PAC reveals irregularities in govt projects, contracts

Dodoma. The Parliamentary Public Accounts standing Committee (PAC) has found irregularities in contracts entered between the government and investors in various projects, procurement of assets for public institutions and abuse of funds in farmer’s bank and the Association of Local Authorities in Tanzania (Alat).

During the third sitting of the National Assembly in Dodoma yesterday, the PAC Chairperson Naghenjwa Kaboyoka asked government authorities to intervene in averting the irregularities and preventing government losses through the said projects and “rogue” contracts.

Prominently, Ms Kaboyoka asked the Controller and Auditor General (CAG) to conduct a forensic and performance audit in the contract entered between the University of Dar es Salaam (UDSM) and Mlimani Holdings Limited (MHL.

The UDSM management has until recently admitted that the contract needs to be reviewed, as it was benefiting the investor than the owner of the land. Several MPs who contributed on the matter also pushed for further investigation in the contact.

PAC further revealed that police vehicles worth $29.6 million were procured without any contact. According to the PAC report, the Tanzanian police entered an “unceremonious” agreement with an Indian company Ashok Leyland to purchase the vehicles on credit facility.

“The manner in which these vehicles were purchased, raises a number of questions. Some of the vehicles that were purchased are faulty and “used”. The actual cost of the agreement is full of anomalies,’’ said Ms Kaboyoka as she presented the report.

Concern was also raised about the performance of Tanzania Agricultural Development Bank Limited (TADB) which was formed with a core objective of providing financial services for agricultural activities.

According to the PAC report, TADB has not fulfilled the objectives of its establishment and it has become a cost center for the government, calling for a review of its existence. But also, the government was asked to provide the funds it promised to the bank.

The report also found that over Sh520 million funds allotted to the Association of Local Authorities in Tanzania (Alat) has been mismanaged.

"That money was meant for construction of a trading centre for the association but there was a change of plan in the process. This amounts to mismanagement of public funds,’’ said the report.

The lawmakers advised the government to finalize the Enterprises Resource Planning (ERS) system, saying that this would help deal with some of the irregularities encountered at the Tanzania Ports Authority (TPA).

“Using this system would help to prevent the loss of government revenues that the government has faced through using the old system known as COBOL,’’ says PAC.

The committee found that the CAG queried the management of Azania Bank and the micro finance institution involved in the provision of credit to small and micro entrepreneurs, PRIDE Tanzania.

“MPs should advise the government to intervene in rectifying the anomalies in the management of Azania Bank. But also stern measures should be taken against people who would be found to own the own Pride Tanzania illegally,’’ suggests the PAC.

The PAC was also weary of Dege Eco Village Project in Kigamaboni which is said to have stalled for a long time, risking to get into as depreciation phase.  Dege Eco Village Project entered a contract with the National Social Security Fund (NSSF) to implement the proect but it had stalled since June 2016.