agreed upon regarding the division of marketing and distribution
functions between the National Development Corporation firms
and S.T.C. In spite of that, there were continuous conflicts
resulting, variously, in shortages and overstocking, and local
production and importation of the same items. Steel was imported
and stockpiled, although identical items were available from the
Steel Rolling Mill, operating under condition of excess capacity.
N.D.C. firms, which were supposed to receive immediate
clearance for import requirements, had to pass through the tangle
of S.T.C. paperwork for permission to import, only to find that
they were often denied licenses and told to buy from S.T.C. On
one occasion orders for ten years supply of iron roofing were
placed for the S.T.C. branch in Mbeya, although it had been
specifically agreed by Government, S.T.C. and the local producer
that S.T.C. management approved the order even after it was
questioned three times!

There was often an unwillingness to admit mistakes and take
corrective action. Thus, although wines were ordered in quantities
constituting three to five years sales, the man responsible was not
relieved of his duties nor were attempts made to sell the excesses
at losses until they were no longer suitable for public con-
sumption. The first computer rented was totally unsuitable to the
needs of S.T.C. but, although the ranking people in the computer
division thought that any computer operation was unsuitable for
S.T.C. at that time, management imported, at great cost, a still
larger computer. And, although the Corporation was in dire finan-
cial straights, management continued to press for approval and
funds to construct a Shs. 30 million office complex. Management
felt under continuous pressure to prevent shortages. Its reactions,
however, were to inform product managers that shortages were to
be avoided, rather than planning purchases based upon detailed
analysis. The reactions of management throughout S.T.C.'s
history were to take more and more decisions into their own
hands as troubles grew and there was an across-the-board failure
to take problems to any of the governmental bodies for assistance.

External policy also created difficulties for S.T.C. Like other
parastatals, S.T.C. came under the auspices of a parent Ministry.
Along with the Mini trv of Commerce and Industries, whose
responsibility was to oversee the implementation of Government
policies and to identify Corporation problems, S.T.C. had a Board

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