Arusha MP exposes alleged misuse of billions in City project

Dodoma. Arusha Urban MP Mrisho Gambo has raised alarm over alleged misuse of public funds in a high-profile development project in Arusha, calling for urgent government intervention and accountability.

Speaking in Parliament on Wednesday, April 16, 2025, during discussions on the 2025/26 budget estimates for the President’s Office – Regional Administration and Local Government (PO-RALG), Gambo alleged that a multi-billion-shilling building project in Arusha City is riddled with irregularities and inflated costs.

“I believe if you're hypocritical when you're young, you'll be wicked in old age — and wickedness is not a virtue,” said Gambo, who previously served as Arusha Regional Commissioner.

He specifically cited an eight-storey administrative building under construction in the city, reportedly costing over Sh9 billion, and questioned the rationale behind the inflated expenditure.

“How can one floor cost over Sh1 billion? That doesn’t make sense if you're thinking rationally,” he said, calling on the Minister to dispatch a team to inspect the site.

Gambo claimed that a contract worth Sh6.2 billion had been signed for the project, but the Bill of Quantities (BOQ) listed only 1,821 square meters, while the contractor quoted 11,828 square meters, leading to what he alleged was a cost inflation of Sh252 billion.

“The actual cost should have been Sh3.4 billion. Instead, taxpayers are footing a bill that is Sh8 billion more. Meanwhile, our residents struggle with poor inner-city roads,” he added.

Gambo lamented what he described as a culture of “cheerleading” corruption rather than providing oversight.

“The President is travelling the world securing funds for development, only for a few individuals to misuse them. I may be called a troublemaker, but I was elected to protect the interests of the people — especially the vulnerable,” he said.

He added that the Public Procurement Regulatory Authority (PPRA) and the Controller and Auditor General (CAG) had already investigated and found irregularities, but no one has been held accountable.

“It’s all theatrics — perhaps someone gets a short suspension, but no real consequences follow,” he said.

Gambo also criticized what he called misguided priorities in city development planning.

He questioned the decision to allocate Sh1.6 billion to demolish a profitable bus terminal that generates Sh800 million in monthly revenue for the Arusha City Council.

“Instead of improving roads and bridges, they want to demolish the terminal just to build something new — not for public interest, but to grab commercial space for themselves,” he said.

He also rejected a proposal to build a Sh3 billion-plus city hall, calling it a vanity project driven by personal enrichment, not public need.

“We need more deliberate planning in cities like Arusha and Mbeya — not decisions made out of habit or hidden agendas,” he said.

Following the MP’s remarks, Speaker of Parliament Dr Tulia Ackson said the allegations were too serious to be treated as a routine contribution and directed immediate action.

“We’ll give the responsible minister time to respond to the matter. Once that happens, Parliament will determine the appropriate steps,” she said.

In response, the Minister of State in the President’s Office-Regional Administration and Local Government (PO-RALG), Mr Mohammed Mchengerwa, distanced his ministry from the decision-making process, saying such development plans are often initiated by city councils and finance committees.

“These decisions come through council meetings — they are not solely PO-RALG's. But I have taken note, and we will follow up closely on the matter raised by the honorable MP,” she said.

Mchengerwa assured the House that a preliminary report on the Arusha building project would be presented during the final budget wrap-up session.