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Sumbawanga, CCM ink 25 years rental deal

Sumbawanga, CCM ink 25 years rental deal

COUNCILORS in Sumbawanga Municipal Council (SMC), Rukwa Region have endorsed a 25 years - draft of rental contract which will be signed between the municipal council and CCM.

The signing of the draft contract will be a sign at an agreed date between the two parties of which the SMC will rent the area on which the  Nelson Mandela Market is located in Mazwi Ward here in municipality.

The signing of the rental contract will end years of land dispute of which SMC claimed that Nelson Mandela Market was its legal property.

But recently CCM in Rukwa Region has legally acquired the legal ownership of the plot 107 A on which the market was built by SMC.

The market was reduced to ashes on December 26, 2016 whose rehabilitation stalled since then due to land dispute over the ownership pitted between the duo parties.

The available statistics show that over 1000 traders suffered the loss of the fire accident occurred at the market six years ago.

That initially the major rehabilitation of the destroyed market was estimated by SMC to cover 2.3bn/ -.

During the recent municipal council full councilors Baraza held here in municipality the SMC legal officer, Mr James Mwakinya told the gathering that in respect of the rental contract SMC is recognised and a tenant while the legal owner is CCM.

"As per contract the tenant will pocket 75 per cent of the revenue collection while CCM as land lord will receive 25 per cent.

"The two parties must honor the rental contract which will be signed in near future of which the tenant will be responsible for paying water and electricity bills as well as withholding tax.

“Also the tenant will per contract pay property tax as well," he expounded.

In connection to that all councilors endorsed the draft of rental contract which will in near future sign by two parties.

SMC Director Mr Jacob Mtalitinya said the municipal council being a tenant will receive 75 per cent of the revenue collected from the market as part of its own source collection.


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