DAR ES SALAAM, Oct. 23 (Xinhua) -- Tanzanian President John Magufuli on Monday appointed Florens Luoga, a tax law professor, as the country's new central bank governor.
Luoga will replace the Bank of Tanzania (BOT) Governor Benno Ndulu after his retirement in January, said Magufuli shortly after he awarded certificates of recognition to members of two presidential committees that investigated allegations of tax evasion in exports of gold and copper concentrates.
Luoga, also chairman of the Tanzania Revenue Authority (TRA) Board of Directors, was among members of the high-level committees that investigated the country's mining industry that came up with damning reports showing how mining companies evaded taxes.
The president said people expected him to appoint an economist to head the central bank but he opted for one who will help the country to control tax evasion.
President Magufuli and Minister for Finance and Planning Philip Mpango have been aggressively pushing for the central bank to rebuild reserves for precious minerals.
"BOT should come up with a special arrangement to start establishing mineral reserves, as it is done in other parts of the world instead of dealing with cash reserves only," Mpango said recently during his prompt visit to the Julius Nyerere International Airport (JNIA) in Dar es Salaam where he received reports on smuggled diamond that was seized at the airport.
BOT halted its previous gold purchases after the 2009 collapse of a Dar es Salaam-based gold refinery, Mwananchi Gold Company Limited (MGCL), which was set up as a joint venture between the central bank and some private investors.
In November last year, Mpango told the National Assembly that the government, through BOT, was exploring the possibility of using tanzanite, instead of bullion, for currency reserves.
About a fortnight ago, Magufuli appointed Angellah Kairuki as the new minister for minerals, replacing Sospeter Muhongo who was sacked in March after he was implicated in the copper concentrates saga report.
The report submitted to the president revealed possible undeclared exports by mining companies to evade tax.
Mining accounts for about 4 percent of the East African nation's gross domestic product.
