.

Before the parliamentary team meets with the Permanent Secretary in the Ministry of Transport on the ATCL and TFGA contentions, those in charge of policy formulation ought to think hard and decide if the government needs to continue running  an airline, or put it to the market and liquidate the debt. ATCL is operating on a negative capital of 216bn/- and it sends acting officials to meet MPs, and the CEO doesn’t even explain why he isn’t coming. They know that PAC is toothless, as parastatals don’t fear committees or ministers but privatisation, a lesson we learned long ago but our sentiments are elsewhere.