Where is Sh755bn? Tanzania's bunge committee questions

Dodoma. Parliament’s Budget Committee has questioned the whereabouts of some Sh755.29 billion the government has collected, but failed to remit for major water, electricity, railway and road projects. The figure includes a whopping Sh273.89 billion that has been collected as railway development levy, but from which not a single cent has been remitted for the stated purpose.

Another Sh261.28 billion of the sum is what the Cashew Board of Tanzania is claiming from the government in export levy meant to be used to develop the crop.

The committee demanded that the government explain to Parliament why the ring-fenced funds in special kitties were not being accounted for despite the law protecting their use.

The law bars the depositing of these monies in the consolidated kitty by expressly providing for their use. It would therefore be illegal for any diversion of the funds to unauthorised use.

The non-disbursement of the funds – meant for development projects, including building roads and railways as well as rural electrification and water projects, among others – was raised in Parliament on Monday by committee chairperson Hawa Ghasia.

She said an audit conducted by the Budget Committee established that not all of the money – collected by the government, and part of which was supposed to be deposited in the Road Fund and Rural Electrification Fund – was remitted as required. Part of the funds were collected as railway development levy, while some was meant for rural water development. The funds are mostly fuel taxes and utility fees levied directly on consumers, and are required to be deposited in special fund kitties for the relevant sectors. During the 2017/18 financial year, Parliament endorsed Sh917.548 billion for the Road Fund.

Another Sh499 billion was approved for the Rural Electrification Fund, while Sh504.995 billion was approved as total collections from the railway development levy.

Parliament last year approved a total of Sh129.56 billion for water projects.

But commenting on the government’s Sh32.5 trillion Budget for 2018/19, Ms Ghasia said until April 2018, a total of Sh628.637 billion had been collected by the government on behalf of the Road Fund. “Of the money, however, only Sh604.489 billion had been remitted to the Road Fund…Sh24.148 billion had not yet been remitted. The committee wants this House to be told of the collections for May and June so that the money can be remitted accordingly,” she said.

As for the railway development levy, said Ms Ghasia, a total of Sh273.899 billion had been collected by April.

However, not even a single cent had ben remitted to the Railways Development Levy until April 2018.

This is despite the fact that various contractors who undertook feasibility studies for the Dar es Salaam-Tanga-Arusha; Arusha-Musoma; Tabora-Kaliua-Mpanda, as well as Tabora-Uvinza-Kigoma railway lines had not yet been paid for service rendered.

The government owed the contractors Sh21.99 billion, the committee said.