UK PRESS
An Old Bailey judge has called for new regulation on traditional Chinese medicines as a "doctor" who sold cancer-causing pills walked free from court. Ying "Susan" Wu sold the tiny brown "Xie Gan Wan" tablets to Patricia Booth for more than five years from a shop in Chelmsford, Essex. Mrs Booth, 58, began taking the pills three times a day to treat a skin condition but they ended up destroying her kidneys and giving her cancer.
But Judge Jeremy Roberts ruled that, as the sale of traditional Chinese medicines was totally unregulated, there was no evidence that Wu knew of the potential harm.
The judge threw out a charge of "administering a noxious substance" against the 48-year-old, of Holland-on-Sea, Essex, and she pleaded guilty to five lesser counts and was given a two-year conditional discharge.
Giving his ruling he said: "It is an unfortunate fact that there is no system in this country to regulate Chinese herbal medicine retailers like Ms Wu by requiring them to be registered with an appropriate professional body or trade association.
"Somebody like Ms Wu is entitled to set up shop as a herbal medicine retailer and to operate entirely unsupervised.There may be a gap in our law here which the Government might wish to address."
The court heard that Mrs Booth took the medicine, which she bought from the Chinese Herbal Medical Centre in Chelmsford, from February 1997 to November 2002. She said she believed it was a "safe and natural alternative" to the antibiotics she had previously been taking for her skin condition - and which she feared could damage her long-term health.A months after she stopped taking the Chinese pills, she was taken seriously ill and had to undergo an urgent blood transfusion.
An analysis of the pills showed they contained a banned substance, aristolochic acid. Her health deteriorated to such an extent that her kidneys were "destroyed" and she had to have them removed, she contracted urinary tract cancer, and she later suffered a heart attack.
The Register of Chinese Herbal Medicine, which represents more than 450 practitioners, said the case highlighted "the urgent need for the statutory regulation of herbal medicine in the UK".
Source; http://www.google.com/hostednews/ukpress/article/ALeqM5hxjPS1wJu0UH_xzBY-IsioYSt9og
Ouestion to Ask ourselves
What is the current situation regarding the above in Tanzania ? kindly discuss
Saturday, February 20, 2010
Millions of Britons Losing Money on Savings
The Telegraph-UK
Millions of savers are losing money by putting their cash into a savings account due to poor investment returns and the increasing cost of living, it has been disclosed. Savers are suffering despite Barclays, Britain third-largest bank, reporting profits of £11.6 billion for 2009.
Rising inflation is eroding the spending power of savers’ cash and, combined with historically low interest rates, is leaving them with less money than when they started. Savers have already been badly hit by shrinking rates of return following Bank of England interest rates dropping to 0.5 per cent.
But the jump in inflation to 3.5 per cent, released in official figures yesterday, came as a fresh blow to hard-pressed pensioners and those trying to live off their savings. Politicians and financial experts said it will leave millions of savers "devastated".
With the consumer prices index rising to 3.5 per cent, basic rate taxpayers now need to earn a rate of 4.38 per cent on their savings before they begin to see a real return, while higher rate tax payers need to earn 5.83 per cent.
But with typical rates on a no notice savings account dropping to 0.02 per cent to 0.73 per cent in the past month, it means basic rate taxpayers are losing the equivalent of 2.92 per cent a year, with higher rate tax payers losing 3.06 per cent, according to the figures from personal finance statisticians Moneyfacts.
Just two accounts out of a total of 1,101 savings accounts produce a real rate of return for higher tax payers once tax and inflation are taken into account. However, these accounts are only for regular savers and not for those with a lump sum to invest, according to the data produced exclusively for The Daily Telegraph. And total of only 52 accounts produce a real return for basic rate taxpayers.
S
avers are suffering despite Barclays, Britain’s third-largest bank, reporting profits of £11.6 billion for 2009 and speculation that the excessive bonus culture is returning to the City. Vince Cable of the Liberal Democrats, said: “Negative real interest rates are a killer for savers.
“It will not make it possible for Britain to switch from being a nation that is excessively in debt to a society based on prudent saving.” Darren Cook, a spokesman for Moneyfacts said: “Each month, inflation is cutting deeper into people’s spending power and lower savings interest rates are creating an even bitterer pill to swallow.
“Those who are relying on their savings pot to subsidise other income are seeing their savings being eroded. “Savers are hoping that this is just a short spike in inflation, but will lead to further aggravating issues if inflation does not fall as quickly as it is going up.”
David Black, a banking expert at personal finance researchers Defaqto, said: “Those reliant on savings interest to supplement inadequate income will be devastated by this double whammy of rising inflation and low interest rates.” The Consumer Prices Index, the Government’s preferred measure of inflation, jumped to a 14-month high of 3.5 per cent last month, the Office for National Statistics disclosed.
The rise was blamed on the return of Value Added Tax to 17.5 per cent. The Government had previously reduced VAT to 15 per cent on a temporary basis until last month to try to boost consumer spending and ease the recession. The Retail Prices Index – which includes the cost of mortgages and housing - also rose sharply in January to 3.7 per cent.
Economists said the rise in inflation increases the prospect that the Bank of England will maintain the Bank Rate its current level. Howard Archer, an economist at Global Insight said: “When interest rates finally do start to rise the increases are likely to be gradual.”
Individual Savings Accounts offer an additional small glimmer of hope for basic rate taxpayers, but there is nothing available to higher rate taxpayers. National Savings & Investments offer three and five year Index Linked Certificates that are tax free and pay 1 per cent above RPI inflation.
http://www.telegraph.co.uk/
Millions of savers are losing money by putting their cash into a savings account due to poor investment returns and the increasing cost of living, it has been disclosed. Savers are suffering despite Barclays, Britain third-largest bank, reporting profits of £11.6 billion for 2009.
Rising inflation is eroding the spending power of savers’ cash and, combined with historically low interest rates, is leaving them with less money than when they started. Savers have already been badly hit by shrinking rates of return following Bank of England interest rates dropping to 0.5 per cent.
But the jump in inflation to 3.5 per cent, released in official figures yesterday, came as a fresh blow to hard-pressed pensioners and those trying to live off their savings. Politicians and financial experts said it will leave millions of savers "devastated".
With the consumer prices index rising to 3.5 per cent, basic rate taxpayers now need to earn a rate of 4.38 per cent on their savings before they begin to see a real return, while higher rate tax payers need to earn 5.83 per cent.
But with typical rates on a no notice savings account dropping to 0.02 per cent to 0.73 per cent in the past month, it means basic rate taxpayers are losing the equivalent of 2.92 per cent a year, with higher rate tax payers losing 3.06 per cent, according to the figures from personal finance statisticians Moneyfacts.
Just two accounts out of a total of 1,101 savings accounts produce a real rate of return for higher tax payers once tax and inflation are taken into account. However, these accounts are only for regular savers and not for those with a lump sum to invest, according to the data produced exclusively for The Daily Telegraph. And total of only 52 accounts produce a real return for basic rate taxpayers.
S
avers are suffering despite Barclays, Britain’s third-largest bank, reporting profits of £11.6 billion for 2009 and speculation that the excessive bonus culture is returning to the City. Vince Cable of the Liberal Democrats, said: “Negative real interest rates are a killer for savers.
“It will not make it possible for Britain to switch from being a nation that is excessively in debt to a society based on prudent saving.” Darren Cook, a spokesman for Moneyfacts said: “Each month, inflation is cutting deeper into people’s spending power and lower savings interest rates are creating an even bitterer pill to swallow.
“Those who are relying on their savings pot to subsidise other income are seeing their savings being eroded. “Savers are hoping that this is just a short spike in inflation, but will lead to further aggravating issues if inflation does not fall as quickly as it is going up.”
David Black, a banking expert at personal finance researchers Defaqto, said: “Those reliant on savings interest to supplement inadequate income will be devastated by this double whammy of rising inflation and low interest rates.” The Consumer Prices Index, the Government’s preferred measure of inflation, jumped to a 14-month high of 3.5 per cent last month, the Office for National Statistics disclosed.
The rise was blamed on the return of Value Added Tax to 17.5 per cent. The Government had previously reduced VAT to 15 per cent on a temporary basis until last month to try to boost consumer spending and ease the recession. The Retail Prices Index – which includes the cost of mortgages and housing - also rose sharply in January to 3.7 per cent.
Economists said the rise in inflation increases the prospect that the Bank of England will maintain the Bank Rate its current level. Howard Archer, an economist at Global Insight said: “When interest rates finally do start to rise the increases are likely to be gradual.”
Individual Savings Accounts offer an additional small glimmer of hope for basic rate taxpayers, but there is nothing available to higher rate taxpayers. National Savings & Investments offer three and five year Index Linked Certificates that are tax free and pay 1 per cent above RPI inflation.
http://www.telegraph.co.uk/
Wednesday, February 17, 2010
UK Government invests £4.3m in crackdown on Cyber Crime
By Warwick Ashford
Monday 15 February 2010
The government is to invest £4.3m to fight criminals who use e-mails and websites to con UK consumers out of £3.5bn a year. Some 73% of adults in the UK received a scam e-mail and three million consumers were victims of online scams in the past year, according to the Office of Fair Trading (OFT).
The money will be invested over three years in an OFT specialist cyber enforcement team to fight online crime and restore consumer confidence in online shopping. Some of the money will also be used to provide funding for Trading Standards.
The government's Digital Britain Report published in June 2009 highlighted the need to ensure consumers are protected and confident when shopping online."Our investment will help the OFT and Trading Standards to put in place new specialist teams, training and technology to take the fight to these criminals," said consumer minister Kevin Brennan. The OFT team has begun training with an international expert, working in a new laboratory with specialist equipment to support the OFT's enforcement work.
The government initiative will also see new highly trained Trading Standards enforcers with specialist equipment in England, Scotland and Wales. Enforcers will focus on fake products and traders, counterfeit ticket sales and scam websites aimed at duping consumers into paying for
"The enforcement team will be looking at the activities of a wide range of commercial websites and taking action in cases where consumer rights are abused," said Heather Clayton, senior director for the OFT. The OFT will coordinate which enforcer is best placed to take action on a particular issue and will focus on the most serious cyber scams.
Where appropriate, cases will be passed on to the Police Central eCrime Unit and the Serious and Organised Crime Agency, as well as the Companies Investigations Branch of the Department for Business, Innovation & Skills (BIS).
Source; http://www.computerweekly.com/Articles/2010/02/15/240299/Government-invests-1634.3m-in-crackdown-on-cybercrime.htm
Monday 15 February 2010
The government is to invest £4.3m to fight criminals who use e-mails and websites to con UK consumers out of £3.5bn a year. Some 73% of adults in the UK received a scam e-mail and three million consumers were victims of online scams in the past year, according to the Office of Fair Trading (OFT).
The money will be invested over three years in an OFT specialist cyber enforcement team to fight online crime and restore consumer confidence in online shopping. Some of the money will also be used to provide funding for Trading Standards.
The government's Digital Britain Report published in June 2009 highlighted the need to ensure consumers are protected and confident when shopping online."Our investment will help the OFT and Trading Standards to put in place new specialist teams, training and technology to take the fight to these criminals," said consumer minister Kevin Brennan. The OFT team has begun training with an international expert, working in a new laboratory with specialist equipment to support the OFT's enforcement work.
The government initiative will also see new highly trained Trading Standards enforcers with specialist equipment in England, Scotland and Wales. Enforcers will focus on fake products and traders, counterfeit ticket sales and scam websites aimed at duping consumers into paying for
"The enforcement team will be looking at the activities of a wide range of commercial websites and taking action in cases where consumer rights are abused," said Heather Clayton, senior director for the OFT. The OFT will coordinate which enforcer is best placed to take action on a particular issue and will focus on the most serious cyber scams.
Where appropriate, cases will be passed on to the Police Central eCrime Unit and the Serious and Organised Crime Agency, as well as the Companies Investigations Branch of the Department for Business, Innovation & Skills (BIS).
Source; http://www.computerweekly.com/Articles/2010/02/15/240299/Government-invests-1634.3m-in-crackdown-on-cybercrime.htm
Monday, February 1, 2010
Tanzania: financial reforms fail on consumer protection
From the Business Times issue of Friday, 27 November 2009 11:51
By MNAKU MBANI & ERIC TOROKA
ALTHOUGH Tanzania has taken major efforts to reform the banking and financial institutions sector over the last two decades, the issue of consumer protection has remained virtually untouched by the 'reforms.'
This situation has led to increasing abuse of good business practices by many of the financial institutions and banks, as well as a singular lack of fairness and transparency in dealing with customers.
"The providers of financial services in Tanzania need to understand that, as long as they continue to gain unfairly from their customers.... they are nonetheless sowing the seeds of their own destruction...," said Daimon Mwakyembe, chairman of the Tanzania Consumer Advocacy Society (TCAS).
Presenting a paper recently on 'The Quality of Financial Services: a Critique From Consumers' Perspective,' Mwakyembe cited as an example of bad practice the banks and financial institutions which “have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as 'unbankable.'”
The occasion was a forum organized by the Government Controller & Auditor-General (CAG) in the nation's commercial capital, Dar es Salaam.
TCAS is a private, voluntary nongovernmental, non-partisan and nonprofit making organization that was registered as a company limited by guarantee in July 2007 under the Companies Act of 2002 (Chapter 212 of the Laws of Tanzania).
The Society’s mission is to provide an advocacy platform that would make consumers' voices heard, raise consumers' awareness of their rights, build consumers' ability to claim their rights, as well as make markets accountable and more responsive to consumers' needs and interests.
Observers say most of the banks and financial institutions operating in Tanzania siphon billions of shillings off their customers as a matter of course. This is partly because
of the latter's ignorance of their rights and dues, and partly because the reforms and extant legislation are silent on the matter.
Mwakyembe – who is a former director-general of the Tanzania Bureau of Standards (TBS) – said despite the reforms, fairness and transparency in the treatment of customers is not always ensured... And lack of capability on the part of customers is still being exploited negatively.
As a result, there is no mechanisms on how to curb abusive business practices by financial institutions at the national and international levels, and which adversely affect consumers.
Mwakyembe suggested that the (central) Bank of Tanzania and other relevant authorities need to urgently review the extant financial regulatory policies and legislation. The main objective this time should be to ensure that they – among things – reflect a wide view of consumer protection on ensuring proper business conduct.
It is noted that the Bank of Tanzania, which has the mandate to supervise the banking and financial industry as a whole, has no straightforward consumer protection guidelines.
He said this situation will not favour the survival of financial institutions in the long run.
"Good quality service is a product of right consumer protection and is, thus, the new paradigm that is defining – and, indeed, influencing – the entire economic sector and economic relations," he said.
The International Monetary Fund's review of regulatory systems in 2004 did (among other things) advise on “stipulation and clear identification of common regulatory themes for consumer rights promotion and protection,” Mwakyembe noted.
"Despite efforts in addressing the competitiveness of the financial sector, consumer abuse and rights violation are on the rise, and are directly affecting the economic welfare of many consumers," he stressed.
Noting that gthe main part of poor services in Tanzania's financial market is contributed to mainly by lack of consumers' awareness on their rights when making choices,h Mwakyembe stressed that "inadequate consumer awareness on their rights and obligations is the main stumbling block for realization of good services...
"Yet, if there is one area that the financial sector could use to address its economic malaise and ensure its sustainable future, it is through the provision of financial education to consumers.h
This would be in line with the implementation of the United Nations Consumer Protection Guidelines of 1999 which encourage Governments and institutions to work out clear, fair, guidelines that protect the interest of consumers.h
A research conducted in 2007 by the Finscope Group showed that, gin order to strengthen financial institutions in any country (including Tanzania), there is a need to promote financial capability to consumers.h
This includes gempowering people to be capable of managing their financial assets and liabilities, to understand their rights and responsibilities vis-a-vis financial institutions.h
Mwakyembe: "in my view, financial education to consumers should focus on building financial discipline, managing their incomes, boosting their saving behaviour and the promotion of risk mitigation," he concluded.
In another development, auditor-general of Sweden, Eva Lindstrom, commended the National Audit Office of Tanzania for taking the initiative to organise the forum which, she said, was پgrelevant and timely.پh
In these times of financial crisis, Lindstrom said, “Supreme Audit Institutions in many countries are challenged to properly address the audit of financial supervisory agencies that are aiming at consumer protection and mitigating the risks that large sums of taxpayers' money will have to be used for the rescue of the financial system.”
Noting that gthe events of the past year have highlighted the significance of financial supervision,h she said that financial markets and their institutions must operate in a highly competitive environment – and there will always be efforts made to circumvent the regulations.
gA strong, independently-organized financial supervisory authority is, therefore, of the highest importance for the stability of the economy and taxpayers.”
The global financial crisis also pointed to the importance of supervision of not only separate financial institutions, but also of the entire financial system.
Moreover, the Swede said, new regulations on financial markets will need to be introduced in the years to come, globally.
Supervision of cross-border banks will have to be improved – which will most certainly mean more cooperation between financial supervisory agencies in different countries.
Lindstrom observed that central banks failed to foresee the effects of the deterioration of markets that led to liquidity problems. To that effect, monetary policies need to take into account financial stability... And it is within the mandate of central bank to monitor and handle monetary conditions.
“The Supreme Audit Institutions have an important role to play in monitoring the operations of the financial supervisory agencies. Those agencies make up a vital part of the financial infrastructure, and when that infrastructure fails, the costs of that failure are most often transferred to the taxpayers,” she elaborated.
gThus we, as auditors, must make sure that we have the knowledge and competence required to audit these agencies.h
According to her, gauditing will create confidence in the system, an asset which is vital in promoting effective financial markets and stable economic growth.h
By MNAKU MBANI & ERIC TOROKA
ALTHOUGH Tanzania has taken major efforts to reform the banking and financial institutions sector over the last two decades, the issue of consumer protection has remained virtually untouched by the 'reforms.'
This situation has led to increasing abuse of good business practices by many of the financial institutions and banks, as well as a singular lack of fairness and transparency in dealing with customers.
"The providers of financial services in Tanzania need to understand that, as long as they continue to gain unfairly from their customers.... they are nonetheless sowing the seeds of their own destruction...," said Daimon Mwakyembe, chairman of the Tanzania Consumer Advocacy Society (TCAS).
Presenting a paper recently on 'The Quality of Financial Services: a Critique From Consumers' Perspective,' Mwakyembe cited as an example of bad practice the banks and financial institutions which “have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as 'unbankable.'”
The occasion was a forum organized by the Government Controller & Auditor-General (CAG) in the nation's commercial capital, Dar es Salaam.
TCAS is a private, voluntary nongovernmental, non-partisan and nonprofit making organization that was registered as a company limited by guarantee in July 2007 under the Companies Act of 2002 (Chapter 212 of the Laws of Tanzania).
The Society’s mission is to provide an advocacy platform that would make consumers' voices heard, raise consumers' awareness of their rights, build consumers' ability to claim their rights, as well as make markets accountable and more responsive to consumers' needs and interests.
Observers say most of the banks and financial institutions operating in Tanzania siphon billions of shillings off their customers as a matter of course. This is partly because
of the latter's ignorance of their rights and dues, and partly because the reforms and extant legislation are silent on the matter.
Mwakyembe – who is a former director-general of the Tanzania Bureau of Standards (TBS) – said despite the reforms, fairness and transparency in the treatment of customers is not always ensured... And lack of capability on the part of customers is still being exploited negatively.
As a result, there is no mechanisms on how to curb abusive business practices by financial institutions at the national and international levels, and which adversely affect consumers.
Mwakyembe suggested that the (central) Bank of Tanzania and other relevant authorities need to urgently review the extant financial regulatory policies and legislation. The main objective this time should be to ensure that they – among things – reflect a wide view of consumer protection on ensuring proper business conduct.
It is noted that the Bank of Tanzania, which has the mandate to supervise the banking and financial industry as a whole, has no straightforward consumer protection guidelines.
He said this situation will not favour the survival of financial institutions in the long run.
"Good quality service is a product of right consumer protection and is, thus, the new paradigm that is defining – and, indeed, influencing – the entire economic sector and economic relations," he said.
The International Monetary Fund's review of regulatory systems in 2004 did (among other things) advise on “stipulation and clear identification of common regulatory themes for consumer rights promotion and protection,” Mwakyembe noted.
"Despite efforts in addressing the competitiveness of the financial sector, consumer abuse and rights violation are on the rise, and are directly affecting the economic welfare of many consumers," he stressed.
Noting that gthe main part of poor services in Tanzania's financial market is contributed to mainly by lack of consumers' awareness on their rights when making choices,h Mwakyembe stressed that "inadequate consumer awareness on their rights and obligations is the main stumbling block for realization of good services...
"Yet, if there is one area that the financial sector could use to address its economic malaise and ensure its sustainable future, it is through the provision of financial education to consumers.h
This would be in line with the implementation of the United Nations Consumer Protection Guidelines of 1999 which encourage Governments and institutions to work out clear, fair, guidelines that protect the interest of consumers.h
A research conducted in 2007 by the Finscope Group showed that, gin order to strengthen financial institutions in any country (including Tanzania), there is a need to promote financial capability to consumers.h
This includes gempowering people to be capable of managing their financial assets and liabilities, to understand their rights and responsibilities vis-a-vis financial institutions.h
Mwakyembe: "in my view, financial education to consumers should focus on building financial discipline, managing their incomes, boosting their saving behaviour and the promotion of risk mitigation," he concluded.
In another development, auditor-general of Sweden, Eva Lindstrom, commended the National Audit Office of Tanzania for taking the initiative to organise the forum which, she said, was پgrelevant and timely.پh
In these times of financial crisis, Lindstrom said, “Supreme Audit Institutions in many countries are challenged to properly address the audit of financial supervisory agencies that are aiming at consumer protection and mitigating the risks that large sums of taxpayers' money will have to be used for the rescue of the financial system.”
Noting that gthe events of the past year have highlighted the significance of financial supervision,h she said that financial markets and their institutions must operate in a highly competitive environment – and there will always be efforts made to circumvent the regulations.
gA strong, independently-organized financial supervisory authority is, therefore, of the highest importance for the stability of the economy and taxpayers.”
The global financial crisis also pointed to the importance of supervision of not only separate financial institutions, but also of the entire financial system.
Moreover, the Swede said, new regulations on financial markets will need to be introduced in the years to come, globally.
Supervision of cross-border banks will have to be improved – which will most certainly mean more cooperation between financial supervisory agencies in different countries.
Lindstrom observed that central banks failed to foresee the effects of the deterioration of markets that led to liquidity problems. To that effect, monetary policies need to take into account financial stability... And it is within the mandate of central bank to monitor and handle monetary conditions.
“The Supreme Audit Institutions have an important role to play in monitoring the operations of the financial supervisory agencies. Those agencies make up a vital part of the financial infrastructure, and when that infrastructure fails, the costs of that failure are most often transferred to the taxpayers,” she elaborated.
gThus we, as auditors, must make sure that we have the knowledge and competence required to audit these agencies.h
According to her, gauditing will create confidence in the system, an asset which is vital in promoting effective financial markets and stable economic growth.h
Wednesday, January 27, 2010
AS EAC COMMON MARKET LOOMS UP LARGE... Activists in Tanzania cry out for consumer protection
The Business Times of Friday, 15 January 2010 10:53
BY ERIC TOROKA
A FULL Customs Union became a reality within the East African Community on January 1 this year ... And – as the Community hurtles into a Common Market regime that is tentatively slated to become operational come next July – activists in Tanzania have come to the fore in the fight for consumer protection in ways more than one.
In the looming advent of a Common Market, deliberate efforts need to be taken sooner than later to ensure effective protection of the interests of consumers as a whole.
Steps must also be taken to promote and enforce fair competition at the marketplace wherever and whenever possible, with the interrelated objectives of driving prices down, as well as improving the quality goods and services.
This should be in a win-win situation in which all stakeholders benefit: businesses and consumers in particular, and the economy at large.
The envisaged EAC Common Market – whose Establishment Protocol was signed by the Heads of State of the five EAC member countries in Arusha on November 20, 2009 – will come into effect across the entire Community on July 1, 2010... But only – and if only – the National Legislatures of the five States: Kenya, Uganda, Rwanda, Burundi and Tanzania ratify the Protocol in the interim.
In the event, certain quarters in Tanzania consider it prudent for the relevant authorities and economic moguls – including the Government and players in the private sector – to urgently put in place the requisite mechanisms for ensuring that Tanzania benefits maximally from the dual arrangements of a Customs Union and a Common Market.
Speaking to Business Times in an exclusive interview held in Dar es Salaam this week, the executive director of the Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, said Tanzania requires to identify, prepare and adopt a serious approach that would ensure smooth, 'mortise-and-tenon' entry of the country into what is a relatively new economic and financial regime.
"We are having a laissez-faire approach on very important issues and, as such, need to remove all barriers to creative thinking sooner than later,” Kihiyo said, further counseling against negativisms like “ 'the Customs Union, Common Market won't work;' 'we don’t have capital;' 'why change;' 'we can't get there;' 'we are better off as it is'; 'may be in 20-30 years to come...' As Mwalimu Nyerere always said: 'it can be done play; just your part,'" Kihiyo elaborated.
In his view, the executive director says, “Tanzania will certainly benefit a lot from the envisaged Common Market. For starters, the country has a considerable store of comparative advantages that include a phenomenal endowment of natural resources which the other member countries don't have.
“These include precious minerals, swathes of forestry and fisheries, livestock, water resources, large tracts of arable land; a reasonably good climate, human capital, and socio-political stability/security.
“Then, its geographical location that puts Tanzania in an entrepot trading advantage vis-a-vis the six landlocked 'neighbouring' countries of Uganda, Rwanda, Burundi, Eastern DRC, Malawi and Zambia,” Kihiyo says.
But, all that notwithstanding, he says, “there still is a real need for the Government in Dar to invest heavily in the country's infrastructure and logistics. Among these are the need to revamp and otherwise put in place transport and transportation (including port and warehousing facilities), state-of-the-art telecommunications, as well as stable and adequate utility supplies (power, water, etc).
“If we want to excel under the proposed Customs Union and Common Market conditions, we must also revamp the country's legal and other regulatory/procedural frameworks; hospitality industry facilities; insurance and financial services; a highly educated/skilled workforce, and many other supporting facilities,” he enumerated.
“ There is indeed a need to invest heavily in the quality of labour that can produce goods and services for the expanded, more competitive regional market. We need to train lots of service providers on the concept of consumerism so as to enable them
render excellent customer services as a matter of course.
“We have to establish good policies that allow businesses and consumers alike to enjoy in full the benefits of a Common Market.
"Our business entities must undergo transformation in the way they regard, handle and treat customers. The conception of who a consumer is in the business context has to be changed from one of what is now regarded as a 'human cash dispenser' into an essential element for the healthy existence of businesses. Such a transformation has far-reaching effect on the provision of goods and services to customers, so that the servicing of the requirements of customers will be at the heart of market philosophy in all sectors of the economy.
'Politically-motivated slogans won't get us far in the socio- economic developmental stakes... We must leave no loopholes for unscrupulous players to take unfair advantage of the Common Market at the expense of 126m East Africans.'
“Not only would knowledge and practice of this concept aid in
improving the provision of quality services that would, in turn, lead to increased success in business at the coming regional Common market; it would also spell greater success in the local market as well," Kihiyo stated.
Noting that the Common Market will bring together about 126.2 million consumers with a combined purchasing power of about US$60 billion, Kihiyo said this “will certainly stimulate economic growth for the entire region... However, a lot of changes must be made in the way business is currently done.
"This is a big market which no business worth its name can ignore. There will be free movement of persons, labour, goods, services, and capital. There will be rights of residence.
There will be fewer or no market restrictions against any registered/licensed business entity to conduct business in any of five member states. But the most critical question one has to ask is, how far prepared are consumers and businesses in the region to meet the challenges of the EAC Common Market – and, in the event reap to the maximum possible the benefits of the new regime," he said, adding emphatically that “the region must be looked at – and seen – as a Bigger Picture!”
For his part, the chairman for Consumer Society, Daimon Mwakyembe, told Business Times that "part of the reasons which led to the collapse of the former EAC in 1977 was ideological differences. This shouldn’t be the reason this time!”
Noting that the 'new' EAC was officially revived on July 7, 2000, Mwakyembe said “all the five EAC member states are practising free market economy whereby the prices of goods and services are determined in a free market pricing system governed by the laws of supply and demand.
“However, a Common Market alone may not guarantee outcomes that are efficient and in the public interest. In the real world, the benefits of a Common Market do not exist in pure form – due to human nature of greed,” he said.
Nonetheless, consumers are likely to benefit more in a Common Market that outside one, he argued.
"For one, there will be more business players competing for custom and consumers' money. Hopefully enough, there might be certain improvements in the quality of goods and services supplied at a reasonable and competitive market prices," he said.
Nonetheless, Mwakyembe – a former director-general of the Tanzania Bureau of Standards – said one main worry is likely to remain: how violations of consumer rights can be curbed within the Common Market...
“ As of now, consumer rights violation at the single country level are on the raise with the passage of time... The respective Governments seriously need to formulate and adopt legislation, mechanisms and programmes that are designed to effectively regulate, sensitize and popularize among the EAC citizenry
regarding their rights and responsibilities as we rush along
and into a Common Market in a matter of a few months,” the chairman counselled.
Mwakyembe admits that “remarkable efforts have been taken in Tanzania in recent years that led to the adoption of important statutes for consumer protection and regulation of a free market economy.”
This was accomplished with considerable cooperation and help in cash and in kind from the World Bank, the Tanzania Government and Parliament, as well as other stakeholders.
Mwakyembe named the important extant statutes on consumer affairs adopted in this decade as including the Energy & Water Utility Regulatory Authority Act (2001); the Surface & Marine Transport Regulatory Authority Act (2001); the Fair Competition Act (2003); the Tanzania Communications Regulatory Authority Act (2003), and the Tanzania Civil Aviation Authority Act (2003).
Others are the Tanzania Food & Drugs Authority Act (2003); the Bank of Tanzania Act (2006), “and many other written laws.”
Among the earlier ones are, of course, the Tanzania Bureau of Standards Act (1975, revised in 2009 – although not yet adopted!); and the Weights and Measures Act (1982).
Commenting upon the matter, a former director-general of the Small Industries Development Organization, Epaineto Toroka, said “there is also a need to have central bodies to regulate the Common Market if and when it comes into effect.
Noting that "the EAC countries already have so many bodies regulating labour, services, goods and rights of residence at the country level,” Toroka said “if we go into the Common Market, we will need to have central bodies to regulate it, too... Market weaknesses and loopholes within the EAC will need to be addressed and dealt with accordingly, as no one country can do it alone," Toroka stressed.
“The most appropriate way forward for the EAC member states is to go into a Common Market bloc. However, there must be intensive advocacy on what is the Common Market will all be about; what are the benefits in it for ordinary Tanzanians, Kenyans, Ugandans, Rwandans and Burundians – and what the disadvantages are!”
The PR, Media & Communications Manager for the Dar es Salaam-based Serengeti Breweries Ltd, Teddy Mapunda, told this write that, “if Tanzanians – and, indeed the other EAC members – really want to have a positive outcome in the coming years, beginning especially in 2010, then consumer protection within the Common Market must feature prominently in it...
“But this requires strong political will and commitment from those in power; they should undertake what we in the trade call 'consumer protection crusade' for the betterment of individual consumers, citizens and other stakeholders as a whole.
Noting that mere slogans – mostly politically-motivated – will not get us far in the socio-economic developmental stakes, Mapunda called for the powers-that-be “to make sure that there will not be loopholes which would enable unscrupulous players to take unfair advantage of the Common Market – and at the expense of 126 million East Africans.”
BY ERIC TOROKA
A FULL Customs Union became a reality within the East African Community on January 1 this year ... And – as the Community hurtles into a Common Market regime that is tentatively slated to become operational come next July – activists in Tanzania have come to the fore in the fight for consumer protection in ways more than one.
In the looming advent of a Common Market, deliberate efforts need to be taken sooner than later to ensure effective protection of the interests of consumers as a whole.
Steps must also be taken to promote and enforce fair competition at the marketplace wherever and whenever possible, with the interrelated objectives of driving prices down, as well as improving the quality goods and services.
This should be in a win-win situation in which all stakeholders benefit: businesses and consumers in particular, and the economy at large.
The envisaged EAC Common Market – whose Establishment Protocol was signed by the Heads of State of the five EAC member countries in Arusha on November 20, 2009 – will come into effect across the entire Community on July 1, 2010... But only – and if only – the National Legislatures of the five States: Kenya, Uganda, Rwanda, Burundi and Tanzania ratify the Protocol in the interim.
In the event, certain quarters in Tanzania consider it prudent for the relevant authorities and economic moguls – including the Government and players in the private sector – to urgently put in place the requisite mechanisms for ensuring that Tanzania benefits maximally from the dual arrangements of a Customs Union and a Common Market.
Speaking to Business Times in an exclusive interview held in Dar es Salaam this week, the executive director of the Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, said Tanzania requires to identify, prepare and adopt a serious approach that would ensure smooth, 'mortise-and-tenon' entry of the country into what is a relatively new economic and financial regime.
"We are having a laissez-faire approach on very important issues and, as such, need to remove all barriers to creative thinking sooner than later,” Kihiyo said, further counseling against negativisms like “ 'the Customs Union, Common Market won't work;' 'we don’t have capital;' 'why change;' 'we can't get there;' 'we are better off as it is'; 'may be in 20-30 years to come...' As Mwalimu Nyerere always said: 'it can be done play; just your part,'" Kihiyo elaborated.
In his view, the executive director says, “Tanzania will certainly benefit a lot from the envisaged Common Market. For starters, the country has a considerable store of comparative advantages that include a phenomenal endowment of natural resources which the other member countries don't have.
“These include precious minerals, swathes of forestry and fisheries, livestock, water resources, large tracts of arable land; a reasonably good climate, human capital, and socio-political stability/security.
“Then, its geographical location that puts Tanzania in an entrepot trading advantage vis-a-vis the six landlocked 'neighbouring' countries of Uganda, Rwanda, Burundi, Eastern DRC, Malawi and Zambia,” Kihiyo says.
But, all that notwithstanding, he says, “there still is a real need for the Government in Dar to invest heavily in the country's infrastructure and logistics. Among these are the need to revamp and otherwise put in place transport and transportation (including port and warehousing facilities), state-of-the-art telecommunications, as well as stable and adequate utility supplies (power, water, etc).
“If we want to excel under the proposed Customs Union and Common Market conditions, we must also revamp the country's legal and other regulatory/procedural frameworks; hospitality industry facilities; insurance and financial services; a highly educated/skilled workforce, and many other supporting facilities,” he enumerated.
“ There is indeed a need to invest heavily in the quality of labour that can produce goods and services for the expanded, more competitive regional market. We need to train lots of service providers on the concept of consumerism so as to enable them
render excellent customer services as a matter of course.
“We have to establish good policies that allow businesses and consumers alike to enjoy in full the benefits of a Common Market.
"Our business entities must undergo transformation in the way they regard, handle and treat customers. The conception of who a consumer is in the business context has to be changed from one of what is now regarded as a 'human cash dispenser' into an essential element for the healthy existence of businesses. Such a transformation has far-reaching effect on the provision of goods and services to customers, so that the servicing of the requirements of customers will be at the heart of market philosophy in all sectors of the economy.
'Politically-motivated slogans won't get us far in the socio- economic developmental stakes... We must leave no loopholes for unscrupulous players to take unfair advantage of the Common Market at the expense of 126m East Africans.'
“Not only would knowledge and practice of this concept aid in
improving the provision of quality services that would, in turn, lead to increased success in business at the coming regional Common market; it would also spell greater success in the local market as well," Kihiyo stated.
Noting that the Common Market will bring together about 126.2 million consumers with a combined purchasing power of about US$60 billion, Kihiyo said this “will certainly stimulate economic growth for the entire region... However, a lot of changes must be made in the way business is currently done.
"This is a big market which no business worth its name can ignore. There will be free movement of persons, labour, goods, services, and capital. There will be rights of residence.
There will be fewer or no market restrictions against any registered/licensed business entity to conduct business in any of five member states. But the most critical question one has to ask is, how far prepared are consumers and businesses in the region to meet the challenges of the EAC Common Market – and, in the event reap to the maximum possible the benefits of the new regime," he said, adding emphatically that “the region must be looked at – and seen – as a Bigger Picture!”
For his part, the chairman for Consumer Society, Daimon Mwakyembe, told Business Times that "part of the reasons which led to the collapse of the former EAC in 1977 was ideological differences. This shouldn’t be the reason this time!”
Noting that the 'new' EAC was officially revived on July 7, 2000, Mwakyembe said “all the five EAC member states are practising free market economy whereby the prices of goods and services are determined in a free market pricing system governed by the laws of supply and demand.
“However, a Common Market alone may not guarantee outcomes that are efficient and in the public interest. In the real world, the benefits of a Common Market do not exist in pure form – due to human nature of greed,” he said.
Nonetheless, consumers are likely to benefit more in a Common Market that outside one, he argued.
"For one, there will be more business players competing for custom and consumers' money. Hopefully enough, there might be certain improvements in the quality of goods and services supplied at a reasonable and competitive market prices," he said.
Nonetheless, Mwakyembe – a former director-general of the Tanzania Bureau of Standards – said one main worry is likely to remain: how violations of consumer rights can be curbed within the Common Market...
“ As of now, consumer rights violation at the single country level are on the raise with the passage of time... The respective Governments seriously need to formulate and adopt legislation, mechanisms and programmes that are designed to effectively regulate, sensitize and popularize among the EAC citizenry
regarding their rights and responsibilities as we rush along
and into a Common Market in a matter of a few months,” the chairman counselled.
Mwakyembe admits that “remarkable efforts have been taken in Tanzania in recent years that led to the adoption of important statutes for consumer protection and regulation of a free market economy.”
This was accomplished with considerable cooperation and help in cash and in kind from the World Bank, the Tanzania Government and Parliament, as well as other stakeholders.
Mwakyembe named the important extant statutes on consumer affairs adopted in this decade as including the Energy & Water Utility Regulatory Authority Act (2001); the Surface & Marine Transport Regulatory Authority Act (2001); the Fair Competition Act (2003); the Tanzania Communications Regulatory Authority Act (2003), and the Tanzania Civil Aviation Authority Act (2003).
Others are the Tanzania Food & Drugs Authority Act (2003); the Bank of Tanzania Act (2006), “and many other written laws.”
Among the earlier ones are, of course, the Tanzania Bureau of Standards Act (1975, revised in 2009 – although not yet adopted!); and the Weights and Measures Act (1982).
Commenting upon the matter, a former director-general of the Small Industries Development Organization, Epaineto Toroka, said “there is also a need to have central bodies to regulate the Common Market if and when it comes into effect.
Noting that "the EAC countries already have so many bodies regulating labour, services, goods and rights of residence at the country level,” Toroka said “if we go into the Common Market, we will need to have central bodies to regulate it, too... Market weaknesses and loopholes within the EAC will need to be addressed and dealt with accordingly, as no one country can do it alone," Toroka stressed.
“The most appropriate way forward for the EAC member states is to go into a Common Market bloc. However, there must be intensive advocacy on what is the Common Market will all be about; what are the benefits in it for ordinary Tanzanians, Kenyans, Ugandans, Rwandans and Burundians – and what the disadvantages are!”
The PR, Media & Communications Manager for the Dar es Salaam-based Serengeti Breweries Ltd, Teddy Mapunda, told this write that, “if Tanzanians – and, indeed the other EAC members – really want to have a positive outcome in the coming years, beginning especially in 2010, then consumer protection within the Common Market must feature prominently in it...
“But this requires strong political will and commitment from those in power; they should undertake what we in the trade call 'consumer protection crusade' for the betterment of individual consumers, citizens and other stakeholders as a whole.
Noting that mere slogans – mostly politically-motivated – will not get us far in the socio-economic developmental stakes, Mapunda called for the powers-that-be “to make sure that there will not be loopholes which would enable unscrupulous players to take unfair advantage of the Common Market – and at the expense of 126 million East Africans.”
Wednesday, January 20, 2010
Backers Fight for US Consumer Agency's Survival
Fri Jan 15, 2010 5:12pm EST
Dodd may scrap consumer protection agency - sources
REGULATORY NEWS | BONDS
* U.S. business lobby wary, still concerned
By Kevin Drawbaugh and Rachelle Younglai
WASHINGTON, Jan 15 (Reuters) - Consumer groups urged the chairman of the U.S. Senate Banking Committee not to buckle to Republicans and bank lobbyists trying to kill the creation of an independent agency to protect Americans from risky financial products.
In an effort to win bipartisan support for a financial reform bill, committee chairman Christopher Dodd may scrap plans for an independent regulator to oversee mortgages and other financial products, sources have said.
The Consumer Financial Protection Agency (CFPA) is a central element of a financial industry overhaul that the Obama administration proposed last year. Watering down the agency would represent a major setback for the White House and big win for the slew of U.S. business groups that are firmly opposed to such a plan.
As reported by Reuters on Tuesday, support for the proposal is fast fading among committee members. [ID: nN12211768]
"We urge Chairman Dodd not to cave to the big banks and their army of lobbyists who have made killing the CFPA one of their top priorities," said Heather Booth, the director of consumer lobbying group Americans for Financial Reform. "If the big banks win, the consumers will lose," she said in a statement.
Late last year, Dodd introduced a sweeping draft bill to regulate everything from banks to the $450 trillion over-the-counter derivatives market.Senate Republicans immediately rejected his proposal. Now lawmakers from both parties are negotiating the draft's most controversial provisions, such as the consumer agency and how to handle troubled financial firms.
Dodd, who as chairman of the banking committee is leading negotiations over the bill, may reduce the scope of the consumer agency and instead make it a division of a new systemic risk regulator or a new super-cop for banks, sources have said.
Watering down the consumer agency could win Republican support for his entire financial reform bill -- a piece of legislation that Dodd could add to his legacy when he retires from the Senate at the end of the year.
INDUSTRY STILL WARY
Industry lobbyists remained wary of the potential changes. Opponents of the consumer group have said it will stifle financial innovation and raise regulatory costs. Meanwhile supporters say it is needed to protect consumers from dubious practices and products of financial services firms.
As proposed by the White House, and in the draft bill Dodd introduced last year, the CFPA would strip existing agencies such as the Federal Reserve of their consumer protection duties and centralize them in one organization.The U.S. House of Representatives last month passed a regulation bill that includes an independent consumer agency.
Consumer advocacy group Consumers Union also urged the Senate to preserve the new agency. "Consumers Union urges you not to allow these institutions to profit from their reckless behavior and then destroy any hope for legislation that would protect consumers from the kind of abusive financial practices that helped trigger our current economic crisis," the group said in a letter to U.S. senators. (Reporting by Kevin Drawbaugh and Rachelle Younglai; Editing by Tim Dobbyn)
Source; http://www.reuters.com/article/idUSN1521623920100115
Dodd may scrap consumer protection agency - sources
REGULATORY NEWS | BONDS
* U.S. business lobby wary, still concerned
By Kevin Drawbaugh and Rachelle Younglai
WASHINGTON, Jan 15 (Reuters) - Consumer groups urged the chairman of the U.S. Senate Banking Committee not to buckle to Republicans and bank lobbyists trying to kill the creation of an independent agency to protect Americans from risky financial products.
In an effort to win bipartisan support for a financial reform bill, committee chairman Christopher Dodd may scrap plans for an independent regulator to oversee mortgages and other financial products, sources have said.
The Consumer Financial Protection Agency (CFPA) is a central element of a financial industry overhaul that the Obama administration proposed last year. Watering down the agency would represent a major setback for the White House and big win for the slew of U.S. business groups that are firmly opposed to such a plan.
As reported by Reuters on Tuesday, support for the proposal is fast fading among committee members. [ID: nN12211768]
"We urge Chairman Dodd not to cave to the big banks and their army of lobbyists who have made killing the CFPA one of their top priorities," said Heather Booth, the director of consumer lobbying group Americans for Financial Reform. "If the big banks win, the consumers will lose," she said in a statement.
Late last year, Dodd introduced a sweeping draft bill to regulate everything from banks to the $450 trillion over-the-counter derivatives market.Senate Republicans immediately rejected his proposal. Now lawmakers from both parties are negotiating the draft's most controversial provisions, such as the consumer agency and how to handle troubled financial firms.
Dodd, who as chairman of the banking committee is leading negotiations over the bill, may reduce the scope of the consumer agency and instead make it a division of a new systemic risk regulator or a new super-cop for banks, sources have said.
Watering down the consumer agency could win Republican support for his entire financial reform bill -- a piece of legislation that Dodd could add to his legacy when he retires from the Senate at the end of the year.
INDUSTRY STILL WARY
Industry lobbyists remained wary of the potential changes. Opponents of the consumer group have said it will stifle financial innovation and raise regulatory costs. Meanwhile supporters say it is needed to protect consumers from dubious practices and products of financial services firms.
As proposed by the White House, and in the draft bill Dodd introduced last year, the CFPA would strip existing agencies such as the Federal Reserve of their consumer protection duties and centralize them in one organization.The U.S. House of Representatives last month passed a regulation bill that includes an independent consumer agency.
Consumer advocacy group Consumers Union also urged the Senate to preserve the new agency. "Consumers Union urges you not to allow these institutions to profit from their reckless behavior and then destroy any hope for legislation that would protect consumers from the kind of abusive financial practices that helped trigger our current economic crisis," the group said in a letter to U.S. senators. (Reporting by Kevin Drawbaugh and Rachelle Younglai; Editing by Tim Dobbyn)
Source; http://www.reuters.com/article/idUSN1521623920100115
Loan Sharks Force 100,000 Families into Debt This Year
Households in £82 million debt to illegal lenders after taking out doorstep loans to fund Christmas
Laura Whateley
More than 100,000 of the UK’s poorest families will be crippled with £82 million of debt this year, after borrowing from loan sharks to fund Christmas, research has found.
Families took out an estimated £29 million in illegal doorstep loans over the festive period, at an average of nearly £300 per household. With interest rates on illegal loans averaging 825 per cent, households can expect to pay back over £800 during 2010. This suggests many families will still be paying off their debt next Christmas.
The Real Cost of Christmas report, authored by the think tank the Financial Inclusion Centre, was commissioned by Circle Anglia, an affordable housing provider, after it noticed an increase in the number of its residents being targeted by loan sharks. The report also found that the number of people using loan sharks has grown over the last three years from an estimated 165,000 to 200,000 a year in 2009, a 22 per cent rise.
Andy Doylend, of Circle Anglia said: “These figures are very concerning and demonstrate the scale of illegal lending across the UK. We hope that by turning the spotlight on loan shark activity we can help more people to seek help and get sound financial advice.
Related Links
• Low-income borrowers turn to loan sharks
• Loan sharks forced family into prostitution
“A simple step such as borrowing from a credit union or a community finance organisation instead of a loan shark could have saved the typical low income household £500 in debt repayments- more than enough to fund the whole of Christmas 2010 as well.”
Separate research carried out by Wherry Housing Association in Norfolk found that one in four tenants had been offered a cash loan. But 5 per cent said they were not given any paperwork showing how much they had borrowed or how much they owed, while 9 per cent said the amount they owed kept growing even through they made repayments and 3 per cent said they had been threatened with violence when they could not repay the money.
Faisel Rahman, of Fair Finance, the ethical lender, said: “Millions of pounds are being taken out of the pockets of the poor by illegal and extortionate lenders every year. As the credit crunch continues, more people are being left behind by mainstream financial services. This, coupled with the downturn on the economy, means 2010 promises to be a very difficult year for low income and vulnerable communities.”
Those who have borrowed money from a loan shark are under no legal obligation to repay the debt, which is why loan sharks often resort to violence and intimidation to force borrowers to pay up.
The Government has created specialist teams at Trading Standards to tackle illegal money lending, which Kevin Brennan, the consumer minister, said has already helped more than 10,000 loan shark victims write off £30million of illegal debt.
He said: “I’d encourage anyone who feels trapped by a loan shark to get help and advice as soon as possible.”
The Trading Standards Illegal Money Lending team offer a 24 hour confidential hotline on 0300 555 2222 for anyone who has been targeted by a loan shark, or believes illegal lenders are operating in their community.
Source; http://www.timesonline.co.uk/tol/money/borrowing/article6989378.ece
Laura Whateley
More than 100,000 of the UK’s poorest families will be crippled with £82 million of debt this year, after borrowing from loan sharks to fund Christmas, research has found.
Families took out an estimated £29 million in illegal doorstep loans over the festive period, at an average of nearly £300 per household. With interest rates on illegal loans averaging 825 per cent, households can expect to pay back over £800 during 2010. This suggests many families will still be paying off their debt next Christmas.
The Real Cost of Christmas report, authored by the think tank the Financial Inclusion Centre, was commissioned by Circle Anglia, an affordable housing provider, after it noticed an increase in the number of its residents being targeted by loan sharks. The report also found that the number of people using loan sharks has grown over the last three years from an estimated 165,000 to 200,000 a year in 2009, a 22 per cent rise.
Andy Doylend, of Circle Anglia said: “These figures are very concerning and demonstrate the scale of illegal lending across the UK. We hope that by turning the spotlight on loan shark activity we can help more people to seek help and get sound financial advice.
Related Links
• Low-income borrowers turn to loan sharks
• Loan sharks forced family into prostitution
“A simple step such as borrowing from a credit union or a community finance organisation instead of a loan shark could have saved the typical low income household £500 in debt repayments- more than enough to fund the whole of Christmas 2010 as well.”
Separate research carried out by Wherry Housing Association in Norfolk found that one in four tenants had been offered a cash loan. But 5 per cent said they were not given any paperwork showing how much they had borrowed or how much they owed, while 9 per cent said the amount they owed kept growing even through they made repayments and 3 per cent said they had been threatened with violence when they could not repay the money.
Faisel Rahman, of Fair Finance, the ethical lender, said: “Millions of pounds are being taken out of the pockets of the poor by illegal and extortionate lenders every year. As the credit crunch continues, more people are being left behind by mainstream financial services. This, coupled with the downturn on the economy, means 2010 promises to be a very difficult year for low income and vulnerable communities.”
Those who have borrowed money from a loan shark are under no legal obligation to repay the debt, which is why loan sharks often resort to violence and intimidation to force borrowers to pay up.
The Government has created specialist teams at Trading Standards to tackle illegal money lending, which Kevin Brennan, the consumer minister, said has already helped more than 10,000 loan shark victims write off £30million of illegal debt.
He said: “I’d encourage anyone who feels trapped by a loan shark to get help and advice as soon as possible.”
The Trading Standards Illegal Money Lending team offer a 24 hour confidential hotline on 0300 555 2222 for anyone who has been targeted by a loan shark, or believes illegal lenders are operating in their community.
Source; http://www.timesonline.co.uk/tol/money/borrowing/article6989378.ece
Monday, January 18, 2010
Consumer Rank Best, Worst Auto Brands
January 18, 2010
Source; Yahoo
Toyota stays on top in consumers' eyes, but the lowest-scoring brands are already on the chopping block. Chevrolet, Ford, and Subaru jump in brand perception
For More Information;
http://autos.yahoo.com/articles/autos_content_landing_pages/1242/chevrolet-ford-and-subaru-jump-in-brand-perception/
Source; Yahoo
Toyota stays on top in consumers' eyes, but the lowest-scoring brands are already on the chopping block. Chevrolet, Ford, and Subaru jump in brand perception
For More Information;
http://autos.yahoo.com/articles/autos_content_landing_pages/1242/chevrolet-ford-and-subaru-jump-in-brand-perception/
Thursday, January 7, 2010
FCC PRESS STATEMENT ON TBL AND SBL SAGA
The Fair Competition Commission (FCC) wishes to confirm and clarify the statement made by the Honourable Prime Minister, Mizengo K. P. Pinda (MP) in the Parliament while responding to the impromptu question by Busega MP, Dr. Raphael Chegeni (CCM) Member of Parliament for Busega on Thursday, 29th October, 2009, as reported by the media. The question by the Honourable Member of Parliament was whether the Government was aware of the on-going beer wars between Tanzania Breweries Limited (TBL) and Serengeti Breweries Limited (SBL) and what the Government was doing to prevent the continuation of the nasty acts between the two.
The FCC wishes to confirm the answers by the Honourable Prime Minister that the Government is aware of the wrangle and that the FCC, which is the appropriate institution for dealing with competition issues, is handling the problem.
A. THE WRANGLE BETWEEN TBL AND SBL IS AT THREE LEVELS:
1. TBL and East African Breweries (EABL)
In 2002 TBL and EABL agreed to divide up the beer market between Kenya and Tanzania so that they do not compete in their respective areas of dominance. This union was blessed by Government even though there was no merit except that of monopolizing their respective markets. As a result of that union, there ensued many negative effects: Kibo Breweries Limited closed down with employees in excess of 800 being made redundant in Moshi; TBL had about 96% of the Tanzania beer market and the consumer had to suffer several increases of beer prices.
Meanwhile, SBL, which had about 4% of the Tanzania beer market share, was increasing their production capacity. At the moment they have about 16% of the Tanzania beer market which is nearly the market share which Kibo Breweries Limited held before they were closed down.
2.SBL and EABL
EABL and SBL have been trying to enter into agreement which is similar to the TBL/EABL agreement. The attempted EABL and SBL has been the bone of contention between TBL and EABL. This dispute is being dealt with outside Tanzania.
3.TBL and SBL
SBL through their advocate filed a complaint against TBL with FCC in September 2009 accusing the latter for abuse of dominant position in the market. Upon receipt of the said Complaint, FCC immediately wrote to TBL attaching SBL’s Complaint and requesting them to respond to SBL’S allegations.
TBL through the services of their Advocates responded to the allegations.
The FCC is still investigating the facts of the case. However, this is a matter pending before the Commission and therefore, under the sub-judice rule, it will not be proper to comment on it as this will interfere with the judicial process.
Suffice is to state that once the case has been determined, FCC will give a statement of the facts and whosoever is aggrieved with the decision of the Commission will be at liberty to appeal to the Fair Competition Tribunal.
B. REMOVAL OF SBL ADVERTISEMENTS
There is another important issue, which FCC wishes to clarify as matter of urgency. This is about the removal of SBL advertisements or anybody’s advertisements for that matter.
The unlawful removal of advertisement in public place is a destruction of somebody’s property. This is an offence under the Penal Code Act (Cap 16 Re 2002).
Section 326(1) of Penal Code states as follows:- “any person who willfully and unlawfully destroys or damages any property is guilty of an offence, which, unless otherwise stated, is a misdemeanor, and he is liable, if no other punishment is provided, to imprisonment for seven years.”
This is a criminal offense which is penal and should not await the FCC determination of the competition issue. Therefore the unlawful removal of advertisement should be reported to the appropriate authorities and the necessary action taken immediately in order to maintain peace and order in society.
C.ROLE OF CONSUMER
Further, it is important to state here that the Tanzanian beer consumer has a role here. What is being fought here is their custom. Consumers have the right to choose and the obligation to make their views heard through their respective consumer associations/organisations and thereupon take up the challenge of defending their right to choose the beers of their preference in the marketplace.
Therefore it is upon them to decide who is serving their long term interests, the one who is allowing the last consumer to choose what to drink or the one who is curtailing even the display of goods for consumers to choose.
D.ROLE OF WHOLE SELLERS, DISTRIBUTORS AND RETAILERS
The whole-sellers and beer retailers also should show leadership and genuine service to consumers. They should not accept monetary incentives not to stock competitors’ products when they know by so doing they are annoying some of their consumers and also are helping to break the law.
E.THE ROLE OF COMPETITION IN A MARKET ECONOMY
The ultimate goal of effective competition in the market is to enhance efficiency at all levels of production and distribution of goods and services. It is through competition that prices, services and consumer choices can be assured. Also it is through competition that innovation in production, distribution and management is automatically generated. Therefore, any efforts which curtail competition pressure in a given economy affect sustainable development of that economy. Such efforts affect even the sustainability of Government revenues. In short the social welfare is highly compromised. Tanzanians need not go further to learn the effects of rampant monopolies in the economy because that is where we have just come from.
Business community should strive to serve the wider consumer interests and uphold to competition rules rather than inclining to serving the narrow interests of the competitors.
The choices of consumers strongly affect business behavior and their products. Consumers respond negatively to corporations involved in malpractice.
Godfrey E. Mkocha
DIRECTOR GENERAL
Saturday, 31st October, 2009
The FCC wishes to confirm the answers by the Honourable Prime Minister that the Government is aware of the wrangle and that the FCC, which is the appropriate institution for dealing with competition issues, is handling the problem.
A. THE WRANGLE BETWEEN TBL AND SBL IS AT THREE LEVELS:
1. TBL and East African Breweries (EABL)
In 2002 TBL and EABL agreed to divide up the beer market between Kenya and Tanzania so that they do not compete in their respective areas of dominance. This union was blessed by Government even though there was no merit except that of monopolizing their respective markets. As a result of that union, there ensued many negative effects: Kibo Breweries Limited closed down with employees in excess of 800 being made redundant in Moshi; TBL had about 96% of the Tanzania beer market and the consumer had to suffer several increases of beer prices.
Meanwhile, SBL, which had about 4% of the Tanzania beer market share, was increasing their production capacity. At the moment they have about 16% of the Tanzania beer market which is nearly the market share which Kibo Breweries Limited held before they were closed down.
2.SBL and EABL
EABL and SBL have been trying to enter into agreement which is similar to the TBL/EABL agreement. The attempted EABL and SBL has been the bone of contention between TBL and EABL. This dispute is being dealt with outside Tanzania.
3.TBL and SBL
SBL through their advocate filed a complaint against TBL with FCC in September 2009 accusing the latter for abuse of dominant position in the market. Upon receipt of the said Complaint, FCC immediately wrote to TBL attaching SBL’s Complaint and requesting them to respond to SBL’S allegations.
TBL through the services of their Advocates responded to the allegations.
The FCC is still investigating the facts of the case. However, this is a matter pending before the Commission and therefore, under the sub-judice rule, it will not be proper to comment on it as this will interfere with the judicial process.
Suffice is to state that once the case has been determined, FCC will give a statement of the facts and whosoever is aggrieved with the decision of the Commission will be at liberty to appeal to the Fair Competition Tribunal.
B. REMOVAL OF SBL ADVERTISEMENTS
There is another important issue, which FCC wishes to clarify as matter of urgency. This is about the removal of SBL advertisements or anybody’s advertisements for that matter.
The unlawful removal of advertisement in public place is a destruction of somebody’s property. This is an offence under the Penal Code Act (Cap 16 Re 2002).
Section 326(1) of Penal Code states as follows:- “any person who willfully and unlawfully destroys or damages any property is guilty of an offence, which, unless otherwise stated, is a misdemeanor, and he is liable, if no other punishment is provided, to imprisonment for seven years.”
This is a criminal offense which is penal and should not await the FCC determination of the competition issue. Therefore the unlawful removal of advertisement should be reported to the appropriate authorities and the necessary action taken immediately in order to maintain peace and order in society.
C.ROLE OF CONSUMER
Further, it is important to state here that the Tanzanian beer consumer has a role here. What is being fought here is their custom. Consumers have the right to choose and the obligation to make their views heard through their respective consumer associations/organisations and thereupon take up the challenge of defending their right to choose the beers of their preference in the marketplace.
Therefore it is upon them to decide who is serving their long term interests, the one who is allowing the last consumer to choose what to drink or the one who is curtailing even the display of goods for consumers to choose.
D.ROLE OF WHOLE SELLERS, DISTRIBUTORS AND RETAILERS
The whole-sellers and beer retailers also should show leadership and genuine service to consumers. They should not accept monetary incentives not to stock competitors’ products when they know by so doing they are annoying some of their consumers and also are helping to break the law.
E.THE ROLE OF COMPETITION IN A MARKET ECONOMY
The ultimate goal of effective competition in the market is to enhance efficiency at all levels of production and distribution of goods and services. It is through competition that prices, services and consumer choices can be assured. Also it is through competition that innovation in production, distribution and management is automatically generated. Therefore, any efforts which curtail competition pressure in a given economy affect sustainable development of that economy. Such efforts affect even the sustainability of Government revenues. In short the social welfare is highly compromised. Tanzanians need not go further to learn the effects of rampant monopolies in the economy because that is where we have just come from.
Business community should strive to serve the wider consumer interests and uphold to competition rules rather than inclining to serving the narrow interests of the competitors.
The choices of consumers strongly affect business behavior and their products. Consumers respond negatively to corporations involved in malpractice.
Godfrey E. Mkocha
DIRECTOR GENERAL
Saturday, 31st October, 2009
Wednesday, January 6, 2010
Thank you for being TCAS Supporter in year 2009
Dear Colleagues and Supporters,
On my behalf and on behalf of everybody at Tanzania Consumer Advocacy Society (TCAS. I would like to convey to you personally, a warm new year greetings and regards from our entire TCAS family.
We thank you very much for being TCAS’s supporter, as you stood by our side as we faced challenges and victories, battles and successes. Without your support we could not continue to fight and work for a good course in favor of Tanzania Consumers and world at large.
Thank you for making year 2009 a memorable one. We are looking forward to celebrate many more successes in 2010.
Holidays are over; business as usual in 2010. Let us all strive to compliment government's efforts on improving the situation of consumers all around Tanzania and the world at large.
Once again thank you very much
Best Regards
===================================
Bernard E. Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Affiliate Member of Consumers International
Red Star Building 2nd.Floor Kongo – Kariakoo
P.O. Box 76950,
Dar es Salaam, Tanzania
: +255-22 5507804
: +255 757 170 555; +255 715 170 555; +255 783 170 555
: consumeradvocacytz@yahoo.co.uk
http://tanzaniaconsumer.blogspot.com
We Promote, Disseminate, Advocate for Consumer’s rights
Drafted By Ally S. Goronya
====================================
On my behalf and on behalf of everybody at Tanzania Consumer Advocacy Society (TCAS. I would like to convey to you personally, a warm new year greetings and regards from our entire TCAS family.
We thank you very much for being TCAS’s supporter, as you stood by our side as we faced challenges and victories, battles and successes. Without your support we could not continue to fight and work for a good course in favor of Tanzania Consumers and world at large.
Thank you for making year 2009 a memorable one. We are looking forward to celebrate many more successes in 2010.
Holidays are over; business as usual in 2010. Let us all strive to compliment government's efforts on improving the situation of consumers all around Tanzania and the world at large.
Once again thank you very much
Best Regards
===================================
Bernard E. Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Affiliate Member of Consumers International
Red Star Building 2nd.Floor Kongo – Kariakoo
P.O. Box 76950,
Dar es Salaam, Tanzania
: +255-22 5507804
: +255 757 170 555; +255 715 170 555; +255 783 170 555
: consumeradvocacytz@yahoo.co.uk
http://tanzaniaconsumer.blogspot.com
We Promote, Disseminate, Advocate for Consumer’s rights
Drafted By Ally S. Goronya
====================================
Thursday, December 31, 2009
TZ private sector lauds US$ 1.5 billion stimulus
Written by MBONEA ISRAEL
Saturday, 12 December 2009
DAR ES SALAAM, TANZANIA - The private sector in Tanzania has applauded the seven trillion (about $1.5 billion) economic stimulus package that was put in place by President Jakaya Kikwete to support exporters of agriculture commodities.
The money was given by the government in order to mitigate the effects of the global financial crisis.
"The central bank (BoT) Governor and his committee are working on the assessment of the impact of the stimulus package, expect that by mid January next year the report will be published," Tanzania's Minister for Finance & Economic Affairs Mustafa Mkullo noted.
The financial year 2009/2010 package ending in June 2010 was given to commercial banks to bail out exporters.Banks were given the package to save them from losses caused by the fall in prices and the demand for agricultural commodities due to the global financial crisis.
The major effects of the crisis included the reduction in the number of tourist arrivals, falls in exports demand in the world markets, a fall in remittances, reduction in government revenue among others.
Information from the Bank of Tanzania indicates that the economy growth declined to between 2.4% and 5% this year from the 7.5% recorded last year.The Executive Director for Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, said the stimulus package has helped to strengthen the banking institutions which are lending to the productive sectors of the economy. The Director General for Small Industries Development Organization (SIDO), Mike Laizer, said that the package has been instrumental in reviving the financial and agriculture sectors.
"The package was a must for Tanzania's financial sector because without the backing up for the financial sector, the businesses in marketing and packaging of agricultural goods would have collapsed," Laizer said.
He called for a review of the taxation regime especially taxes applied to small producers, including the counterproductive six per cent training levy,"
Source; a href="http://www.busiweek.com/index.php?option=com_content&task=view&id=2847&Itemid=2">http://www.busiweek.com/index.php?option=com_content&task=view&id=2847&Itemid=2
Saturday, 12 December 2009
DAR ES SALAAM, TANZANIA - The private sector in Tanzania has applauded the seven trillion (about $1.5 billion) economic stimulus package that was put in place by President Jakaya Kikwete to support exporters of agriculture commodities.
The money was given by the government in order to mitigate the effects of the global financial crisis.
"The central bank (BoT) Governor and his committee are working on the assessment of the impact of the stimulus package, expect that by mid January next year the report will be published," Tanzania's Minister for Finance & Economic Affairs Mustafa Mkullo noted.
The financial year 2009/2010 package ending in June 2010 was given to commercial banks to bail out exporters.Banks were given the package to save them from losses caused by the fall in prices and the demand for agricultural commodities due to the global financial crisis.
The major effects of the crisis included the reduction in the number of tourist arrivals, falls in exports demand in the world markets, a fall in remittances, reduction in government revenue among others.
Information from the Bank of Tanzania indicates that the economy growth declined to between 2.4% and 5% this year from the 7.5% recorded last year.The Executive Director for Tanzania Consumer Advocacy Society (TCAS), Bernard Kihiyo, said the stimulus package has helped to strengthen the banking institutions which are lending to the productive sectors of the economy. The Director General for Small Industries Development Organization (SIDO), Mike Laizer, said that the package has been instrumental in reviving the financial and agriculture sectors.
"The package was a must for Tanzania's financial sector because without the backing up for the financial sector, the businesses in marketing and packaging of agricultural goods would have collapsed," Laizer said.
He called for a review of the taxation regime especially taxes applied to small producers, including the counterproductive six per cent training levy,"
Source; a href="http://www.busiweek.com/index.php?option=com_content&task=view&id=2847&Itemid=2">http://www.busiweek.com/index.php?option=com_content&task=view&id=2847&Itemid=2
Friday, December 11, 2009
Tanzania: financial reforms fail on consumer protection
Friday, 27 November 2009 11:51 Written by Administrator
By MNAKU MBANI
ALTHOUGH Tanzania has taken major efforts to reform the banking and financial institutions sector over the last two decades, the issue of consumer protection has remained virtually untouched by the 'reforms.
'This situation has led to increasing abuse of good business practices by many of the financial institutions and banks, as well as a singular lack of fairness and transparency in dealing with customers."The providers of financial services in Tanzania need to understand that, as long as they continue to gain unfairly from their customers.... they are nonetheless sowing the seeds of their own destruction...," said Daimon Mwakyembe, chairman of the Tanzania Consumer Advocacy Society (TCAS).
Presenting a paper recently on 'The Quality of Financial Services: a Critique From Consumers' Perspective,' Mwakyembe cited as an example of bad practice the banks and financial institutions which “have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as 'unbankable.'”The occasion was a forum organized by the Government Controller & Auditor-General (CAG) in the nation's commercial capital, Dar es Salaam.
TCAS is a private, voluntary nongovernmental, non-partisan and nonprofit making organization that was registered as a company limited by guarantee in July 2007 under the Companies Act of 2002 (Chapter 212 of the Laws of Tanzania). The Society’s mission is to provide an advocacy platform that would make consumers' voices heard, raise consumers' awareness of their rights, build consumers' ability to claim their rights, as well as make markets accountable and more responsive to consumers' needs and interests.
Observers say most of the banks and financial institutions operating in Tanzania siphon billions of shillings off their customers as a matter of course. This is partly becauseof the latter's ignorance of their rights and dues, and partly because the reforms and extant legislation are silent on the matter.
Mwakyembe – who is a former director-general of the Tanzania Bureau of Standards (TBS) – said despite the reforms, fairness and transparency in the treatment of customers is not always ensured... And lack of capability on the part of customers is still being exploited negatively.As a result, there is no mechanisms on how to curb abusive business practices by financial institutions at the national and international levels, and which adversely affect consumers.
Mwakyembe suggested that the (central) Bank of Tanzania and other relevant authorities need to urgently review the extant financial regulatory policies and legislation. The main objective this time should be to ensure that they – among things – reflect a wide view of consumer protection on ensuring proper business conduct.
It is noted that the Bank of Tanzania, which has the mandate to supervise the banking and financial industry as a whole, has no straightforward consumer protection guidelines.He said this situation will not favour the survival of financial institutions in the long run."Good quality service is a product of right consumer protection and is, thus, the new paradigm that is defining – and, indeed, influencing – the entire economic sector and economic relations," he said.
The International Monetary Fund's review of regulatory systems in 2004 did (among other things) advise on “stipulation and clear identification of common regulatory themes for consumer rights promotion and protection,” Mwakyembe noted.
"Despite efforts in addressing the competitiveness of the financial sector, consumer abuse and rights violation are on the rise, and are directly affecting the economic welfare of many consumers," he stressed.
Noting that ''the main part of poor services in Tanzania's financial market is contributed to mainly by lack of consumers' awareness on their rights when making choices'', Mwakyembe stressed that "inadequate consumer awareness on their rights and obligations is the main stumbling block for realization of good services..."Yet, if there is one area that the financial sector could use to address its economic malaise and ensure its sustainable future, it is through the provision of financial education to consumers.
This would be in line with the implementation of the United Nations Consumer Protection Guidelines of 1999 which encourage Governments and institutions to work out clear, fair, guidelines that protect the interest of consumers.A research conducted in 2007 by the Finscope Group showed that, in order to strengthen financial institutions in any country (including Tanzania), there is a need to promote financial capability to consumers.
This includes empowering people to be capable of managing their financial assets and liabilities, to understand their rights and responsibilities vis-a-vis financial institutions.Mwakyembe: "in my view, financial education to consumers should focus on building financial discipline, managing their incomes, boosting their saving behaviour and the promotion of risk mitigation," he concluded.
In another development, auditor-general of Sweden, Eva Lindstrom, commended the National Audit Office of Tanzania for taking the initiative to organise the forum which, she said, was relevant and timely. In these times of financial crisis, Lindstrom said, “Supreme Audit Institutions in many countries are challenged to properly address the audit of financial supervisory agencies that are aiming at consumer protection and mitigating the risks that large sums of taxpayers' money will have to be used for the rescue of the financial system.”
Noting that the events of the past year have highlighted the significance of financial supervision, she said that financial markets and their institutions must operate in a highly competitive environment – and there will always be efforts made to circumvent the regulations. A strong, independently-organized financial supervisory authority is, therefore, of the highest importance for the stability of the economy and taxpayers.”
The global financial crisis also pointed to the importance of supervision of not only separate financial institutions, but also of the entire financial system. Moreover, the Swede said, new regulations on financial markets will need to be introduced in the years to come, globally. Supervision of cross-border banks will have to be improved – which will most certainly mean more cooperation between financial supervisory agencies in different countries.
Lindstrom observed that central banks failed to foresee the effects of the deterioration of markets that led to liquidity problems. To that effect, monetary policies need to take into account financial stability... And it is within the mandate of central bank to monitor and handle monetary conditions.“The Supreme Audit Institutions have an important role to play in monitoring the operations of the financial supervisory agencies.
Those agencies make up a vital part of the financial infrastructure, and when that infrastructure fails, the costs of that failure are most often transferred to the taxpayers,” she elaborated. Thus we, as auditors, must make sure that we have the knowledge and competence required to audit these agencies. According to her, auditing will create confidence in the system, an asset which is vital in promoting effective financial markets and stable economic growth.
Source; www.businesstimes.co.tz/index.php?...tanzania...consumer
By MNAKU MBANI
ALTHOUGH Tanzania has taken major efforts to reform the banking and financial institutions sector over the last two decades, the issue of consumer protection has remained virtually untouched by the 'reforms.
'This situation has led to increasing abuse of good business practices by many of the financial institutions and banks, as well as a singular lack of fairness and transparency in dealing with customers."The providers of financial services in Tanzania need to understand that, as long as they continue to gain unfairly from their customers.... they are nonetheless sowing the seeds of their own destruction...," said Daimon Mwakyembe, chairman of the Tanzania Consumer Advocacy Society (TCAS).
Presenting a paper recently on 'The Quality of Financial Services: a Critique From Consumers' Perspective,' Mwakyembe cited as an example of bad practice the banks and financial institutions which “have continued to overcharge consumers in terms of fees, interest rates and commissions – while others reject low income consumers out of hand as 'unbankable.'”The occasion was a forum organized by the Government Controller & Auditor-General (CAG) in the nation's commercial capital, Dar es Salaam.
TCAS is a private, voluntary nongovernmental, non-partisan and nonprofit making organization that was registered as a company limited by guarantee in July 2007 under the Companies Act of 2002 (Chapter 212 of the Laws of Tanzania). The Society’s mission is to provide an advocacy platform that would make consumers' voices heard, raise consumers' awareness of their rights, build consumers' ability to claim their rights, as well as make markets accountable and more responsive to consumers' needs and interests.
Observers say most of the banks and financial institutions operating in Tanzania siphon billions of shillings off their customers as a matter of course. This is partly becauseof the latter's ignorance of their rights and dues, and partly because the reforms and extant legislation are silent on the matter.
Mwakyembe – who is a former director-general of the Tanzania Bureau of Standards (TBS) – said despite the reforms, fairness and transparency in the treatment of customers is not always ensured... And lack of capability on the part of customers is still being exploited negatively.As a result, there is no mechanisms on how to curb abusive business practices by financial institutions at the national and international levels, and which adversely affect consumers.
Mwakyembe suggested that the (central) Bank of Tanzania and other relevant authorities need to urgently review the extant financial regulatory policies and legislation. The main objective this time should be to ensure that they – among things – reflect a wide view of consumer protection on ensuring proper business conduct.
It is noted that the Bank of Tanzania, which has the mandate to supervise the banking and financial industry as a whole, has no straightforward consumer protection guidelines.He said this situation will not favour the survival of financial institutions in the long run."Good quality service is a product of right consumer protection and is, thus, the new paradigm that is defining – and, indeed, influencing – the entire economic sector and economic relations," he said.
The International Monetary Fund's review of regulatory systems in 2004 did (among other things) advise on “stipulation and clear identification of common regulatory themes for consumer rights promotion and protection,” Mwakyembe noted.
"Despite efforts in addressing the competitiveness of the financial sector, consumer abuse and rights violation are on the rise, and are directly affecting the economic welfare of many consumers," he stressed.
Noting that ''the main part of poor services in Tanzania's financial market is contributed to mainly by lack of consumers' awareness on their rights when making choices'', Mwakyembe stressed that "inadequate consumer awareness on their rights and obligations is the main stumbling block for realization of good services..."Yet, if there is one area that the financial sector could use to address its economic malaise and ensure its sustainable future, it is through the provision of financial education to consumers.
This would be in line with the implementation of the United Nations Consumer Protection Guidelines of 1999 which encourage Governments and institutions to work out clear, fair, guidelines that protect the interest of consumers.A research conducted in 2007 by the Finscope Group showed that, in order to strengthen financial institutions in any country (including Tanzania), there is a need to promote financial capability to consumers.
This includes empowering people to be capable of managing their financial assets and liabilities, to understand their rights and responsibilities vis-a-vis financial institutions.Mwakyembe: "in my view, financial education to consumers should focus on building financial discipline, managing their incomes, boosting their saving behaviour and the promotion of risk mitigation," he concluded.
In another development, auditor-general of Sweden, Eva Lindstrom, commended the National Audit Office of Tanzania for taking the initiative to organise the forum which, she said, was relevant and timely. In these times of financial crisis, Lindstrom said, “Supreme Audit Institutions in many countries are challenged to properly address the audit of financial supervisory agencies that are aiming at consumer protection and mitigating the risks that large sums of taxpayers' money will have to be used for the rescue of the financial system.”
Noting that the events of the past year have highlighted the significance of financial supervision, she said that financial markets and their institutions must operate in a highly competitive environment – and there will always be efforts made to circumvent the regulations. A strong, independently-organized financial supervisory authority is, therefore, of the highest importance for the stability of the economy and taxpayers.”
The global financial crisis also pointed to the importance of supervision of not only separate financial institutions, but also of the entire financial system. Moreover, the Swede said, new regulations on financial markets will need to be introduced in the years to come, globally. Supervision of cross-border banks will have to be improved – which will most certainly mean more cooperation between financial supervisory agencies in different countries.
Lindstrom observed that central banks failed to foresee the effects of the deterioration of markets that led to liquidity problems. To that effect, monetary policies need to take into account financial stability... And it is within the mandate of central bank to monitor and handle monetary conditions.“The Supreme Audit Institutions have an important role to play in monitoring the operations of the financial supervisory agencies.
Those agencies make up a vital part of the financial infrastructure, and when that infrastructure fails, the costs of that failure are most often transferred to the taxpayers,” she elaborated. Thus we, as auditors, must make sure that we have the knowledge and competence required to audit these agencies. According to her, auditing will create confidence in the system, an asset which is vital in promoting effective financial markets and stable economic growth.
Source; www.businesstimes.co.tz/index.php?...tanzania...consumer
Beer market: players urged to uphold spirit of competition
Thursday, 01 October 2009 16:23 Written by Administrator
TIMES REPORTER
The beer market war going on in the country is most likely not to have any negative impact on revenue collection, Tanzania Revenue Authority (TRA) has said.
The beer market war that have been prompted by the East African Breweries Limited's (EABL) interest to buy major stake in Serengeti Breweries (SBL) and in doing so to quit its partnership with Tanzania Breweries (TBL) will not affect the inflows of the government revenue.
According to Tanzania Revenue Authority (TRA) commissioner-general, Harry Kitillya, “as long as the volume of beer consumption in Tanzania does not decrease, the country's economy will not be adversely affected in terms of revenues.”
Kitillya stressed that the Revenue Authority is looking for growth in beer consumption regardless of who teams up with who in the industry. Growth in consumption will consequently increase production and sales thereby enabling TRA to collect more revenue.
Daimon Mwakyembe, a former director-general of the Tanzania Bureau of Standards (TBS), is of the opinion that application of the rules of competition in respect of anti-competitive cross-border business conduct should be looked into.
Mwakyembe, who is also the chairman of the Tanzania Consumer Advocacy Society (TCAS), said while consumer groups need to support and encourage action to raise public awareness of competition issues, the proactive contribution which consumers can make through their shopping choices and their rights if they are the victims of restrictive practices.
Furthermore, he said that there are two things one needs to take note in analyzing the merger between SBL and EABL; one is the fallout between EABL and TBL with their contractual obligation; the second thing is the market impact on the merger between EABL and SBL.
“When it comes to the pros and cons of the merger between SBL and EABL,” Mwakyembe stressed, “Tanzanians have all the rights to share their feelings on the issue as at the end of the day consumers are the ones going to benefit or suffer based on decisions going to be made.”
Speaking in a different vein, the TCAS chief, Bernard Kihiyo, told this paper that, in a free market economy, competition with other players in the market is not an option; what matters is fairness of the competition – no matter how big or small the player is.
Kihiyo – who is also the CEO for Parasol Real Estate Agent & Developer Ltd – that countries which are in the East African Community (EAC) should establish a sub-regional competition tribunal that would enforce harmonized competition legislation.
Kihiyo nonetheless says “consumers are aware of TBL’s strong dominance in the beer market in Tanzania, which is believed to be more than 60 per cent. Any merger now would further reduce competition in the industry – and increase beer prices.”
In any case, observers are of the general view that beer prices in Tanzania “are no longer determined by market forces – but at the whim of company accountants. prices have increased threefold since the wars started,” Kihiyo elaborated.
Source; http://www.businesstimes.co.tz/index.php?option=com_content&view=article&id=530:beer-market-players-urged-to-uphold-spirit-of-competition&catid=34:national-business-news&Itemid=62
TIMES REPORTER
The beer market war going on in the country is most likely not to have any negative impact on revenue collection, Tanzania Revenue Authority (TRA) has said.
The beer market war that have been prompted by the East African Breweries Limited's (EABL) interest to buy major stake in Serengeti Breweries (SBL) and in doing so to quit its partnership with Tanzania Breweries (TBL) will not affect the inflows of the government revenue.
According to Tanzania Revenue Authority (TRA) commissioner-general, Harry Kitillya, “as long as the volume of beer consumption in Tanzania does not decrease, the country's economy will not be adversely affected in terms of revenues.”
Kitillya stressed that the Revenue Authority is looking for growth in beer consumption regardless of who teams up with who in the industry. Growth in consumption will consequently increase production and sales thereby enabling TRA to collect more revenue.
Daimon Mwakyembe, a former director-general of the Tanzania Bureau of Standards (TBS), is of the opinion that application of the rules of competition in respect of anti-competitive cross-border business conduct should be looked into.
Mwakyembe, who is also the chairman of the Tanzania Consumer Advocacy Society (TCAS), said while consumer groups need to support and encourage action to raise public awareness of competition issues, the proactive contribution which consumers can make through their shopping choices and their rights if they are the victims of restrictive practices.
Furthermore, he said that there are two things one needs to take note in analyzing the merger between SBL and EABL; one is the fallout between EABL and TBL with their contractual obligation; the second thing is the market impact on the merger between EABL and SBL.
“When it comes to the pros and cons of the merger between SBL and EABL,” Mwakyembe stressed, “Tanzanians have all the rights to share their feelings on the issue as at the end of the day consumers are the ones going to benefit or suffer based on decisions going to be made.”
Speaking in a different vein, the TCAS chief, Bernard Kihiyo, told this paper that, in a free market economy, competition with other players in the market is not an option; what matters is fairness of the competition – no matter how big or small the player is.
Kihiyo – who is also the CEO for Parasol Real Estate Agent & Developer Ltd – that countries which are in the East African Community (EAC) should establish a sub-regional competition tribunal that would enforce harmonized competition legislation.
Kihiyo nonetheless says “consumers are aware of TBL’s strong dominance in the beer market in Tanzania, which is believed to be more than 60 per cent. Any merger now would further reduce competition in the industry – and increase beer prices.”
In any case, observers are of the general view that beer prices in Tanzania “are no longer determined by market forces – but at the whim of company accountants. prices have increased threefold since the wars started,” Kihiyo elaborated.
Source; http://www.businesstimes.co.tz/index.php?option=com_content&view=article&id=530:beer-market-players-urged-to-uphold-spirit-of-competition&catid=34:national-business-news&Itemid=62
Friday, September 25, 2009
Consumer Education
The Guardian of 24th.Sept.2009
It has been noted that lack of consumer education from the lower levels of learning institutions has meant that few Tanzanians are conversant with it, hence the government has been advised to incorporate it in the basic school curriculum.
Speaking in Dar es Salaam this week, Seif Hamis Simba, a programme officer with the Tanzania Consumer Advocacy Society (TCAS), said consumer education is often not clearly and easily understood as it means different things from person to person.
He said, both children and adults should grow into becoming well-informed and critical consumers of products, commercial services, and public service. According to Simba, the process entails not so much the provision of consumer information regarding products, services, the environment and other considerations but rather the continuous cultivation and development of living skills.
He expands on this that the skills would include such cognitive powers as critical and conceptual thinking, knowledge and understanding the impact of individual, business and government decisions on consumers. “Consumer Education involves the development of abilities to make decisions in the purchase of goods and services in the light of personal values, maximum utilization of resources, available alternatives, and ecological considerations,” he said.
He said consumer education at school level is essential to provide the skills and knowledge to empower consumers and enable them use their resources effectively and increase their awareness of their wider role in society.
According to him, consumer education addresses not only the problems of consumers individually but also of sustainable consumption, social justice, human rights, ethical values and overcoming poverty. Consumer education contributes towards the formation of a participative, critical and competent citizenship.
He said specifically, consumer education enables individuals to develop the ability to possess a critical, consumer-reasoned appraisal. Reasoned appraisal could include the overall implications, both to the individual and society, of consuming that particular product or service.
“Through consumer education, consumers are equipped with knowledge, skills and understanding of the market. Consumer education enables consumers to judge and make competent decisions about their financial transactions”, he said.
It also stimulates the nation’s social and economic development. Consumers, who exercise free choice based on knowledge of the facts will be able to make the best use of resources within their sphere of influence.
In his comments, consumer advocate Bernard Kihiyo said that there are four aspects of consumer education. The first aspect is informed choice where consumers must learn to obtain information about goods and services.
Also to distinguish between different sources of information, understand the psychology of selling and advertising, learn to shop wisely, distinguish between needs and wants, understand the alternatives of conserving and saving rather than buying and consuming.
It has been noted that lack of consumer education from the lower levels of learning institutions has meant that few Tanzanians are conversant with it, hence the government has been advised to incorporate it in the basic school curriculum.
Speaking in Dar es Salaam this week, Seif Hamis Simba, a programme officer with the Tanzania Consumer Advocacy Society (TCAS), said consumer education is often not clearly and easily understood as it means different things from person to person.
He said, both children and adults should grow into becoming well-informed and critical consumers of products, commercial services, and public service. According to Simba, the process entails not so much the provision of consumer information regarding products, services, the environment and other considerations but rather the continuous cultivation and development of living skills.
He expands on this that the skills would include such cognitive powers as critical and conceptual thinking, knowledge and understanding the impact of individual, business and government decisions on consumers. “Consumer Education involves the development of abilities to make decisions in the purchase of goods and services in the light of personal values, maximum utilization of resources, available alternatives, and ecological considerations,” he said.
He said consumer education at school level is essential to provide the skills and knowledge to empower consumers and enable them use their resources effectively and increase their awareness of their wider role in society.
According to him, consumer education addresses not only the problems of consumers individually but also of sustainable consumption, social justice, human rights, ethical values and overcoming poverty. Consumer education contributes towards the formation of a participative, critical and competent citizenship.
He said specifically, consumer education enables individuals to develop the ability to possess a critical, consumer-reasoned appraisal. Reasoned appraisal could include the overall implications, both to the individual and society, of consuming that particular product or service.
“Through consumer education, consumers are equipped with knowledge, skills and understanding of the market. Consumer education enables consumers to judge and make competent decisions about their financial transactions”, he said.
It also stimulates the nation’s social and economic development. Consumers, who exercise free choice based on knowledge of the facts will be able to make the best use of resources within their sphere of influence.
In his comments, consumer advocate Bernard Kihiyo said that there are four aspects of consumer education. The first aspect is informed choice where consumers must learn to obtain information about goods and services.
Also to distinguish between different sources of information, understand the psychology of selling and advertising, learn to shop wisely, distinguish between needs and wants, understand the alternatives of conserving and saving rather than buying and consuming.
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