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The government through the Treasury Registrar's Office is continuing to pay the salaries of Musoma Textile Mills Limited Mutex employees for the financial year 2019/20, after the review is completed in June 2019.
This was stated in Parliament in Dodoma by the Deputy Minister of Finance and Planning, Hon. Dr.Ashatu Judge (Mb) was responding to the Special Constituency MP's question, Hon. Joyce Sokombi, who wanted to know the difference in payments to former employees of Mutex Factory after it closed in 1984.
Dr. The judge noted that, the Government closely monitors all complaints relating to the payment rate variations recently made against the approved standard at a joint session between the Factory Client, stakeholders and the Government to determine whether they are valid.
"After the Government received a request for payment from these employees in 2018, the Treasury Registrar's Office conducted a review of these employees to satisfy themselves and ultimately make payments", explained Dr Judge.
He said that initially a total of 219 employees had appeared with 14 estate managers and had been paid a total of Shs. 44.5 million, also the Treasury Registrar's Office conducted a re-evaluation exercise in June, 2019 for employees who did not appear in preliminary assessments where a total of 115 employees appeared as well as 22 asset managers who are generally eligible to be paid approximately Shs. 20.7 million.
Dr. The judge said that the government halted production at the Mutex Cloth factory in 1994 after facing a challenge of capital shortage and a sharp increase in debt from the former National Bank of Commerce (NBC)
He added that the Mutex Factory was bankrupt and finally sold in March, 1998 to LALAGO Cotton Ginnery and Oil Mills Company, and then the Creditors, Government and Client approved the offer to pay Shs. 161.3 million for the 935 employees who were present at the factory after the session held on September 23, 2005.
He said that after the insolvency exercise was completed, only 512 workers had come to claim their benefits and 423 workers had refused to receive their benefits on the basis that family fares and freight costs were low.
The 423 workers filed a lawsuit in the Tanzanian Labor Court and then the Court awarded the award on June 10, 2008 in which it dismissed the case and ordered the claimants to go to the bankruptcy to claim their benefits.
The creditors also filed another appeal petition where in February, 2010 the Court again ordered the claimants who refused to take their benefits to the Beneficiary as approved in the stakeholder session.

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