A recent audit by the CAG revealed significant financial and operational failures in Tanzania’s infrastructure sector, particularly in road projects. Key findings include substantial losses from fraudulent contracts, increased costs due to funding delays, and operational failures in weighbridge management. The report calls for urgent reforms to improve oversight and protect public funds.
A recent audit by the Controller and Auditor General (CAG) of Tanzania has revealed serious deficiencies in the infrastructure sector, specifically in road projects. Key findings note significant financial losses linked to fraudulent contracts, increased costs due to funding delays, and greater risks of road damage due to ineffective weighbridge operations. These issues threaten public safety and impose an enormous financial burden on taxpayers.
The CAG’s Annual report on the central government audit for the fiscal year 2023/2024 highlights serious lapses within several government agencies, particularly under the Ministry of Works, including Tanroads (Tanzania National Roads Agency). A prominent example includes the Ibanda-Kiwira Port trunk road project, wherein a Sh38.36 billion contract was terminated after the contractor submitted falsified documentation. Despite an advance payment of Sh3.72 billion, only a minute fraction of the work was accomplished by April 2024.
The inability to recover funds from the contractor is concerning, especially as the issuing bank is now under receivership. To mitigate future risks, the CAG advocates for a thorough reassessment of Tanroads’ vetting processes. Additionally, the Ruangwa-Nanganga Road project has incurred costs beyond the initial contract value due to delayed disbursement of government funds. The CAG points out that this loss could have been mitigated through more effective planning and prompt payments.
Moreover, operational failures in weighbridge management have resulted in more than 26,000 vehicles evading regulations, thereby exacerbating the potential for road damage. The CAG emphasizes the necessity for enhanced maintenance and operational procedures for weighbridges, as ongoing lapses pose severe risks.
The audit further reveals that a malfunctioning Special Load Permit System caused substantial revenue losses. The report calls for improvements to the system and proactive monitoring measures to address these deficiencies. Despite facing conflicts with IT service providers regarding weighbridge data access, Tanroads continues to fail in enforcing overloading controls, impacting the efficiency of monitoring systems.
Budgetary constraints have severely impacted Tanroads, with a significant budget shortfall recorded, resulting in the abandonment of multiple road projects. The report criticizes the government for launching new projects without the funding to complete existing ones, leading to increased liabilities.
Moreover, issues at housing projects and non-compliance of vessels operating without safety certifications have further raised concerns about public safety and financial management. The CAG indicates that collective systemic reforms are essential for improving infrastructure investments in Tanzania, emphasizing urgent reforms to protect public interests and ensure effective service delivery.
In summary, the CAG’s audit has exposed critical financial mismanagement and operational inefficiencies in Tanzania’s infrastructure sector, with findings emphasizing the need for immediate reforms. Significant financial losses due to fraudulent contracts, delays in project executions, and inadequate supervision have serious implications for public safety and fiscal responsibility. The recommendations highlight an urgent need for overhauling internal processes, enhancing oversight, and ensuring sustainable funding for ongoing projects to safeguard public resources.
Original Source: www.thecitizen.co.tz
