Dar es Salaam. The Ministry of Finance has issued a directive to government institutions, emphasizing the need to adhere strictly to legal guidelines when borrowing funds for development projects.
The call was
made by the Permanent Secretary of the Ministry of Finance, Dr. Natu El-maamry
Mwamba, during a workshop in Dar es Salaam. Her speech was delivered by the
Assistant Commissioner of the Debt Management Department, Mr. Omary Khama.
The two-day workshop, aimed at government institutions,
focused on the requirements of the Loans, Guarantees, and Grants Act No. 134.
This crucial piece of legislation governs how the government borrows funds,
issues guarantee, and accepts grants, centralizing these powers under the
Minister of Finance. The Act ensures that all borrowing is conducted under
favorable terms to protect public finances and promote sustainable development.
Dr. Mwamba stressed the importance of the law in maintaining order, ensuring fairness, and safeguarding the government's financial stability.
She called for institutions to prepare detailed project proposals, including feasibility studies, and to establish competent management teams.
Additionally, she urged ministries to allocate adequate budgets to ensure the
efficient implementation of these projects.
“The law provides a structured framework that government
institutions must follow to avoid legal and financial risks,” said Dr. Mwamba.
Mr. Khama reiterated the Act’s role in ensuring that loans are secured on favorable terms and that public funds are used responsibly.
He
highlighted that the Act is designed to prevent the government from entering
into agreements with unfavorable conditions, thereby avoiding unsustainable
debt.
The Ministry of Finance is providing training on
implementing development projects, covering the legal and procedural aspects of
the Loans, Guarantees, and Grants Act No. 134. This includes guidelines for
identifying, preparing, executing, and negotiating loans and grants.
“The guidelines aim to support the development of both
domestic and international financial markets while ensuring that unnecessary
debts are avoided,” Mr. Khama added.
The Act is pivotal in guiding the actions of government
institutions, ensuring transparency, accountability, and the successful
implementation of projects. It underscores the broader role of the law in
fostering economic growth and maintaining financial stability
