Utouh analyses the rot in latest report of CAG, calls for action

Dar es Salaam. Former Controller and Auditor General (CAG) Ludovick Utouh yesterday unveiled a steep increase in corruption and fraud in the implementation of development projects, from Sh74.02 billion in 2020/21 to Sh1.131 trillion in 2021/22.

Tabling his analysis during the breakfast debate organised by Policy Forum here, Mr Utouh said the CAG’s Development Project Audit report has increased by Sh1.057 trillion, or 15 times.

He was tabling the latest analysis of the 2021/22 reports submitted by the current CAG, Mr Charles Kichere, in Parliament early this month.

The analysis shows that red flags in the Local Government Audit report increased four times, from Sh122.6 billion in 2020/21 to Sh654.83 billion in 2021/22.

However, the analysis shows that the increase occurs at a time when the government has intensified measures to reduce red flags, with the Central Government Audit report showing a decline from Sh1.994 trillion in 2020/21 to Sh228.66 billion in 2021/22.

The Sh1.765 trillion decrease is equivalent to 88.54 percent.

For the Public Authority Audit report, the analysis shows that Sh76.64 billion, which is equal to a 6.5 percent decrease, was also noted.

This means corruption and fraudulent incidents declined to Sh1.097 trillion in 2021/22 from Sh1.175 trillion in the preceding year.

“Wajibu has identified areas of red flags of corruption or fraudulent transactions estimated at Sh3.113 trillion, which is equivalent to nine percent of the total government spending of Sh36.063 trillion for Financial Year 2021/22, which is lower than the previous year’s figure of 3.366 trillion for FY 2020/21, which is equal to 13 percent,” said Mr Utouh.

He outlined the red flag breakdown, saying it constitutes Sh1.131 trillion in the Development Project Audit report, which equals 36.3 percent, and Sh1.099 trillion in the Public Authority Audit report, which is equivalent to 35 percent of the total identified red flags.

The breakdown includes Sh654.83 billion reported by the Local Government Audit report, which equals 21.3 percent, and Sh228.66 billion, which equals 7.3 percent, recorded by the Central Government Audit report.

In his recommendations, Mr Utouh, who doubles as Wajibu Institute of Public Accountability (WIPI) executive director, said despite the recent government’s action, more needs to be done.

“We understand measures extended against people implicated in the CAG reports, including Air Tanzania Company Limited (ATCL) and Tanzania Government Flight Agency (TGFA) chiefs. However, WIPI is of the view that much more needs to be done,” he said.

“The Prevention and Combating of Corruption Bureau (PCCB) report, which is submitted alongside the CAG report, should be tabled in Parliament in order to make it a public document, increase accountability, and pave the way for stringent measures against those implicated,” he added.

He said that in the spirit of the government’s embrace of technology in its operations and its determination to transform itself into e-government, WAJIBU strongly advocated for a reduction in the country’s financial reporting timeframe from the current nine months to six months. “This will avail more time to Parliamentary Oversight Committees to scrutinise the CAG reports, which will be an input to the country’s preparation for the next budget,” he said.

Furthermore, he said such a reduction in reporting time will complement the World Bank’s Public Expenditure and Financial Accountability (PEFA) assessment requirement and WAJIBU’s CASFAR 2022 recommendation.

Yesterday, the chief government spokesperson, Mr Gerson Msigwa, said everything took place in accordance with the laws and that “PCCB was responsible for acting against those implicated in the embezzlement of public funds.” He said the government cannot act without Parliament’s debate on the CAG reports through oversight committees and the submission of recommendations for appropriate measures.

PCCB director general Salum Rashid Hamdun declined to comment, saying: “I can’t respond to any issues that happened without my involvement.”

An independent lawyer, Mr James Marenga said the country has ineffective controls, therefore intensifying the challenges.

“Things unveiled by the CAG reports are very open, which is the reason for parliamentarians’ emotions in demanding action against all those implicated,” he said.

“Measures should be emphasised in strengthening morality at the family level, which is considered a primary cause of fraud by most individuals who take the situation to public offices,” he added.

Hakielimu programme manager (research and policy analysis) Makumba Mwemezi said public appointees listen to appointing authorities more than abiding by systems, “Appointing authorities should now start taking action.”

Policy Forum executive director Semkae Kilonzo said government measures against those implicated by CAG reports are unsatisfactory.

“Most of the time, victims are those holding political positions, leaving behind the systems and the technocrats in the ministries, departments, and institutions,” he said. Legal and Human Rights Centre (LHRC) advocate Joyce Komanya said, “The government should see how enforcement of the laws increases accountability against people implicated by the CAG reports.”

She added that the government should also consider the possibility of merging the National Audit Office of Tanzania (Naot) and PCCB to form a powerful body.

Tuelimike director Douglas Mwaisaka said everybody is complaining, including those with authority, the ones who have formulated procedures, and the general public.

“We are supposed to increase the formal and informal monitoring systems and take action against incidents of corruption, fraud, and embezzlement of public funds as reported by the CAG reports,” he said.

Waima chief executive officer Doris Kafuku said there was a poor understanding of the CAG reports at the council’s level.