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Letter Writting Essay

1600 words - 7 pages


1.0 Historical background of Local Government Loans Board in Tanzania

1.1 Introduction
The Local Government Loans Board (LGLB) is the local government credit institution in Tanzania affiliated with the Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG). Historically, the LGLB was originally established way back in 1953 when the Local Councils Board as it was then known, was established by the British Colonial Government under Cap 333 of the Local Government Ordinance and has gone through various transformations ...view middle of the document...

|1995- 1998 |Office of the Prime Minister. |
|1999- 2000 |Ministry of Regional Administration and Local Government (MRALG). |
|2001- 2004 |President’s Office, Regional Administration and Local Government (PO-RALG). |
|2005/to date |Prime Minister’s Office, Regional Administration and Local Government (PMO-RALG) |

Source: LGLB (2013)

1.2 Objectives of the Board
The main objective of the Board is to provide cheap term loan capital finance to Local Government Authorities for investiment purposes in various economic activities with the ultimate aim of stimulating economic development in their areas of jurisdiction. In addition, the Board provides advisory services on various investment activities undertaken by Local Government Authorities.

1.3 Functions of the Local Government Loans Board
Section 60 (1) of the Local Government Finances Act No 9 of 1982 acquires the LGLB to perform the following functions;
i) To receive, administer and invest the funds of the Board;
ii) To lend, out of the funds of the Board, funds to Local Authorities for the provision of development works and services;
iii) To provide financial assistance to Local Authorities whether by way of grants, furnishing of guarantees or in any other way and
iv) To provide and operate services on behalf or for the benefit of Local authorities.

1.4 Funding Modalities of the Board
Section 62 of the Act stipulates the funding modalities to enable the LGLB to perform its mandatory functions. The sources of revenue include;
i) Contributions from Local authorities,
ii) Grants from Central Government,
iii) Income from Investment and
iv) Grants and/or donations from any person or body persons.

2.0 Vision and Mission of the Organisation
2.1 Vision Statement

To be a leading viable and sustainable Loan Capital Provider to all Local Government Authorities (LGAs) and to the grass root level of Local Government Authorities in the country.

2.2 Mission Statement
To continually provide high quality loan management services for sustainable and equitable Social and Economic Development Projects to Local Government Authorities in particular and the rest of Tanzania.

3.0 Organization (Local government loan board) Structure and Management
3.1 The Local Government Loans Board has a simple organisation structure consisting of ten (10) Board Members at the apex, appointed by the Minister responsible for Local Government. The maximum term of their tenure of office is three (3) years. The Board has a Secretary who is the Chief Executive Officer (CEO) and head of management team. He is directly under the Permanent Secretary. Its staff, are all civil servants and the Board pays only their duty allowances. The members of staff of...

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