Dart, local authorities on the spot for diversion of Sh16 billion
What you need to know:
- Dar Rapid Transit Agency (Dart) misused Sh2.04 billion that had been allocated for compensation and the passenger transport fund, instead using it for unrelated activities.
Dar es Salaam. A total of 42 local government authorities and two regional secretariats diverted Sh13.99 billion to fund other development projects and recurrent expenditures.
In addition to those authorities, the Dar Rapid Transit Agency (Dart) also misused Sh2.04 billion that had been allocated for compensation and the passenger transport fund, instead using it for unrelated activities.
This financial misdirection was revealed in the 2023/24 annual audit report for the President’s Office – Regional Administration and Local Government (PO-RALG), regional secretariats, and local government authorities, prepared by the Controller and Auditor General (CAG), Charles Kichere.
Mr Kichere stated that the misappropriation of funds contradicted the approved budget and negatively impacted the implementation of planned activities.
Speaking specifically on Dart, Mr Kichere noted:
“This contravenes regulation 5.2.1 (d) of the 2014 Dart regulations, which require the agency’s Chief Executive to ensure that funds are used for their intended purposes, and that all conditions attached to those funds are observed.”
By June 30, 2024, only Sh1.8 million remained, while compensation claims totaled Sh1.94 billion.
“In total, Sh16.03 billion was misappropriated by Dart, regional secretariats, and local government authorities in the 2023/24 fiscal year, marking an increase of Sh3.20 billion compared to Sh12.83 billion diverted in 2022/23,” said Kichere.
“This trend shows a continued pattern of fund misdirection, with resources being used contrary to the planned budget,” he added, presenting the report today, Wednesday, April 16, 2025, in Parliament, Dodoma.
Mr Kichere warned that such diversions could hinder public service delivery, either by stalling implementation of intended projects or by leading to the execution of projects that do not benefit the community.
To address the issue, Mr Kichere advised the Ministry of Finance and responsible authorities to strengthen budget monitoring, ensure strict adherence to financial regulations, and enhance transparency in fund utilization.
“Additionally, all budget adjustments must go through proper procedures, with funds allocated only to implementable projects that meet community needs,” he recommended.
