Conflict of interests in the privatisation exercise of Tanzanian parastatals: The case of Tanzania cigarette company limited

The title of this this study is to look into conflict of interests in the privatisation exercise of Tanzanian parastatals. A specific case study of parastatal privatisation has been taken; that of Tanzania cigarette company limited in Dar es salaam, Tanzania. The study in general is divided into six chapters. The first chapter discussed the coming into being of public enterprises in Tanzania.The second chapter discusses the theoretical framework for privatisation of public enterprises, its legal framework and the establishment of the relevant institution: the presidential Parastatal Sector Reform Commission (PSRC). The core of the study is cantered in chapter three. An attempt is made in this chapter to examine the conflict of interest of the privatisation of parastatals improvement whether established by any written law, or incorporated, or by whatever legal forms. The section analyses how the privatisation exercises has met wide resistance. Since the case study canters on the Tanzania cigarette company (TCC), the historical background of the formation of the company will be discussed in chapter four. In the same chapter, further discussion is based on TCC’s divestiture process as managed by the PSRC, through argued by trade union and the so called “Tanzanian Patriets” that the government erred in privatising even the profit making parastatals. The fifth chapter will discuss the “new TCC” with the participation of a new key investor, R.J. Reynolds Tobacco international incorporated in Geneva, Switzerland. The last sixth chapter will make conclusions and general remarks of privatisation of Tanzanian parastatals; and show why it is the only approach of rescuing paarastatal organisations from “disaster” and also transforming public attitudes towards economic responsibility.