Sh40 Billion lawsuit loss highlights need for better HR management

Arusha. The government has urged public service human resources departments to rigorously review their operations, warning that poor decision-making has caused substantial financial losses and hindered national development.

Deputy Minister in the President’s Office, Public Service Management and Good Governance, Mr Deus Sangu, issued the warning on Friday, July 25, 2025, during the closing ceremony of the Tanzania Association of Public Administration and Human Resource Management (TAPA-HR) Annual General Meeting, held over four days in Arusha.

Addressing over 1,000 participants from various public sector HR and administration cadres, Mr Sangu expressed deep concern over the detrimental effects of several HR decisions.

He cited costly lawsuits and disruptions to government development plans as key consequences.

Without naming the institution involved, Mr Sangu highlighted a 2016 case where a human resources officer unlawfully dismissed more than 40 public servants without following proper procedures.

The courts ruled in favour of the dismissed employees, ordering their reinstatement and payment of full back pay exceeding Sh40 billion.

“One officer violated legal procedures, leading to the dismissal of 40 employees. The courts upheld the workers’ claims at all levels, including appeals, and ordered their reinstatement with full salaries from 2016, amounting to over Sh40 billion,” Mr Sangu said.

He explained that the unexpected financial burden caused by such errors was not factored into the national budget and had disrupted the execution of development projects in the financial year.

“When preparing budgets and development plans, the government faces inherited debts from past years due to individual negligence. Instead of advancing development agendas, we are forced to address avoidable losses,” he said.

Mr Sangu urged HR professionals to acknowledge that every decision they make carries significant institutional and national implications.

He emphasised the importance of skills in risk identification and modern management to reduce potential government losses.

He further called on the TAPA-HR community to use the conference as a platform for self-reflection, learning, and closing performance gaps, particularly in adopting modern technology.

“Go forth and become catalysts for economic growth, as envisaged in the National Development Vision 2050, not sources of complaints and conflict within your institutions,” he stated.

TAPA-HR Chairperson Grace Meshy said the conference aimed to equip HR professionals with the skills needed to keep pace with rapid technological change and improve service delivery.

“We covered over 15 key topics to help professionals adapt to emerging work environments, enhance productivity, and transform public institutions positively,” she said.

She added that the main challenges facing HR professionals include outdated work practices, limited digital literacy, and low membership in professional bodies like TAPA-HR, which weakens collective efforts to address sector challenges.