NSSF’s Machinga Complex loan reaches Sh57 billion

Dar es Salaam. The total loan that the Dar es Salaam City Council is required to pay the National Social Security Fund (NSSF) for construction of the Machinga Complex has now reached Sh57 billion.

The NSSF injected some Sh13 billion into the construction of the Machinga Complex - a modern market for hawkers – in 2008, in what was seen as part of the solution to the nagging problem of petty traders in Dar es Salaam.

However, repayment of the money has remained problematic, sending the accumulated interests up.

Speaking on Tuesday, May 08,  2018, Dar es Salaam city mayor Isaya Mwita said the loan rose from Sh42 billion last year to Sh57 billion this year (2018), noting however, that the two parties were working on an amicable solution to the problem.

In 2016, the two parties formed a taskforce to probe the construction of the building.

The taskforce seeks to establish the actual cost of putting up the building plus terms and conditions of the contract.

Responding to a question from a member of the Dar es Salaam City Council, Mr Abdallah Mtinika, during the city councilors’ meeting, Mr Mwita said everything would soon be resolved.

“A taskforce has already been formed to help in resolving the dispute. It has the blessings of all leaders including at the level of the Ministry of State in the President’s Office (Regional Administration and Local Government Authorities). Very soon, everything will be solved,” he said.

In his key question, Mr Mtinika wanted to know the status of the dispute between the city council and NSSF. He came up with the question after going through financial records of the city council, whereby the issue was not covered as expected.