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CAG exposes major lapses in Tanzania’s infrastructure sector
What you need to know:
- A recent audit has highlighted significant financial and operational shortcomings within Tanzanian road projects that include substantial losses from terminated contracts due to fraudulent activity, increased project costs stemming from funding delays, and a heightened risk of road damage caused by failures in weighbridge operations
Dodoma. The Controller and Auditor General (CAG) has uncovered significant weaknesses in Tanzania's infrastructure sector, including financial mismanagement, project delays, inadequate supervision, and regulatory gaps that risk public safety and cost taxpayers billions of shillings.
The findings are part of the Annual general report on the audit of the central government for the financial year 2023/2024, focusing on key government agencies under the ministry of Works, including Tanroads, TBA, and Temesa
The audit highlights a major loss risk in the Ibanda-Kiwira Port trunk road project. A Sh38.36 billion contract awarded in December 2022 was terminated in May 2024 after the contractor was found to have submitted forged documents, including a fake power of attorney and board resolution.
Despite an advance payment of Sh3.72 billion, only 2.27 percent of work had been completed by April 2024.
Tanroads is now seeking to recover Sh13.72 billion, including advance payments, performance guarantees, and uncompleted work.
However, the Azerbaijani bank that issued the guarantees is under receivership, making recovery uncertain.
The CAG recommends a comprehensive overhaul of Tanroads' due diligence process to prevent future losses.
In another case, the Ruangwa–Nanganga Road project faced multiple delays due to late government fund disbursements, pushing the contract value from Sh50.34 billion to Sh52.13 billion.
The contractor submitted a Sh1.79 billion compensation claim, which Tanroads has not contested.
The CAG notes that this loss could have been avoided with better planning and timely payments.
Disfunctional weighbridges
Despite legal requirements, over 26,000 vehicles bypassed weighbridges across the country due to equipment breakdowns, power outages, and poor calibration.
These included 22,928 vehicles at Mtukula (Kagera), 1,652 at Makuyuni (Arusha) and 1,049 at Nala (Dodoma).
The CAG warns that such lapses increase the risk of road damage from overloaded vehicles and calls for better maintenance and backup systems.
Weaknesses in the Special Load Permit System resulted in 792 duplicate permit verifications, leading to a potential revenue loss of Sh41.18 million.
The audit calls for system upgrades and real-time monitoring to curb abuse.
The report further notes that Tanroads is currently locked in a dispute with IT service providers over access to data from 10 key weighbridges.
Since January 2024, enforcement of overload controls has been affected, with no resolution reached by the time of the audit.
Tanroads faced a budget shortfall of over Sh1 trillion in 2023/24, receiving only 52 percent of its maintenance budget.
Out of Sh534.66 billion budgeted, only Sh280.47 billion was released.
This led to the suspension or abandonment of road projects worth Sh495.24 billion, while interest on unpaid contractor claims rose to Sh38.75 billion, up from Sh34.83 billion in 2022/23.
The CAG recommends that the government refrain from launching new projects until existing ones are funded and completed to avoid accumulating liabilities.
Out of Sh22.18 billion allocated for supervision, only 48 percent was disbursed, undermining oversight on 44 road maintenance contracts.
The CAG warns this neglect leads to unresolved defects like potholes, drainage failures, and surface distress, increasing long-term repair costs.
A Sh1.3 billion road doctor survey van meant to assess pavement quality was underused due to budget constraints.
Only one out of eight planned road sections was evaluated in 2023/24, risking poor maintenance planning and misallocation of funds.
Despite rising revenue from fuel levies, the road maintenance budget remained unchanged at Sh856.79 billion since 2021/22.
The actual release in 2023/24 was just 47 percent, leaving a funding gap of Sh1.43 trillion for Tanroads and Tarura.
The CAG urges the ministry of Finance and the Road Fund Board (RFB) to explore new revenue sources to close this widening gap.
At the Bunju Housing Project, 39 public servants defaulted on payments totalling Sh3.98 billion.
TBA failed to enforce penalties or recover dues, even from retirees.
Only three evictions were carried out, with no full debt recovery as of February 2025.
A similar issue was found in the Magomeni Housing Project, where only 173 out of 644 residents formalised purchase agreements due to affordability concerns. Delayed sales have hindered cost recovery from the Sh50.19 billion investment.
Temesa vessels operating without safety certificates
The CAG also flagged that 32 Temesa vessels operated without Certificates of seaworthiness due to legal ambiguity around third-party insurance requirements.
Despite exemptions for government vessels, Tasac continues to demand insurance before issuing certificates, putting passenger safety at risk.
Construction of a new ferry for the Mafia–Nyamisati route is 14 months behind schedule.
The Sh9.5 billion project, awarded in May 2022, was only 36 percent complete by August 2024, far below the expected 90 percent.
The delays were attributed to poor contractor performance and logistical challenges.
The CAG’s report underscores the urgent need for systemic reforms to protect public funds, improve service delivery, and ensure the sustainability of Tanzania’s infrastructure investments.
