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Speaker refers Gambo, Mchengerwa to ethics committee over financial mismanagement claims

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Dodoma. The growing rift between Arusha City MP Mrisho Gambo and Minister of State in the President’s Office – Regional Administration and Local Government (PO-RALG), Mohamed Mchengerwa, has now been formally handed over to the Parliamentary Privileges, Ethics and Powers Committee.

Speaker of Parliament, Dr Tulia Ackson, made the decision on Wednesday, April 23, directing the committee to begin its investigation immediately and submit its findings by next week.

The development comes in the wake of a heated exchange between the two CCM politicians over allegations of financial mismanagement in several Arusha-based public projects.

The most contentious point surrounds the Machinga Market in Arusha, with MP Gambo alleging that the facility generates Sh800 million in monthly revenue — a figure strongly disputed by Minister Mchengerwa, who says the annual income stands at Sh850 million.

The tension escalated during Parliament's debate on the 2025/26 budget for PO-RALG, where Gambo, speaking on April 16, flagged several projects — including the construction of the Arusha City administrative building, a road linking the new bus terminal to Mbauda, and the Machinga Market — citing discrepancies in costs and implementation.

He questioned the rationale behind the Sh9 billion allocated for an eight-storey office block, noting that such an amount would imply each floor cost over a billion shillings. Gambo further alleged that a separate project worth Sh6.2 billion included inconsistencies between the Bill of Quantities and the actual work delivered.

“These are public funds. The President works tirelessly to bring in money from abroad for Tanzanians — but a few individuals are using it to benefit themselves,” Gambo said during the debate, calling for tighter oversight.

In response, Speaker Dr Tulia said the seriousness of the allegations warranted an official response from the government, instructing Minister Mchengerwa to present a report to the House.

Mchengerwa responds

On April 23, Minister Mchengerwa delivered his statement, denying any misuse of funds in the four projects Gambo had highlighted. He stated that all investigations conducted so far had revealed no evidence of embezzlement.

He also turned the spotlight on Gambo’s past role as Arusha Regional Commissioner, claiming the construction of the administrative building began under his watch in 2019. He noted that disagreements over procurement — including with Gambo — had delayed progress, necessitating the Prime Minister's intervention in 2023. Construction has since reached the sixth floor, he said, with relatively low expenditure.

The minister also alleged that Gambo had failed to attend a financial committee meeting but still claimed a sitting allowance.

On the market’s revenue figures, Mchengerwa insisted the city’s official records show monthly collections of only Sh74 million, significantly below the Sh800 million claimed by Gambo. He added that the government is moving forward with the market redevelopment project, with tenders expected to be advertised on April 28.

A clash of figures

The debate reached its climax when the Speaker requested clarification over the market revenue figures. Gambo maintained that the market generated Sh800 million per month, while Mchengerwa held firm that the figure was annual.

Parliamentary staff later calculated that, based on 350 to 400 stalls each paying Sh200,000, the annual revenue would approximate the Sh800 million mark — supporting the minister’s claim. The Speaker criticised Gambo’s assertion as inaccurate and warned that Parliament could not condone the dissemination of misleading figures.

“This House has rules, and MPs must be truthful in their contributions,” she said.

Gambo, however, rose to defend his remarks, stating he had only requested an investigation and that some facts had been misrepresented. He also disputed claims that the building project began when he was Regional Commissioner, saying it started in 2021 when he was already an MP.

When he attempted to further clarify, Dr Tulia asked him to sit, stating that the matter had now moved beyond debate. “It is no longer about who is right or wrong on this floor. The Ethics Committee will examine the facts, hear from both sides, and advise the House accordingly,” she said.

Even as Gambo insisted he was being treated unfairly, the Speaker stood her ground. “Both of you will appear before the committee. That is the proper place for this matter to be resolved,” she said.

The committee will now assess the allegations and counterclaims from both MP Gambo and Minister Mchengerwa, in a process that is expected to shed light on the handling of public funds and the conduct of elected officials.