THE UNITED REPUBLIC OF TANZANIA

NATIONAL AUDIT OFFICE

THE ANNUAL GENERAL REPORT OF THE CONTROLLER AND AUDITOR

GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF THE CENTRAL
GOVERNMENT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2019

Controller and Auditor General,

National Audit Office,
Audit House,
4 Ukaguzi Road,
P.O. Box 950,
41104 Tambukareli,
DODOMA.
Tel: 255 (026) 2321759,
Fax: 255 (026) 2117527,
E-mail [email protected]
Website: www.nao.go.tz

@ March 2020
 THE UNITED REPUBLIC OF TANZANIA
NATIONAL AUDIT OFFICE
The Controller and Auditor General, National Audit Office, P.O.Box 950, 41104
Tambukareli, Dodoma. Telegram: “Ukaguzi", Telephone: Tel: +255 (026) 2321759,
Fax: 255(026)2117527, E-mail: [email protected], Website: www.nao.go.tz

Ref. No. CGA.319/421/01/12 30th March, 2020

Your Excellency; Dr. John Pombe Joseph Magufuli,
The President of the United Republic of Tanzania,
State House,
1 Julius Nyerere Road,
11400 Chamwino,
P.O. Box 1102,
40400 DODOMA.

RE: SUBMISSION OF THE ANNUAL GENERAL REPORT OF THE

CONTROLLER AND AUDITOR GENERAL ON THE AUDIT OF
FINANCIAL STATEMENTS OF THE CENTRAL GOVERNMENT FOR
THE FINANCIAL YEAR ENDED 30TH JUNE 2019.

As required by Article 143(4) of the Constitution of the United

Republic of Tanzania of 1977 (as amended from time to time), Section
34 (1) (c) of the Public Audit Act, 2008 and Regulation 88 of the Public
Audit Regulations 2009; I am submitting to you the Annual General
Report on the audit of the financial statements of the Central
Government for the financial year ended 30th June 2019 for your
considerations.
Yours sincerely,

Charles E. Kichere
CONTROLLER AND AUDITOR GENERAL
Establishment
The Controller and Auditor General, National Audit Office,
United Republic of Tanzania

(Mandated under Article 143 of the Constitution of the URT)

The statutory powers, duties and responsibilities of the Controller and
Auditor General are given under Article 143 of the Constitution of the United
Republic of Tanzania of 1977 (as amended from time to time) and amplified
by Sec. 10 (1) of the Public Audit Act, No. 11 of 2008 and Public Audit
Regulations of 2009.

Vision: To be a highly regarded Institution that excels in Public Sector

Auditing.

Mission: To provide high quality audit services that improves public sector
performance, accountability and transparency in the management of public
resources.

Core Values

Objectivity : We are an impartial public institution, offering audit

services to our clients in unbiased manner
Excellence : We are professionals providing high quality audit
services based on standards and best practices.
Integrity : We observe and maintain high standards of ethical
behaviour, rule of law and a strong sense of purpose
People focus : We value, respect and recognize interest of our
Stakeholders
Innovation : We are a learning and creative public institution that
promotes value added ideas within and outside the
institution
Results : We are an organization that focuses on achievement
Oriented based
on performance targets
Team work : We work together as a team, interact professionally,
Spirit and share knowledge, ideas and experiences

CG - Annual General Report 2018 / 19 iii

 TABLE OF CONTENTS

TABLE OF CONTENTS ............................................................... iv

LIST OF TABLES...................................................................... vi
LIST OF FIGURES .................................................................... ix
LIST OF APPENDICES ..................................................................
ABBREVIATIONS AND ACRONYMS ................................................. ii
PREFACE .............................................................................. iv
ACKNOWLEDGEMENT ............................................................... vi
EXECUTIVE SUMMARY .................................................................
CHAPTER ONE ...................................................................... 27
1.0 BACKGROUND INFORMATION .......................................... 27
CHAPTER TWO ...................................................................... 36
2.0 AUDIT OPINION .......................................................... 36
CHAPTER THREE.................................................................... 43
3.0 FOLLOW UP ON IMPLEMENTATION OF THE PREVIOUS YEARS’ AUDIT
RECOMMENDATIONS. .......................................................... 43
CHAPTER FOUR ..................................................................... 55
4.0 BUDGET PREPARATION AND EXECUTION ............................ 55
CHAPTER FIVE ...................................................................... 75
5.0 NATIONAL ACCOUNT.................................................... 75
5.1 TANZANIA REVENUE AUTHORITY .............................. 75
5.2 PUBLIC DEBT MANAGEMENT .................................... 91
5.3 AUDIT OF PROCESSED PAYMENTS OF TERMINAL BENEFITS. 97
5.4 AUDIT OF CONSOLIDATED FINANCIAL STATEMENTS........104
CHAPTER SIX .......................................................................109
6.0 EVALUATION OF INTERNAL CONTROL SYSTEM AND GOVERNANCE
ISSUES ..........................................................................109
6.2 ASSESSMENT OF INTERNAL AUDIT FUNCTIONS ..............110
6.3 ASSESSMENT OF AUDIT COMMITTEES FUNCTION ...........111
6.4 FRAUD ASSESSMENT ............................................114
6.5 GOVERNANCE ISSUES ...........................................115
6.6 ASSESSMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY (ICT) ENVIRONMENTS ................................124
CHAPTER SEVEN ...................................................................128
7.0 HUMAN RESOURCES AND PAYROLL MANAGEMENT ................128
CHAPTER EIGHT ...................................................................137
8.0 GOVERNMENT EXECUTIVE AGENCIES, SPECIAL FUNDS OTHER

CG - Annual General Report 2018 / 19 iv

 INSTITUTIONS BASIN WATER BODIES AND REGIONAL REFERRAL
HOSPITALS ....................................................................137
CHAPTER NINE .....................................................................185
9.0 PROCUREMENT AND CONTRACTS MANAGEMENT ..................185
CHAPTER TEN ......................................................................207
10.0 EXPENDITURE MANAGEMENT .........................................207
CHAPTER ELEVEN .................................................................232
11.0 ASSETS AND LIABILITIES MANAGEMENT .............................232
CHAPTER TWELVE.................................................................249
12.0 SPECIAL AUDIT, AUDIT OF POLITICAL PARTIES ....................249
12.1 INTRODUCTION ..................................................249
12.2 AUDIT OF POLITICAL PARTIES .................................249
12.3 SPECIAL AUDITS .................................................262
APPENDICES ........................................................................286

CG - Annual General Report 2018 / 19 v

 LIST OF TABLES
Table 1: Analysis of the required FS to be audited vs. the actual audited 31
Table 2: List of entities prepared FS for the first time in 2018/19 ............. 32
Table 3: List of special audits conducted during the year ............................ 35
Table 4: Trend of audit opinions ........................................................................ 40
Table 5: Trend of audit opinions for the three-year consecutively ............. 41
Table 6: Definition of the words used in assessing the implementation
status. ..................................................................................................................... 44
Table 7: Status of implementation of CAG’s audit recommendations on
individual reports for the financial year 2018/2019 ....................................... 46
Table 8: Comparison between current year and last year’s implementation
status of previous years CAG’s audit recommendation on individual audit 48
Table 9: PAC Directives in FY 2018/19 .............................................................. 50
Table 10: Implementation status of previous years CAG’s audit
recommendations to PMG .................................................................................... 53
Table 11: Analysis of Government estimates ................................................... 57
Table 12: Trend of Estimates, Actual collection and percentage of
contribution from each identified source. ....................................................... 61
Table 13: Receipts versus Transfers in Consolidated Fund Account ............ 64
Table 14: Non-tax revenue collection not remitted to consolidated fund. 70
Table 15: Unclaimed deposit balances not remitted to Treasury ................ 72
Table 16: Analysis of prior years’ audit recommendations ........................... 75
Table 17: Implementation status of prior years’ audit recommendations . 76
Table 18: Revenue Collection Departmental-wise (figures in millions) ...... 77
Table 19: Outstanding cases at Tax Appeal Machinery .................................. 83
Table 20: Debt Stock Movement for three fiscal year 2016/17 to 2018/19 92
Table 21: Domestic Debt stock Trend for three years (Face Value) ............ 93
Table 22: Trend of Domestic Borrowing for three years (Face Value) ........ 93
Table 23: External Debt stock Trend for three years ..................................... 94
Table 24: Trend of External Borrowings for three years................................ 94
Table 25: Summary of retirees’ files examined during the year 2018/2019
................................................................................................................................. 98
Table 26: Terminal Benefits Understated ....................................................... 99
Table 27: Delay in preparation and submission of files ............................... 101
Table 28: Queried files not returned for pre-audit ...................................... 102
Table 29: Controlled entities with different reporting dates ..................... 107

CG - Annual General Report 2018 / 19 vi

Table 30: Comparison on Assessment of Internal Audit ............................... 110
Table 31: Comparison of Assessment of Audit Committees ........................ 112
Table 32: Fraud Assessment .............................................................................. 115
Table 33: Lack of Accounting Manual .............................................................. 119
Table 34: Low pace in resolving complaints received .................................. 121
Table 35: Comparison of Assessment of Risk Management ......................... 123
Table 36: Comparison of Assessment of Information and Communications
Technology (ICT) environments ........................................................................ 125
Table 37: Staffing level movements in three consecutive years ................ 128
Table 38: List of staff acting for more than six months............................... 130
Table 39: list of sampled entities with excessive deduction on monthly
salaries .................................................................................................................. 132
Table 40: List of entities that did not perform staff assessment ............... 133
Table 41: Non update of transfers in the payroll .......................................... 134
Table 42: Trend of Agencies Own Collections to finance Approved Budget
............................................................................................................................... 139
Table 43: Trend of Approved Budget vs. Actual Release for Recurrent Grants
............................................................................................................................... 141
Table 44: Trend of Approved Budget vs. Actual Release for Development
Grant ..................................................................................................................... 141
Table 45: Analysis of Own Source collections ................................................ 143
Table 46: Accounts payables ............................................................................. 145
Table 47: Accounts Receivable ......................................................................... 147
Table 48:............................................................................................................... 151
Table 49: Contract variations not approved by Tender board .................... 158
Table 50: Borrowed Funds Not Refunded ....................................................... 160
Table 51: Loss of Equipment at District NIDA Offices .................................. 166
Table 52: Status of actual customer connection against contractual scope
............................................................................................................................... 168
Table 53: Table: Project Revenue and Expenditure ..................................... 170
Table 54: Table: Under payment of VAT ........................................................ 172
Table 55: Under release of Exchequer issues ................................................ 175
Table 56: Funds not transferred to RFB TZS .................................................. 178
Table 57: Payments without written agreements ......................................... 183
Table 58: List of entities made procurement outside plan ......................... 187
Table 59: List of entities made procurements without contracts .............. 190

CG - Annual General Report 2018 / 19 vii

Table 60: List of entities made procurement without competitive tendering
............................................................................................................................... 191
Table 61: List of MDA with Goods/Services not inspected .......................... 194
Table 62: List of MDA with Goods not accounted in stores. ........................ 197
Table 63: List of entities without tender board approval ........................... 198
Table 64: List of entities with goods not delivered ...................................... 201
Table 65: Investigation on Allegations, Complaints and Reported Cases of
Miss-Procurement ................................................................................................ 205
Table 66: Overpayment for construction of Staff houses ............................ 210
Table 67: The list of unauthorized payments ................................................ 215
Table 68: A list of entities with overpayment expenditure ........................ 216
Table 69: List of entities that did nod deduct withholding tax .................. 220
Table 70: List of entities that did not demand EFD receipts ...................... 222
Table 71: List of Entities with nugatory expenditure .................................. 224
Table 72: List of entities with wrong expenditure code .............................. 226
Table 73: List of entities that did not refund advanced loans .................. 228
Table 74: List of Embassies paying high rental charges .............................. 230
Table 75: List of Entities with inadequately supported payments ........... 230
Table 76: Buildings owned by Tanzania High Commission in London which
needs Renovation ................................................................................................ 233
Table 77: Embassies Plots not developed ....................................................... 234
Table 78: Grounded motor vehicles neither serviced nor disposed .......... 235
Table 79: Absence of Title Deeds for Government Land and Buildings..... 238
Table 80: Lack of asset maintenance plan and records ............................... 239
Table 81: Failure to review the residual value and useful life of assets .. 240
Table 82: Assets purchased not put into use ................................................. 241
Table 83: Outstanding Receivables .................................................................. 242
Table 84: Contingent liabilities ........................................................................ 244
Table 85: India Hospitals Claims Movements (Amounts in TZS) .................. 247
Table 86: List of Political Parties with Unsupported Expenditure ............ 257
Table 87: Revenue from Political Parties not banked .................................. 258
Table 88: List of Political Parties prepared Financial Statements without
Stating Applicable Financial Reporting Framework ...................................... 259
Table 89: List of Political Parties without Updated Membership Register 260
Table 90: List of the Special Audits Conducted in the financial year 2018/19
............................................................................................................................... 263

CG - Annual General Report 2018 / 19 viii

 LIST OF FIGURES
Figure 1: Percentage of prior year recommendations institution wise in
2018/19............................................................................... 46
Figure 2: Status of implementation of the CAG’s recommendations in
2018/2019. ........................................................................... 47
Figure 3: Comparison on implementation status of CAG’s recommendations
for financial year 2017/2018 and 2018/2019. .................................. 49
Figure 4: Status of implementation of PAC Directives ........................ 51
Figure 5: Comparison between current year and previous year
implementation status of previous years PAC directives on individual audit
reports. ............................................................................... 52
Figure 6: Status of CAG annual report recommendations and its
implementation ..................................................................... 53
Figure 7: Government Estimates and Actual collection from each identified
source in financial year 2018/19 (Amount in billion TZS) .................... 58
Figure 8: Trend of Estimates and Actual Collection for consecutive Five years
(Amounts in billion TZS) ........................................................... 61
Figure 9: Trend of Actual Domestic collection versus Grants and Borrowings
for consecutive Five years (Amount in Billion TZS)............................ 62
Figure 10: Estimates, Exchequer issues and Actual Expenditure for Supply
Vote in 2018/19 (Amount in billions TZS) ....................................... 67
Figure 11: Estimates, Exchequer issues and Actual Expenditure for
Development Vote in 2018/19 (Amount in billions TZS) ...................... 68
Figure 12: Trend of Non-tax remittance to Consolidated Account ......... 70
Figure 13: Actual Revenue Collection Department wise, FY 2018/19 ...... 78
Figure 14: Trend of Tanzania revenue collections FY 2014/15 to FY
2018/2019 ............................................................................ 79
Figure 15: Analysis of Tax Yield for Tanzania and other EAC countries ... 80
Figure 16: Trend of public debt for three years 2016/17 to 2018/19 ...... 91
Figure 17: Analysis of Internal Audit Deficiencies for the past three years
........................................................................................111
Figure 18: Audit Committee deficiencies for the past three years ........113
Figure 19: Deficiencies in risk managements for the past three years ....124
Figure 20: deficiencies in Information and Communications Technology (ICT)
for the Past Three Years ..........................................................126
Figure 21: Distribution of audited entities for the year 2018/19 ..........138
Figure 22: Performance of the audited agencies .............................140

CG - Annual General Report 2018 / 19 ix

Figure 23: Analysis of development funds released for the past two years
........................................................................................142
Figure 24: Analysis of own source collections for the past three years ...144
Figure 25: Trend analysis of account payables ................................146
Figure 26: Analysis of account receivables ....................................148
Figure 27: Trend on Non-compliance with PFA, PPA & the ITA ............184
Figure 28: A trend of inadequately supported payments for 6 consecutive
years .................................................................................214
Figure 29: Comparisons of unauthorized payments for 2017/18 and 2018/19
........................................................................................215
Figure 30: Trend of overpayment for two comparable financial years ...218
Figure 31: Comparability of irregularities on the management of imprest for
two consecutive financial years .................................................219
Figure 32: Trend of entities not deducting and remitting withhold taxes for
consecutive 5 years ................................................................221
Figure 33: Payments not supported with EFD Receipts ......................223
Figure 34: Trend of nugatory expenditure for 6 consecutive years ........225
Figure 35: expenditure charged to wrong accounting codes for comparable
three consecutive years ..........................................................227
Figure 36: Trend of Outstanding Payables .....................................246
Figure 37: Comparison of Outstanding Payables ..............................246
Figure 38: Composition of Outstanding Payable ..............................247

CG - Annual General Report 2018 / 19 x

 LIST OF APPENDICIES
Appendix 2. 1: List of audited entities issued with unqualified opinion ..286
Appendix 2. 2: Entities and their basis for qualification ....................302
Appendix 2. 3: Entities and their basis for adverse opinion ................320
Appendix 2. 4: Entities and their basis for disclaimer of opinion ..........325
Appendix 3. 1: Follow up on the implementation of the previous year’s audit
recommendations 328

Appendix 3. 2: Follow up on the implementation of the PAC’s Directives

........................................................................................375
Appendix 4. 1: Estimates, Exchequer issues and Actual Expenditure for
Supply Vote .........................................................................384
Appendix 4. 2: Estimates, Exchequer issues and Actual Expenditure for
Development Vote (Amount in billions TZS) ...................................390
Appendix 5. 1: TRA Outstanding prior year's audit recommendations ....395
Appendix 5. 2: Trend of revenue collection for Tanzania and Other EAC
Countries, 2014/15-2018/2019 ..................................................396
Appendix 5. 3: Consolidation of Controlled Entities’ Financial Statements
lacking ownership ..................................................................397
Appendix 6. 1: Entities with Internal Audit weaknesses .....................402
Appendix 6. 2: Entities with deficiencies in Audit Committee .............405
Appendix 6. 3: HIV and AIDS Reduction ........................................409
Appendix 6. 4: Entities with Risk Management deficiencies ...............410
Appendix 6. 5: Information and Communications Technology Deficiencies
........................................................................................412
Appendix 7. 1: Shortage of staffs ...............................................415
Appendix 8. 1: Actual Collection against Total approved recurrent and
development estimates ...........................................................418
Appendix 8. 2: Approved budgets against actual funds received for recurrent
and development ..................................................................421
Appendix 8. 3: Revenue Actual Collection Against approved estimate ...425
Appendix 8. 4: Agencies which remitted funds to the Consolidated Account
........................................................................................429
Appendix 8. 5: Lists of Entities Accounts Payable ............................431
Appendix 8. 6: Lists of Entities Accounts receivable ........................438
Appendix 8. 7: Interest charged on unpaid Claims of Consultants and
Contractors .........................................................................445

CG - Annual General Report 2018 / 19 xi

Appendix 8. 8: Irregular noted in Construction project contracted to TBA
........................................................................................454
Appendix 8. 9: Imprest issued to non – staff members .....................456
Appendix 8. 10: Weaknesses noted during audit of government expenditures
........................................................................................458
Appendix 8. 11: Weaknesses noted in Referral Hospitals ...................462
Appendix 8. 12: Irregularities noted on the Rehabilitation and Supply of
ferries ................................................................................465
Appendix 9. 1: Delayed completion of construction works .................470
Appendix 9. 2: VFM assessment for major projects implemented 2018/2019
........................................................................................472
Appendix 10. 1: List of entities with inadequately supported payments .476
Appendix 10. 2: List of entities with weaknesses on imprest management
........................................................................................479
Appendix 11. 1: Buildings requiring major renovation .......................482
Appendix 11. 2: Accrued Expenses ..............................................486

CG - Annual General Report 2018 / 19 xii

 ABBREVIATIONS AND ACRONYMS

% Percent
£ Sterling Pound
€ Euro
AIDS Acquired Immune Deficiency Syndrome
AI Artificial Insemination
CAG Controller and Auditor General
CCTV Closed-Circuit Television
CF Consolidated Fund Account
CG Central Government
EFD Electronic Fiscal Device
ERVs Exchequer Receipt Voucher
FS Financial Statements
FY Financial Year
GCC General Conditions of Contract
HIV Human Immunodeficiency Virus
ICT Information and Communications Technology
IFMS Integrated Financial Management Information System
INTOSAI International Organization of Supreme Audit Institution
ISSAIs International Standards of Supreme Audit
ITA Income Tax Act
LGA Local Government Authorities
LGTI Local Government Training Institute
MDAs Ministries, Departments and Agencies
MDs Ministries and Department
MOFP Ministry of Finance and Planning
NAOT National Audit Office of Tanzania
NCAA Ngorongoro Conservation Area Authorities
No. Number
OI Other Institution
PFR Public Finance Regulations
PMG Paymaster General
PO-RALG President’s Office Regional Administration and Local
Government.
PPA Public Procurement Act, 2011 (amended 2016)
PPR Public Procurement Regulations, 2013 (amended 2016)
REA Rural Energy Agency
Reg. Regulations
RRH Regional Referral Hospital

CG - Annual General Report 2018 / 19 xiii

RS Regional Secretariat
S/N Serial Number
SCC Special Conditions of Contract
SRTCF Statement of Receipts and Transfers of the
Consolidated Fund
TANAPA Tanzania National Parks
TANESCO Tanzania Electrical Supplies Company Ltd
TANROAD Tanzania Roads Agency
TAWA Tanzania Wild Life Management Authorities
TFSA Tanzania Forest Service Agency
TISS Tanzania Interbank Settlement System
TOSCI Tanzania Official Seed Certification Institution
TPF Tanzania Police Force
TSA Treasury Single Account
TZS Tanzanian Shilling
URT The United Republic of Tanzania
USD United States Dollars
VAT Value Added Tax
WSDP Water Sector Development Project

CG - Annual General Report 2018 / 19 xiv

 PREFACE
Auditing has become an integral
element of Government
accountability. All those responsible
for the application of public resources
have a responsibility to account for not
only their use but also what they have
achieved with those resources. My
experience has noted a substantial
increase of 15% in number of audited
entities compared to 255 entities audited in previous financial year.
This increase has brought with it a demand for full accountability by
those entrusted with public funds and the responsibility for properly
managing public resources.

With great honour, I have a pleasure to submit my inaugural annual

general audit report for the Central Government’s financial
statements for the financial year ended 30 June, 2019 since my
appointment on 3rd November, 2019 by his Excellency Dr. John Pombe
Joseph Magufuli, the President of the United Republic of Tanzania as
the seventh Controller and Auditor General of the United Republic of
Tanzania.

The mandate of the Controller and Auditor General (CAG) to audit

public sector is derived from Article 143 (4) of the Constitution of
United Republic of Tanzania of 1977 (as amended from time to time)
that requires the Controller and Auditor General to submit to the
President of the United Republic of Tanzania every report he makes
pursuant to the provisions of Sub article (2) of this Article. Further,
Regulation 88 of the Public Audit Regulations, 2009 requires the
General Reports to be submitted to the President by 31st March and
the President shall further direct the person concerned to submit
that report within seven days from the day the first sitting of the
National Assembly began.

CG - Annual General Report 2018 / 19 xv

The reporting powers given to the CAG and, through me, to the NAO,
enables the NAO to report independently, without fear or favour, on
the Government’s use of public money. This report demonstrates how
the NAOT has exercised these powers to enable the Parliament to
hold Government accountable.

The findings and recommendations presented in this annual general

audit report are aimed at empowering oversight authorities and
executive leaders to focus on those issues that will result in reliable
financial statements, credible reporting on public service delivery
and compliance with laws and legislations.

Looking forward, I have set priorities and actions in three key areas;
firstly, I shall continue to work towards achieving positive impact
from the government work that supports worthwhile change for
people of the United Republic of Tanzania. Working constructively
with the government to continue to drive good governance by having
a framework in place which facilitate good decision making, clear
accountability and improve value for money by producing relevant,
insightful reports with clear recommendations that are accepted and
implemented.

Secondly, I shall continue to demonstrate the internal effectiveness

and accountability of the National Audit Office. In this case I shall
continue to review the way National Audit Office works, including
securing and developing the right skills so that I can continue to
deliver relevant and valuable work within available resources.

Thirdly, I shall continue to deliver public audit at the significant lower

cost than for other comparable jurisdictions reflecting the efficient
operating model of the NAOT.

Charles E. Kichere
Controller and Auditor General

CG - Annual General Report 2018 / 19 xvi

 ACKNOWLEDGEMENT

My office has continued to demonstrate its relevance, credibility and

trust to its esteemed stakeholders in strengthening accountability,
transparency and integrity in the public sector and Government in
general by producing high quality audit reports. These
accomplishments have been possible with the combined efforts from
different stakeholders who dedicated their efforts, time and other
resources.

Thus, I wish to thank the President of United Republic of Tanzania,

His Excellency Dr. John Pombe Joseph Magufuli for his continued trust
to my office; Members of the Parliament and the Parliamentary
Oversight Committees for engaging into fruitful dialogue to ensure my
office remains independent without interference from the Executive.

My sincere appreciation is extended to the former Controller and

Auditor General, Prof. Mussa Juma Assad for steering this office with
utmost professionalism during his term and finally handed it to me as
7th Auditor General of United Republic of Tanzania. Such stability
enables me to complete all planned audit assignments and to fulfil
my constitutional obligations.

Many gratitude goes to the Ministry of Finance and Planning for their
continuous cooperation and coordination efforts towards allocation
of resources to the National Audit Office. I am also, thankful to all
Development Partners for their diligent efforts and resources toward
fulfilling my constitutional mandates and the management of audited
entities for their invaluable cooperation throughout the audit.

Finally, the financial and administrative autonomy and availability of

appropriate human resource are the lubricants that enable me to do
my planned activities at the supreme audit office as well as Mandated
in the constitution. I therefore extend my heartfelt appreciation to
all the staff of the National Audit Office for their commitment and
dedication in the accomplishment of this responsibility as well as

CG - Annual General Report 2018 / 19 xvii

their diligent efforts towards fulfilling my constitutional mandate. I
urge them to continue upholding the same team spirit in all their
future endeavours so that we could raise higher the image of the
office in providing efficient audit services in order to enhance
accountability and value for money in the collection and use of public
resources.

Charles E. Kichere
Controller and Auditor General

CG - Annual General Report 2018 / 19 xviii

 EXECUTIVE SUMMARY

1.0 Background Information

My report aims at demonstrating the importance of accountability in
government spending and the impact of financial and performance
management on the delivery of key programmes of government.

This report presents critical audit outcomes and recommendations of

the audited 296 entities under the Central Government that had
submitted their financial statements for audit as required by law and
regulations. Included in the audited entities are 66 Ministries votes
and Government Departments, 33 Government Executive Agencies,
16 Special Funds, 19 Political Parties; 26 Regional Secretariats, 42
Embassies and High Commission, 14 Basin Water Boards and National
Water Supply and Sanitation Authorities, 28 Regional Referral
Hospitals and 48 Other Institutions. It also includes, the audit of
Tanzania Revenue Authorities, Consolidated Accounts, and Pre - audit
of Pension files and Special audits.

2.0 Audit opinions

This year 2018/19, 294 financial statements1 were subjected to my
audit. Of 294 opinion issued, 253 were unqualified opinions, 24 were
qualified opinions, 5 were adverse opinions, and 12 were disclaimer
of opinions. The results of 2018/19 indicate that audited entities
continued to be maintained at an effective level and that there had
been a small increase in number of audit findings compared with audit
findings in 2017/18. However, Political Parties’ Financial Statements
are still challenging as 12 were issued with disclaimer of opinion
meaning that I was unable to obtain sufficient and appropriate audit
evidence on which to base the opinion.

1
Tanzania Embassy in Havana –Cuba did not prepare financial statement,while
for the Consolidated Fund, only the management letter was issued.

CG - Annual General Report 2018 / 19

General Recommendation
Sustained efforts are required by the audited entities concerned and
the Accounting Officers should ensure that the financial statements
are prepared in conformity to the prescribed Accounting Framework.

3.0 Follow up on Previous Years Audit Recommendations

In this chapter, I have incorporated an implementation status of the
action plan prepared by the Accounting Officers of respective MDAs,
RSs, Special Funds and Institutions and consolidated Government
responses by the PMG on my recommendations and those made by the
PAC. Therefore, I remain grateful for the continued support from the
PAC and the National Assembly at large towards making use of my
reports and recommendations that essentially make statutory
responsibilities of the CAG more useful.

Generally, the implementation status at the institutions level in this

financial year ended 30th June 2019 is showing inadequate
improvements compared to last year owing to the inadequate
management follow-up to address the outstanding audit
recommendations.

In performing my statutory and constitutional roles, I have therefore

included in this chapter my recommendations intended to improve
and further deepen the effective Public Financial Management and
controls within MDAs. More details are provided in chapter three of
this report.

Recommendations
My current year review shows 3.3% increment of prior year
outstanding Audit recommendations compared to the last year as
depicted in this report; further, analysis portrays that a large
portion about 38% of the prior year recommendations are those
recommendations whose implementation have started but not yet
completed. This implies that the current Government’s efforts to
strengthen the mechanism of addressing audit recommendations

CG - Annual General Report 2018 / 19 i

through task force (audit query team) at all MDAs and Public
Institutions has not yet yielded fruitful results.

Therefore, I reiterate my previous recommendation to the

government to fast track its strategy of developing Government Audit
Recommendation Implementation Information Tracking System
(GARI-ITS) under the Internal Auditor General Division in the Ministry
of Finance and Planning. This will facilitate a robust tracking of
implementation progress through Chief Internal Auditors of all MDAs
and LGAs.

Through the review of the GARI-ITS reports, it is my hope that the

government will seriously make follow ups. Also, the system should
ensure that action plan and age analysis reports be incorporated to
make sure that all recommendations are timely and effectively
implemented.

4.0 Public Finance Management

In Fiscal year 2018/19 the Government managed to collect revenue
of TZS 25,817.45 billion, being 79.50 percent of the approved revenue
estimates of TZS 32,475.95 billion, hence TZS 6,658.50 billion was not
collected. I noted decrease of collections by TZS 1,878.51 billion
being 6.78 percent when compared to Actual revenue collections of
TZS 27,695.96 billion reported in 2017/18.

From the Actual collections, Internal generated collections that is;

Tax, non-tax and LGA’s own collections were TZS 17,794.71 billion,
69 percent while Grants and Borrowings were TZS 8,022.74 billion, 31
percent.

My review noted that revenue collections of TZS 1,725.29 billion were

not accounted in Consolidated Fund; TZS 553.378 billion being LGA’s
own collections while TZS 1,171.91 billion were external borrowings
direct transfer to Projects. Unaccounted collection in Consolidated
Fund is due to unacknowledged dummy receipts and issue of dummy
exchequer in the Consolidated Fund.

CG - Annual General Report 2018 / 19 ii

As at 30 June 2019 to TZS 26,677.01 billion was released from
Consolidated Fund to meet Government expenditures, hence TZS
2,437.53 billion was drawn in excess compared to receipt of TZS
24,239.47 billion in Consolidated Funds.

Compared to my last report, I still observed non-compliance of Public

Finance Act, Regulation and issued Directives with regards to
remittance of Non tax revenue from Embassy to Collection account
by an increase of 63 percent from TZS 2.54 billion reported in 2017/18
to TZS 4.13 billion of 2018/19. In another circumstances I observed
unclaimed deposit balances of TZS 3.39 billion yet to be remitted to
Treasury despite being unutilized for a long period as well as
uncollected overdue revenue on Traffic notifications of TZS 4.57
billion since 2015/16.

It has also come to my attention that the Ministry of Natural

Resources and Tourism along with its affiliates executed unbudgeted
activities known as Urithi Festival Celebration and special Television
channel for broadcasting tourist attraction ‘Tanzania Safari Channel’
for TZS 2.58 billion without prior approval of the National Assembly.

Recommendations
To reduce the persistent deficit in the Consolidated Funds, the
Government should explore more alternative sources of revenue, and
advocate voluntary tax compliance among its citizens, so that
collections matches with the anticipated expenditures of the year.

Once again I draw attention on Funds not accounted TZS 1,725.29

billion to Consolidated fund statement of Receipt and payment;
Collections from LGAs own source and Direct to project Funds, it is
my recommendation to ensure adequate reconciliation is made
between Ministry of Finance and Planning and responsible authorities
for purpose of enhancing accountability on collection from various
Votes.

CG - Annual General Report 2018 / 19 iii

I recommend that, the Accounting Officers comply with financial laws
and regulations by ensuring that all implemented activities are
budgeted for; funds are available for the activity prior to incurring
expenditures and that all expenditures are authorized in the annual
approved budgeted by the National Assembly. Detailed findings and
recommendations are narrated in Chapter Four.

5.1 Tanzania Revenue Authority

During the financial year 2018/2019, the Tanzania Revenue Authority
collected TZS 15.74 trillion against the budget of TZS 18.29 trillion
reflecting an under collection of TZS.2.55 trillion equivalent to 14 per
cent of total revenue targets. The total revenue collected exclude
TZS.20.05 Billion being collection from Treasury Vouchers for
payments of tax exemptions and tax refunds; thus, the actual
collection for the financial year 2018/19 including treasury vouchers
was TZS.15.76 trillion.

Taxes tied up in the Appeal Machinery Pending Rulings

My audit this year noted that TRA had outstanding cases waiting for
rulings at various tax appeals machinery amounting to TZS 366.03
trillion, which is a decrease of TZS 16.58 trillion (4.33 percent) from
cases worth TZS 382.62 trillion in the financial year 2017/18.

Inefficiency in Handling and Resolving Tax Objections

I noted that TRA has lodged objections with total taxes of TZS
84,615,063,093filed by taxpayers that were outstanding beyond the
allowable period as specified in TRA Service Charter. Delay in
settlement of tax objections have a negative impact on revenue
collection targets since these cases tie up a substantial amount of
taxes.

Inefficient Management of Tax Arrears

I noted that TRA has outstanding tax in arrears amounting to
TZS 303, 091,352,906 extracted from sampled tax regions. The
outstanding taxes was attributed by inadequate follow up in

CG - Annual General Report 2018 / 19 iv

enforcement and debt management mechanism, that led to delay in
collection and pilling up of long outstanding tax arrears.

Weaknesses in Tax Revenue Collection

During the year under audit, I noted the following issues requiring the
Government attention:

a) I noted taxes and wharfage of TZS 3,701,945,200 on imported

fuel was not assessed and collected, and interest on late
payment of taxes of TZS 1,360,550,338.62 was not charged by
TRA.

b) Transit goods and fuel with total taxes of TZS

127,883,079,456.06 missing evidences of exit to the respective
countries. Absences of exit evidences imply that transit goods
and fuel might have been consumed locally without payment of
taxes.

Recommendations
The Government should improve operations and performance of Tax
Appeals Organs by allocating and releasing adequate funds and other
resources for the operations of tax appeal organs to enable timely
hearing and conclusion of tax cases.

Also, the Government should enhance the capacity of TRA in dealing

with tax objections, collection of tax arrears and assessed taxes. This
can be achieved by allocating adequate, competent and experienced
personnel in Tax Audit Unit, Technical Services Unit; and
enforcement and debt management department.

In additional, the government should strengthen controls on

clearance and collection of taxes on imported goods by ensuring that
all customs procedures are completed in assessment and collection of
taxes to avoid loss of government revenue.

Further, controls and monitoring over transit goods should be

strengthened to avoid consumption of transit goods in the local
market without payment of taxes.

CG - Annual General Report 2018 / 19 v

5.2 Public Debt Management
Total public debt as at 30 June, 2019 stood at TZS 53,105 Billion
recording an increase of TZS 2,178 Billion equivalent to four percent
of the debt stock recorded last year TZS 50,927 billion. Public debt
was made up of Domestic Debt Stock of TZS 14,863 Billion and the
External Debt Stock of TZS 38,241 Billion.

During audit, we noticed eleven loan contracts in the database with

a period of 5 to 20 years which their disbursement has not been
received. The Government realized a total of TZS 4,348 billion
(equivalent to 67 percent) at face value, 33 percent was not realized
from sale of treasury bills and bonds contrary to planned TZS 6,522
billion.

In additional, the government is yet to establish Securities Auction

Committee (GSAC) contrary to requirement of the Issuance Plan for
the year 2018/2019 and we found lack of Joint reconciliation between
Ministry of Finance and Planning and LAPF on actual payment to
pensioners made by the then LAPF.

Conclusion: Deficiencies in the public debt were caused by the

fragmented organizational structure. The establishment of the Debt
Management Division (DMD) in the year 2019/20 is expected to
smoothen and expedite implementation of recommendations.

Recommendations
In light of the above I recommend the government to; (i) set up
monitoring and evaluation mechanism that will track down the
disbursement and utilization of funds generated from public debt; the
follow up mechanism will ensure implementing agencies properly
account for the utilization of borrowings on regular basis, and
establish coordination mechanism to facilitate reconciliation of
signed loan contracts and disbursement. (ii) Consider a strategy to
promote development of domestic financial market to attract more
investors on longer term maturities (Treasury bonds). (iii) Establish

CG - Annual General Report 2018 / 19 vi

the auction committee with clear stipulated roles and responsibilities
and formally document any decisions made during auctions. (iv)
Consider having own list / database of eligible payees rather than
depending on bills raised by the agent to facilitate meaningful
reconciliation and safeguard of public resources.

5.3 Pension Files

During the year under review, 3,820 retirees’ files were examined of
which 3,448 files with terminal benefit claims totalling
TZS 157,665,096,680.74 were examined and approved for payment,
and 56 files were returned to the respective Accounting Officers
requiring amendments such as salary, period, miscellaneous incorrect
computations and contributions made to National Social Security
Fund. A total of 316 files were still under examination in my Office as
at 30th June, 2019.

In examining such files, I noted delay by employers in the preparation

and submission of retirees’ terminal benefit particulars for audit
purposes. The pre-audit noted that terminal benefits of 1,897 retirees
were delayed for various periods. Forty-six (46) files previously
queried have not been re-submitted to my Office for further clearing
up to the end of the financial year and; ten (10) approved pension
files were resubmitted for pre-audit probably intentionally.

Recommendation
I recommend to the Accounting Officers to ensure processors of
pension/gratuity adhere to pension computation formulas and laws as
well as frequent awareness training. In addition, they should ensure
timely submission of pension files with all necessary documents
attached to avoid delays in payment of terminal benefits.

5.4 Consolidated Financial Statements

I acknowledge efforts made by the government in the financial year
2018/19 to introduce the Government Accounting Consolidation
System (GACS) towards enhancing accuracy, completeness,

CG - Annual General Report 2018 / 19 vii

transparency, accountability and timely reporting to consolidate
financial statements for entities controlled by the Government.
However, I noted some challenges facing the Government in this area
which include; lack of system validation for elimination among
government entities, inadequate Application General Controls
surrounding GACS system, mismatch in the elimination balances in
the Consolidated Financial Statements, consolidation of entities with
different reporting dates without adjustments and consolidation of
controlled entities Financial Statements lacking ownership of the
respective Accounting Officers/Boards of Directors.

Recommendation
I recommend the Government to establish effective mechanism for
entities to report inter entity transactions and implement validation
in the GACS, ensure all reporting dates of controlled entities are
harmonized with their controlling entities to suit the requirements of
International Public Sector Accounting Standards.

6.0 Evaluation of Internal Control System and Governance

The assessment of the internal control systems has revealed that
there were entities with irregularities that occurred in internal audit
functions, including 5 MDAs, 2 agencies, 6 other institutions and 11
regional secretariats. In the assessment of Audit Committee function,
there were 31 entities with irregularities including 11 MDAs, 9
regional secretariats, 3 agencies and 8 other institutions. The
assessment of risk management also has identified 15 entities with
irregularities including 6 MDAs, 4 regional secretariats, 2 other
institution and 3 agencies.

Also, in Information and Communication Technology (ICT)

environment there were 18 entities with identified irregularities,
which are 4 MDAs, 8 RS, 3 agencies, 2 other institutions and 1
embassy. My assessment of fraud noted 3 regional secretariats and 1
MDAs with irregularities on fraud assessment. Detailed findings are
illustrated in Chapter Six.

CG - Annual General Report 2018 / 19 viii

Recommendations
Therefore, I recommend to the Government to establish a control
mechanisms and monitor information in order to mitigate the risk of
error, omission or fraud by reducing irregularities that occur within
the entities. In addition, I also advise the MDAs, RS, agency and
embassies management to put an effective control to check these
irregularities in the internal control systems and ensure that the
situation is resolved.

7.0 Human Resource and Payroll Management

Deliberate intervention made by the government, especially in
payroll data cleaning, has shown notable success; however, there are
still recurring issues requiring immediate attention.

Various issues addressed regarding human resource in this financial

year are mostly recurring and had been addressed in my previous
reports; except for payment for services not aligned with Public
Service (Tanzania Foreign Services) Regulations of TZS 30,936,027.39.

Recurring issues in this financial year include: staff who were found
serving in acting capacity for so long, inadequate staff allocation,
excessive deduction on employees’ salaries, absence of staff
performance evaluation, payment made to non-existing staff
amounting to TZS 196,131,000, lack of on time update of staff
transfer information in the payroll. More details of these issues are
analysed in chapter seven.

Recommendations
In view of the above, I still recommend to the Accounting Officers in
collaboration with President’s Office Public Service Management and
Good Governance to assess the staff adequacy in relation to entities
operations, plan and appoint staff to fill required position as well as
having proper Open Performance Appraisal of staff who are timely
updated in the payroll. Additionally, discourage excessive loan to
staff while complying with internal and external laws (for embassies)
in resolving human resources matters.

CG - Annual General Report 2018 / 19 ix

8.0 Government Executive Agencies
Chapter 8 is based on the audit of 33 government executive agencies,
15 special funds, 48 other institutions, 14 Basin Water Boards and
National Water Supply and Sanitation Authorities and 27 Regional
Referral hospitals, of which cross cutting and specific issues were
highlighted as summarized hereunder:
My assessment on the ability of the Agencies to be self-financing
noted that, out of assessed 30 Agencies, 16 Agencies had own source
collections above their budget for development and recurrent
(combined),while 14 Agencies had insufficient own source collections
to be able to finance their budget for development and recurrent.
Irrespective of the performance toward own source collections, these
Agencies are still depend on Government subvention to finance their
recurrent and development budget. This practice increased the
burden to the Government of which could have been avoided through
self-financing of respective Agencies.

During the audit of TANROADS, I noted the existence of penalties

imposed on late payments to the Contractors/Consultants amounted
to TZS 224 billion. This indicates debt burden to taxpayers has
increased of which could have been avoided.

During the audit of TARURA, I noted the existence of various losses

amounted to TZS 280.35 million incurred due to inadequate
procurement decision as well as unsatisfactory supervision of the
construction contracts.

In my audit of TBA, I revealed the existence of loss amounting to TZS

8.85 billion in a terminated Contract for the Design and Construction
of Office Building for National Electoral Commission (NEC)
Headquarter. This loss was incurred from a rejected payment claims
of executing addition works before obtaining Employer approval

During the audit of NFRA, I noted the existence of loss amounting to

TZS 691.45 million due to the decision of relocate/shift the
construction site after the commencement. This decision was made

CG - Annual General Report 2018 / 19 x

after it was found that Babati Town Council had allocated twice the
same plot/site to TANESCO and NFRA and resulted to ownership
dispute.

During the audit of Drilling and Dam Construction Agency (DDCA) I

noted that five (5) Pump kits worth TZS 840,000,000 were procured
since 2014, however, these pump kits were not put into use and
grounded for almost 6 years at headquarters vehicles yard.

Also, I noted that Maswa Water Supply and Sanitation Authority had
paid TZS 76.7 million to Maji Central Stores for the supply of float
water pump since March 2017, however these pump kits are yet to be
delivered for the period of 3 years.

During my review at NIDA, I realized that NIDA had managed to

register 21,692,122 persons for National IDs. Out of which 17,100,178
persons were issued with National Identification Number and leaving
4,591,944 persons (21%) yet to receive their National Identification
Number (NIN).

I further noted that out of 17,100,178 persons issued with National

Identification Number (NIN), only 5,996,304 ID cards were produced
leaving 11,103,874 persons (equivalent to 65%) yet to receive their ID
cards.

I further revealed that NIDA had not recovered the advance

amounting to TZS 28.21 billion paid to M/s IRIS Corporation Berhad of
Malaysia (Contractor) for the procurement and supply of goods and
equipment for National ID system. Even though, the contract had
expired since 14 March 2018 (2 years ago).

I also noted in NIDA that, 33 ICT equipment supporting BVR machines

were missing in various Councils. These missing equipment are
laptops, cameras, disks, derma log, solar and adopter.
I noted that fuel levy and transit charges amounting to TZS 7.06
billion collected by Tanzania Revenue Authority was not transferred
to Roads Fund Board (RFB).

CG - Annual General Report 2018 / 19 xi

In the audit of regional referral hospitals, I noted the medical claims
amounting to TZS 1.48 billion were rejected by NHIF owing to
inadequate supporting records submitted.

Recommendations
In light of my audit of entities, I recommend that:
The Government to consider the possibility of directing Executive
Agencies (based on their activities nature) to be financially
independent by using own revenue collections to finance their
approved budget. This decision could reduce the burden of financing
these agencies and the fund saved being allocated to other areas in
need.

Government should come up with strategies/policies that will ensure

outstanding debts are settled within the contractual timeframe, to
avoid further accumulation of this interest/penalties imposed on
payment delays.

TARURA managements in the execution of their duties, strive to

achieve the highest standards of equity, taking into account- (a)
equality of opportunity to all tenderers (b) fairness of treatment to
all parties; and (c) the need to obtain the best value for money

TBA should engage its resources towards achieving primary mandate

of providing consultancy services to the Government ahead of
construction activities

PO-RALG should investigate double allocation of plot to NFRA and

TANESCO by Babati Town Council for disciplinary action against all
responsible staff and follow-up to ensure the loss incurred by NFRA is
refunded.

Inadequate procurement made by DDCA for the grounded pump kits

for almost 6 years, should be investigated by responsible authority for
further action.

CG - Annual General Report 2018 / 19 xii

NIDA should speed up the process of issuing identification number to
the registered persons to enable the owner of mobile phones to
comply with TCRA directives of all SIM cards to be biometrically
registered. Also, NIDA is recommended to ensure the remaining
advance is recovered from the Contractor. Finally, NIDA should take
immediate action to ensure the ICT equipment lost are replaced in
order to resume the registration pace as well as ensure legal actions
are enforced against those responsible for theft.

Tanzania Revenue Authority (TRA) to transfer TZS 7.06 billion to

Roads Fund Board

9.0 Procurement and Contract Management

Public procurement has continued to be one of the largest
expenditure component which constitutes budgets of MDAs; hence
adherence to laws, regulations, guidelines and circulars on public
procurement becomes critical. My audit scope covered compliance
with Public Procurement Act No.7 of 2011(Amended 2016) and its
Regulations GN.No.446 of 2013(Amended, 2016).

The significant procurement issues noted in this year’s report include

among others; irregularities noted in the contract for supply of pole
tents for National Electoral Commission (NEC) worth TZS
6,306,146,740; inadequate implementation of Annual Procurement
Plan whereby I noted seven (7) MDAs/RS procured goods and services
worth TZS 3,605,775,412 which were not contained in the
procurement plan contrary to Sec.49 (2) & (3) of PPA,
2011.Also,Ministry of Information, Youth, Culture, and Sports (Vote
96) entered into a contract with M/S Selcom Paytech PLC for
provision of electronic ticketing system at Main National and Uhuru
stadia. However, I noted that the Ministry signed the referred
contract contrary to the Government directives which instructed the
Ministry not to offer the contract to any of the two bidders who had
bid for the tender.

CG - Annual General Report 2018 / 19 xiii

I further noted that Ministry of works, Transport & Communications
(Vote 62) paid TTCL for procurement of battery cells, connectors and
other accessories for replacement in the National ICT Broadband
Backbone (NICTBB) sites worth TZS 1,647,512,344 without
Memorandum of Understanding between the Ministry and TTCL.

I also noted that Five (5) audited entities made procurement of goods
and services worth TZS 5,460,101,227 without contracts contrary to
Regulation 10(4) of PPR, 2013 (amended 2016).

Besides, I noted that Ministry of Agriculture (Vote 43) procured

agricultural chemicals worth TZS 3,341,158,850 but the same were
not distributed to the intended beneficiaries. Delays may cause the
chemicals to expire before use.

Moreover, I noted procurement of goods and services worth TZS

4,643,629,092 made by nine (9) audited entities without competitive
tendering contrary to Regulations 163 & 164 of the PPR, 2013.

Furthermore, seven (7) MDAs made procurement of goods worth TZS

1,620,940,789 without inspection of the same contrary to Regulation
244(1) of PPR 2013(amended 2016). This practice may increase the
risk of receiving substandard or inferior goods.

I also noted that the Judiciary of Tanzania (Vote 40) entered into
contract for the construction of sixteen (16) Courts in Tanzania worth
TZS 10,351,638,077; however, the construction of 4 courts had not
started despite advance of TZS 1,469,768,705 being paid to the
contractor.

Further, stores items worth TZS 5,493,672,834 were not accounted

for in the stores’ ledgers; thus, I could not track its accountability but
also their use.

Apart from that, GPSA procured and delivered used bus to the Ministry
of Natural Resources and Tourism, which did not meet specification
TZS 508,288,800.

CG - Annual General Report 2018 / 19 xiv

In addition, five (5) MDAs made procurements of goods and services
worth TZS 456,681,496 without being approved by Tender Board
contrary to Sec 35(3) of PPA, 2011(amended 2016)

Results of my audit indicated that eighteen (18) MDAs/RS did not

manage well the contracts worth TZS 22,312,690,753 which entered
between them and various contractors. This weakness had
contributed to the late completion of some of the projects and
sometimes substandard performance of the same. Apart from my
audit I have included in chapter nine, audit findings from PPRA.
Detailed findings are in chapter nine.

Recommendations
I recommend the Management of the audited MDAs/RS to see to it
that they fully observe the requirement of procurement laws
specifically in the area of preparation and implementation of Annual
Procurement Plans (APPs), approval of procurements by Tender
Board, inspection of procurements. The Accounting Officers of
MDAs/RS should make sure that the PMUs and TBs are properly
constituted and discharge their responsibilities as prescribed in the
Public Procurement Act and its Regulations. On the aspect of delay in
completion of contracts. I recommend the management of MDAs/RS
to observe terms and conditions in the respective contracts and
strictly ensuring the liquidated damages are charged in case of failure
to comply with the terms and conditions of the contracts.

10.0 Expenditure Management

The following is the summary of the weaknesses noted on expenditure
management during the audit of financial statements for the financial
year ending 30th June, 2019. More detailed information is contained
in chapter ten of this report and respectively amplified by individual
management letters. My audit noted, irregularities on the transfer of
fund by Fire and Rescue Force for construction of head office in
Dodoma TZS 1,746,146,300, irregularities on the payments made by
Tanzania Police force for construction of various infrastructures TZS
806,685,000, exorbitant costs for hiring chairs, tents and private

CG - Annual General Report 2018 / 19 xv

vehicles by the Tanzania Peoples Defence Force TZS 489,801,253.13,
fraudulent EFD receipts issued to Tanga Regional Secretariat
amounting to TZS 70,000,000, inappropriate use of imprest account
by the Tanga Regional Secretariat TZS 615,737,000.

Additionally , I noted fraudulent transactions that resulted in a loss

of cash at Morogoro Sub Treasury office of TZS 71,958,000,
inadequately supported expenditure of TZS 5,060,449,260.43
payment made without being authorized of TZS 719,479,937.89,
overpayment by TZS 459,198,571.87, weaknesses on the
management of imprests, TZS 5,430,595,090.29, payments made
without demanding Electronic Fiscal Device receipts (EFD) of TZS
895,372,760, nugatory expenditure of TZS 948,931,276.65 and
expenditure charged to wrong accounting codes equal to TZS
1,807,238,083.84

My audit of embassies noted exorbitant rental charges for Diplomatic

Residential Houses TZS 1,016,202,708 and inadequately supported
payments by embassies running to TZS 645,066,378.66. Detailed
findings are in chapter ten.

Recommendations
Generally, I recommend the Government to make sure that internal
controls are developed and strengthened including effective
segregation of duties, regular and well supervised bank
reconciliations, and compliance with applicable laws, regulations,
directives and government circulars. Additionally, I recommend that
the Accounting Officers to strengthen their internal controls and
minimize the risk of recurrence and pursue the recovery of funds
wrongly taken or not properly accounted for.

11.0 Assets & Liabilities Management

International Public Sector Accounting Standards as well as directives
and guidelines from the Ministry of Finance have been developed for
the effective management and control of Government assets.
However, over the years, ministries/departments, regional

CG - Annual General Report 2018 / 19 xvi

secretariats and embassies have revealed a number of weaknesses
including: abandoned buildings, particularly from embassies which
require major renovation, completed houses not in use for diverse
reasons, fixed asset registers not updated, grounded assets neither
classified as held for sale nor serviced, lack of certificates of
occupancy for Government Land and Buildings, non-codification of
assets and non-preparation of assets maintenance plan and records.

11.1.1 Accounts Receivable

I noted 27 entities reporting receivables amounting to
TZS 41,497,847,243 when compared to 2017/18 receivables of
TZS 222,695,169,207, there is a decrease of TZS 181,197,321,964
equivalents to 81 percent. This is a remarkable achievement to be
embraced although Tanzania Police Force, Ministry of Health, Prison
Service Department and National Land Use Commission need to exert
more efforts in collecting their receivables.

11.1.2 Audit of Accrued Expenses Management

Government efforts on clearing of accounts payable has been noted
although TZS 2,687,140,232,434 was reported as outstanding payable
during the year under review compared to TZS 3,109,419,395,085
reported in the previous year indicating a decrease of
TZS 422,279,162,651 (14 per cent). Ministry of Defence and National
Services had an outstanding payable of TZS 1,045,499,689,187 (39%),
followed by Tanzania Police Force TZS 651,358,243,645 (24%),
Tanzania Peoples’ Defence Force TZS 286,851,148,594 (11%), Ministry
of Health TZS 272,629,610,089 (10%) and Ministry of Works Transport
and Communication. TZS 144,408,601,208, (5%). Other entities
represented only 11 percent of the total outstanding payable.

11.1.3 Contingent Liabilities

A contingent liability is a potential liability that may occur in the
future, such as pending lawsuits. Litigation claims amounting to TZS
639,940,032,405 were reported for sixteen (16) audited entities
pending decisions of the court against various companies and
individuals. In 2017/18, TZS 52,631,626,397 was reported from eleven

CG - Annual General Report 2018 / 19 xvii

(11) entities. The detailed findings are presented in chapter eleven
of this report.

Recommendations
I suggest to the Government to release funds as per approved budget
to avoid accumulation of liabilities.
I propose to the ministries, departments and regional secretariats to
formulate strategies to ensure that uncollected revenues are
collected within reasonable time, failure of which legal measure be
taken against defaulters. Accounting Officers with outstanding
receivables for more than two years to exert more effort in collecting
those debts before they become uncollectible leading to loss of
Government revenue.

I recommend to the Government to ensure that the risks from

Contingent Liabilities are managed in a framework where the analysis
and measurement of risks form a basis for developing a risk
management strategy and designing effective risk mitigation tools.

I call upon the Government to make certain that the fixed asset
registers are updated not only for financial statements purposes but
also for the accountability of assets management. I recommend all
entities to maintain updated asset registers and this should be done
timely for proper reporting, easy tracking of assets and for
accountability purposes.

The Certificate of Occupancy not only gives a quick update official

record of who owns a land but also serves as an evidence in resolving
land conflicts during encroachment. I, therefore, recommend to the
Director of Government Asset Management under the Ministry of
Finance in collaboration with the Ministry of Land and Human
Settlement to expedite the entities efforts to acquire title deeds.

Since renovation and construction require huge amount of money

which may not be available at once, I, therefore, recommend to the

CG - Annual General Report 2018 / 19 xviii

Government to establish effective renovation and construction plans
for embassies’ buildings which can be implemented in phases. By so
doing, this will aid the Government to move the impact from one
embassy to another until all those embassies facing these challenges
are exhausted.
12.1 Audit of Political Parties and Special Audits
This financial year 2018/19, I have audited all nineteen (19) Political
Parties and in summary the following are the key issues emanated
from my audit.

In my audit, I noted CUF deposited TZS 422,990,000 in one of its bank

accounts of which the legitimacy of the funds deposited was not
confirmed. I further found that out of Sixteen (16) Motor Vehicles
owned by CUF, seven (7) vehicles were listed by the name of CUF
while the other nine (9) vehicles were registered by the names of the
CUF members. Furthermore, I realized that the loan of TZS
85,000,000 was released by CUF to one of the radio stations in Tanga
which is yet to be recovered. I also learned that the mentioned radio
station was owned by three (3) directors, who are also the directors
at CUF. Through my review, I noted that CUF Party made a transfer
of TZS 300,000,000 to the Personal Bank Account of one of the Party’s
members, and TZS 60,000,000 was cashed out; however, no
expenditure records were submitted for my scrutiny. Along with this,
I also noted TZS 47,000,000 was withdrawn from the CUF bank
account by one of the party’s directors without the approval of the
Secretary-General.

On review of CCM records, I noted CCM owns 5,660 land plots across
Tanzania Mainland and Zanzibar; however, out of 5,660 land plots
owned, 5,261 plots do not have title deeds. Further, I also revealed
that Jumuiya ya Wazazi (CCM) illegally evicted the tenant on one of
the sublet premises and paid a total of TZS 60,000,000, as loss
compensation for unlawful eviction. I also noted Shirika la Uchumi na
Kilimo la Dar es Salaam (SUKIDAR) – CCM had signed an agreement
with one of the Korean Company to establish a Company for Medical
Care. However, I realized that no CCM director was appointed in the

CG - Annual General Report 2018 / 19 xix

Board of Directors of the formed company in contrast to the terms of
the agreement.

On the other hand, I audited CHADEMA and noted that CHADEMA

expended a total of TZS 205,419,100 without the approval from the
CHADEMA Governing Council.

My further review revealed that TZS 534,844,248 was collected by

nine (9) political parties; however, the amount received was not
deposited in the respective bank accounts. In addition, I noted nine
(9) political parties prepared their financial statements without
pronouncing the applicable financial reporting framework. I also
noted TZS 2,132,906,798 was expended by eleven (11) political
parties without supporting documents. Moreover, I noticed four (4)
political parties which did not maintain the membership register.
Besides, I revealed eight (8) political parties out of the nineteen (19)
audited, which had not prepared the monthly bank reconciliation. My
audit also noted four (4) political parties which did not maintain the
asset register. It also came to my attention that assets listed in the
UPDP register were not in existence. Further, I pointed out that the
following parties; DP, CCK and CHAUMMA did not declare to the
Registrar of political parties the assets owned. Detailed findings are
presented in Chapter 12 of this report

Recommendations
On the Mismanagement of Government Subsidies at CUF, I
recommend that the internal controls at CUF be intensified to de-
escalate the risks of fraud, misappropriation, and embezzlement of
the member’s fund. Further, an investigation should be initiated to
establish the accountability of TZS 416,000,000 suspiciously
withdrawn from CUF bank accounts.

On Management of CCM Investment, I recommend that CCM reviews

its existing investment policies, to address the need of the
contemporary business environment, and establish an industrious
committee for managing its joint venture projects.

CG - Annual General Report 2018 / 19 xx

On Using Acceptable Accounting Framework by all Political Parties, I
recommend that all political parties to prepare Financial Statements
on the IPSAS framework, as directed by the Registrar of the political
parties. Along with this, I also recommend that political parties to
develop and retain the updated register for members and assets, and
perform monthly bank reconciliation to restrain the chances of
doubtful bank withdraws from the perfidious leaders.

12.2 Special Audits

During this financial year 2018/19, my office was engaged to carry
out 8 Special Audits, where seven (7) audits were undertaken on
public institutions, and one (1) of the audit was executed at TGGA,
which is a non-governmental organization. The following are critical
issues observed during my review:

Special Audit on Contract No. AE/008/2015-2016/HQ/C/3 between

REA and SMEC International Pty Ltd and Contract No.
AE./008/2016-2017/HQ/G/9,10, and 11 between REA and Twenty-
Nine (29) Contractors on the Detailed Survey and Detailed design
In my audit, I noted the Rural Energy Agency (REA) contracted the
Consultant SMEC INTERNATIONAL PTY LTD for the consultancy
services in the detailed survey, detailed design and preparations of
the bidding documents for the constructions of Medium Voltage (MV)
and electrifications in 7,893 villages in the Tanzania Mainland at a
price of TZS 1,083,301,547.62. The consultancy report from SMEC
International Pty Limited was considered as a significant
breakthrough in the engagement of the 29 contractors who were to
be involved in connecting 7,893 envisaged customers.

However, I learned that before the consultancy report was presented

by SMEC INTERNATIONAL PTY LTD. REA and TANESCO had procured 29
contractors through desk information available. Therefore, I consider
the consultancy services from SMEC INTERNATIONAL PTY LTD at a sum
of TZS 1,083,301,547.62 was misuse of the taxpayers’ money as REA
did not make use of the report. I further revealed four (4) contractors

CG - Annual General Report 2018 / 19 xxi

who were paid TZS 335,707,277 before the scope of their work was
approved by REA. In this context, I noted significant acts of
corruption, fraud, and abuse of office by the REA management.

Special Audit on the Construction Projects (Ushirika Towers)

Owned by the Tanzania Federation Cooperatives (TFC)
In this audit, I noted the Tanzania Federation of Cooperatives (TFC)
contracted China Civil Engineering and Construction Corporation
(CCECC) to construct the new building and refurbish the old Ushirika
Towers. However, I noted that the new building (20 storeys) was not
installed with an automatic fire sprinklers; as a consequence, the
additional cost of TZS 999,517,100 was incurred for the unplanned
works which resulted from the inspection carried out by the Fire and
Rescue Force.

On a similar note, I realized the works valued TZS 22,582,944,452.41

were endorsed for payments; however, through my verification, I
gathered that only the works valued TZS 18,581,093,206.44 were
completed. As a result, works totalling TZS 4,001,851,250 were paid
for the works not executed. I further learned that the works costing
TZS 582,864,029 were ratified by the Consulting Engineer (Cons Africa
Limited) as performed. However, through my verification, I pointed
out that the said works were not carried out. As such, the China Civil
Engineering and Construction Corporation (CCECC) had defalcated
TZS 582,864,029 from the TFC members’ fund.

In supplement to the above, I noted the leasing of the CRDB Bank for
40 years was not communicated to the Registrar of Cooperatives
Societies for approval, and CRDB Bank did not pay withholding taxes
of TZS 288,162,453.02 to TRA.

Special Audit on the Allegations Related to Fund Misappropriation

on the Fire and Rescue Force Welfare Fund at the Fire and Rescue
Force

CG - Annual General Report 2018 / 19 xxii

My audit at the Fire and Rescue Force revealed the misappropriation
of TZS 66,000,000, which was deposited by NMB Bank for fire
awareness training in Southern, Northern, Eastern, Coastal, Southern
Highlands, Lake, and Western Zones. The fraud was conceived by the
Regional Accountant (Ilala) through a syndicate with other officers at
Fire and Rescue Force. I further learned that a total of TZS
14,200,000, which was claimed to be deposited by three (3) clients
for Fire Prevention and Precaution, was actually not deposited;
instead, the Regional Accountant (Ilala) and other officers at Fire and
Rescue Force withdrew the same amount from Fire and Rescue bank
account and hence defrauded the Fire and Rescue Force.

Special Audit on the Issued Carrying on Temporary Assignment

(CTAs) to Visitors at Dar es Salaam Immigration Department,
Immigration Regional Office (Mtwara), and Julius Nyerere
International Airport (JNIA)
I noted one of the Immigration Officers had issued 1,249 illegal CTA’s
permits to 328 visitors who arrived in the United Republic of Tanzania
for the first time in 2013 and 2014 to construct Dangote Cement
Factory and occasioned the loss of USD 65,600 to the Government. I
further learned that, 921 CTA’s permits for 488 visitors at Dangote
Cement Company were illegally renewed. On a similar note, I also
noted 629 visitors who did not apply for the Special Pass; as a
consequence, the Government was denied the revenue amounting to
USD 377,400. On top of that I also noted the same visitors (629)
declined to lodge applications for Resident Permits and resulted in a
loss of USD 1,289,450 to the Government.

In my review, I learned that one of the Immigration Officers at the

Mtwara Immigration Office was involved in the processing of these
illegal CTA’s. Through the interview, he confirmed to commit these
fraudulent acts with nine (9) other immigration officers at Mtwara
Regional Immigration office and one (1) of the officers at Dangote
Cement Company. My further review revealed that the Dangote
Cement Company had made a cash payment of USD 261,600 to the

CG - Annual General Report 2018 / 19 xxiii

named officer, and such amount was neither surrendered nor
deposited in the Immigration Department Bank accounts.
Special Audit on the Construction of Dormitory and Lecture Hall at
Olmotonyi Forestry Training Institute in Arusha
I learned that the Institute engaged the contractor (United Builders
Ltd) for the construction of the referred lecture hall and dormitory
buildings at a sum of TZS 2,840,013,090 while funds committed by
the Donor was TZS 1,800,704,600. As a consequence, the original
scope of work was reduced by 36.6 percent, and 52 percent of the
work was downsized in the construction of the dormitory to
accommodate 100 students instead of 200 students as previously
planned. At the same time, 48 percent was allocated in the
dormitory; however, the ground of the works redistributed was not
evident during my review. I further learned that works valued at TZS
1,903,974,600 were approved by the Consulting Engineer (Kapwani
Architects) without measuring the actual works executed.

Special Audit on the Developed Joint Venture Project between

Tanzania Girl Guides Association (TGGA) and Jafferji Developers
Limited (JDL) from 2010 to 2018
In my review, I noted that TGGA and JDL had signed the Joint venture
agreement for developing three (3) Towers Commercial and
Residential Complex Buildings at Upanga, Dar es Salaam on the land
plot provided by the TGGA. However, I learned that the Joint venture
agreement signed had no concessional period.

Also, I noted the land plot relinquished was not valued before the
commencements of the construction works. Along with this, I also
noted the Developed Properties had no Consulting Engineer.
Therefore, I was confined to determine the correctness of cost
estimates of TZS 27,582,982,162 declared by the Director from JDL.
Further to that, I noted one of the Sister Company to JDL was engaged
as the Property Manager on the developed Properties, and TZS
204,935,305 collected as the rent was yet to be remitted to TGGA by
the same Company. In this context, I noted a significant conflict of
interest in all transactions effected.

CG - Annual General Report 2018 / 19 xxiv

In my review, I also noted the mobilization costs of TZS 20,000,000
paid by JDL was defrauded by one of the officers at TGGA. At last
instance, I revealed TZS 72,180,000 remunerated by JDL as liquidated
damage for the delays was also deceived by one of the Officers at
TGGA.

Special Audit on the Committed Expenditure of TZS 8,000,000 at

President’s Office Public Service Management and Good
Governance (POPSM) from 1 July 2919 to 4 November 2019
My audit revealed TZS 5,380,000 was misused by one of the officer at
POPSM through the pretence of car breakdown and additional
allowances to Commissioners who were in a Special visit in Simiyu and
Mwanza which in fact was not true. I further noted TZS 35,508,000
spent for the visits was inadequately supported. After having
corroborate the available facts, I then concluded that the amount was
fraudulently expended. On the same account, I noted fuels worth TZS
4,048,000 was not accounted for in the logbooks; therefore, I was
limited to confirm the correctness of the fuels used. On top of that,
I realized the imprest of TZS 4,300,000 taken by one of the officers
at POPSM was not retired, and one of the offices defrauded TZS
1,000,000 for leaflets which he never purchased.

Special Audit at National Housing and Building Research Agency

(NHBRA) from 2010 to 2018
I spotted out TZS 16,990,300 paid to four (4) employees for attending
seminars and workshops in Uganda; however, there were no records
submitted in support the participation of the said training by the
named officers.

I learned that the payments of TZS 3,552,069,844.03 made by NHBRA

were not pre-audited; as a consequence, a total amount of TZS
2,834,066,632.56 was spent without adequate supporting documents.
Moreover, it came to my attention that five (5) buildings costing TZS
418,999,895 were repaired following the directives from the
Permanent Secretary Ministry of Land, Housing and Human

CG - Annual General Report 2018 / 19 xxv

Settlements Development. However, there were no contracts signed;
as a result, the correctness of the amount remunerated could not be
confirmed.

On the other hand, I revealed items worth TZS 318,672,014.62, which

were purchased by the NHBRA; however, there were no records in the
ledger books to confirm the receiving of the listed items. Similarly, I
spotted out payments totals TZS 1,308,660,394.98, which were
effected outside the approved budget contrary to Reg. 46(3) of the
Public Finance Act 2001 (revised 2004). Finally, I established that
five (5) land plots owned by the NHBRA lacked title deeds and twelve
(12) revenue collection books, which were not submitted during my
review.

Recommendations
On the Special Audit Conducted at Public Institutions
I recommend the internal controls at REA ,TFC , POPSM, NHBRA , Fire
and Rescue Force, Immigration Department, and Olmotonyi Forestry
Training Institute be bolstered to lessen the prevailed risks of fraud
and embezzlement of public monies. Along with this, I also
recommend legal and disciplinary proceedings be instituted against
all officers who were involved in the fraud schemes that drained the
taxpayer’s fund.

On the Special Audit Conducted at TGGA

I recommend the Registered Trustees of TGGA to decline the Services
of the Property Manager to avoid the predominant conflict of interest
in the management of the properties. Besides, I also recommend the
entire properties valued, and new share allocation bargained. More
useful, the concessional period should be established and enclosed in
the revised Joint venture Agreement.

CG - Annual General Report 2018 / 19 xxvi

 CHAPTER ONE

1.0 BACKGROUND INFORMATION

1.1 Introduction
The National Audit Office of Tanzania is a Supreme Audit Institution
of the United Republic of Tanzania. The office is responsible for
auditing public sector entities, thus providing objective information,
advice and assurance to the Parliament, legislative, Tanzanians and
other stakeholders on whether their financial management is in
conformity with applicable laws and regulations. The Office is
headed by the Controller and Auditor General.

1.2 Mandates
The mandates of the Controller and Auditor General (CAG) have been
derived from Article 143 (2) & (4) of the Constitution of United
Republic of Tanzania of 1977 (as amended from time to time) that
require him among others, to at least once every year to audit the
accounts of the Government, of the clerk of the National Assembly
and of all courts of the URT and submit to the President of the United
Republic of Tanzania every report he makes. Upon receipt of such
report, the President shall direct the person concerned to submit that
report before the first sitting of the National Assembly which shall be
held after President has received the report and it shall have to be
submitted to such sitting before the expiration of seven days from the
day the sitting of National Assembly began.

Furthermore, my constitutional mandates allow me to fulfil my

responsibilities without any external interferences. Section 15 of the
Public Audit Act, 2008 has granted me unrestricted access to the
information/documents, people, computers and other information
systems and assets to a reasonable extent for proper performance
my functions, responsibilities and exercise of my powers. Moreover,
Section 17 of the Public Audit Act, 2008 mandates me to determine

CG - Annual General Report 2018 / 19 xxvii

the scope and the extent of the audit as considered in carrying out
my responsibilities and functions.

This report details the audit findings and recommendations resulted

from the audit of the financial statements of the Central Government
and its institutions for the financial year ended 30th June 2019 as
required by Article 143 (2) & (4) of the Constitution of the URT of
1977 (as amended from time to time) and Section 10 (1) of the Public
Audit Act, 2008.

As head of the Supreme Audit Institution of the United Republic of

Tanzania, I acknowledge my responsibilities, functions and powers as
provided for in the Constitution, the Public audit Act of 2008 and the
Public Finance Act of 2001(as amended in 2004) by ensuring that high
quality audit reports are produced to enable the public to hold
Government and the public sector entities accountable.

1.3 Audit Objectives

My audit was conducted in order to express an opinion on whether
the financial statements were prepared in all material respect in
accordance with the applicable financial reporting framework (IPSAS
accrual basis of accounting) and to obtain reasonable assurance
whether the financial statements are free from material
misstatements whether due to fraud or errors.

Reasonable assurance is a high degree of assurance but is not a

guarantee that an audit conducted in accordance with relevant
applicable standards (ISSAIs), will always discover material
misstatements if such misstatements exist. Misstatements may arise
due to fraud or errors and are considered material if, together or in
aggregate, can reasonably be expected to affect the economic
decisions made by the user on the basis of the financial statements.
Thus, the risk of not detecting material misstatements due to fraud
is higher than it is for material misstatements due to errors, as fraud
may involve collusion, falsification, wilful omissions, false
information or neglect of internal control.

CG - Annual General Report 2018 / 19 28

It also aimed at evaluating whether applicable laws and regulations
have been complied with and whether the accounting officers have
designed and implemented effective internal controls that can
prevent misstatements or detect them once they have occurred.

1.4 Applicable Auditing Standards

I conducted my audit in accordance with the International Standards
of the Supreme Audit Institutions (ISSAIs) issued by the International
Organisation of Supreme Audit Institution (INTOSAI) and such other
procedures I considered necessary in the circumstances. These
standards require that I comply with ethical requirements of planning
and performing the audit to obtain reasonable assurance on whether
the financial statements are free from material misstatements or not.

1.5 Audit Methodology

My audit approach included tests of the accounting records and other
procedures in order to satisfy the audit objectives. The procedures
include the following:
• Planning the audit to identify and assess risks of material
misstatements, whether due to fraud or errors, based on an
understanding of the entity and its environment, including the
entity’s internal controls;
• Obtaining sufficient appropriate audit evidence about whether
material misstatements exist, through designing and
implementing appropriate responses to the assessed risks;
• Forming an opinion on the financial statements based on
conclusions drawn from the audit evidence obtained; and
• Following up on the implementation of the previous year’s audit
findings and recommendations and directives issued by Public
Accounts Committee (PAC) to ensure that proper action has been
taken in respect of all matters raised.

1.6 Audit Scope

CG - Annual General Report 2018 / 19 29

This audit was carried out in accordance with the International
Standards of Supreme Audit Institutions (ISSAIs) and other audit
procedures as were deemed appropriate under the circumstances.
The audit covered evaluation of the effectiveness of financial
accounting system and internal control over various activities of the
audited entities. Specific attention was placed on accountability of
revenues collected/received; expenses; custody, disposal, issue and
proper use of public property; and compliance with the applicable
laws, directives and instructions.

The audit was conducted on a sample basis; therefore, the findings

are confined to the extent that records, documents and information
requested for the purpose of the audit were made available for audit.
Audit findings and recommendations arising from the examination of
the accounting records, appraisal of the activities as well as
evaluation of the Internal Control System which require
management’s attention and actions, have been communicated to
the management of each audited entity though issuance of
management letter.

As auditor, I am not required to specifically search for fraud and

therefore, my audit cannot be relied upon to disclose all such
matters. However, my audit was planned in such a way that I would
be detecting material misstatements which resulted from errors or
fraud. The responsibility for detection, prevention of error or fraud
and the maintenance of an effective and adequate system of internal
control rests with the management of each audited entity.

Therefore, findings contained in this annual general report should not

be regarded as representing a comprehensive statement of all the
weaknesses which exist in the financial and managerial systems, or
on identifying all improvements which could be made to the systems
and procedures operated.

During the reporting period, 2018/19; a total of 299 entities were

required to submit their financial statements for audit as per Section

CG - Annual General Report 2018 / 19 30

25 (2) of the Public Finance Act of 2001 and Regulation 71 of the
Public Audit Regulations of 2009. Out of those entities; 296 were
audited and form the basis of this audit report leaving three (3)
entities2 whose audits were still in progress at the time of preparation
of this report. This marks an increase of 16% as compared to 255
financial statements audited in the previous financial year.

The detailed analysis of the actual audited financial statements (FS)

as compared to the financial statement required to be audited is as
per the table below:
Table 1: Analysis of the required FS to be audited vs. the actual audited
Required Actual
S/N Entity Category Difference
No. Audited
1 Ministerial votes 66 66 0
2 Agencies 34 33 1
3 Embassies/Missions 42 42 0
4 Regional Secretariats 26 26 0
5 Funds 17 16 1
6 Political Parties 19 19 0
7 Basin Water Bodies 9 9 0
National Water Supply &
8 5 5 0
Sanitation Authorities
9 Regional Referral Hospitals 28 28 0
10 Other Institutions 49 48 1
Consolidated Financial
11 Statements & Consolidated 2 2 0
Fund
Tanzania Revenue Authority –
12 2 2 0
Revenue & Expenditure
Total 299 296 3

2
Tanzania Employment Service Agency, Non-governmental organization board and
Youth Development Fund.

CG - Annual General Report 2018 / 19 31

Also, a total number of financial statements that were required for
audit in 2018/19 have increased from 266 in the financial year
2017/18 to 299 due to establishment of new reporting requirements.
There were however five (5)3 entities which ceased operations while
one (1) entity (Tanzania Tree seed agency); its operations have been
merged with those of Tanzania Forest Service Agency. The list of
entities which prepared their financial statements for the first time
in 2018/19 is as detailed in the table below:

Table 2: List of entities prepared FS for the first time in 2018/19

S/N Name Category
1. Office of Solicitor General Vote 19
2. Ministry of Minerals Vote 100
3. Tanzania embassy in Havana –Cuba Sub Vote 2042
4. Forest Industries Training Institute (FITI) OI
5. Mining Commission OI
6. Police Force - Corporation Sole OI
7. Kawawa Secondary School OI
8. Jitegemee Secondary School OI
9. Ardhi Institute Morogoro OI
10. Marine Services Company Limited OI
11. Petroleum Bulk Procurement Agency Agency
12. Temeke Regional Referral Hospital RRH
13. Tabora Regional Referral Hospital RRH
14. Bukoba Regional Referral Hospital RRH
15. Sumbawanga Regional Referral Hospital RRH
16. Manyara Regional Referral Hospital RRH
17. Amana Regional Referral Hospital RRH
18. Songea Regional Referral Hospital RRH
19. Singida Regional Referral Hospital RRH
20. Ligula Regional Referral Hospital RRH

3
Planning Commission (Vote 66), Oil and Gas (Vote 11), Tanzania Minerals Audit
Agency, Kigamboni Development Agency and Presidential Trust Fund (PTF).

CG - Annual General Report 2018 / 19 32

 S/N Name Category
21. Sekeu Toure Regional Referral Hospital RRH
22. Iringa Regional Referral Hospital RRH
23. Mount Meru Regional Referral Hospital RRH
24. Maweni Regional Referral Hospital – Kigoma RRH
25. Katavi Regional Referral Hospital RRH
26. Lindi Regional Referral Hospital RRH
27. Mbeya Regional Referral Hospital RRH
28. Njombe Regional Referral Hospital RRH
29. Shinyanga Regional Referral Hospital RRH
30. Simiyu Regional Referral Hospital RRH
31. Songwe Regional Referral Hospital RRH
32. Bombo Regional Referral hospital - Tanga RRH
33. Geita Regional Referral Hospital RRH
34. Mara Regional Referral Hospital RRH
35. Tumbi Regional Referral Hospital - Kibaha RRH
36. Dodoma Regional Referral Hospital RRH
37. Mwananyamala Regional Referral Hospital RRH
38. Morogoro Regional Referral Hospital RRH
Mawenzi Regional Referral Hospital-
39. RRH
Kilimanjaro
Source: CAG Audit Reports for the FY 2018/2019

From the table above, the Ministry of Minerals, Office of Solicitor

General and Tanzania Embassy in Havana –Cuba were the newly
established entities while eight (8) other institutions (OI) were
identified during the year under review. Also, 28 Regional Referral
Hospital (RRH) whose financial results were previously included in the
financial statements of the Regional Secretariates are now required
to prepare their own separate financial statements which are then
consolidated under the Ministry of Health, Community Development,
Gender Elders and Children (Vote 52), thus individual financial
statements have been audited and the results of the audit have been
included in this report.

CG - Annual General Report 2018 / 19 33

Besides the audit of financial statements, this report has covered the
results of pre- audit of terminal benefits whereby 3,820 pension files
were available for audit, nevertheless 3,504 files were pre-audited
out of which 3,448 files were approved for payments. The Pre-audit of
terminal benefit payments is carried out by virtue of provisions of
Article 143(2) (a) of the Constitution of the URT of 1977 (as amended
from time to time) and Sect 29 of the Public Audit Act No. 11 of 2008.
Sect 5 (a) of the same Act requires the Controller and Auditor General
to authorize the use of money paid out of the Consolidated Fund upon
being satisfied that Article 136 of the Constitution has been or shall
be complied with.
Also, Section 29 of the Public Audit Act, 2008 and Regulation 79(1) of
the Public Audit Regulation 2009 mandates the CAG to undertake
Special Audit upon written request from Accounting Officer, or any
person, Institution, public authority, ministry, independent
department, agency, Local Government Authority, and such any
other body. Moreover, according to Regulation 78 of the Public Audit
Regulations, the CAG may initiate the conduct of special audits in
respect of accounts of any public authority or institution, ministry,
independent department, agency, Local Government Authority and
such any other body.
The Scope of Special Audit conducted in accordance with Regulation
79 is determined by the person requesting the audit, however; the
Controller and Auditor General may modify the scope when he deems
it necessary and appropriate as stipulated in Regulation 80(2) of the
Public Audit Regulation 2009.
As such, this report has covered findings from eight (8) special audits
requested by various stakeholders and those initiated internally by
the CAG. The list of the special audit conducted during the year are
as shown in the table below. The detailed results of these special
audits are included under Chapter Twelve of this report.

CG - Annual General Report 2018 / 19 34

Table 3: List of special audits conducted during the year
S/N List of Special Audits
1. Special Audit on Contract No. AE/008/2015-2016/HQ/C/3 between
REA and SMEC International Pty Ltd and Contract No. AE./008/2016-
2017/HQ/G/9,10, and 11 between REA and Twenty-Nine (29)
Contractors on the Detailed Survey and Detailed design
2. Special Audit on the Construction Projects ( Ushirika Towers) owned
by the Tanzania Federation Cooperatives (TFC)
3. Special Audit on the Allegations Related to Fund Misappropriation
on the Fire and Rescue Force Welfare Fund at the Fire and Rescue
Force
4. Special Audit on the Issued Carrying on Temporary Assignment
(CTAs) to Visitors at Dar es Salaam Immigration Department,
Immigration Regional Office (Mtwara), and Julius Nyerere
International Airport (JNIA)
5. Special Audit on the Construction of Dormitory and Lecture Hall at
Olmotonyi Forestry Training Institute in Arusha
6. Special Audit on the Developed Joint Venture Project between
Tanzania Girl Guides Association (TGGA) and Jafferji Developers
Limited from 2010 to 2018
7. Special Audit on the Committed Expenditure of TZS 8,000,000 at
President’s Office Public Service Management and Good
Governance (POPSM) from 1 July 2019 to 4 November 2019
8. Special Audit at National Housing and Building Research Agency
(NHBRA) from 2010 to 2018
Source: CAG Audit Reports in FY 2018/2019

As public sector auditors, we are committed to our professionalism in

order to maintain the public trust of our audit works through
producing credible reports that continue to strengthen
accountability, transparency and integrity in the management of
public resources. Detailed audit findings are illustrated in the
following chapters.

CG - Annual General Report 2018 / 19 35

 CHAPTER TWO
2.0 AUDIT OPINION

2.1 Introduction
Audit reports represent an auditor’s professional opinion on whether
an entity’s financial position and results of its operations are
presented fairly in its financial statements. Audit reports can also
bring to the reader’s attention any concerns auditors have with the
quality of the financial statements. These concerns are expressed as
qualifications due to the availability of sufficient and appropriate
information for users to make an informed decision; or the entity’s
compliance with International Public Sector Accounting Standards
(IPSAS).

Auditors are required to form an opinion on the basis of sufficient and

appropriate audit evidence obtained and express it clearly in the form
of a written report. In order to form an opinion auditor must adhere
to the requirements of ISSAIs 1700 and under the circumstances of
engagement appropriately select the type of opinion to be expressed.
The audit opinion is the statement that is expressed by independent
auditors to their client’s financial statements as the result of
auditors’ examination. The audit opinion is very important for
stakeholders because it let them know whether or not the information
in the financial statements that they are using is correct and they can
use that information for their decision making. The audit opinion also
indirectly informs the users of financial statements how is the
integrity of senior management as well as the directors of the entity.

An auditor’s opinion is considered an essential tool when reporting

financial information to users. In the public sector, it is intended to
advise Parliament and other stakeholders on whether financial
statements of audited entities have been prepared in conformity with

CG - Annual General Report 2018 / 19 36

the International Public Sector Accounting Standards (IPSAS) and in the
manner required by Sect. 25(4) of the Public Finance Act, 2001 (revised
2004)
Types of Audit Opinion
There are four types of audit opinion, each one presenting a different
situation encountered during the auditor’s work. The four audit
opinions are as illustrated in the diagram below:

Unqualified Opinions/Unmodified Opinion

Unqualified Opinion is sometimes regarded by many as equivalent to
“Clean audit opinion”. This type of opinion is issued when the
financial statements presented are free of material misstatement and
are in conformity with applicable accounting framework including
compliance with laws and regulations. It is the best type of an audit
opinion an audited entity may receive from an external auditor. This
opinion is issued once auditors obtain sufficient and appropriate audit
evidence to the financial statements as the result of their audit work.

Out of the 296 central government entities audited during the year
2018/19, 2944 entities were issued opinion. However 253 (86 %)
entities were issued with unqualified opinion meaning that their
financial statements presented true and fair view. These recorded an
increase of 7% as compared to the last year audit.

4
Two Entities were audited and issued with Management Letter only

CG - Annual General Report 2018 / 19 37

However, it is important to note that as per the requirements of ISSAI
1700, our audit extended beyond the financial statements to include
assessment of the entities compliance with laws and regulations and
the effectiveness of the internal control systems. Therefore, entities
with these unqualified opinion, does not mean that their internal
controls, including compliance with laws and regulations were
adequate. There were issues noted and reported in the management
letter of the respective entities and other chapters in this report that
did not directly affect the presentation of the financial statements.

Unqualified Opinions with Emphasis of Matters

Additionally, out of the 253 audited entities issued with clean
opinion, we have emphasized 13 audited entities on some areas that
needed users’ attention. The areas emphasized do not affect opinion
issued, as it was only for the purposes of drawing users’ attention.
The list of audited entities issued with unqualified opinion are in
Appendix 2.1

Entities Issued With Qualified Opinion

A total of 24 (8 %) audited entities out of 294 audited during the year
2018/19; were issued with qualified opinion following my conclusion
that material misstatements (disagreements whether due to
inadequate disclosure or inappropriate accounting treatment or
limitation of audit scope) existed in the audited financial statements.

This is an increase of 140% as compared to the last year‘s audit

results which indicates that, there is no improvement. The details of
entities issued with qualified opinion are as in Appendix 2.2

Entities Issued With Adverse Opinion5

5
The auditor shall express a qualified opinion when: (a)The auditor, having
obtained sufficient appropriate audit evidence, concludes that misstatements,
individually or in the aggregate, are material, but not pervasive, to the financial
statements; or(b)The auditor is unable to obtain sufficient appropriate audit
evidence on which to base the opinion, but the auditor concludes that the possible
effects on the financial statements of undetected misstatements, if any, could be
material but not pervasive.

CG - Annual General Report 2018 / 19 38

I have expressed adverse opinion to 5 (2 %) out of 294 audited entities,
after my conclusion that disagreements existed in the audited
financial statements were both material and pervasive. Details of
these entities have been attached to this report as Appendix 2.3

Entities Issued With Disclaimer Opinion

As per ISSAIS 1705.9 the auditor shall disclaim an opinion when the
auditor is unable to obtain sufficient and appropriate audit evidence
on which to base the opinion, and the auditor concludes that the
possible effects on the financial statements of undetected
misstatements, if any, could be both material and pervasive.

Additionally, the auditor shall disclaim an opinion when, in extremely

rare circumstances involving multiple uncertainties, the auditor
concludes that, notwithstanding having obtained sufficient and
appropriate audit evidence regarding each of the individual
uncertainties, it is not possible to form an opinion on the financial
statements due to the potential interaction of the uncertainties and
their possible cumulative effect on the financial statements.

Auditor believes that for those items that they are not able to access
and obtain information could be materially misstated and pervasive.
This is happening after the auditor tries their best to negotiate with
the audited entity to obtain all of that important information and the
client still rejects no matter it is intentional or unintentional. In this
year, I have expressed disclaimer of opinion to 12 (4%) entities out of
294 audited entities audited during the year, due to material and
fundamental limitation of my audit scope. The details and basis for
the opinion are attached as Appendix 2.4

The overall results of the audit for year 2018/2019 as compared to

the previous three years audits are as analysed in the table below.

There has been an increase in number of Audited entities from 255 in

the year 2017/2018 to 296 in the year 2018/2019. Likewise, the
opinions have changed over the period as analysed in the table below:

CG - Annual General Report 2018 / 19 39

Table 4: Trend of audit opinions
Opinion Unqualified Qualified Adverse Disclaimer
20 20 20 20 20 20 20 20 20 20 20 20
Year 19 18 17 19 18 17 19 18 17 19 18 17
Ministerial votes 61 61 58 4 4 6 1 0 1 0 0 0
Agencies 32 32 29 1 1 3 0 0 1 0 0 0
Embassies 35 40 33 5 1 2 1 0 0 0 0 0
RS 26 26 25 0 0 1 0 0 0 0 0 0
BWB/NWSA 14 14 9 0 0 4 0 0 0 0 0 0
Funds 16 16 17 0 0 0 0 0 0 0 0 0
Other Institutions 42 41 33 6 0 3 0 0 2 0 1 0
Political parties 3 3 3 1 4 4 3 2 0 12 5 4
Regional Referral
Hospital 22 0 0 6 0 0 0 0 0 0 0 0
TRA 2 2 0 0 0 0 0 0 0 0 0 0
Consolidated
Financial
Statements 0 2 0 1 0 0 0 0 1 0 0 0
25 23 20
Total 3 7 7 24 10 23 5 2 5 12 6 4
Source: Audit Reports

As is evident from the table above, I can deduce that in general

audited entities have shown good performance due to increase in
unmodified audit opinions from 237 audited entities to 253 which
signify an increase of 14 (7 %). However number of modified opinions
have increased from 18 audited entities to 43 entities compared to
previous audit which signify an increase of 139%.

Audit Opinion Issued to the Political Parties

As in prior years where similar findings were reported political parties
continued to show a decline in compliance with financial reporting
frame work. Of 19 political parties, only 3 audited political parties
managed to prepare financial statements which comply with
applicable accounting framework thereby received unqualified audit
report, a same number as in the previous year.

CG - Annual General Report 2018 / 19 40

One (1) political parties were issued with qualified opinion, a
regression from four (4) in the previous year.

Twelve (12) political parties were issued with disclaimer of opinion

while three (3) were issued with adverse opinions, these types of
opinions are the worst opinion the entity can receive as they portray
that the financial statements cannot be relied upon.

My audit again identified a number of shortcomings on the financial

statements which had material flaws and were not credible enough
for the public to use. The audit outcomes of 15 political parties, the
worst since 2016/2017. These political parties disregard my
recommendations due to lack of commitment to decisively address
key areas, despite my recommendations in the previous years they
did not improve internal controls thus I have not been able to obtain
sufficient and appropriate audit evidence to provide a basis for an
audit opinion on these financial statements. The detailed analysis of
the opinions for political parties is as shown in the table below.

Table 5: Trend of audit opinions for the three-year consecutively

S/N Name 2018/19 2017/18 2016/17
1 Alliance for Democratic Disclaimer Unqualified Unqualified
Party (ADC)
2 Chama cha Mapinduzi Unqualified Unqualified Qualified
(CCM)
3 Democratic Party (DP) Disclaimer Unqualified Qualified
4 CHADEMA Unqualified Qualified Qualified
5 ACT-Wazalendo Unqualified Qualified Unqualified
6 NCCR-Mageuzi Adverse Qualified Qualified
7 Chama cha Kijamii (CCK) Qualified Qualified Disclaimer
8 African Democratic Disclaimer Disclaimer Not Audited
Alliance (ADA-TADEA)
9 National Reconstruction Disclaimer Disclaimer Not Audited
Alliance (NRA)
10 Union for Multiparty Disclaimer Disclaimer Not Audited
Democracy (UMD)
11 Alliance for Africa Disclaimer Disclaimer Disclaimer
Farmers Party
12 Sauti ya Umma (SAU) Disclaimer Disclaimer Disclaimer
13 Chama cha Ukombozi wa Disclaimer Adverse Unqualified
Umma (CHAUMMA)

CG - Annual General Report 2018 / 19 41

 S/N Name 2018/19 2017/18 2016/17
14 National League for Adverse Adverse Disclaimer
Democracy(NLD)
15 Demokrasia Makini Disclaimer Disclaimer Disclaimer
16 Civic United Front Adverse Adverse Adverse
17 Tanzania Labour Party( Disclaimer Unqualified Unqualified
TLP)
18 United Peoples Disclaimer Not Audited Not Audited
Democratic Party(UPDP)
19 United Democratic Disclaimer Not Audited Not Audited
Party(UDP)
Source: CAG Audit Reports

Despite directives issued by the Registrar of Political Parties, they are

yet to comply with the guidelines in preparation of financial
statements, the inability to comply with the guidelines can be
attributed to shortage of skills and competencies in the management
of financial resources of the Political parties.

I recommend that leaders of political parties to engage qualified

people in preparation of the financial statements on the basis of
adopted accounting framework.

CG - Annual General Report 2018 / 19 42

 CHAPTER THREE

3.0 FOLLOW UP ON IMPLEMENTATION OF THE PREVIOUS YEARS’ AUDIT

RECOMMENDATIONS.

3.1 Introduction
Section 40 of Public Audit Act, 2008 requires me to incorporate in the
Annual Audit Report the implementation status of the action plan
prepared by Accounting Officers and those consolidated by Pay Master
General (PMG). To meet this requirement of the law, status of the
remedial actions taken in the implementation of my
recommendations and those made by PAC are discussed further in this
chapter.

This chapter provides status of the actions agreed by management to

ensure that both my recommendations and PAC’s directives are
implemented in accordance with agreed timeframe, and that the
actions undertaken have effectively mitigated the risks identified
during past audits.

It is important to ensure that my recommendations are appropriately

considered, effectively implemented and yield fruitful results to
enhance government accountability on public resources.
Implementation of CAG’s and PAC’s recommendations and directives
respectively demonstrate the commitment of the audited entities
and the entire Government in strengthening Transparency,
Accountability, Good governance, Stewardship and Promoting sound
financial and resources management at all levels. Therefore, non-
implementation or untimely implementation of CAG
recommendations and PAC directives may lead to recurrence of
mismanagement of Government revenues, expenditures and assets,
and therefore the integrity and adequacy of systems and procedures
may not be relied upon.

CG - Annual General Report 2018 / 19 43

Generally, the implementation status in this financial year ended
30th June 2019 is showing inadequate improvements compared to the
last year owing to the inadequate follow-up by management to
address the outstanding audit recommendations. In this regard,
managements of the MDAs are recommended to implement
outstanding audit recommendations. Detailed status of the
implementation of the recommendations are discussed further in this
chapter. Our criteria used in assessing implementation status is
tabulated below:

Table 6: Definition of the words used in assessing the

implementation status.
Status Explanation
Implemented Auditee has fully implemented the
recommendations and directives, either as
described in the report or in a manner that resolved
the underlying recommendation and directives.

Under Auditee has specific plans to begin, or has begun, to

implementation implement and intends to fully implement the
recommendation or has partly implemented the
raised recommendation and directives.
Not implemented Auditee has neither implemented the
recommendation nor indicated that will do so.
Overtaken by Auditee has significantly strived that the previous
events weaknesses are not happening in the subsequent
year(s) or the recommendations and directives are
no longer of importance for implementation due to
lapse of time or its implementation is not possible or
not necessarily due to change of laws, Government
priorities, directives and circulars.
Reiterated Auditee has not implemented previous similar
recommendation whereby in the current year the
same recommendation was issued based on the fact
that the finding was repeated. Hence, as the matter
of emphasis, the recommendation was re-issued.
Source: CAG Annual General Report.

CG - Annual General Report 2018 / 19 44

3.1.1 Implementation Status of the previous Year’s CAG’s Audit
Recommendations

Current year Status of the Previous Year’s CAG Recommendations

to MDAs
My current year’s assessment indicated that out of 4,756 prior years’
total recommendations, the percentage of share in terms of
implementation of prior years’ implementation for each category of
the audited institutions (as depicted in Figure 1) shows that Ministries
have 11.1%, department (5%) regional secretariats (18%), other
institutions (13%), embassies (15%), agencies (19%), political parties
(9%), Water Basins Bodies & National Water Supplies (6%), funds (4%)
and regional referral hospital (2%) of the total number of the prior
year recommendations. Generally, the regional secretariat, agencies
and embassies are among the top three that have shown remarkable
speed in terms of implementation status as elaborated in the figure
below;

CG - Annual General Report 2018 / 19 45

Figure 1: Percentage of prior year recommendations institution wise in
2018/19
Water Basins Referal
and Water Funds Hospital
supplies 4% 2% Ministries
6% 11%
Political Parties Departments
9% 5.2

Regional
Secretariet
18%

Agencies
19%

Other
Institutions
13%
Embassies
15%

Source: Individual CAG’s management letters for the year 2018/19

Through follow-up and assessment on implementation status of my

recommendations, I revealed that out of 4,756 recommendations;
1,494 (equivalent to 33%) have been implemented, 1,588
(equivalent to 33%) are under implementation, 1,080 (equivalent to
23%) are not implemented, 286 (equivalent to 7%) are overtaken by
events and 308 (equivalent to 7%) are reiterated. The implementation
status can be presented as in the table and the figure below;

Table 7: Status of implementation of CAG’s audit recommendations on

individual reports for the financial year 2018/2019
Status No. of % of
Recommendations Recommendations
Implemented 1,494 31
Under 1,588 33
Implementation
Not Implemented 1,080 23

CG - Annual General Report 2018 / 19 46

Status No. of % of
Recommendations Recommendations
Overtaken by events 286 6
Reiterated 308 7
Total 4,756 100
Source: Individual CAG’s management letters for the year 2018/19

Figure 2: Status of implementation of the CAG’s recommendations in

2018/2019.

Over taken Reiterared

6% 7%
Not Implemented
Implemented 31%
23%

Under
Implementatio
n
33%

Source: Individual CAG’s Management letter of MDAs, Embassies and Regional Secretariats
for Financial Year 2018/2

Detailed implementation status is provided in the Individual

management letters of the respective entities; however, a summary
excluding implemented recommendations and those which are
overtaken by events totalling 9 and 15 respectively of the
consolidated status from individual management letters can be seen
in the Appendix 3.1 of this report.

3.1.2 Comparison between current year and last year’s

implementation status of previous years CAG’s audit
recommendation on individual audit reports.
I assessed the implementation status for two consecutive years (i.e.
2017/2018 and 2018/2019) and it came to my attention that in the

CG - Annual General Report 2018 / 19 47

current year’s implementation status for financial year ended 30th
June 2019 indicates that there is a slight drop from 34% (previous year)
to 33% (in the current year) owing to the inadequate follow-ups by
management of the MDAs to act upon the outstanding audit
recommendations as depicted in the table and figure below:

Table 8: Comparison between current year and last year’s

implementation status of previous years CAG’s audit
recommendation on individual audit
No. of recommendations No. of recommendations
Status during 2018/2019 during 2017/2018
No. % No. %

Implemented 1,494 31 1,459 34

Under 1,588 33 1,626 38
Not Implemented
Implementation 1,080 23 752 18
Overtaken by events 286 6 445 10
Reiterated 308 7 0 0
Total Number of 4,756 100 4,282 100
recommendations
Source: Individual CAG Management letter Reports

From the table above, the number of prior years’ recommendations

have increased to 4,756 in this year comparing to 4,282 in the previous
years’ recommendations equivalent to an increment of 10% of prior
year outstanding audit recommendations. This means that the
government's speed to implement the audit recommendations is slower
compared to the number of audit recommendations issued each
subsequent year.

CG - Annual General Report 2018 / 19 48

Figure 3: Comparison on implementation status of CAG’s
recommendations for financial year 2017/2018 and
2018/2019.

Status of Recommendations for Financial Year

2018/19 and 2017/18
1,800
1,600

1,626
1,400
1,530
1,459

1,200
1,364

1,000

1,080
800
600

752
400

445
200

285

307

0
0
Implemented Under Not Implemented Overtaken by Reiterated
Implementation events

2018/2019 2017/2018

Source: Individual CAG’s Management letter of MDAs, Embassies and Regional

Secretariats for Financial Year 2017/2018

From figure 4 above, there is a slight decrease by 1% from 34% of the

last year to 33% this year. The figure also illustrates that the majority
of my recommendations are at “implemented” and “under
implementation” stages while those which are not implemented,
overtaken by events and reiterated are quite few owing to the fact
that the government has managed to implement most of my
recommendations and some are at different stages of implementation.

3.2 Implementation Status and Analysis of PAC Directives to MDAs,

Political Parties, Funds Water Bodies and Other Institutions in
FY 2018/19
Pursuant to Order 117(15) of Parliamentary Standing Order (revised
edition of January 2016) the Public Accounts Committee (PAC) is the
highest oversight organ for Ministries, Departments, Agencies and
Public Authorities. In this regard, I acknowledge the major role of the

CG - Annual General Report 2018 / 19 49

PAC to address areas of misuse of public funds in the MDAs. The PAC
has been performing its duties using the CAG's reports which are
essentially and useful inputs in forming the basis of the PAC activities,
and therefore the implementation of directives issued by the
Committee should be adequately considered by the respective
Accounting Officers while executing their daily operation in an
orderly, ethical, economical, efficient and effective manners.
Through the PAC report, I revealed that, a total of sixty-nine (69) votes
were submitted to the Committee for discussion and nine (9)
recommendations of the PAC were approved by the of Parliament.
My assessment on the individual audit reports indicates that during the
year ended 30th June 2019 the committee had already issued a total
of 276 directives with different status of implementation to various
institutions in Central Government as depicted in the table and the
figure hereunder:

Table 9: PAC Directives in FY 2018/19

Financial Year 2015/16 2016/17 2017/2018

Status
No % No % No %
Implemented 1 6 82 30 92 31
Under implementation 10 63 163 60 79 28

Not implemented 3 19 19 7 105 35

Overtaken by events 2 12 8 3 19 6
Total 16 100 272 100 295 100
Source: Individual CAG’s report-FY 2018/2019

CG - Annual General Report 2018 / 19 50

The explanations above are depicted in the figure below:

Figure 4: Status of implementation of PAC Directives

180
160
140
120
100
80
60
40
20
0
No No No
2015/16 2016/17 2017/2018

Implemented Under implementation Not implemented Overtaken by events

Source: CAG General report 2015/2016, 2016/2017 and 2017/2018

3.2.1 Comparison Between Current Year and Previous Year

implementation Status of Previous Years PAC Directives on
Individual Audit Reports.
My assessment revealed that status of implementation of the PAC
directives in financial year 2018/2019 has inadequately improved,
whereby directives not implemented increased to 38% this year from
7% last year. Directives which are now under implementation have
declined to 28% from 60% last year. Directives which are overtaken by
events have increased to 7% from 2% although implemented ones have
slightly increased to 33% from 30% of last year as described in the figure
below:

CG - Annual General Report 2018 / 19 51

Figure 5: Comparison between current year and previous year
implementation status of previous years PAC directives on
individual audit reports.
70

60

50

40

30

20

10

0
NO. NO. NO.
2016/2017 2017/2018 2018/2019

Implemented Under implementation Not Implemented Overtaken by events

Source CAG General reports for 2016/2017, 2017/2018 and 2018/2019

3.3 Implementation Status of the Previous Year’s Audit

Recommendations to PMG
Regulation 38 of the Public Audit Regulations (GN.47) of 2009 requires
the Paymaster General to communicate back in writing to the
Controller and Auditor General within the period of three months from
the date of receiving the CAGs recommendations and proposals.
In full compliance of the above Regulation, the Government through
the Permanent Secretary and the Paymaster General submitted its
responses to the Controller and Auditor General regarding
recommendations issued on the report for the Financial Year ended
30th June, 2018. The structured responses were received vide letter
with Ref. CHA.116/474/01 dated 5th July 2019.
In this year’s general report there is a total of 90 prior year
recommendations up to 30th June 2019 of which there were 81 prior
year CAG’s recommendations which needs Government’s responses,
and 9 were PAC directives.

CG - Annual General Report 2018 / 19 52

Out of 81 outstanding audit recommendations 8(10%) were
implemented, 37(46%) are under implementation, 20(25%) were not
implemented, 15(19%) were overtaken by events. Status of
implementation of recommendations is provided in the table below;

Table 10: Implementation status of previous years CAG’s audit

recommendations to PMG
Status Implementation status
No. %
Implemented 8 10
Under implementation 37 46
Not Implemented 20 25
Overtaken by events 15 19
Total 80 100
Source: Individual CAG’s report-FY 2018/2019

The table above can be illustrated by the figure below:

Figure 6: Status of CAG annual report recommendations and its

implementation

Implemented
Overtaken by
10%
events
19%

Not Implemented Under

25% implementation
46%

Implemented Under implementation Not Implemented Overtaken by events

Source: Individual CAG’s report-FY 2017/2018

CG - Annual General Report 2018 / 19 53

 Generally, from the table and the figure above the trend indicates
that there is a moderate improvement in implementing CAG
recommendations whereby implemented recommendations had
increased to 10% from 2% of last year, but recommendations whose
implementation are at different levels of implementation have
increased to 46% from 18.7% of last year.
Likewise, there is an increase in the number of recommendations
which are not fully implemented to 25% from 4.4% last year. Those
recommendations overtaken by events have decreased to 19% from
74.7 as detailed in Appendix 3.2 of this report.
While observing slight improvement in submission of Government
responses in my recommendations and their implementation plans,
more efforts are required in order to ensure full implementation of
partly implemented recommendations.
Accordingly, to ensure timely completion of recommendations whose
implementation started but not yet completed, I recommended the
Chapter Three

PMG in collaboration with the Accounting Officers to put more efforts

on fully implementation of the audit recommendation according to the
agreed action plan for implementation of each outstanding audit
recommendation.

CG - Annual General Report 2018 / 19 54

 CHAPTER FOUR

4.0 BUDGET PREPARATION AND EXECUTION

4.1 Introduction

Chapter four highlight matter such as: Government Approved

estimates on revenue and expenditure, Actual collection, Actual Fund
released from Treasury and Actual Government expenditure. The
Estimates of Government Revenue and Expenditure for the financial
year 2018/19 was mainly focused on mainly National policy of poverty
alleviation and transforming the Nation into an industrial economy
leading to Middle Income Country by putting more emphasis on
following key priority areas6;
i. Agricultural sector; by improving irrigation infrastructure,
warehouses and markets, and Develop livestock and fisheries
subsector.
ii. Industries; by improving business environment and attract private
sector investments.
iii. Social Sector; increase availability and supply of clean and safe
water particularly in villages, Providing Basic Education for free
(Primary and ordinary secondary education), also to provide and
supply medicines, medical equipment, reagents, and health
services in dispensaries, Health centres and referral hospitals.
iv. Supportive Infrastructures: by Constructing and maintaining
power generation, standard gauge, new central railway line,
Regional and Rural roads networks, in marine and air transport.
4.2 Budget Policies and Strategies
To ensure effective implementation of the budget the Government
imposed various administrative measures, guiding policies, strategies

6As detailed in Budget Speech Submitted to National Assembly June, 2018;

http://www.mof.go.tz

CG - Annual General Report 2018 / 19 55

and tax reforms with the view of increasing Government collection
for Financial year 2018/19 and control of Government expenditure.

Budgetary policies and strategies introduced to simplify Revenue

management and increase collection includes; amendment of tax
rates, levies and fees imposed under various laws such as Amendment
of the Value Added Tax (VAT) Act, CAP 148, Income Tax Act, CAP 332,
Excise Tax Act, CAP 147, East Africa Community Customs Management
Act, 2004 etc.

Other administrative measures were; Introduction of Treasury Single

Account to control Government expenditure, create conducive
environment and attract business and investors, widen tax base by
formalizing informal sectors, and strengthening management of
existing revenue sources by intensifying the use of electronic
collection system.

Expenditure policies for the financial year 2018/19 includes; Ensuring

budget deficit does not exceed 3.2 percent of GDP, Allocation of fund
to priorities and productive areas, control accumulation of arrears,
ensuring discipline in spending of public fund and reduces
unnecessary expenditure.

In implementing the said policies, following measures were

instituted; Pursuing legal, administrative and disciplinary actions to
those contravening laws and regulations, Award contracts after
approval of fund by Paymaster General, Paying verified arrears,
Public procurement to realize Value for Money and Strengthening
monitoring of public fund expenditure.

4.3 Budget Overview

Overview of collection and expenditure estimates for financial year
2018/19 are as follow;
4.3.1 Revenue Collection Estimates
During the financial year 2018/19, the Government envisioned to
raise revenue of TZS 32,475.95 billion portraying an increase of TZS
763.96 billion, equivalent to 2.41 percent when compared to the
estimate of TZS 31,711.99 billion reported for financial year 2017/18.

CG - Annual General Report 2018 / 19 56

4.3.2 Expenditure Estimates
The Government intended to spend TZS 32,475.95 billion on its
planned activities covering two major components; TZS 20,468.68
billion 63 percent of the total budget for Recurrent Expenditure while
TZS 12,007.27 billion 37 percent of the total budget for Development
Expenditure. Estimates of revenue collection from various identified
sources and allocation of expenditure are as tabulated in the Table
below;
Table 11: Analysis of Government estimates
Collection and Expenditure Analysis Estimates Amount in TZS
Billion
A Revenue estimates 32,475.95
i. Domestic Collection
Tax revenue (For Tanzania Mainland) 18,000.21
Non tax revenue 2,158.77
LGA’S Own collection 735.58
ii. Grants7 1,081
iii. Borrowings
Domestic borrowings8 5,793.66
External Concessional Borrowing9 1,595.73
External non-concessional Borrowing 3,111
B Expenditure estimates 32,475.95
i. Recurrent Expenditure10 20,468.68
ii. Development Expenditure11 12,007.27
Source: Budget Speech of the Minister for Finance, 2018/19 and Appropriation
Act of 2018

7
Grants includes; budget support TZS 236 billion, development projects TZS 753
billion, basket support TZS 92 billions
8
Domestic borrowings include; budget financing TZS 1,194 billion and rollover TZS
4,600 billion.
9
External concessional borrowings includes; budget support TZS 310 billion,
development projects TZS 1,252 billion, basket support TZS 34 billion
10
Recurrent expenditure includes; servicing of public debts TZS 10,004 billion,
wages and salaries TZS 7,409.9 billion, other charges TZS 3,054 billion
11
Development expenditure includes; domestic financing TZS 9,876 billion, foreign
financing TZS 2,130.9 billion

CG - Annual General Report 2018 / 19 57

4.3.3 Estimates and Actual collection Performance.
The Government managed to collect revenue of TZS 25,817.45 billion,
79.50 percent against the approved estimates of TZS 32,475.95
billion, leading to under collection of TZS 6,658.50 billion.
I noted a decrease of collection by TZS 1,878.51 billion 6.78 percent
when compared to TZS 27,695.96 billion collected in 2017/18.
Decrease of Actual collection is mainly attributed by decrease of
Grants and Borrowings during the year.
The trend implies negative performance in revenue collection to
finance expenditure.
I am of the view that decrease of revenue collection has negative
impact on implementation of planned activities and Government key
priority areas for financial year 2018/19.

Figure 7: Government Estimates and Actual collection from each

identified source in financial year 2018/19 (Amount in
billion TZS)
20,000.00
18,000.00
16,000.00
14,000.00
Amount in Billion

12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
Domestic External
LGA's Own
Tax Non Tax Grants Borrowing Borrowing
Source of Collection Collections
s s
Budget 18,000.21 2,158.77 735.58 1,081.00 5,793.66 4,706.73
Actual Collections 15,474.33 1,661.28 659.10 643.00 3,951.04 3,428.70

Source; Analysis of Audited data from individual Votes

From the Figure above, detailed analysis of the collection per each
identified sources are as shown in details below;

CG - Annual General Report 2018 / 19 58

a) Tax Revenue
Revenue collection from Taxes for Tanzania Mainland were TZS
15,474.33 billion 86 percent of the approved estimates of TZS
18,000.21 billion, hence TZS 2,525.88 billion was not collected.
I noted the increase of collection by TZS 324.86 billion, 2.14 percent
when compared to TZS 15,149.47 billion collected in 2017/18. The
trend implies positive performance in assessing and collection of tax
revenue.
b) Non-Tax Revenue
Non-tax collection refer to collection other than taxes collected by
Government through Ministerial, Department, Embassies, Regional
Secretariat and other Entities.
My review on Financial Statements and transfers made to National
Revenue Data base (NRD) noted; collection from Non- tax were TZS
1,661.28 billion 77 per cent of the approved estimates TZS 2,158.77
billion, hence TZS 497.49 billion was not collected.
Compared to prior year, I observed the increase in Non-tax collection
by TZS 71.41 billion 4.49 percent of TZS 1,589.87 billion collected in
2017/18. The trend shows improvement of control in managing
revenue collection.
c) LGA’s Own source
Collection from LGA’s own source were TZS 659.10 billion, 90 percent
of the approved estimates of TZS 735.58 billion, hence TZS 76.48 was
not collected.

d) Grants
The Government received grants of TZS 643 billion, 59 percent of the
estimate of TZS 1,081 billion, hence TZS 438 billion was not received.
I noted a decrease of Grants received by TZS 650.64 billion, 50
percent compared to TZS 1,293.64 billion reported in 2017/18.
e) Domestic Borrowings
Collection from Domestic borrowings mainly comprises of; of Treasury
bonds and Treasury Bills, TZS 3,951.04 billion, 68 percent of the
estimates of TZS 5,793.66 was secured as domestic borrowings to

CG - Annual General Report 2018 / 19 59

finance the budget, hence domestic borrowings of TZS 1,842.62
billion was not released.
I noted decrease of domestic borrowings by TZS 1,753.46 billion 30.74
percent when compared to Borrowings of TZS 5,704.50 in 2017/18.
f) External Concessional Borrowings
External concessional borrowings received during the year were TZS
1,722 billion, an increase of 8 percent compared to estimates of TZS
1,595 billion.
I noted the decrease of external concessional loans by TZS 491.75
billion 22 percent when compared to Borrowings of TZS 2,214.15
billion received in 2017/18.
g) External Non-Concessional Borrowings
External non-concessional loans received were TZS 1,706 billion 54.85
percent of the estimate of TZS 3,111 billion.
Compared to prior year, I observed the decrease of external non
concessional borrowings by TZS 38.04 billion 2 percent of TZS
1,744.34 billion non concessional borrowings received in 2017/18.

4.3.4 Trend of Estimates and Collection

My review on estimates and collection over the past five years shows
a trend of increasing Government Estimates and Actual collection to
finance expenditure, however collection from each Financial year
have been below the approved estimates. A trend of increased
Government collection has a positive impact to the provision of better
social services, infrastructures and development projects. The Table
and Figure below show a trend of estimates, actual collection and
percentage of contribution for each identified source.

CG - Annual General Report 2018 / 19 60

Table 12: Trend of Estimates, Actual collection and percentage of
contribution from each identified source.

Details F/Y F/Y F/Y F/Y F/Y

2018/19 2017/18 2016/17 2015/16 2014/15
(Amount (Amount (Amount (Amount (Amount
in Billion in Billion in Billion in Billion in Billion
TZS) TZS) TZS) TZS) TZS)
Estimates
32,475.95 31,711.99 29,539.00 22,495.00 19,506.00
Actual collection
25,817.45 27,695.96 25,307.00 21,109.00 18,417.00
% of Contributions
Tax 60% 55% 57% 59% 54%
Non tax
Collection 9%12 5% 8% 8% 5%
Domestic
Borrowings 15% 21% 23% 25% 22%
Grants and
External
Borrowings 16% 19% 12% 8% 19%
Source: Analysis of Audited data from individual Votes

Figure 8: Trend of Estimates and Actual Collection for consecutive Five

years (Amounts in billion TZS)

35,000.00
30,000.00
25,000.00
Amount in Billion

20,000.00
15,000.00
10,000.00
5,000.00
-
Financial year 2018/19 2017/18 2016/17 2015/16 2014/15
Actual Collections 25,817.45 27,695.96 25,307.00 21,109.00 18,417.00
Budget 32,475.95 31,711.99 29,539.00 22,495.00 19,507.00

Source: Analysis of Audited data from individual Votes

12
Include LGA’s Collection

CG - Annual General Report 2018 / 19 61

4.3.5 Budget Financing
Actual collection from domestic generated sources such as Tax, non-
taxes and LGA’s own source collection to finance the Budget were
TZS 17,794.71 billion, 69 percent of the total Collection, while TZS
8,022.74 billion, 31 percent of the collection were internal, external
borrowings and Grants.
The analysis shows domestic generated collection could only finance
Government expenditure by 69 percent, the remaining financing
percentage of 31 emanating from Borrowings.
I observed the level of borrowing and assistance in financing the
budget decreased by 27 percent compared to TZS 10,956.62 reported
in 2017/18. Trend of Domestic collection and Borrowings are as Shown
in the Figure below;
Figure 9: Trend of Actual Domestic collection versus Grants and
Borrowings for consecutive Five years (Amount in Billion TZS)

20,000.00
18,000.00
16,000.00
Amount in Billion

14,000.00
12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
Financial year-
2018/19 2017/18 2016/17 2015/16 2014/15
Domestic collection 17,794.71 16,739.34 16,344.00 14,078.00 10,836.00
Grants and Borrowings 8,022.74 10,956.62 8,963.00 7,031.00 7,581.00

Source: Analysis of Audited data from individual Votes

It is my recommendation to the Government; responsible

Authorities, MDs and RSs to explore for other sources that will widen
domestic generated collection and keep on reducing dependence on
Borrowings and assistance.

CG - Annual General Report 2018 / 19 62

4.3.6 Unaccounted Collection in the Consolidated Fund
I reviewed collection from each identified sources and transfer made
to Consolidated Fund Account and noted following anomalies which
are contrary to Article 135 (1) of the Constitution of the United
Republic of Tanzania 1977 (Revised 2005) which requires all revenue
for the use of the Government shall be paid into one special fund to
be known as the Consolidated Fund of the United Republic. As shown
in Paragraph below:

4.3.6.1 LGA’s Own Source Collection not Accounted in the

Consolidated Fund TZS 553.378 billion
From the approved estimates of TZS 735.58 billion, Local government
Authorities through Regional Administrative Secretariats (RS) are
obliged collect and submit revenue collection reports to the Ministry
of Finance and Planning for consolidation and request for dummy
exchequer by submitting request letter for own source revenue
collected.

However, I noted that out of TZS 659.098 billion collected from LGA’s
Own source only TZS 105.94 billion was acknowledged in the
Consolidated Fund, the remaining balance of TZS 553.378 billion was
not accounted as no dummy receipt was issued.

I recommend adequate reconciliation between Ministry of Finance

and responsible authorities; RS, and LGAs also strengthening of
available controls include awareness on the responsibility of account
own source revenue in the consolidated fund.

4.3.6.2 External Borrowings not Accounted to Consolidated Fund

Account TZS 1,171.91 billion
My confirmation with Vote 22-Public Debt and General Services I
noted that, out of total collection TZS 3,428.70 billion against
approved estimate of TZS 4,706.7313 billion, only TZS 2,172.68 billion
was remitted to Consolidated fund account, while the remaining

13
TZS 1,595 billion external concessional borrowing and TZS 3,111 billion
external non concessional borrowings

CG - Annual General Report 2018 / 19 63

balance of TZS 1,171.91 billion was direct to project Fund and not
accounted in Consolidated Fund while TZS 84.058 billion was not ripe
to be deposited in the CF.

I still reiterate my prior year recommendation on adequate

reconciliation and strengthening of available controls on
accountability of Direct to project fund.

4.3.7 Receipts and Transfers in the consolidated fund

Total issues from the Consolidated Fund Account was TZS 26,696.58
billion against Receipts of TZS 24,239.47 billion in a Consolidated
Account. However out of total releases, TZS 86.52 billion from
Treasury single account (TSA) was not spent; (including withheld
Transfer of TZS 19.57 billion), hence led to a net deficit of TZS
1,241.65 billion as at 30 June 2019 in consideration of Government
deposit with BOT amounting to TZS 1,128.93 billion.
The noted persistent deficit in Consolidated Fund Account from prior
year to current reporting period is supported by Government
overdraft facility with Central Bank. Details of receipts and transfers
in Consolidated Fund Account are as shown in the table below;
Table 13: Receipts versus Transfers in Consolidated Fund Account
Source of Collection and Transfer Amount in
Billions (TZS )
Receipts:
TRA Collection (For Tanzania Mainland) 15,825.1714
Non tax revenue 1,661.28
LGAs Own source (Dummy receipt) 105.72
Grants 643.41

14
This figure includes actual tax collection of TZS 15,474.33 billion for the
respective budget, opening balance float TZS 2.05 billion from TRA and TZS 25.27
billion from collection for institution, tax refund to industrial TZS 35.62 billion,
and TZS 306.02 billion wharfage not transferred to TPA and exclude GEPG
collection not transferred to CF TZS 17.62 billion and TZS 0.50 billion closing
balance float.

CG - Annual General Report 2018 / 19 64

 Source of Collection and Transfer Amount in
Billions (TZS )
Receipts:
Domestic borrowings 3,831.2115
External Borrowing 2,172.68
Total Collection 24,239.47

Transfer:
Exchequer release for Recurrent and Development (26,677.01)
Withheld Transfer in TSA (19.57)
Total Transfer (26,696.58)
Unspent balance 86.52
Deficit (2,370.58)
Represented by
Add: Government collection account with balances 206.00
Add: Government deposit account with balances 922.93
Total Government balances with BOT 1,128.93
Net Government position with BOT (1,241.65)
Source; Statement of Receipt and Transfer in the Consolidated Fund

Allocation of Exchequer issue for Central Government that is;

Ministries, Departments, and Regional Secretaries was TZS 22,285.03
billion were; TZS 15,140.56 billion for recurrent expenditure, and
servicing of debts and TZS 7,144.46 billion for development
expenditure, the remaining balance was released to LGAs.
Analysis of Estimates, Exchequer Issues and Actual expenditure are as
shown in Paragraphs below;
4.3.8 Comparison Between Approved Estimates and Exchequer
Issues for Supply Accounts
My review of MDs and RSs Financial Statements noted that TZS
15,140.56 billion, 94.02 percent for recurrent expenditure was
released against the approved revised estimates of TZS 16,104.39

15
The difference of TZS 119.82 billion difference was used to rollover matured
obligations on Treasury Bills for the month of July and August when the account
was still operating as exchequer account instead of revenue account to CF.

CG - Annual General Report 2018 / 19 65

Compared to prior year, I observed decrease of recurrent issues
released by 1.74 percent from TZS 15,408.03 in 2017/18.
It is my opinion that insufficient release of the approved recurrent
estimates might affect the achievement of desired objectives.
4.3.9 Comparison Between Exchequer Issues Released and Actual
Expenditure for Supply Votes
Actual Recurrent expenditure for MDs and RSs was TZS 15,109.63
billion, 99.80 percent against issues released of TZS 15,140.56 billion
from Treasury, as a result TZS 30.94 billion was not spent during the
year and surrendered to Pay Master General (PMG).
Compared to prior year, I observed the decrease of recurrent
expenditure by 1.43 percent from TZS 15,328.66 billion in 2017/18.
I am of the view that, unutilized exchequer release implies
inadequate implementation of planned activities, or inability of the
management to utilize the released Fund timely.
Details on Approved Estimates, Exchequer issues and Actual
Recurrent expenditure for MDs and RS are as shown in the Figure
below and Appendix 4.1.

CG - Annual General Report 2018 / 19 66

Figure 10: Estimates, Exchequer issues and Actual Expenditure for
Supply Vote in 2018/19 (Amount in billions TZS)

18,000.00
16,000.00
14,000.00
Amount in Billions

12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
-
Financial Year 2018/19 2017/18 2016/17 2015/16 2014/15
Exchequer Released 15,140.56 15,408.03 13,159.74 12,065.22 11,190.11
Actual expenditure 15,109.63 15,328.66 13,413.69 12,045.94 11,156.43
Approved estimates 16,104.39 15,725.16 13,882.04 12,904.75 11,646.20

Source: Individual audited financial statements of MDs and RS

4.3.10 Comparison Between Approved Estimates and Exchequer

Issues for Development Votes
My review of MDs and RSs Financial Statements noted that TZS
7,144.46 billion, 68.26 percent for development expenditure was
released against the approved revised estimates of TZS 10,467.21
billion.
Compared to prior year, I observed the decrease of Development
issues released by 1.04 Percent from TZS 7,219.26 billion in 2017/18
It is my opinion that, under release of development budget has
adverse impact on execution of budgeted key priority areas and
threatening sustainability of those projects.
4.3.11 Comparison Between Exchequer Issues Released and Actual
Expenditure for Development Vote Account
Actual Development expenditure for MDs and RSs was TZS 7,131.24
billion, 99.81 percent when compared to issue released of TZS

CG - Annual General Report 2018 / 19 67

7,144.46 billion from Treasury, TZS 13.23 billion development
released were not spent during the year and surrendered to PMG.
Compared to prior year, I observed the increase of Development
expenditure by 0.43 percent from TZS 7,100.42 billion in 2017/18.
I am of the view that the unutilized Development release may be due
to laxity in utilization of the released funds which tend to affect
implementation of the planned Projects.
It is my recommendation to ensure funds are released timely and
Accounting Officers of the respective votes to speed up
implementation of the planned Development activities.
Details on Approved Estimates, Exchequer issues and Actual
Development expenditure for MDs and RS are as shown in the Figure
below and Appendix 4.2
Figure 11: Estimates, Exchequer issues and Actual Expenditure for
Development Vote in 2018/19 (Amount in billions TZS)

12,000.00

10,000.00
Amount in Billion

8,000.00

6,000.00

4,000.00

2,000.00

Financial Year - 2018/19 2017/18 2016/17 2015/16 2014/15

Exchequer Released 7,144.46 7,219.26 6,939.00 3,768.59 2,954.20
Actual expenditure 7,131.24 7,100.42 6,045.81 3,729.72 2,916.18
Approved estimates 10,467.21 10,142.72 10,235.41 4,968.86 4,389.02

Source: Individual audited financial statements of MDs and RS

4.3.12 Management of Revenue by MDs, RSs and Embassies

My review on compliance to issued directives, Public Finance Act 2001
revised 2004 and its Regulations with regards to management of

CG - Annual General Report 2018 / 19 68

Revenue by MDs, RSs and Embassies for financial year ended June
2019 noted the following non-compliance;

4.3.12.1 Non-Tax Revenue not Transferred to the Collection Account

TZS 4,128,070,205.68
Compared to my previous report, I noted unremitted Non tax
collection from 5 Embassies (visa fees and Rent collection) amounting
to TZS 4,128,070,205.68, the amount is higher by 63 percent
compared to TZS 2,537,773,463.50 from 7 Embassies reported in
Financial year 2017/18. Contrary to Section 11 of the Public Finance
Act of 2001 as revised in 2004 and directive issued by Ministry of
Foreign Affairs and East African Cooperation via Letter reference CA
441/527/01 dated 5 July 2016 and DA 68/226/02/83 dated 19 June,
2018 which restrict Embassy from spending non tax collection to
finance operations and ensure collection are remitted to
Consolidated Account on or before 30th June each fiscal year.

My review also noted; Partial remittance of collection since financial

year 2016/17 to 2018/19 in two Embassy16 and re-occurrence of the
same non-compliance to three Embassy17 over the past three years.
The trend of compliance and details of unremitted amount is shown
in the Table and the Figure below;

16
Tanzania Embassy in Addis-Ababa and New York

17
Tanzania Embassy in Addis Ababa, Ethiopia; TZS 146,072,597 in 2016/17, TZS
259,358,948.85 in 2017/18 and TZS 148,083,738.12 in 2018/19 Tanzania Embassy
in Washington, D.C; TZS 3,842,107,471.00 in 2016/17; TZS 784,726,694.05 in
2017/18 and TZS 1,114,542,322.00 while Tanzania Embassy in New York; TZS
1,009,255,443 in 2016/17 and TZS 2,659,680,829.64 in 2018/19

CG - Annual General Report 2018 / 19 69

Figure 12: Trend of Non-tax remittance to Consolidated Account
8 7
7

Amount in Billion
6 5
5
4 4.13
2.54
3
2
1
Financial year 0
2018/19 2017/18
No. of Entities 5 7
Unremitted Amount 4.13 2.54

Table 14: Non-tax revenue collection not remitted to consolidated

fund.
S/N Sub Name of the Embassy Amount (TZS)
Vote

1 2038 Tanzania Embassy Khartoum 22,302,783.05

2 2013 Tanzania Embassy in Paris 183,460,532.87
3 2001 Tanzanian Embassy in Addis 148,083,738.12
Ababa, Ethiopia
4 2011 Tanzania Embassy in New York18 2,659,680,829.64
5 2018 Tanzania Embassy in Washington, 1,114,542,322.00
D.C19
Grand total 4,128,070,205.68
Source: Signed Management Letters

It is my opinion that non remittance of non-tax collection to

Collection Account create deficit in financing Government
expenditure for the year.

18
Partial remittance of rent since 2016/17 to 2018/19; $1,161,686.32 at average
exchange rate of TZS 2,289.50 /USD (ref management letter)

19
$486,876 at exchange rate of TZS 2,289/USD (ref management letter)

CG - Annual General Report 2018 / 19 70

I still insist on compliance of Finance Act and directives issued and
ensure that collections for the year are remitted to Consolidated
Fund to finance Government expenditure.

4.3.12.2 Visa Application Fees Collected Over the Counter TZS

646,083,432.07
My review of revenue cash book, ERVs, bank statements and
reconciliations of Tanzania Embassy in Paris revealed over the
counter collection of TZS 646,083,432.07 from visa applications fees,
were collected contrary to the directive issued with letter reference
No. CJB/162/352/02C/82 by the Permanent Secretary of Foreign
Affairs which requires to collect visa fees and other revenue using
banking system.

I was able to authenticate that, only TZS 462,622,899.20 of the

collection was banked and remitted to consolidated Fund Account
while the remaining balance of TZS 183,460,532.87 was reallocated
by the Embassy to finance its recurrent expenditure.

I am of the view that; collection over the counter, un-banked and

non-remittance of visa fees collection to Collection account is
contrary to Public Finance Act and directives issued, in addition it
denies the Government to utilize the collected fund in other
development activities, instead using the collected fund to carry out
unintended activities.
I recommend embassies to ensure all collections are made through
bank account and remitted to consolidated fund to finance
Government expenditure.
4.3.12.3 Unclaimed Deposit Balances not Remitted to Treasury TZS
3,389,301,017.92
My review on deposit register and cash book for the year ended June
2019 noted long outstanding deposit balance of TZS 3,389,301,017.92
aggregating from previous years transactions in 2 Ministries and 1
Embassy20 deposit Account which were not remitted to Treasury

20
Ministry of Education, Science and Technology (Vote 46), Ministry of Agriculture
(Vote 43) and Tanzania Embassy in Berlin

CG - Annual General Report 2018 / 19 71

despite being unutilized/unclaimed for a long period21, contrary to
Regulation 133 of Public Finance Regulations, 2001 (as revised 2004)
which requires unclaimed deposit for more than five years to be paid
into revenue account with the approval of the Accountant-General,
and refund to entitled person if he or she is satisfied that the claim
is authentic. Details are in the Table below.

Table 15: Unclaimed deposit balances not remitted to Treasury

Vote Vote Description Amount TZS
No.
Ministries
46 Ministry of Education Science 1,370,204,939.34
and Technology
43 Ministry of Agriculture 480,004,970
Sub-total 1,850,209,909.34
Embassy
2002 Tanzania Embassy in Berlin22 1,539,091,108.58
Grand Total 3,389,301,017.92
Source: Signed Management Letters

It is my opinion that, long outstanding deposit fund implies

inadequate internal controls over deposit account.

I recommend management of the respective ministries to adhere to

the Public finance regulation stated above, and seek clarifications
from the Treasury with regards to unutilized fund held in deposit
and other dormant Accounts of the ministries and embassies.

4.3.12.4 Uncollected Traffic Notifications TZS 4,570,783,000

I reviewed revenue report for Tanzania Police Force (TPF) as at
December, 2019 and observed uncollected revenue from Traffic law
breakers amounting to TZS 4,570,783,000 outstanding for four years
(2015/16 to 2018/19) contrary to Regulation 57 (2) of Public Finance
Regulations 2001 (as revised in 2004) which requires the Accounting
Officers to ensure persons liable to pay revenue are informed by bills

21Range from 5 to 14 years

22Euro 588,361 at an exchange rate of TZS 2,615.90 /Euro (BOT exchange
rate of 28 June, 2019) idle since 2006

CG - Annual General Report 2018 / 19 72

and adequate measures are taken to obtain payment, including action
through the Courts where circumstances so require.

The overdue collection are result of inadequate control of the system

which allows law breakers to renew their driving licenses without
clearing their outstanding notification bills. This practice which has
been long outstanding in my view could put undue burden to the
Government deficit financing.

It is my opinion that uncollected revenue denies the Government

intended collection. Therefore, I call on the responsible authorities
to come up with clear strategy that allows collection of overdue
receipts for purpose of financing Government expenditure.

4.3.12.5 Implementation of Activity not Budgeted TZS 2,583,161,865

During the year I reviewed expenditure of the Ministry of Natural
Resources and Tourism and noted sum of TZS 2,583,161,86523 spent
on establishing a special Television channel for broadcasting tourist
attraction ‘Tanzania Safari Channel’ studio. However, on
confirmation of financing source I observed that the implemented
activity was not in Medium Term Expenditure Framework and the
Ministry’s budget as approved by the National Assembly rather, fund
were reallocated from other activities under the Ministry and its
affiliates including; TANAPA, NCAA, TAWA and TFSA.

Upon inquiry I was informed that, budget for implementing Urithi

festival was approved by the Ministry’s management through its
formal meetings. However despite the good intention of the Ministry
I am of the view that implementation of unbudgeted activities is
contrary to Regulation 4 (1) of Public Finance Regulation 2001 (as
revised in 2004) and tend to affect implementation of the planned
activities under the Ministry and respective agencies.

23
Ministry of Natural Resources (TZS 1,511,995,098), TAWA (TZS 351,008,632) &
TFSA (TZS 720,158,135)

CG - Annual General Report 2018 / 19 73

I recommend the Ministry to ensure activities are prior budgeted and
approved by the National Assembly to avoid ad hoc activities that
may lead to reallocation of such significant amount. I also emphasize
that all reallocations have to be approved by the Ministry of Finance
and planning prior implementation.

CG - Annual General Report 2018 / 19 74

 CHAPTER FIVE

5.0 NATIONAL ACCOUNT

5.1 Tanzania Revenue Authority

5.1.1 Introduction
The Tanzania Revenue Authority (TRA) was established by Act of
Parliament No. 11 of 1995, and started its operations on 1st July 1996.
In carrying out its statutory functions, TRA is regulated by law, and is
responsible for administering various taxes of the Central
Government.

TRA prepares two sets of statements which are the Revenue

Statements and the Financial Statements for the Authority itself
(Expenditure). Both statements are prepared under International
Public Sector Accounting Standards (IPSAS) Accrual basis of
accounting. The Revenue Statements are for reporting affairs of
various taxes collected by TRA. The Financial Statements
(Expenditure) mainly report on the accountability of funds received
from the Government and other sources to finance TRA operations.

5.1.2 Implementation Status of the Prior Years’ audit

Recommendations
In my previous audit reports, 103 recommendations were issued in
the financial year ended 30th June, 2018; and 180 recommendations
were outstanding for the financial years from 2001/2002 to
2016/17, thus making 283 as total outstanding recommendations.

I have reviewed the progress made in implementing prior years’

recommendations totalling to 283 as analysed in the Table below.

Table 16: Analysis of prior years’ audit recommendations

Department Recommendations
Number Percent
Customs and Excise Department 129 45
Large Taxpayers Department 70 25
Tax Investigations Department 20 7

CG - Annual General Report 2018 / 19 75

 Department Recommendations
Number Percent
Domestic Revenue Department 64 23
Total 283 100

Detailed analysis of outstanding prior years’ audit recommendations

by department with their respective years when they were issued is
shown in Appendix 5.1

In my review of the status of audit recommendations, I noted that out

of 283 recommendations, 63 recommendations (22 percent) were
implemented, 220 recommendations (78 percent) were under
implementation as shown in the Table below:

Table 17: Implementation status of prior years’ audit

recommendations
Total
Status
No %
Implemented 63 22
Under Implementation 220 78
Total 283 100

Further review revealed that out of 220 outstanding

recommendations, 32 recommendations (15 percent) require decision
of authorities outside TRA such as Judiciary for court cases and
Parliament for cases where abandonment approval is sought by TRA
through the Treasury. Ruling for some of court cases and write off
approvals have been awaited since the year 2001/2002. The
remaining 188 recommendations (85 percent) are being pursued by
the management of TRA.

Generally, the implementation status is not satisfactory. I still advise

the Government to speed-up implementation of the audit
recommendations in order to unlock the tied up revenue in the
pending matters and enhance its revenue collections.

CG - Annual General Report 2018 / 19 76

5.1.3 Revenue Out-Turn in Tanzania
During the financial year 2018/2019, the Authority collected a total
of TZS 15,744,608,757,106 against the set target of TZS
18,297,537,353,745 reflecting an under collection of TZS.
2,552,928,596,639 equivalent to 14 per cent of total revenue targets.
These total revenue figures exclude collection from Treasury
Vouchers with respect to payments for tax exemptions and refunds
which amounted to TZS 20,052,472,109. The actual collection with
treasury vouchers inclusive was therefore totalling to TZS
15,764,661,229,216 for the year under review. The table below
indicates the total Revenue collection from both Tanzania Mainland
and Zanzibar (treasury vouchers).

Table 18: Revenue Collection Departmental-wise (figures in millions)

Over/ Over
Departme Targets - Collection for
(Under) (under)
nt [TZS Mainland & Mainland &
Collection collection
Billion] Zanzibar TZS Zanzibar TZS
TZS %
Domestic (982,009) (24)
4,164,809 3,182,800
Revenue
[DRD]
Large (761,612) (11)
Taxpayers 7,100,000 6,338,387
[LTD]
Customs & (701,253) (10)
Excise 7,091,202 6,389,948
[CED]
Refunds 108,054 185
and (58,473) (166,527)
transfers
Total (2,552,929) (14)
18,297,537 15,744,609
Collections
Treasury (15,076) (43)
35,128 20,052
Vouchers
Grand 18,332,665 15,764,661 (2,568,004) (14)
Total
Source: Audited Revenue Statements for 2018/19

As shown in the table above, the performance of all three revenue

collection departments were below their targets for the year under
review. However, department wise analysis shows that Customs &
Excise Department (CED) accounted for 40.2 percent of actual

CG - Annual General Report 2018 / 19 77

collection which is the largest share, followed by Large Taxpayers
Department (LTD with 39.8 percent share and Domestic Revenue
Department (DRD) with 20 percent. This ranking excludes collection
from Treasury Vouchers. The figure below shows the revenue
contribution departmental wise.

Figure 13: Actual Revenue Collection Department wise, FY 2018/19

Large Domestic
Taxpayers' Revenue
Department Department 20%
39.8%

Customs &
Excise
Department
40.2%

The above Figure shows that the contribution of Domestic Revenue

Department is still trailing behind other departments despite
initiatives taken by the Authority to increase share of domestic
revenue collection through implementation of TRA Fifth Corporate
Plan (2017/18 – 2021/22). In my view strategic actions are required
in order to increase tax yield at the Domestic Revenue Department
such as, increasing tax base by registering new tax payers, making
close follow up on tax arrears, timely settlement of tax objections,
strengthening the tax audits, tax assessments, normal flow and
examinations unit, insisting on the use Electronic Fiscal Device (EFD)
machines and timely addressing challenges relating to EFD machines,
providing awareness and encouraging the public to demand EFD
receipts for purchased goods and services.

CG - Annual General Report 2018 / 19 78

5.1.4 Revenue Collection Trend
The trend of revenue collection over the past five years is shown in
the Figure below. Generally, it was below the approved estimates
with the exception of the year 2015/16 where actual collections
exceeded the target by 0.13 percent.

Figure 14: Trend of Tanzania revenue collections FY 2014/15 to

FY 2018/2019
20,000,000
18,000,000
Amounts in TZS Million

16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
2014/15 2015/16 2016/17 2017/18 2018/19
Financial Years

Targeted Collections Actual Collections

Further, in the financial year 2018/19 the performance of the

Authority recorded a downward movement in terms of the tax yield
(tax to GDP ratio) of 11.4 percent as opposed to a 12.8 percent in
2017/2018. This decline in tax yield calls for Government to continue
exerting more efforts in increasing revenue collection. A comparative
analysis of tax yield of five years for Tanzania and other East African
countries is shown in the Figure below.

CG - Annual General Report 2018 / 19 79

Figure 15: Analysis of Tax Yield for Tanzania and other EAC
countries

20.0%
18.0%
16.0%
14.0%
12.0%
Tax Yield

10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2014/15 2015/16 2016/17 2017/18 2018/19
Financial Years

Tanzania Uganda Kenya Rwanda Burundi

Please refer to Appendix 5.2 for the detailed analysis of five years’
revenue trend.

I am of the view that the Tanzanian tax efficiency, both actual and
target yields leave a room for improvement through increased efforts
in the revenue mobilization by widening tax base, plugging of revenue
leakages, improving voluntary tax compliance, tax efficiency and
effectiveness. All these measures will eventually reduce country’s
fiscal deficit and debt financing gap.

5.1.5 Key Challenges in Revenue Collection and Recommendations

For the past five years TRA has been missing the targets with the
exception of 2015/2016 and revenue collection trend were below the
approved estimate by 8.6 percent on average in the past five years.

Below is the summary of key challenges noted and recommended

remedial actions;

CG - Annual General Report 2018 / 19 80

a) Existence of Several Pending Tax Disputes
I noted that tax cases totalled TZS 366.03 trillion were pending at Tax
Revenue Appeal Board (TRAB), Tax Revenue Tribunal (TRAT) and
Court of Appeal. Among reasons for pending tax disputes include
limited financial resources in these entities which affect their
performance. This situation affect the amount of tax to be collected
by TRA.

I recommend the government to enhance efficiency of the tax appeal organs

by allocating and releasing sufficient required financial and other resources
for their operations in order to timely clear the outstanding tax cases.

b) Outstanding Tax Receivables (Tax Arrears) and Assessed Taxes

My review noted lack of timely follow up on assessed taxes which
resulted into piling-up of taxes in arrears for a long period. This
situation has been contributed by lack of close monitoring and
inadequate information concerning taxpayers’ business operations. In
my view, if adequate efforts and appropriate measures could have
been taken by TRA management, the large amount of outstanding tax
arrears could have been collected and boosted the revenue
collections for the financial year under review.

I recommend to the government to improve the follow up mechanism

so as to recover taxes in arrears from the taxpayers. This can be
achieved by enhancing the debt management department and
strategies at TRA in order to collect on time all taxes as they become
due and avoid long outstanding taxes in arrears from assessments
made.

c) Delays in Settlement of Tax Objections

My assessment on the efficiency and efforts of the Authority in
settlement of tax objections, noted delays in resolving and
settlement of tax objections filed by taxpayers. These delays have
impact on revenue collection as government taxes are tied up in
objections cases for a long time. This situation has been contributed
by inadequate knowledge and skills of tax officers in resolving tax
objections.

CG - Annual General Report 2018 / 19 81

I recommend the government to ensure that tax objections are
settled on time, including allocation of adequate number of staff and
capacity building to officers dealing with tax objections.

d) Inadequate Resources and Skilled Tax Auditors

My review noted postponement of tax audit assignments due to
complexities of transactions involved in taxpayers’ records especially
in multinational and petroleum companies. I further noted under
assessment and non-assessment of taxes in several tax audit
assignments. This situation was contributed by inadequate number of
tax auditors and skill gap of some officers during tax audits.

I recommend the government to allocate adequate number of tax

auditors and enhance capacity building to all officers in the tax audit
and tax assessments functions.

e) Inadequate Control and Monitoring Over Clearance of Imported,

Transit and Exported Goods
My review noted instances whereby the Authority failed to collect
taxes on imported goods, illegal localization (dumped) transit goods
and goods not exported. This situation was caused by non-adherence
to customs procedures in clearance of goods and monitoring of transit
goods.

I recommend the Government to ensure that customs procedures are

adhered to and transit goods are well monitored to ensure that taxes
and penalties on illegal localization (dumping) of transit goods are
timely collected.

f) Overstayed Goods in Customs Warehouses not Auctioned Timely

My review noted that, the Authority was not conducting sufficient
auctions to recover taxes embedded in overstayed and abandoned
imported goods deposited in customs warehouses. In some customs
areas the Authority did not conduct auctions despite having bulk of
goods deposited in customs warehouses.

CG - Annual General Report 2018 / 19 82

I recommend the government to conduct auctions on regular bases in
order to recover taxes on abandoned and overstayed goods, in a way
to avoid loss of revenue due to deterioration, damage or expiring of
goods.

5.1.6 Specific Issues Raised During the Current Year Audit

This section covers three key issues requiring close management
attention to enhance revenue collection. These include; Management
of Tax objections, Management of Tax Arrears and Tax Revenue
Collections in Tanzania.

5.1.7 Management of Tax Objections

5.1.7.1 Taxes Tied up in the Appeal Machinery Pending Rulings

My audit this year noted that TRA had long outstanding cases at
various tax appeals machinery amounting to TZS 366.03 trillion, of
which TZS 363.98 trillion (99.44 percent) stuck at the Tax Revenue
Appeals Board, TZS 1.45 trillion (0.39 percent) at the Tax Appeals
Tribunal and the remaining balance of TZS 605.68 billion (0.17
percent) awaiting ruling at the Court of Appeals. Summary of tax
cases for the financial year 2017/18 and 2018/19 is provided in the
table below.
Table 19: Outstanding cases at Tax Appeal Machinery
2018/19 TZS 2017/18 TZS (Million)
Entity (Million)
Tax Revenue Appeals
Board 363,977,725.35 382,005,498.27
Tax Revenue Appeals
Tribunal 1,452,992.85 65,995.12
Court of Appeals 605,676.47 548,310.71
Total 366,036,394.67 382,619,804.09

During the Financial Year 2018/19 I noted a decrease of tax cases in

terms of tax amount disputed by TZS 16.58 trillion (4.33 percent),
where by number of cases increased from 817 cases worth TZS 382.6
trillion in the financial year 2017/18 to 950 cases worth TZS 366.03
trillion in the financial year 2018/19.

CG - Annual General Report 2018 / 19 83

I recommend the Government to improve operations and
performance of Tax Appeals Organs by allocating and release
adequate funds and other resources for the operations of tax appeal
organs to enable timely hearing and concluding of tax cases.

5.1.7.2 Inefficiency in Handling and Resolving Tax Objections

My audit during the year 2018/19 noted a total of 107 admitted
objection cases with tax amounting to TZS 84,615,063,093.19 by large
taxpayers and domestic revenue departments that were outstanding
beyond the allowable period of six months as specified in TRA quality
management procedures and taxpayer service charter. These
objection cases remained unsettled for the periods ranging from 7 to
96 months from the dates the objections were received by the
commissioners. Delay in settlement of tax objection applications have
a negative impact on revenue collections targets as these cases tie
up a substantial amount of taxes.

Also, I noted that the Authority was accepting and admitting tax
objection cases which did not comply with the requirements of Tax
Administration Act. I simply noted objection applications with taxes
amounting to TZS 143,525,104.34 admitted in domestic revenue
department without evidence of payment or waiver of the statutory
deposits (the one third of the tax objected or the amount not in
dispute whichever is higher).

Further, my review noted inefficient and ineffective tax audit.

Inadequate number of staff in Technical Units to resolve the
objections which has also contributed to high rate of unresolved tax
objections being outstanding for a long period.

I recommend the Government;

(a) To expedite handling of tax objection applications in order to
resolve the overdue tax objections. This can be done by increasing
the number of competent and experienced personnel in Tax Audit
Unit and Technical Services Unit; and strengthen its tax
assessment process.

(b) To ensure admission of tax objections applications comply with

the requirement of the Tax administration Act which requires
among other things, the objections to be filed within thirty days

CG - Annual General Report 2018 / 19 84

 from the date of service of the tax decision and paying a statutory
deposits.

5.1.8 Management of Tax Arrears

5.1.8.1 Weaknesses in Tax Arrears
My review on tax arrears registers, reports, taxpayers’ collection
files, schedules of tax receivables, taxpayers’ offence files, ITAX and
other supporting documents on sampled taxpayers from tax regions
noted ineffective debt management and enforcement mechanisms
that lead to the following weaknesses;

a) Long Outstanding Tax Receivables Worth

TZS 276,197,724,204
My review noted pilling up of outstanding tax receivables in the large
taxpayer department whereby a total of TZS 276,197,724,204 was not
collected despite some of the receivables being originated in 2007.
Failure to collect long outstanding taxes reduce the assurance on
their collectability hence loss of government revenue.

b) Uncollected Outstanding Tax Arrears Worth

TZS 42,859,547,757.15
My review noted inadequate follow up on the outstanding taxes at
domestic revenue department. There were no evidences in
taxpayers’ collection files such as recent demand notices, reminder
letters, agency notices or warrants of distress and tax position which
justify enforcement and collection efforts on the tax receivables.
Delays in collecting outstanding taxes from arrears, rejected
objection cases and taxes from fines amounting to TZS
24,781,862,756.15. I also noted long outstanding tax receivables
amounting to TZS 18,077,685,001.89 under Customs and Excise
Department.
I recommend the government to exert more efforts in collecting
taxes in arrears. This can be achieved by making various
arrangements with taxpayers to settle their tax liabilities including

CG - Annual General Report 2018 / 19 85

instalment payments thus reducing the chances of un-collectability
and boost government revenue.

5.1.8.2 Implementation of Remission of Interest and Penalties

(Under Tax Amnesty)
In an effort to encourage taxpayers to regularize their tax affairs so
as to increase voluntarily compliance, expand tax base and increase
government revenue collection, government via finance act of 2018
issued the tax administration (Remission of interest and Penalty)
order No 282, published on 30th June 2018 and extended order No
755A of 30th June 2019.
Upon my review on the implementation of remission of interest and
penalties under tax amnesty to assess the progress and outcome as at
30 June 2019. I noted unsatisfactory performance in the recovery of
principal taxes during implementation of remission of interest and
penalties under tax amnesty. As at 30th June 2019 TRA collected only
TZS 259,272,779,672.51 equivalent to 26.7% of TZS
971,059,288,251.54 total principal taxes to be collected from
taxpayers under tax amnesty. The analysis shows that, Large
Taxpayers Department managed to collect principal taxes amounting
to TZS 203,527,170,399.51 equivalent to 28% out of TZS
708,130,744,366.54, whereas Domestic Revenue Department
managed to collect principal taxes of TZS 55,745,609,273 equivalent
to 21% out of TZS 262,928,543,885.

I recommend Government to increase awareness to tax payers to

better utilize limited opportunity like tax amnesty by paying on time
principal taxes which will minimize their tax burden and increase
government revenue collections.
5.1.9 Management of Tax Revenue Collections
5.1.9.1 Inadequate Controls Over Tax Collection on Fuel Imported
for Local Consumption
My review on assessment and collection of taxes on fuel products
imported for local market noted the following;

CG - Annual General Report 2018 / 19 86

a) Assessed Customs Duties on Imported Fuel not Paid TZS
124,696,085
I also noted assessed taxes of TZS 124,696,085 not paid by oil
marketing companies. This situation was contributed by inadequate
follow up by TRA officers to collect the outstanding tax amount.

b) Additional Tax and Wharfage not Assessed and Paid TZS

3,577,249,115
My review of records of imported Oil Products revealed 11 bills of
landing with 11,686,616.94 litres of fuel imported and captured in the
TANCIS system but they were not assessed for tax payment.
Therefore, the respective customs duties of TZS 3,577,249,115
(additional tax and wharfage charges) were not collected by TRA.

This was attributed to non-comparison of bills of lading against the

manifests by the Agents of goods after final ullage confirmation. The
comparison process would allow additional tax and wharfage charges
to be calculated and charged by the TANCIS system.

c) Interest on Late Payment of Taxes not Collected

TZS.1,360,550,338.62
My further review of assessments and collection of revenue from
imported fuel for local consumption and localized transit fuel noted
delays in payment of duties and taxes, however, no evidence was
provided to substantiate collection of interest amounting to TZS
1,360,550,338.62.

Failure to collect interests on late payments of taxes denies

Government opportunity to collect more revenue which is needed to
finance its budget.

I recommend the government to:

• Ensure that regular follow-ups are made for unpaid taxes on

imported fuel including recovery of TZS 124,696,085.
• Take actions on non assessment of additional taxes and
wharfage, including collection of the unpaid revenue of TZS
3,577,249,115.

CG - Annual General Report 2018 / 19 87

 • Ensure interest and penalties are charged for late payments of
taxes and recover uncollected interest amounted to TZS
1,360,550,338.62.

5.1.9.2 Inadequate Controls and Monitoring Over Transit Fuel and

Dry Cargo
During my audit, I reviewed the controls and monitoring mechanism
over imported goods on transit to other countries and noted the
following;

(a) Custom Duties Payable on Transit Goods not Confirmed to Have

Exited the Country TZS 127,583,275,392.74
My review noted transactions of transit cargo with customs
duties of TZS 13,883,929,954.34 intended to exit through
customs borders of Tunduma, Kasumulu, Namanga, Holili and
Kigoma port, were not validated in the TANCIS System and
evidences in the form of movement sheets or registers to
support exit of cargo through the respective borders were
missing.

My further review of data extracted from TANCIS system

relating to transit goods at Rusumo, Kabanga and Mutukula
customs borders noted transit transactions with bond value of
TZS 113,746,778,638.44 recorded in the manual registers to
have been received at the borders, however, validation in the
system to confirm exit to the respective countries were not
performed.

This situation portray non-compliance with customs controls

which might offer opportunity for transit cargo to be diverted
into local markets without paying the required taxes, thus
result into loss of government revenue.

(b) Transit Goods Validated in the System But Exit Evidences are
Missing; TZS 299,804,063.32
I noted 26 transactions of transit goods with bond value of TZS
299,804,063.32 validated in the TANCIS System to confirm exit

CG - Annual General Report 2018 / 19 88

 to other countries through Kasumulu border. However, transit
documents in the form of movement sheets, sub T1s and
records in registers were missing. Therefore, I could not
confirm on whether these transit goods physically exited the
country.

(c) Penalty to Bond not Collected on Late Exit of Transit Goods

TZS 167,307,834.91
My review on transit goods exited through borders of Tunduma,
Kasumulu, Rusumo, Kabanga, Mutukula and Dar es Salaam
Airport (JNIA) noted goods allowed to exit after expiration of
statutory period, but TRA did not charge any penalty contrary
to Section 104(17) of EAC Customs Regulation 2011. As a result,
Government revenue from penalty to bond amounting to TZS
167,307,834.91 was not collected.

I recommend the government to:

(a) Strengthen controls over export confirmation and TANCIS

validation of transit goods to other countries, and recover
appropriate taxes; customs duties plus penalties and
interest on illegal localized (dumped) transit goods.

(b) Ensure that penalty to bond on late exit of transit goods is

collected on all transactions to deter any practice of illegal
localization of transit goods without payment of taxes.

5.1.9.3 Overstayed Goods Deposited in Customs Warehouses and

Temporarily Imported Goods
My physical verification in regional and border Customs Warehouses
noted auctions were not conducted on overstayed goods deposited in
customs warehouses. In Mara (Sirari border) and Mwanza I noted large
quantity of goods deposited in customs warehouses and some of them
were obsolete however, no auction was conducted during the year
under review to recover taxes from the goods contrary to Section
42(1) of the East African Community Customs Management Act
(EACCMA). A total of 1,050 items were overstayed in 18 borders for a

CG - Annual General Report 2018 / 19 89

period ranging from 61 to 1,735 days waiting for customs formalities.
Delay in auctioning the overstayed goods may lead to loss of
government revenue as goods will become obsolete or damaged
before the auction.

Further, I noted temporary imported goods with taxes of TZS

2,254,687,609 and 2,600 motor vehicles were overstayed in Tanzania
as evidences for re-exportation were missing. I could not obtain any
extension that allowed such goods and motor vehicles to remain in
the country for such longer period.

I recommend the government to:

(a) Consider making timely decisions such that goods which
remained in Customs warehouse for more than 60 days are sold
by public auction to recover taxes from those goods.
(b) Make follow up and collect taxes from temporary imported
goods and motor vehicles not re-exported, including penalties
and interest for illegal localization of the goods.
(c) Ensure sound controls are in place to monitor all temporary
imports in order to avoid localization of the same without
payment of taxes.

5.1.10 Inadequate Controls Over Enforcement Activities

My audit scrutiny on tax Offences at customs offices noted additional
taxes, penalty and interest amounting to TZS 106,094,872.18 in
respect of offences committed by various importers and agents,
remain unsettled for a period ranging from 4 to 16 months. Delay in
settlement of tax offences result into delay in collection of taxes
which in turn affect implementation of government planned
activities.

I recommend the government to strengthen controls and expedite

settlement of outstanding offences to avoid loss of government
revenue collectable from the retained goods.

CG - Annual General Report 2018 / 19 90

5.2 Public Debt Management

5.2.1 Introduction
Public Debt refers to the current outstanding obligations which the
Central Government and its branches are responsible. In broader
terms it also includes government guarantees upon failure of the
guaranteed entity to honour the obligations.

Public Debt is governed by the Government Loans, Guarantees and

Grants Act No. 30 of 1974 (R.E 2004) (RW 2017 amendments)
whereby Sect. 3 and 6 of the Act give authority to the Minister of
the Ministry of Finance and Planning to borrow and issue
guarantees on behalf of the Government.

5.2.2 Public Debt Portfolio Analysis

Total public debt as at 30th June, 2019 stood at TZS 53,105 Billion
(2018: TZS 50,927) recording an increase of TZS 2,178 Billion
equivalent to four percent (2018: TZS 4,845 Billion). Public debt
was made up of Domestic Debt Stock of TZS 14,863 Billion (2018:
TZS 14,732 Billion) and the External Debt Stock of TZS 38,241
Billion (2018: TZS 36,194 Billion). The Figure below illustrates the
trend of public debt stock by type over the past three years.

Figure 16: Trend of public debt for three years 2016/17 to 2018/19
60,000
50,000
40,000
Billion TZS

30,000
20,000
10,000
-
2016/17 2017/18 2018/19
Total Debt 46,081 50,927 53,105
External 32,746 36,194 38,241
Domestic 13,335 14,732 14,863.40

CG - Annual General Report 2018 / 19 91

5.2.3 Factors for Icrease of Public Debt Stock
Increase in public debt was attributed to net disbursement (new
disbursement, principal repayment and interest payment for Treasury
Bills). For the past three years these factors have contributed more
than 77 percent of debt increment with a higher contribution of 91
percent recorded in the current year as shown in the table below;

Table 20: Debt Stock Movement for three fiscal year 2016/17 to 2018/19
2018/19 2017/18 2016/17

TZS TZS TZS

Details % % %
billion billion billion
A Opening stock 50,927 46,081 41,039
B Net disbursements 1,988 91 3,722 76 4,429 88
C Interest Arrears 157 7 178 4 162 3
D Exchange loss 33 2 945 20 452 9
Total increase in Public
E
debt = B+C+D 2,178 4 4,845 11 5,042 12
F Closing stock= A+E 53,105 50,927 46,081
Source: Public debt financial statements for the year ended 30th June 2017, 2018
and 2019.

Further analysis of the growth in Public Debt observed that exchange

loss accounted for two percent of such increase in year 2018/19
(decrease from 20 percent in 2017/18). Accumulated interest arrears
accounted for seven percent of the increase in year 2018/19 (increase
from 4 percent in 2017/18). These arrears are awaiting five non-Paris
club bilateral creditors to comply with the Paris club terms which
included debts relief for highly indebted countries.

5.2.4 Movement of Domestic Debt Stock

Domestic debt portfolio is composed of long term borrowings
(Treasury Bonds, Government Stocks and Special Bonds) and short
term borrowings (Treasury Bills and Government overdraft). During

CG - Annual General Report 2018 / 19 92

the financial year the increase in domestic debt was TZS 131 billion
equivalent to 1 percent of the domestic debt registered last year
2017/2018. Trends for the past three years of domestic debt portfolio
and borrowing are shown respectively in the tables below.

Table 21: Domestic Debt stock Trend for three years (Face Value)
Debt stock (TZS Increase
Financial Year
Billion) TZS Billion %
2018/19 14,863.40 131 1
2017/18 14,732.45 1,397 10
2016/17 13,335.65 2,142 19
Source: Public debt portfolio worksheet for years 2016/17, 2017/18 and 2018/19

During the year proceeds from domestic borrowing at face value was
TZS 4,348 billion. Out of which from short term borrowings were TZS
3,075 billion equivalent to 71 percent and long term borrowings were
TZS 1,273 billion equivalent to 29 percent as shown in the table
below. Short term instruments are mainly used to rollover maturing
obligations and long term instruments for net domestic financing.
Table 22: Trend of Domestic Borrowing for three years (Face
Value)
2018/19 2017/18 2016/17
Borrowing TZS TZS TZS
% Percent Percent
source Billion Billion Billion
Long term 1,273 29 2,911 44 2,420 33
Short term 3,075 71 3,753 56 4,883 67
Total
4,348 24 100 6,664 100 7,303 100
Borrowings
Source: Public debt portfolio worksheet for years 2016/17, 2017/18 and 2018/19

24 The reported borrowings have not considered effect of decrease in overdraft

balance with central Bank. Opening balance of government overdraft with central
bank was TZS 1,937 billion and closing balance TZS 1,242 thus recording a decrease
of TZS 696 Billion.

CG - Annual General Report 2018 / 19 93

5.2.5 Movement of External Debt Stock
The External Public Debt Portfolio includes loans from International
Organizations (Multilateral), bilateral creditors, Export-import
creditors and Commercial Creditors. The External Public Debt Stock
was TZS 38,242 billion equivalent to 72 percent of the total public
debt. Such debt stock has increased by TZS 2,047 billion equivalent
to 6 percent of the external debt of TZS 36,194 billion reported in the
year 2017/18 as shown in the table below.
Table 23: External Debt stock Trend for three years
2018/19 2017/18 2016/17
Debt portfolio source TZS TZS TZS
% % %
Billion Billion Billion
International
22,116 58 20,843 58 18,318 56
Organizations
Bilateral creditors 4,469 12 4,145 11 4,30213
Export-import creditors 6,368 17 6,056 17 5,56617
Commercial Creditors 5,288 14 5,151 14 4,55914
10
Total Debt portfolio 38,241 100 36,194 100 32,746
0
Increase 2,047 6 3,448 11 2,900 10
Source: Public debt portfolio worksheet for years 2016/17, 2017/18 and 2018/19

Our review noted that the increase of external debt was attributed
by borrowings to finance development projects as shown in the table
below;

Table 24: Trend of External Borrowings for three years

2018/19 2017/18 2016/17
Borrowing source TZS TZS TZS
% % %
Billion Billion Billion
International
1,557 45 1,986 50 1,515 50
Organizations
Bilateral creditors 165 5 125 3 181 6
Export-import creditors 496 14 493 13 373 12
Commercial Creditors 1,210 35 1,354 34 978 32

CG - Annual General Report 2018 / 19 94

 2018/19 2017/18 2016/17
Borrowing source TZS TZS TZS
% % %
Billion Billion Billion
Total Borrowings 3,429 100 3,958 100 3,047 100
Source: Public debt portfolio worksheet for years 2016/17, 2017/18 and 2018/19

5.2.6 Debt Management

Loans Contracted But Not Disbursed for Long Time
I noted 11 loan contracts which exist in the database for periods of 5
to 20 years but had no disbursement. This creates a risk of
understatement of public debt due to lack of updated information on
disbursed loans.

I recommend the government to set up monitoring and evaluation

mechanism that will track down the disbursement and utilization of
funds generated from public debt; the follow up mechanism will
ensure implementing agencies properly account for the utilization of
borrowings on regular basis, and establish coordination mechanism
to facilitate reconciliation of signed loan contracts and
disbursement.

Under Performance of the Domestic Market

The Government planned to borrow from the domestic market during
2018/2019 through issuing of Treasury bills and bonds to the tune of
TZS 6,522 billion at face value whereas as of 30th June 2019 a total of
TZS 4,348 billion (equivalent to 67 percent) at face value was realized
leaving 33 percent unrealized, thus creating a risk of inadequate
funds of development projects. Underperformance is attributed to
low public awareness regarding the government securities especially
securities with longer maturities.

CG - Annual General Report 2018 / 19 95

I recommend the government to consider a strategy to promote
development of domestic financial market to attract more investors
on longer term maturities (Treasury bonds).

Establishment of Government Securities Auction Committee

(GSAC)
I noted that the Government has not established Government
Securities Auction Committee (GSAC) contrary to Part 3.4(ii) of the
Issuance Plan 2018/2019. Absence of GSAC leads to loss of
institutional memory and reference for future decisions due to the
fact that decisions regarding auctions are not formerly documented
and kept.

I recommend the government to establish the auction committee

with the clear stipulated roles and responsibilities and formally
document any decisions made during auctions.

5.2.7 General Services

Lack of joint reconciliation on advance payment for retirees
We noted absence of joint reconciliation between Ministry of Finance
and Planning (MoFP) (Principal) and LAPF (The Agent) on actual
payments to pensioners made by the agent against advance
remittances received from MOFP by LAPF. Absence of reconciliation
is attributed to absence of database for such retirees at MoFP. Non-
performance of reconciliation exposes public funds to risk of
misappropriation.

I recommend the government to consider having own list / database

of eligible payees rather than depending on bills raised by the agent
to facilitate meaningful reconciliation and safeguard of public
resources.

CG - Annual General Report 2018 / 19 96

5.3 Audit of Processed Payments of Terminal Benefits

5.3.1 Introduction
Pre-audit of terminal benefit payments is carried out by virtue of the
provisions of Article 143(2) (a) of the Constitution of the United
Republic of Tanzania (URT), 1977 (as amended from time to time) and
Sect 29 of the Public Audit Act No. 11 of 2008. Sect 5 (a) of the same
Act requires the Controller and Auditor General to authorize the use
of money paid out of the Consolidated Fund upon being satisfied that
Article 136 of the Constitution has been or shall be complied with.

It is thus essential to pre-audit all individual payments of the

Government which cannot easily be forecasted and appropriated with
funds such as terminal benefit payments.

Pre-audit of terminal benefit payments is performed to assess

compliance with terminal benefit laws which include Public Service
Retirement Benefits Act, 1999; the Local Authority Pension Fund Act,
2006; the Public Service Act, 2002; the National Social Security Fund
Act, 1997; the National Defence Act, 1966 (R.E. 2002); Tanzania
Intelligence Security Service Act, 1996; Social Security (Regulatory
Authority) Act, 2008; the GEPF Retirement Benefit Act, 2013, Political
Service Retirement Benefits Act, 1999 and the Income Tax Act, 2004
as amended from time to time.

5.3.2 Purpose of the Pre-Audit

The purpose of this audit is to examine the accuracy of terminal
benefit payments to enable early detection of errors with the
intention of ensuring that the retirees are being paid what they
deserve. This is also made necessary, taking into account that, any
wrongly paid amount may not be easily recovered from retirees.

On the other hand, the pre audit of terminal benefits seeks to ensure
that the applicable pension laws, regulations, working policies in
relation to public service, correspondences, and schemes of service
and salary structures are complied with.

CG - Annual General Report 2018 / 19 97

5.3.3 Pre-Audit Coverage
The pre audit of terminal benefits covers the Public Servants whose
terminal benefits are paid out of the Consolidated Fund and do not
cover Public servants whose terminal benefit payments are processed
by the Public Service Pension Fund (PSPF), Public Service Social
Security Fund (PSSSF), National Social Security Fund (NSSF) and other
contributory schemes of services. The pre-audit function done by my
office on terminal benefit payments paid from Consolidated Fund
involves the following:-

a) Pension and gratuity for public servants with mixed service,

Military Officers and Men, Teachers, and Intelligence Officers.
b) Contract gratuity for Political Leaders, Non-citizens, re-
appointed retired officers and citizens first appointed beyond
45 years of age.
c) Compassionate gratuity for non-pensionable Public Servants and
d) Gratuity for Rank and file Police Officers.

5.3.4 Detailed Findings and Recommendations

This part of the report presents major issues noted from pre-audit of
Terminal benefit payments and recommendations for the financial
year 2018/2019.

5.3.4.1 Performance Out-Turn

As shown in the Table below, the pre audit exercise commenced with
569 files brought forward from the previous year 2017/2018. A total
of 3,251 retirees’ files were received adding to a sum of 3,820 files
that were available for examination during the year 2018/2019. Out
of 3,820 files available for pre –audit, my office managed to examine
3,504 files, of which 3,448 files with terminal benefit claims
amounting to TZS 157,665,096,680.74 were examined and approved
for payment and 56 were returned to the respective accounting
officers requiring some amendments. The balance of 316 files was
still under examination as at 30th June, 2019.

Table 25: Summary of retirees’ files examined during the year

2018/2019
Details Files
st
Opening balance as at 1 July, 2018 569

CG - Annual General Report 2018 / 19 98

 Details Files
Received during the year 3,251
Available for pre audit examination 3,820
Examined and approved 3,448
Examined and returned to employers(Queried files) 56
Balance as at 30th June, 2019 316

5.3.4.2 Understatement of Terminal Benefits by Employers

TZS. 117,449,527.42
My review of pension paper files, for the year under review, noted
terminal benefit payments of some pension paper files submitted for
pre audit were wrongly computed.

Out of 3,448 pension files approved for the year under audit, terminal
benefit payable to 338 (9.8%) retirees were wrongly computed. Out
of which, 170 files were noted with overstatement of TZS
316,117,868.86 while 168 files were understated by a total amount
of TZS 433,567,396.28 as shown in the Table below.

However, such anomalies raise concern over the adequacy of the

review mechanism of pension papers and capacity of the preparers
and reviewers in terms of competence and experience on pension
matters and laws as well as documentation of pension files on the
side of employers.

Table 26: Terminal Benefits Understated

Terminal benefits Terminal benefits
overstated understated Net effect (a-b)
S/N Subject (a) (b)
No. of No. of
Amount (TZS) Amount (TZS) (TZS)
cases cases
Incorrect
1 Service 100 114,677,969.86 103 305,919,494.30 (191,241,524.44)
Periods
Wrong
2 applied 34 48,813,962.85 28 59,934,917.27 (11,120,954.42)
Salaries
Wrong
NSSF
3 19 21,609,468.80 27 32,891,774.38 (11,282,305.58)
contributi
ons
Miscellane
4 17 131,016,467.35 10 34,821,210.33 96,195,257.02
ous

CG - Annual General Report 2018 / 19 99

 Terminal benefits Terminal benefits
overstated understated Net effect (a-b)
S/N Subject (a) (b)
No. of No. of
Amount (TZS) Amount (TZS) (TZS)
cases cases
incorrect
computati
ons
Total 170 316,117,868.86 168 433,567,396.28 (117,449,527.42)
Sources: Pension/gratuity papers

From the above analysis, the Government would have incurred a total
loss of TZS 316,117,868.86 arising from overstatement whereas
pensioners would have suffered by a total of TZS 433,567,396.28 due
to understatement of their benefits.

Such anomalies noted reflect a value addition of pre-audit of pension

and other benefits that are payable directly from the Consolidated
Fund. It further shows the extent to which lapses of internal controls
and weakness on the part of the Accounting Officers could cost both
the Government and Pensioners if pre-audit were not conducted.

5.3.4.3 Delay in Preparation and Submission of Retiree’s

Terminal Benefit Particulars
Regulation 89 of the Public Service Regulations, 2003 requires both
employers and employees to keep employment records for reference
purposes during calculation of the employee’s terminal benefits.
Regulation 32(2) states that, it is the duty of employers to review
from time to time records of employees under their control, in order
to ensure that public servants cease from duty on attaining the age
of retirement.

In addition, regulation 32(3) of the Public Service Regulations, read

together with Order No F.48 of the Standing Orders for Public Service,
2009 requires a public servant who is due to retire, to notify his
intention in writing, to his appointing authority through normal
channels, at least six months before the proposed date of cessation
of duty.

It is my view that if employers and employees comply with the above

requirements, retirees will be paid their entitlements including

CG - Annual General Report 2018 / 19 100

terminal benefits within a reasonable time following their
retirement.

During the year under review we noted delay by employers in the

preparation and submission of retirees terminal benefit particulars
for audit purpose. The pre audit noted that 1,897 retiree’s terminal
benefit particulars were delayed for a period between one (1) and
394 months as shown in the table below.

Table 27: Delay in preparation and submission of files

S/N Range(Years) Number of Files
1 0<1 790
2 1-10 997
3 Above 10 110
Total 1,897
Sources: Pension/Gratuity papers

In my opinion, such practices would have not been an issue if

employers were taking pension processing seriously. This also
amounts to violation of the requirements of the terminal benefits
laws and regulations a factor that affects beneficiaries a great deal
and causes unnecessary inconveniences leave alone the loss in value
of their monies/benefits.

Recommendation
The Government to ensure employers comply with terminal benefits
laws with regard to early preparation and submission of retirees’
particulars for pre audit and payment purposes.

5.3.4.4 Queried Files not Returned for Pre –Audit

Government Pension involves three (3) main processes i.e. Benefits
Initiation and Computation (Employer), Pre Audit by CAG and;
Gratuity and Pension Disbursement (Treasury). The Pre-audit of
Terminal Benefits starts with the receipt of employee files from the
respective employers. The auditing process involve three criterions
i.e. Eligibility, Completeness of the submitted documents and
accuracy of the computations.

During the review, errors based on the above criteria that might cause
to raise a query may be noted. The file is sent back to the employer

CG - Annual General Report 2018 / 19 101

for query clearance. A queried file will be returned with replies for
further pre-audit clearances.

During the year, I have noted forty six (46) queried computations of
terminal benefits that were communicated to the employers were not
returned to my office for pre-audit up to the end of financial year.
This means employers kept the files with queries unattended, some
of the files have not been returned to my office for more than three
(3) years, as shown in the table below. The excessive delay of
resubmission of queried files affects the retirees’ living standard.

Table 28: Queried files not returned for pre-audit

S/N Range(Years) Number of Files
1 0<1 8
2 1-3 38
Total 46
Sources: Pension/Gratuity papers

Recommendation
• Employers should attend pre-audit queries with immediate effect
or seek clarity from the Controller and Auditor General where
needed.

• The Government ensure employers comply with terminal benefits

laws, regulations, related circulars and directives.

5.3.4.5 Re-submission of Approved Files

Sect. 37 of the Social Security (Regulatory Authority) Act, 2008 and
Sect. 23 of the Public Service Retirement Benefit Act, 1999 restrict
retirees to enjoy double terminal benefits.

The pre audit noted ten (10) files resubmitted for pre audit despite
the facts that the same were previously approved for payment. I am
of the view that resubmission of approved pension files may lead to
loss of Government revenue due to double payments.

Recommendation
Government is advised to enhance strict sanctions to all pension
preparers who resubmit files for pre-audit and approval. In addition,

CG - Annual General Report 2018 / 19 102

controls should be enhanced in the payment system to detect and
reject double payments.

CG - Annual General Report 2018 / 19 103

5.4 Audit of Consolidated Financial Statements

5.4.1 Introduction

The Government of the United Republic of Tanzania (URT) has

adopted the use of the International Public Sector Accounting
Standards (IPSAS) accrual basis of accounting in the preparation of
Financial Statements with effect from 1st July 2012. Therefore, the
Government prepared its first IPSAS compliant Consolidated Financial
Statements for the financial year ended 30th June 2013 as per the
requirement of IPSAS 35.

I commend the Government for introducing the Government

Accounting Consolidation System (GACS) towards enhancing
accuracy, completeness, transparency, accountability and timely
reporting. However, the Government is still facing challenges in the
course of achieving full compliant Consolidated Financial Statements
as observed during my audit of financial statements for the financial
year 2018/2019. These challenges include:

5.4.2 Review of the Government Accounting Consolidation

System (GACS).
5.4.2.1 Lack of System Validation for Elimination Among
Government Entities
Review of elimination treatment in the consolidated financial
statements for service offered among government entities noted
that, GACS has a specific template that allows inter entities to specify
items related to service which was provided or received from other
government entity for elimination. However, the system has not been
designed to validate respective figures between two entities which
would ensure the balances tally and for any difference the system
should alert, and respective entities should reconcile before the
system allows elimination.

I recommend the Government to establish effective mechanism for

entity to report inter entity transactions and Implement validation

CG - Annual General Report 2018 / 19 104

in the system of reported figures for elimination between intra
governmental entities to ensure reporting of correct figures.

5.4.2.2 Inadequate Application General Controls Surrounding

GACS Application System
ISO/IEC 27002 Code of practice for information security management
states that, systems should be monitored, and information security
events should be recorded in order to detect unauthorized activities.
Audit logs recording user activities, exceptions, and information
security events should be produced and kept for an agreed period to
assist in future investigations and access control monitoring.
Moreover, the same standard requires development, test, and
operational facilities to be separated to reduce the risks of
unauthorized access or changes to the operational system.

Review of application general controls of GACS application noted

that, the system does not log user activities to detect unauthorized
user activities and access control monitoring. During the audit I
requested for access to test environment of the system so as to
perform audit test, but there was no test environment. This raises a
concern on controls in place with respect to management of
application changes. I also noted that the system is not running on
HTTPS, which implies that communication between server and client
is transferred in plain text without encryption which is subjected to
cyber attack.

It is my view that non-logging of user activities can attribute to failure

to monitor and detect unauthorized user activities and evidence of
user actions cannot be obtained in case of investigation. Also lack of
test environment for application testing can lead untested changes
being deployed to the production environment.

I recommend the Government to implement logging of user activities

in the system, ensure the system is accessed through https and
prepare test environment.

CG - Annual General Report 2018 / 19 105

5.4.2.3 Eliminations in the Consolidated Financial Statements
Para 40 (a) to (c) of IPSAS 35 requires consolidating entity to combine
assets, liabilities, revenues and expenses of the controlling entity
with those of the controlled entities. Also it requires eliminating in
full all intra economic entity assets, liabilities, net assets, equity,
revenue, expenses and cash flows relating to transactions between
entities of the economic entity. The objective of the procedure is to
remove double counting and enhance actuality of reported events in
the financial statements.

My review of Consolidated Financial Statements and individual

controlled entities’ financial statements noted significant amount of
receivables which were supposed to be eliminated against respective
payables but the figures were mismatching. We found incidences
where Treasury Bills owned by Central Bank were not eliminated from
the financial statements. Revenue and corresponding expenses
remained unattended.

I recommend the Government to establish effective mechanism for

entity to report inter entity transactions and Implement validation
in the system of reported figures for elimination between intra
governmental entities to ensure reporting of correct figures.

5.4.2.4 Consolidation of Entities with Different Reporting Dates

Without Adjustment
My audit of the Consolidated Financial Statements for the United
Republic of Tanzania noted inclusion of two (2) Government
Controlled Entities (GBEs) which have reporting dates different from
the reporting dates of the controlling entity refer (the table below).
Such inclusion is contrary to Para 46 of IPSAS 35 and Treasury Circular
No. 12 of 9th January 2015 that require financial statements of
controlling entity and controlled entities for consolidation purpose to
be of the same reporting date and preparation of additional financial
statements as of the same date as the financial statements of the
controlling entity when the dates are different.

CG - Annual General Report 2018 / 19 106

I noted that, no adjustments were made in the Financial Statements
of the controlled entities to harmonize the reporting dates with those
of the controlling entity; also, no adjustments of the effect of
significant transactions or events that occur between that date and
the date of the controlling entity’s financial statements.

Table 29: Controlled entities with different reporting dates

S/n Name of controlled Reporting date of Reporting date of
entity the controlled the controlling
entity entity
1 Tanzania Investment 31st December, 30th June, 2019
Bank (TIB) - 2018
Corporate Bank
2 Tanzania Investment 31st December, 30th June, 2019
Bank (TIB) - 2018
Development Bank

I reiterate my previous year’s recommendation to the Government

that, all controlled entities reporting dates to be harmonized with
the controlling entity or prepare additional financial statements and
proper adjustments in compliance with Para 46 of IPSAS 35 and
Treasury Circular No. 12 of 9th January 2015.

5.4.2.5 Consolidation of Controlled Entities Financial Statements

Lacking Ownership of the Respective Accounting
Officers/Boards of Directors
Reg.11(3) (a) of the Public Finance Regulations, 2001 (revised 2004)
stipulates that “An Accounting Officer shall be required to sign the
appropriation, trading and other accounts assigned to him under the
provisions of the Act or these Regulations, and in doing so accept
personal responsibility for their proper presentation as prescribed in
these legislation or by the Accountant-General”.

My review of a sample of 220 controlled entities’ financial statements

adopted for consolidation by the controlling entity noted that, 85
financial statements equivalent to 38.6 percent of the sample
population (Appendix 5.3) lack signature for the respective

CG - Annual General Report 2018 / 19 107

Accounting Officers’/Board Chairpersons’ to show the ownership and
acceptance of responsibility for their accuracy, completeness and
proper presentation.

I highlighted the same issue through Para 5.4.5 in my previous year

general report 2017/2018. I am still concerned with the reliability of
consolidated information due to lack ownership of the respective
Accounting Officers.

I reiterate my previous year recommendation that, the Government

consolidate controlled entities’ financial statements which are
signed by respective Accounting Officers and Chairpersons of Board
of Directors

CG - Annual General Report 2018 / 19 108

 CHAPTER SIX

6.0 EVALUATION OF INTERNAL CONTROL SYSTEM AND

GOVERNANCE ISSUES

6.1 Introduction
Internal controls are the mechanisms, which includes a set of rules,
policies and procedures implemented by government and its entities
to provide direction, increase efficiency and strengthen adherence
to policies, promote accountability and prevent fraud and errors to
ensure financial reports are reliable operations are effective and
efficient to a tolerable level.

Internal auditing as part of internal control system it is an

independent, objective assurance and consulting activity, designed
to add value and improve an entities operations. It helps an
organization to accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes. Every government
entities, regardless of its size, should have some type of internal
control system or process.

This chapter covers internal audit function, audit committees

function, governance issues that includes: HIV and AIDs reduction,
presence of board, mechanism used to manage complaints,
accounting manual. IT general controls, risk management processes
and fraud assessment that occurred within Ministries Departments
and Agencies, Regional Secretariat and Other Institution within the
financial year 2018/2019.

The following are outcomes in assessment of the internal control

systems; the internal audit function, Audit Committee, fraud
assessments, risk management, corporate governance issues and
Information Technology System:

CG - Annual General Report 2018 / 19 109

6.2 Assessment of Internal Audit Functions

According to Regulation 28 (1) of the Public Finance Regulations,

2001, every Accounting Officer is required to establish an effective
Internal Audit Unit, to provide an assurance on the adequacy and
effectiveness of the entity’s internal controls.

My evaluation of the internal audit functions for the sampled

ministries, departments, agencies and regional secretariat, shows
that, 24 entities including 5 MDs, 2 agencies, 6 other institutions and
11 regional secretariats, were having various internal control
weaknesses which incapacitated entities’ internal audit function in
undertaking their roles including, lack of Internal audit unit,
insufficient budget allocation, inadequate working tools, shortage of
staff resources and lack of training for the internal audit staff. The
analysis of entities and related weaknesses of internal audit function
are shown in the table below and Appendix 6.1.

Table 30: Comparison on Assessment of Internal Audit

Financial No. of No. of No. No. of Total %
MDAs RS of OI Agency No.
Year
2018/19 5 11 6 2 24 32
2017/18 10 15 5 3 33 44
2016/17 3 15 0 0 18 24
Total 75 100
Source: Management letters

The table above shows that there is decrease in the number of

entities without the internal audit functions from 33 entities reported
in 2017/18 to 24 entities reported in 2018/19, resulting into decrease
of 9 entities, which is equivalent to 12 per cent. This shows that there
are improvements in this area.

The figure below, shows comparison of three years result from 2016
to 2019 for deficiencies existed in the internal audit function:

CG - Annual General Report 2018 / 19 110

Figure 17: Analysis of Internal Audit Deficiencies for the past three
years

Evaluation of Internal Audit Function

35
Number of entities 30
25
20
15
10
5
0
30th June 2017 30th June 2018 30th June 2019
No. of Entities MDAs 3 10 5
No. of Entities RS 15 15 11
No. of Entities OI 0 5 6
No. of Entities Agency 0 3 2
No. of Entities Total 18 33 24

A deficiency in internal control imply that operation of a control does

not allow management or employees, in the normal course of
performing their assigned functions to prevent, or detect and correct
misstatements on a timely basis.

In respect of the matters, I recommend that Internal Audit Unit to be

independent and be given enough working tools and its staff should
have adequate technical training on skills of risk based audit and
accounting professions. Furthermore, the Management should avail
adequate resources to the Internal Audit Unit and use its report to
improve its internal control systems. The analysis of entities
deficiencies in Internal Audit Function is shown in Appendix 6.1.

6.3 Assessment of Audit Committees Function

The primary purpose of the audit committee in public sector is to

provide oversight of the financial reporting process, the audit
process, the entities’ system of internal controls and compliance with
issued laws and regulations, policies and guidelines.

CG - Annual General Report 2018 / 19 111

Regulation 30 of the Public Finance Regulations, 2001 (PFR) requires
each MDAs or a regional secretariat to establish Audit Committee. Its
members, tenure, (being a professional accountant) and functions
have been provided for in Regulations 31 and 32 of the PFR
respectively. Audit committee shall be composed of senior members
of the ministry, agency or department as the case may be, nominated
by the respective Accounting Officer and at least one member
appointed by the Permanent Secretary from external sources.

I reviewed performance of audit committee in MDAs and revealed that

the audit committees had not prepared an annual report on its
performed activities Some of the committees had never met with
the external auditors at least once without Executive members from
the entity present to make sure that there was no unresolved issue
of concern. I also noted that there were no mechanism to hold the
audit committees responsible in case of failure to perform their
duties accordingly as well as lack of evaluation of audit committee
performances which was against the law.

Furthermore, in this year, I conducted the assessment of audit

committees performance for the sampled MDAs, RS and agencies, and
noted that 31 entities which included 11 MDAs, 9 regional
secretariats, 3 agencies and 8 other institutions were found to have
a number of areas where further strengthening was required, some
of identified gaps are as shown in the table below:

Table 31: Comparison of Assessment of Audit Committees

No. of No. No. of No. of Total %
Financial MDAs of RS Agencies OI No.
Year
2018/2019 11 9 3 8 31 35
2017/2018 12 11 3 4 30 34
2016/2017 6 18 3 0 27 31
Total 88 100
Source: Management letters 2018/19

CG - Annual General Report 2018 / 19 112

The table above shows that there is an increase in number of entities
with the audit committee functions that have significant deficiencies.
I have noted 31 MDAs with significant audit committee deficiencies
which is slightly higher compared to the 30 MDAs reported last year.
Resulting into an increase of 1 entity, which is 1.1 per cent. This
shows that no improvement and further strengthening is required.

The bar figure below, also shows the comparison of the three financial
year variance from 2016/2017, 2017/2018 and 2018/2019 for the
deficiencies for Audit Committee Comparison of the Assessment of
Audit Committees

Figure 18: Audit Committee deficiencies for the past three years

Assessment Of Audit Committee Function

35 35
31
30 30

25 25
Number of Entities

20 20

15 15
11
10 9 8 10

5 3 5

0 0
No. of
No. of No. of No. of Entities No. of
Entities Entities Entities Other Entities
MDAs RS Agencies Institutio Total
ns
2016/2017 6 18 3 0 27
2017/2018 12 11 3 4 30
2018/2019 11 9 3 8 31

Non-existence or ineffective audit committees in MDAs may render

the inefficient in the overall internal control system and
environment. Moreover, it will be difficult to understand whether
the established audit committee with its members was performing

CG - Annual General Report 2018 / 19 113

its duties accordingly, since there is no reliable mechanism available
to assess its performances.

In this regard I recommend Accounting Officers to ensure that audit

committee plays a key role in assisting the entities to fulfil its
oversight responsibilities, restate entity’s financial reporting,
internal control systems, risk management systems, assessment of
effectiveness of the internal and external audit functions.

I also recommend to the Accounting Officers to have a clause that can

hold Committee members responsible and accountable in case it fails
to perform its duties. The detailed analysis of entities with
deficiencies in audit committee has been included in Appendix 6.2

6.4 Fraud Assessment

In the absence of fraud risk assessment and relevant preventive
procedures contravenes Regulation 35(2) of the Public Finance
Regulation (PFR) of 2001 (Revised 2004), which state that:

The prevention, detection and investigation of internal fraud shall

be the responsibility of the management, although in conducting
audit assignments the Internal Auditor shall be alert to
opportunities, such as control weaknesses that could allow fraud and
where fraud is suspected the appropriate authorities within the
department will be informed.

During my audit, I conducted assessment of fraud Management for the

MDAs, RS, embassies, other institutions and agencies, and I noted that
4 audited entities had fraud allegations compared to 7 audited
entities reported last financial year. The analysis of fraud issues
assessed and reported areas shown in the table below.

It is my opinion that inadequate awareness of fraud management

policy among employees might contribute to inefficiencies in
implementation of developed fraud policy.

CG - Annual General Report 2018 / 19 114

Therefore, I recommend that the assessment should be performed by
the entities, also introduce a mechanism of detecting and preventing
fraudulent malpractices by setting a benchmark of fraud red flags
which will in turn assist the respective entities in alleviating and
mitigating occurrence of fraud.

Table 32: Fraud Assessment

S/N Vote Name of Entity Deficiencies
MDAs
1 18 UNESCO • Non-existence of fraud risk
National management policy
Commission
RS
1 70 Arusha • No approved fraud detection and
prevention plans.
2 88 Dar es salaam • No approved fraud detection and
prevention plans.
3 86 Tanga • Electronic Fiscal Receipt worth TZS
70,000,000 was not genuinely
produced from M/S ‘Unit General
Supplies Ltd own EFD machine’,
contrary to Regulation 22 of Income
Tax (Electronic Fiscal Devices)
Regulations, 2012
Source: Management letters

6.5 Governance Issues

Governance is the system by which MDAs and other institutions are
directed and controlled. It encompasses the relationship between
Executives in MDAs, the Board of Directors, other shareholders and
the effects on corporate strategy and performance

Good governance is important because it looks at how these decision

makers act, how they can or should be monitored and how they can
be held to account for their decisions and actions.

I assessed the existence and performance of the Governance issues in

the Government entities and found out the following irregularities:

CG - Annual General Report 2018 / 19 115

 6.5.1
6.5.1Non-Functioning
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ExportPermit
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Section
SectionininGeological
GeologicalSurveys
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reviewthetheapproved
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otherdocument
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Geological
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notedthat,
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Sect.27(f)
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Mining
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Act, 2017
2017 was
was GST
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mandated to to carry
carry out
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the mineral
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functions with
with regards
regards to to mineral
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samples
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whichwas
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servicesand
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permit.However,
However,an aninquiry
inquirymade
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revealed
revealed thatthat the
the evaluation
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export permit
permit section
section isis not
not
operating
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instead its
its functions
functions are
are performed
performed by by the
the Mining
Mining
Commission.
Commission.The TheGST
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managementhad hadalready
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madeall allnecessary
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preparations
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butwhen
whenthe theregulations
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issued
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Commission.

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amconcerned
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recommend thatthat there
there should
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6.5.2
6.5.2 Lack
Lackof
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CG- - Annual
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116
In reviewing of documents concerning the establishment of the
Centre, its mandate and organization structure of the National
Artificial Insemination Centre (NAIC) noted the following anomalies:
• The NAIC has not prepared its own Act and Regulations which are
necessary to support its operations including those necessary to
discharge its mandate as an institution.
• According to the existing organization structure of the NAIC
indicates that the Director of this Institution is reporting to the
Director of Animal Production and Marketing division which is one
of the Division in the Ministry of Livestock and Fisheries under
Vote 99 (Livestock Sector) of which he has no mandate to make
any decision regarding NAIC activities.
• Absence of legislations since 1972 to guide its mandate and
operations led the institution to be stagnant regarding its growth
and providing better service to the public at large.

Therefore, I recommend to the Ministry and the Management of NAIC

to prepare legislative instruments that will enable the organisation
perform better its duties.

6.5.3 Failure to Conduct HIV and AIDS Control Activities

Government issued a Circular No.2 with reference No.
CAC56/507/01/14 on 15th September, 2014 which requires each
Government entity to take appropriate measures for prevention and
reduction of HIV and AIDS infection. It also requires the entity to have
the following strategies:
• Provision of right facilities to employees’ living with HIV & AIDS by
following available laws, policies, rules and guidance.
• Mobilization of funds for the purpose of improving environment of
providing various services and other facilities to staff living with
HIV by making available; preventive equipment and medical

CG - Annual General Report 2018 / 19 117

 facilities such as BP machines, glucometer, weigh machines and
first aid kit.
• Provision of a special place/room for health check-up as well as
provision of room for physical exercise facilities e.g. Gym.
• Promote and Campaign on the importance of staff to have
balanced diet food.

In my review I found eight (8) entities include 5 MDAs, 1 agency and

2 other institutions that had no target of strengthening information
system for HIV and AIDS as a result there were no activity for HIV and
AIDS reduction conducted by the responsible offices to its staff. For
more analysis see Appendix 6.3

I am deeply concerned as government objective of reducing HIV and

AIDS infection may not be achieved as it was planned.
Therefore, I recommended to all mentioned entities and those which
do not have strategy yet to ensure that HIV and AIDS reduction
programs are performed according to directives of the Government.

6.5.4 Lack of Financial Guidelines and Accounting Manual

Accounting manual is a document governing fund accounting,
including policies, procedures, standards and guidelines to be
followed by an Account/Finance section. In addition, the manual may
contain sample forms, a chart of accounts and job descriptions.
Accounting manual is a crucial working tool for the Accounting
Officer, it helps to manage and oversee the accounting function,
enabling to monitor the application of accounting policies across the
entity.

My review of the of working documents noted that 7 entities which

include 2 MDs, 1 agency and 3 other institutions did not develop its
Accounting Manual for accounting functions as shown in the table
below:

CG - Annual General Report 2018 / 19 118

Table 33: Lack of Accounting Manual
S/N Name of Entity Deficiencies
MDA’s
1 Fire and Rescue Lack of Internal Financial guideline and
Force (14) Accounting manual
2 National Irrigation Lack of the Commission Operational
Commission (05) Manual

Agencies
1 Tanzania Building No financial Internal Accounting Manual
Agency (TBA) established
Other Institutions
1 National Fund For NFA did not develop its Accounting
Antiquities Manual for accounting functions
2 Tanzania Police Lack of Financial Policies and
Force Corporation Accounting Manual
Sole
3 Forest Industries Low Pace in Preparation of Accounting
Training Institute Manual
4 Forestry Training Lack of accounting manual
Institute

In absence of Accounting Manual, financial processes may be

overridden without management consent.

In respect of the matter above, I recommend that the respective

Accounting Officers to speed up the process of developing Accounting
Manual in order to have effective management over public funds.

6.5.5 Lack of Mechanism of Handling Complaints

Enquiries and complaints from the public reflect their needs and
concerns and also, they serve as an important source of feedback on
the effectiveness and impact of the governing policies.

CG - Annual General Report 2018 / 19 119

Para 1.2 of Public Service Guideline of December 2012 issued by
President’s Office Public Service Management, gives directives on
how the complaints can be handled in all MDAs.

In my audit of this year I have assessed how the Tanzania Official Seed
Certification Institute (TOSCI) manages its complaints and revealed
that the Institute receives high number of complaints that relate to
quality of seed from suppliers. These complaints are mainly coming
from farmers who are living in different regions including Mtwara,
Rukwa, Mbeya and Morogoro.

I further noted that complaints were addressed by the Institute

through site visit and investigations but there was no formal
procedural mechanism that was in use. I could not obtain
documentations or handling process that showed history from when
the complaints were received to the time they were addressed. In
addition, I realized that there was no complaints register, no
identified responsible staff who was supposed to manage complaints
and no established time required to handle complaints once they
were received.

Lack of documented procedures delays the Institute from addressing

such complaints and also inhibits the Institute from learning new
challenges and hence obtains innovative ideas for improving
implementation of Institute activities effectively

Therefore, I recommend to the Management to establish a new

procedural and documented mechanism for proper handling of
complaints received from TOSCI stakeholders including farmers.

6.5.6 Low Pace in Resolving Complaints Received

Sect. 15(1)(a) of the Commission for Human Rights and Good
Governance Act, gives the power to the Commission to Investigate
any human rights abuses or maladministration on its own initiative or
on receipt of a complaint or allegation.

CG - Annual General Report 2018 / 19 120

In my review, of the Commission’s complaints handling process or
allegations received by the Commission up to 30th June, 2019
revealed that there was outstanding backlog of 4143 complaints on
violation of good governance. I also noted that no complaints were
settled. This was due to shortage of Commissioner and lack of funds.
The trend does not reflect a good improvement. The table below
illustrates more on unsatisfactory trend of resolving complaints by the
Commission.

Table 34: Low pace in resolving complaints received

Financial Opening Claims Total Claims Outstanding
year un-settled receive Claims settled claims
claims d
2018/2019 4,017 126 4,143 - 4,143
2017/2018 3,928 306 4,234 217 4,017
Source: Management letter

Absence of Commissioners and insufficient budget were the reasons

behind the piling up of files. Some files required investigation and
follow-up to regions and district but shortage of fund disrupted the
planned activities. However, since the appointment of the
Commissioners on 19th September, 2019, a total number of 912 files
had been presented before them for closure permission, while 456
have been closed.
I am concerned with the failure to resolve complaints in time by the
Commission may delay expected services or deny rights of the
complainants.

I therefore recommend to the Management to the Ministry of Finance

and Planning on the issue of budget allocation to enable the
Commission to implement its responsibilities accordingly.

6.5.7 Expired Tenure of the Records and Archives Management

Boards
Section 7 (1) of the Records and Archives Management Act, 2012
established a Records and Archives Management Advisory Board for

CG - Annual General Report 2018 / 19 121

the Department. The responsibility of the Board are set out in Section
7(4) to include: (a) advising the Minister generally on matters relating
to the management of the public records and archives of the United
Republic: (b) advising and supporting the Director of the Records and
Archives Management Department; (c) such matters as this Act may
specifically assign to it or the Minister may direct.

Further, section 19(1) of the Founders of the Nation (Honouring

Procedures) Act, 2004 states that: there shall be the Board of
Trustees which shall administer and manage the Trust Fund named as
the Mwalimu Julius Kambarage Nyerere and Sheikh Abeid Amani
Karume Trust Fund established under section 18(1) of Founders of the
Nation (Honouring Procedures) Act, 2004.

In my audit of this year, I reviewed correspondences and minutes in

the Records and Archives Management Advisory Board and the Board
of the Founders of the Nation and noted the tenures of the Boards
expired on February, 2015 and 14th February, 2016 respectively but
since then, there was no appointment of new Boards and therefore
no Board meetings were conducted during the year ended 30th June,
2019.

Also, I revealed that no documented reason for non-appointment of

the Boards to enable them performs their responsibility as required
by the available laws

I am concerned that the functions of the Records and Archives

Management Advisory Board and the Board of the Founders of the
Nation could not be exercised during the year under review.

Therefore, I recommend to the management of RAMD to continue

consulting the authority responsible for the appointment of the
Records and Archives Management Advisory Board and the Board of
the Founders of the Nation with a view of ensuring that they exercise
the responsibility stated in the establishment Acts.

CG - Annual General Report 2018 / 19 122

6.5.8 Assessment of Effectiveness of Risk Management System
Risk management is the process of making and implementing
decisions that will minimize adverse effects on the operations of
government entities. Risk management processes involve, identifying
and analysing exposures to loss, examining feasible alternative risk
management techniques to handle exposures, selecting the most
appropriate risk management techniques to handle exposures,
implementing the chosen techniques, and monitoring the results.

For the current year under audit 2018/2019, I conducted assessment

of Risk Management for the MDAs, RS and agencies and other
institutions, and revealed that 15 entities including 6 MDAs, 4
regional secretariats, 2 other institutions and 3 agencies had
significant deficiencies in relation to risk assessment. They didn’t
have risk registers, no risk management policy, and some of them did
not update risk register as shown in the table below and Appendix
6.4.

Table 35: Comparison of Assessment of Risk Management

Financial No. of No. No. of No. No. of Total %
Year MDAs of Agencies of Embassies No.
RS OI
2018/19 6 4 3 2 0 15 38
2017/18 2 3 2 1 0 8 21
2016/17 4 11 0 0 1 16 41
Total 39 100
Source: Management letter

The table above shows that there is an increase in the number of

entities lacking strong systems as I noted 15 cases in this year
compared to 8 cases reported in the previous year.

The figure below, gives results of the three financial years variance
from 2016/17, 2017/18 and 2018/19 for the available deficiencies in
risk management internal control.

CG - Annual General Report 2018 / 19 123

Figure 19: Deficiencies in risk managements for the past three years

Assessment of Risk Management

18
16
NUMBER OF ENTITIES

14
12
10
8
6
4
2
0
2016/2017 2017/2018 2018/2019
No. of Entities MDAs 4 2 6
No. of Entities RS 11 3 4
No. of Entities Agencies 0 2 3
No. of Entities Other institutions 0 1 2
No. of Entities Embassies 1 0 0
No. of Entities Total 16 8 15

The absence of risk management policy and risk registers expose the
entities into high risk as it cannot be easily overcome unexpected
events or disasters when they arise. Also, such situation cannot easily
provide quality services to the public with minimum intervention of
unexpected events.

I therefore recommend to Accounting Officers to strengthen risk

management processes by ensuring that there is documented risk
assessment, response to risk, risk management and to ensure the
availability and implementation of the approved strategic plan so as
to enable the organization in defining the road map on how to achieve
its objectives within its functions and mandate.

6.6 Assessment of Information and Communications Technology

(ICT) environments
In my audit of ICT, I focused on assessing effectiveness of MDAs
general computer controls to determine whether adequate systems,
policies and procedures were in related to MDAs core activities,
including provision of ICT services and support to the government

CG - Annual General Report 2018 / 19 124

An IT control is a procedure or policy that provides a reasonable
assurance that the information technology (IT) used by an
organization operates as intended, that data are reliable and that the
organization is in compliance with applicable laws and regulations.
In assessment of Information and Communication Technology (ICT)
and environmental controls in the Ministries, Department, Agencies,
Embassies, Regional Secretariat and other institutions I noted that
some entities lacked IT Policy, ICT Strategic Plan, Business Continuity
Plan and non-establishment of the ICT Steering Committee, and
disaster recovery site.

The audit outcomes indicated that out of sampled entities, 18 were

found with ICT deficiencies which are 4 MDAs, 8 RS, 3 agencies, 2
other institutions and 1 embassy were noted with following significant
deficiencies in ICT; Some of them were not preparing a plan and
policy for information technology and the disaster recovery tests
were not done as well as shown in Appendix 6.5

Table 36: Comparison of Assessment of Information and

Communications Technology (ICT) environments
Financial No. No. No. of No. No. of Total %
Year of of Agencie of OI Embassie No. of
MDAs RS s s Entities

2018/2019 4 8 3 2 1 18 20
2017/2018 10 11 8 6 5 40 45
2016/2017 5 13 0 0 13 31 35
Total 89 100
Source: Management letter

The table above shows that there is decrease in number of entities

with ICT deficiencies. Total audited entities had deficiencies in
Information and Communications Technology (ICT) environments. In
the current year, they are 18 compared to 40 of the previous year,

CG - Annual General Report 2018 / 19 125

resulting into a decrease of 22 entities, which is equivalent to 24.71
percent. This shows that there is improvement in this year.

Also, the figure below shows the comparison of the three financial
years from 2016/2017, 2017/2018 and 2018/2019 for deficiencies in
Information and Communications Technology (ICT) environments

Figure 20: deficiencies in Information and Communications

Technology (ICT) for the Past Three Years
Assessment Of Information And
Communications Technology (ICT)
Environments
45 20
40 18
NUMBER OF ENTITIES

35 16
30 14
25 12
10
20 8
15 6
10 4
5 2
0 0
No. of
No. of No. of Entities No. of
No. of Total No.
Entities Entities Other Entities
Entities RS of Entities
MDAs Agencies institution Embassies
s
2016/2017 5 13 0 0 13 31
2017/2018 10 11 8 6 5 40
2018/2019 4 8 3 2 1 18

This may expose entities into risks of losing critical information and
operational capability in case of a disaster or an emergence
breakdown and give a rise to the risks of having unauthorized users
accessing systems which consequently could affect the system
confidentiality, integrity and availability of information Systems.

I recommend to the Accounting Officers to ensure that the disaster

recovery plan and emergence procedures are developed and
implemented and tested regularly in order to ensure the integrity
and security of critical data and information within the organisation

CG - Annual General Report 2018 / 19 126

and improve the performance of the information technology
function, since the use of the system is mandatory to the entity and
Information Technology and its resources play an increasingly
important and nearly indispensable role in everyday activities of the
entity.

CG - Annual General Report 2018 / 19 127

 CHAPTER SEVEN

7.0 HUMAN RESOURCES AND PAYROLL MANAGEMENT

7.1 Introduction
This chapter reports matters related to human resources and payroll
management in audited ministries, regional secretariats and
embassies. Overall, there is a continuation of improvement in this
area through various measures undertaken by the government.
However, I noted some critical issues that needed intervention by the
Government as described below:

7.2 Improper Assessment of Staff Adequacy

I still continue assessing the problem of shortage of the staff in
various entities since it has an overall impact on service delivery and
performance of the entity. Current year assessment reveals shortage
in many entities while there is excess of staff in one ministry.

The review made in MDAs’ establishment noted a persistent problem

in staffing level which records a shortage of 9,691 staff in ministries,
regional secretariat, commission and embassies. Annexure 7.1 shows
in detail.

Moreover, my review on President’s Office Regional Administration

and Local Government shows 134 excess staff as compared to
available 638 and requirement of 504 staff thus overstaffing.
In comparing with my three consecutive annual previous reports I
noted a gradual improvement whereby a number of entities is
decreasing while the shortage is minimizing as shown in the table
below.

Table 37: Staffing level movements in three consecutive years

Financial year 2018/19 2017/18 2016/17
Audited entities Entities Shortage Entities Shortage Entities Shortage
Ministries 5 548 7 4,204 7 3,079

CG - Annual General Report 2018 / 19 128

 Financial year 2018/19 2017/18 2016/17
Commissions and
others 13 5,889 6 765 7 23,951
Regional
Secretariat 22 3,185 19 4,681 22 6,992
Embassies 15 69 29 105 16 61
Total 55 9,691 61 9,755 52 34,083
Existence of staff overage and shortage among government entities
imply that proper assessment is not made so as to allocate staff based
on MDAs activities requirement.
Endurance of this deficiency may leave impact on MDAs general
performance such as inadequate service delivery, overloading and
demotivating the present employees.
I reiterate my recommendation that the Accounting Officers in
collaboration with the President’s Office Public Service Management
and Good Governance to fill the required positions or make thorough
review of staff requirements against the actual staffing levels in
relation to the service delivery.
While attending the above advise special attention should be focused
in embassies since they depict the country’s image in service delivery
as observed in Geneva staff who are required to represent the country
in Vienna-Austria and other meetings meanwhile in New York where
the number of meetings held are many and took at the same time
compared to staffing level as a result the country is not represented
in critical events that may have impact in the affairs of the country.
7.3 Payment of Internet and TV Services of TZS 30,936,027.39
in Home of Embassy Officials
During my audit of payment related to embassies’ officials, I noticed
payment of TZS 30,936,027.39 equivalent to €11,872.97 related to
internet and TV services in homes of embassy officials contrary to
Regulation 82 of Public Service (Tanzania Foreign Services), 2016 that
requires the embassies to cover electricity and water charges for the
residential premises of officials posted abroad to be met from public
funds. This issue has been observed in Tanzania Embassy in Paris after
a thorough review of expenses incurred for the year.

CG - Annual General Report 2018 / 19 129

Non-observance of rules and regulation in incurring expenses in public
monies might lead to huge operating cost as a result the government
may fail to meet its obligations to its citizens.
I advise the accounting officers in embassies to comply with the
Public Service (Tanzania Foreign Services) Regulation 2016 in
payment of embassies’ activities so as to control expenditure and
operations.
7.4 Excessive Period of Public Servants Serving in Acting Capacity
Order D.24 (3) of the Standing Orders for the Public Service, 2009
states that “Where possible, a public servant shall not act in a vacant
post for a period exceeding six months. The appointing authority shall
make sure that the process for appointing a substantive holder of a
respective post is completed within that period of six months”.
Under this financial year again the issue of excessive months of public
servants serving in acting capacity has been observed, I noted 21
entities with 50 staff who had been acting in their positions beyond
the allowed limit of six months. List of entities is shown in the table
below:
Table 38: List of staff acting for more than six months
S/N Vote Vote Description Excess No. of
months staff
1 35 National Prosecutions Services 12 1
2 31 Vice President Office 36 3
3 61 National Electoral Commission 12 1
4 36 Katavi Regional Administrative 77 3
Secretariat
5 89 Rukwa Regional Administrative 36 2
Secretariat
6 90 Songwe Regional Administrative 30 2
Secretariat
7 27 Registrar of Political Parties 24 3
8 77 Mara Regional Administrative 65 3
Secretariat
9 18 UNESCO National Commission 18 2
10 48 Ministry of Lands, Housing And 75 3
Human Settlements Development

CG - Annual General Report 2018 / 19 130

 S/N Vote Vote Description Excess No. of
months staff
11 52 Ministry of Health Community 37 3
Development Gender Elderly And
Children
12 24 Tanzania Cooperative Development 156 10
Commission
13 75 Kilimanjaro Regional Administrative 69 1
Secretariat
14 76 Lindi Regional Administrative 60 1
Secretariat
15 84 Singida Regional Administrative 24 2
Secretariat
16 85 Tabora Regional Administrative 24 3
Secretariat
17 88 Dar Es Salaam Regional 13 1
Administrative secretariat
18 07 Treasury Registrar 28 3
Embassies
19 2008 Tanzania High Commission in Maputo 12 1
20 2040 Tanzania Embassy Tel Aviv, Israel 12 1
21 2037 Tanzania Embassy in Ankara, Turkey 19 1
Total 839 50
Source: individual management letter

In comparison to my previous report, I noted a slight improvement in

this area whereby the number of acting staff decreased by 7 from 57
to 50 staff.
Failure to appoint substantive holders for those posts may hinder
effective decision making and demoralise staff hence low
performance.
I reiterate my advice to Accounting Officers of MDAs and President’s
Office Public Service Management and Good Governance to ensure
compliance with the Standing Order by timely appointing substantive
holders of the respective posts and making appropriate plans for
vacant posts in the forthcoming years.

CG - Annual General Report 2018 / 19 131

7.5 Excessive Deductions on Employees’ Salaries
Section 3 of the Specified Officers (Debt Recovery) Act, 1970 and
Circular with Ref. C/CE.45/271/01/I/87 of 19th March 2009 issued by
the Permanent Secretary, President’s Office Public Service
Management (PS-POPSM) requires the recovery of the debt by
deductions from the specified officer's salary by monthly instalments
not exceeding one-third of his/her monthly salary.
Contrary to the above cited law and guideline; I noted 134 employees’
salaries were deducted above one-third as reviewed from the sample
of eight (8) audited entities shown in the table below:
Table 39: list of sampled entities with excessive deduction on
monthly salaries
S/N Vote Vote description No of staff
No.
1 62 Ministry of Works, Transport And 7
Communication
2 36 Katavi Regional Administrative Secretary 9
3 89 Rukwa Regional Administrative Secretary 19
4 75 Kilimanjaro Regional Administrative 62
Secretary
5 81 Mwanza Regional Administrative Secretary 7
6 82 Ruvuma Regional Administrative Secretary 14
7 86 Tanga Regional Administrative Secretary 11
8 95 Manyara Regional Administrative Secretary 5
Total 134
Source: individual management letter

Existence of such phenomenon contribute to low work commitment

which result to underperformance as well as pecuniary
embarrassment.
As reported in the previous years, this financial year too, there are
instances of non-compliance with the law; however, there is a slight
improvement in this year whereby 134 staff were observed in 8
entities compared with last report whereby 7 entities had 229
entities.

CG - Annual General Report 2018 / 19 132

The Accounting officers are advised not to approve loans to
employees beyond the prescribed limits and in case the loans were
taken without the knowledge of the employer, deduction on behalf
of that financial institution should not be entertained. In addition,
use of LAWSON system as a control measure is highly emphasized.
7.6 Absence of Staff Performance Evaluation
Reg. 22 (1) of the Public Service Regulations, 2003 requires every
organization within the Public Service to operate an Open Performance
Review and Appraisal System (OPRAS) for all its public servants; this
requirement is in line with the requirements of Order D.62 of the Public
Service Standing Orders, 2009.
Upon review of compliance in this financial year I noted 7 entities
performance evaluation of their staff were not conducted. The table
below shows the details.
Table 40: List of entities that did not perform staff assessment
Vote No. Vote Description
35 National Prosecutions Services
15 Commission for Mediation and Arbitration
18 UNESCO National Commission
74 Kigoma Regional Administrative Secretariat
76 Lindi Regional Administrative Secretariat
85 Tabora Administrative Secretariat
Embassy
2029 Tanzania Embassy in Muscat

Failure to perform staff appraisal is likely to lead to management

not being aware of the capacity gaps of employees and as a result
inappropriate interventions may be designed.
I advise Accounting Officers of all MDAs to make regular review of
Open Performance and intervention upon which training and
promotion should be based.

CG - Annual General Report 2018 / 19 133

7.7 Payments of Salaries to Non-existing Employees
TZS 196,131,000
Regulation 113 (3) of the Public Finance Regulation of 2001 stipulates
thus:
Payment of salary shall normally only be made to the person listed
on the pay sheet after proper identification and signing unless an
acceptable letter of authorization to make payment to another party
is submitted and any unpaid wages shall be repaid to the Accountant-
General and the entry on the pay sheet initialled by both the Paying
Officer and the witness.
In my review of salary payment for the year, I discovered that the
police force department had paid salary of TZS 196,131,000 to 11
employees who had either died, or retired or dismissed.
I advise the Accounting Officers to correct this anomaly by deleting
the names of non-existing employees from the payroll after monthly
reconciliation between the physical verification of existing employees
and payroll information.
7.8 Employees Transfers Between Working Stations are Not
Aligned with Payroll Information
Reg. 110 of Public Finance Regulation 2001 vests to Accounting
Officers the responsibility of proper staff record keeping within their
jurisdictions to ensure records are correct and changes are regularly
updated.
Review made in 7 entities noted payment of monthly salary to
employees who are not serving in the entities as a result of transfer
to another government entities. The table below shows in details:
Table 41: Non update of transfers in the payroll
S/N Vote Vote description Particulars
no
1 89 Rukwa Regional • 5 employees working in secretariat
Administrative and their salaries are paid by
Secretariat other entities

CG - Annual General Report 2018 / 19 134

 S/N Vote Vote description Particulars
no
• 12 employees transferred to other
entities while their salaries are
paid by the secretariat.
2 70 Arusha Regional • 7 employees working in secretariat
Administrative and their salaries are paid by
Secretariat other entities
• 18 employees transferred to other
entities while their salaries are
paid by the secretariat.
3 72 Dodoma Regional • 12 employees transferred to other
Administrative entities while their salaries are
Secretariat paid by the secretariat.
4 75 Kilimanjaro • 10 employee are working in the
Regional secretariat while their salary are
Administrative paid by other entities
Secretariat
5 85 Tabora Regional • 9 employees are working in the
Administrative secretariat while their salary is
Secretariat paid in other entities
• 2 employees are working in other
entities while their salary is paid by
the secretariat.
6 82 Ruvuma Regional • 2 employees’ salary is paid by the
Administrative secretariat while serving to other
Secretariat entities
7 100 Ministry of Minerals • 3 employee are paid by Ministry
while working in other entities
• 9 employees are working in
Ministry while their salary is paid
by another entities.
Source: Individual management letter

Inaccurate staff information may lead to paying non - existing staff

with no any economic benefit to the entity.
I advise Accounting Officers to ensure routine update of employees‟
data in Lawson. In addition, Accounting Officers in collaboration with
the President’s Office, Public Service Management and Good
Governance as well as Treasury to ensure that employees are
transferred together with their salaries.

CG - Annual General Report 2018 / 19 135

7.9 Violation of Labour Laws in Pretoria Embassy
Protocol Circular No.1 issued on 21 January 2019 by the Department
of International Relations and Cooperation of South Africa to the
Tanzania High Commission emphasized to abide and respect all laws
relating to the employment conditions of locally recruited staff
Review made in Tanzania High Commission –Pretoria noted
employment of fourteen local based staff who were treated without
adhering to host country’s labour laws including payment of salary at
or above minimum wage as per South African’s National Minimum
Wages Act 2018, payment of overtime as per Section 10 of the South
African’s Basic Conditions of Employment Act of 1997, paying for
medical insurance and make a contribution to the compensation fund
as required by the South African’s Compensation for Injuries and
Diseases Act of 1994 and contributing to the occupational retirement
scheme for employed local staff.
Non-adherence to host country’s laws and regulations may jeopardize
relations between the United Republic of Tanzania and host
countries, and may lead to undesirable labour proceedings in foreign
countries.
I advise the United Republic of Tanzania High Commission and
Embassies’ s management to observe and comply with local rules and
regulations so as to maintain mutual international relations.

CG - Annual General Report 2018 / 19 136

 CHAPTER EIGHT

8.0 GOVERNMENT EXECUTIVE AGENCIES, SPECIAL FUNDS, OTHER

INSTITUTIONS, BASIN WATER BOARDS AND REGIONAL
REFERRAL HOSPITALS

8.1 Introduction

This chapter covers audit results of 3325 government executive

agencies, 1626 special funds, 4827 other institutions, 14 basin water
boards and national water supply and sanitation authorities and 28
referral hospitals (included for the first time in this report). In this
chapter, I have highlighted major cross cutting and specific issues
which need attention of the government, parliament, ministerial
advisory board and management of the respective entities to ensure
efficient functioning of their operations.

25 NFRA, ADEM and PBPA were not in the previous report but included in this
year report. TAESA audit not yet concluded and TTSA operation were
merged with TFSA. REA was included in previous year as agency but was
excluded this year as it was found not established under Executive Agency
Act, 1997 (amended 2009)
26 Presidential Trust Fund ceased operations and hence not included in this
report and REA is included as the Fund due to its nature of operation
27 7 Other institutions not in the previous report are included in this report
which are the following; Forest Industries Training Institute (FITI), Public
Force-Corporation Sole, Ardhi Institute, Mining Commission, Jitegemee
Secondary School, Marine Services Company Ltd and Kawawa Secondary
School.
Note: This explains the difference of the audited entities in this year
against what was reported in prior year. In prior year the audit covered 33
government executive agencies, 17 special funds, 41 other institutions and
14 basin water boards and national water supply and sanitation authorities.

CG - Annual General Report 2018 / 19 137

Figure 21: Distribution of audited entities for the year 2018/19

Audited Entities

Referral
Hospitals, 27 Agencies, 33
Agencies
Special funds
Water Basin
Special funds,
16 Other Institution
Other Referral Hospitals
Institution, 48
Water Basin, 14

8.2 Government Executive Agencies

The following are the salient audit findings for government executive
agencies for the year 2018/2019.
8.2.1 Reliance on Government Subvention
Sect. No 12 (2) (a) Executive Agencies Act of 1997 (as amended in
2009), requires all agencies to perform their functions in accordance
with commercial principles and ensure that as far as possible, its
revenue is sufficient to meet its expenditure properly chargeable to
revenue; and Sect. 12 (3) requires a portion of its revenue to be
retained to the agency and others be allocated to Exchequer Account
as public fund.
During the audit of the Agencies, I noted that Agencies still depended
on the Government subvention to finance their approved activities
contrary to the cited provision.
I have analysed the ability of agencies to finance their recurrent and
development budgets through their own source of revenue the
following paragraphs below:

CG - Annual General Report 2018 / 19 138

8.2.1.1 Ability of the Executive Agencies to Finance their
Approved Budget Through Own Source Collections (Self-
Financing)
During the year under review I noted that, the Agencies overall Own
source collections had strengthened to the ability of finance the
approved budget for developments and recurrent by 157 percent.
However, it was revealed that these agencies are still depend on
government subvention to finance their approved budgets.
Compared to prior year, the ability of own source collections to reach
the level of financing approved budget for recurrent and development
has increased from 16% reported in the prior year 2017-18 to 157%
reported this year 2018-19. Specifically, 2 Agencies which are;
TANROADS and TARURA were excluded in this assessment due to their
nature of activities (Road construction and maintenance) which
depends entirely on Government assistance. See the trend in the
table below;
Table 42: Trend of Agencies Own Collections to finance Approved Budget
Financial Total Approved Total Own Source % of Own
Year Estimates Collected Source to Total
(TZS) (TZS) Approved
Estimate
2018/2019 334,070,915,658 523,563,440,353 157

2017/2018 2,486,084,953,295 393,434,851,146 16

2016/2017 2,369,119,704,458 426,061,768,231 18
Sources: 2018/2019 Individual financial statements of Agencies

Although my overall assessment on Executive Agencies ability of using

own source collections to finance development and recurrent budget
showing major improvement but my assessment on each Agency
separately has indicated that 14 Agencies failed to collect own
sources revenue to reach the level capable of financing recurrent and
development budget while 16 Agencies had performed well on
revenue collections to the level equal or above their approved budget

CG - Annual General Report 2018 / 19 139

for development and recurrent, as shown in Chat below. For more
details refer Appendix 8.1.
Figure 22: Performance of the audited agencies

14
16

No of Entities not able to finance their Budget

No of Entities with ability to finance their Budget

Source: Management letters

I therefore advise the Government to consider the possibility of
directing Executive Agencies (based on their activities nature) to be
financial independent by using own revenue collections to finance
their approved budget. This decision could reduce the burden of
financing these agencies and the fund saved being allocated to other
areas in need.
8.2.2 Financial Review of Executive Agencies

a) Under Release of Recurrent Grants, TZS 287,733,119,762

During the financial year 2018-19, the executive agencies managed
to receive recurrent grants of TZS 715,861,986,143 against the Budget
of TZS 1,003,595,105,905 resulting to short release of TZS
287,733,119,762. Such shortfalls impacted adversely the desired
objectives of the agencies.
Compared to prior year, the recurrent grant received by the agencies
decreased by 16 percent from TZS 853,619,443,220 in 2017/18 to
TZS 715,861,986,143 in 2018/19. A detailed analysis is shown in
Appendix 8.2 while the trend of the recurrent fund received is
summarized in the table below:

CG - Annual General Report 2018 / 19 140

Table 43: Trend of Approved Budget vs. Actual Release for Recurrent
Grants
Financial Total Approved Exchequer Under Release of % of
Year Estimate (TZS) Issues Received Fund (TZS) Under
(TZS) release

2018/19 1,003,595,105,905 715,861,986,143 (287,733,119,762) 29

2017/18 1,046,155,639,827 853,619,443,220 (192,536,196,607) 18
2016/17 863,713,444,873 597,132,649,284 (266,580,795,590) 31
Sources: 2018/2019 Individual financial statements of Agencies

In my opinion, shortfall may be overcome when executive agencies

commit their resources with the purpose of improving quality of
service delivery and by so doing increase their own source of revenue
collection base, so that the persisting gaps between the budget
estimates and actuals are bridged.
b) Under Release of Development Grants, TZS 113,584,781,943
During the financial year 2018/19, the executive agencies received
development grants of TZS 1,688,664,075,787 against the approved
budget of TZS 1,802,248,857,730 resulting to the under release of TZS
113,584,781,943 equivalent to 6%. See the table below and the
detailed analysis in Appendix 8.2 of the report.
Table 44: Trend of Approved Budget vs. Actual Release for Development
Grant
Financial Total Approved Exchequer Issues (Under)/Over %
Year Estimates (TZS) Receive (TZS) Release of Funds (Und
(TZS) er) /
Over
Rele
ase

2018/2019 1,802,248,857,730 1,688,664,075,787 (113,584,781,943) (6)

2017/2018 1,439,929,313,468 1,712,803,740,205 272,874,426,737 119
2016/2017 1,505,406,259,577 651,350,345,808 (854,055,913,769) (57)

Sources: 2018/2019 Individual financial statements of Agencies

Compared to prior year, the release of the development grants
decreased by 1.4% from TZS 1,712,803,740,205 in 2017/18 to TZS

CG - Annual General Report 2018 / 19 141

1,688,664,075,787 in 2018/19. Even though the budget had increased
from TZS 1,439,929,313,468 in 2017-18 to TZS 1,802,248,857,730.
And this implies the budget increase was not reflected in the fund
released.
Figure 23: Analysis of development funds released for the past two years

Trends of Development fund released against Budget

2,000,000,000,000
1,800,000,000,000
1,600,000,000,000
1,400,000,000,000
AMOUNT

1,200,000,000,000
1,000,000,000,000
800,000,000,000
600,000,000,000
400,000,000,000
200,000,000,000
0
FINANCIAL YEAR 2016/17 2017/18 2018/19
Approved Budget 1,505,406,259,577 1,439,929,313,468 1,802,248,857,730
Actual release 651,350,345,808 1,712,803,740,205 1,688,664,075,787

Approved Budget Actual release

Source: Management letter

The figure above indicates the release of development fund had

increased over the past two years; however, the funds released have
started to decline again this year. This was a consequent of
insufficient government revenue collections.
I recommended to the Ministry of Finance and Planning (Treasury) to
establish new source of government revenue base in order to ensure
the government budget is adequately financed. Moreover, agencies
are advised to improve their internal generated income to reduce
reliance on the direct grant from Treasury
c) Budget for Own Source Collections Not Achieved by
TZS 142,893,900,979
During the financial year 2018/19 I noted that 33 agencies managed
to collect a total of TZS 561,017,751,808 against approved budget of

CG - Annual General Report 2018 / 19 142

TZS 703,911,652,787 which resulted into under collection of TZS
142,893,900,979 (20%).

Compared to prior year, the agencies performance towards collection

of own source revenue increased by 41% from TZS 393,434,851,146 in
2017-18 to TZS 561,017,751,808 in 2018-19. See the table below:
Table 45: Analysis of Own Source collections
Financial Approved own Actual Revenue under collection % of
Year Source Collected (TZS) (TZS) Under
Estimates (TZS) Collection

2018/19 703,911,652,787 561,017,751,808 142,893,900,979 20

6
2017/18 420,229,790,256 393,434,851,146 26,794,939,110

2016/17 465,832,080,527 426,061,768,231 39,770,312,297 9

Sources: 2018/2019 Individual financial statements of Agencies

My analysis on individual performances of the agencies indicate that

23 agencies (70%) collected own source revenues below the approved
budget, while 10 agencies (30%) collected revenues above the
approved budget. Refer Appendix 8.3.
Also, in the period of three years it was observed that own source
collections continued to increase; however, the collections is yet to
equal the budgeted amount. See the detailed description in the figure
below:

CG - Annual General Report 2018 / 19 143

Figure 24: Analysis of own source collections for the past three years

Trends of Collection Versus Budget

800,000,000,000
700,000,000,000
600,000,000,000
500,000,000,000
AMOUNT

400,000,000,000
300,000,000,000
200,000,000,000
100,000,000,000
0
FINANCIAL YEAR 2016/17 2017/18 2018/19
Approved Budget 465,832,080,527 420,229,790,256 703,911,652,787
Actual Collection 426,061,768,231 393,434,851,146 561,017,751,808

Approved Budget Actual Collection

Source: Management letters

8.2.3 Review of the Revenue Remittance to the Consolidated Fund

Public Finance (Remittance of Revenue to the Consolidated Fund)
(Public Corporation, Government Agencies and Authorities)
(Amendment), Order 2016 (Made under Sect. 11 (3) of Public Finance
Act, 2001 (Amended by Finance Act, 2015) require the specified
executive agency, public corporation, public authority or public
institution which charge or impose and collect fees for services
rendered to remit fifteen per-centum of the gross revenue to the
Consolidated Fund at the end of every quarter of a financial year.
During the financial year 2018-19, I sampled seven (7) entities and
noted that these 7 entities had remitted TZS 33,674,676,917 to the
consolidated fund against the required amount of TZS 45,878,950,942
whereby 5 entities had remitted TZS 31,631,489,838 above the
required amount of TZS 28,620,349,676 and resulted to over-
remittance of TZS 3,011,140,162. While 2 entities were found to
remit TZS 2,043,187,079 below the required amount of TZS
17,258,601,266 and resulted to under remittance of TZS
15,215,414,187. Refer Appendix 8.4.

CG - Annual General Report 2018 / 19 144

The government has engaged its internal generating revenue to
finance major development projects to achieve a competitive
economy capable of producing sustainable growth and shared
benefits. Therefore, I encourage the entities specified in Public
Finance, Order GN 210 of 2016, to remit 15% of the gross collections
to the Consolidated Fund.
I also advise all Agencies to design ways of increasing revenue
collections and extra income to be allocated to National Account as
required by Sec. 12 (2) and (3) of the Executive Agencies Act No 30
of 1997 (revised 2009). Furthermore, the Government is advised to
review the law governing remittance to include other operating
agencies in order to widen Government revenue base.
8.2.4 Issues Arising From the Audit of Financial Statements of
Executive Agencies, Special Funds, Water Basins Boards and
Other Government Entities

8.2.4.1 Outstanding Accounts Payables TZS 1,034,281,306,562

My review on financial statements for the year ended 30th June 2019
noted that the audited executive agencies, water basin boards and
the other government entities had account payables worth TZS
1,034,281,306,562.
Out of the reported payables, TZS 722,872,343,713 (70%) was
outstanding for 12 months and TZS 311,408,962,849 (30%) for more
than 12 months. See details in Appendix 8.5.
Table 46: Accounts payables
Period Financial year ended 30th June 2019
Amount Percentage
(TZS)
Within 12 months 722,872,343,713 70
more than 12 months 311,408,962,849 30
Total 1,034,281,306,562 100
Source: Individual Financial Statements

CG - Annual General Report 2018 / 19 145

Compared to prior year, the payable has decreased by TZS
69,800,616,245 (6%) from the reported figure of TZS
1,104,081,922,807 in 2017-18. See the figure below:
Figure 25: Trend analysis of account payables

Payable trend
1,104,081,922,8
1,120,000,000,000 07
1,100,000,000,000
1,080,000,000,000
Amount

1,060,000,000,000 1,034,281,306,5
62
1,040,000,000,000
1,020,000,000,000
1,000,000,000,000
980,000,000,000
Financial year 2017/18 2018/19
Amount 1,104,081,922,807 1,034,281,306,562

Amount Linear (Amount) Linear (Amount)

The long outstanding payables were understood to emanate from

unpredictable release of the budgeted funds in respect of timing,
period and amounts, as well as unsatisfactory collections of own
source revenues which seriously affect working capital of Government
institutions.
Debt accumulation by governments might affect the economy in the
way that suppliers and contractors may raise the price to factor in
the risk of delays of payments, divert the government resources to
offset past obligations and accumulation of interest for delays.
I recommend to the Government to release sufficient fund as per
approved budget to finance obligation settlement when fall due. Also,
the Government is advised to conduct a comprehensive verification
on the reported payables to ensure that are legitimate and have not
been inflated, fraudulently claimed or previously settled. Also, the

CG - Annual General Report 2018 / 19 146

Accounting officers are advised to emphasize on settlement of the
existing payables before entering into new commitments.
8.2.4.2 Outstanding Accounts Receivables TZS 1,320,290,717,755
My review on financial statements for the year ended 30th June 2019
noted that, Executive Agencies, Water Basin Boards and Other
Government entities had Account Receivables worth TZS
1,320,290,717,75528.
Out of the reported receivables, TZS 706,175,773,529 (53%) was
outstanding for 12 months and TZS 614,114,944,226 (47%) for more
than 12 months. Refer Appendix 8.6.
Table 47: Accounts Receivable
Period Financial year ended 30th June 2019
Amount Percentage
(TZS)
Within 12 months 706,175,773,529 53
more than 12 months 614,114,944,226 47
Total TZS 1,320,290,717,755 100
Source: Individual Financial Statements

Compared to prior year, I noted the increase of receivables by TZS

762,146,068,120 (137 percent) from the reported figure amounting to
TZS 558,144,649,635 in 2017/18.

28 Petroleum Bulk Procurement Agency had outstanding Accounts

Receivable of TZS 14,236,123,684 after netting off with the provision for
bad debts as shown on Note 11 of the financial statements of TZS
4,101,307,365. I am concerned with this loss incurred of which could have
been used to finance the Activities of the Agency. I therefore recommend
the Agency to confirm creditworthiness prior to conducting business.

CG - Annual General Report 2018 / 19 147

Figure 26: Analysis of account receivables
Receivable
1,400,000,000,000 1,320,290,717,755

1,200,000,000,000
1,000,000,000,000
Amount

800,000,000,000
558,144,649,635
600,000,000,000
400,000,000,000
200,000,000,000
-
Financial year 2017/18 2018/19
Rceivable 558,144,649,635 1,320,290,717,755

Rceivable Linear (Rceivable)

In my opinion, these significant outstanding receivables could affect

the growth of Government institution due to insufficient working
capital.
I recommend that institutions must aggressively explore better ways
to improving the effectiveness of debt collection by utilizing a
combination of debt collection methods such as use of private
collection agencies, use of Treasury offset program to collect debt
owed between Government institutions (if the program does not exist
I advise for its establishment by the Ministry of Finance and Planning)
and litigation.

8.2.4.3 Matters Raised During my Audit of Executive Agencies

8.2.4.3.1 Tanzania National Roads Agency (TANROADS)

a) Penalties Imposed due to delayed Payments

TZS 224,025,668,187
During the audit time of November 2019, I noted TANROADS had
outstanding claims from Contractors and Consultants amounting to

CG - Annual General Report 2018 / 19 148

TZS 949,979,124,42929 which includes the Principal debt of
TZS 725,953,456,242 and Interest charged due to delayed payments
amounting to TZS 224,025,668,187, as shown in Appendix 8.7. These
interests were imposed for any late payment made to the
Contractors/Consultants as per Sub Clause 51.1 of General Condition
of Contract.
Furthermore, I noted delays in paying the contractors/consultants
had also resulted into roads project being suspended while the
progress of others was slowed down to minimize cash flows problem,
which might possibly result into cost overruns for compensating the
time lost (idle time).
The management then informed my office that during preparation of
budget estimates special attention was given to the allocation of
funds for new development projects which have been approved and
are considering the priority areas; inclusion of ongoing development
projects to the budget estimates; payment of overdue debts to
contractors and consultants including compensations to projects
affected persons (PAPs). However, due to budget ceilings, few
overdue debts were included in the budget estimates, this has
contributed much to the accumulation of contractual debts.
I recommend to the Government through the Ministry of Finance and
Planning to come up with strategies/policies that will ensure
outstanding debts are settled within the contractual timeframe, and
also, the Government should emphasize on offsetting the existing
debts before deciding on entering into new commitments and proper
and realistic budgeting.
b) Advance Paid to the Contractors not Secured;
TZS 14,842,607,293
Sub Clause 59.1 of General Condition of the Contract requires that if
stated in the SCC the Employer to make advance payment to the
contractor of the amounts stated in the SCC, against provision by the
contractor of an Unconditional Bank Guarantee in a form and by a

29 Outstanding claims with no interest charges are excluded in this figure.

CG - Annual General Report 2018 / 19 149

bank acceptable to the employer in amounts and currencies equal to
the advance payment. The guarantee is to remain effective until the
advance payment has been repaid.
Contrary to the above clause, I noted that TANROADS had outstanding
advance paid to the contractors amounting to TZS 14,842,607,293
which were not secured by the guarantees. It was discovered that
this Advances were secured at the first place, but the Guarantees
provided expired before full recovery of the amount paid, however
the Contractors were not instructed to extend/renew the same.
Details are as shown in the table below

CG - Annual General Report 2018 / 19 150

Table 48:
Advance Paid not secured by Guarantee
Contract No. Contract Details Contractor’s Name Guarantee Advanced amount Outstanding
expiry Amount
date
TRD/HQ/1053/201 Upgrading of M/S China Geo 31/5/2019 10,372,756,997 2,978,998,280
6/17 Mpemba – Engineering
Isongole Road Corporation
(50.3KM)
TRD/HQ/1052/201 Upgrading of M/S Salum Motor 31/12/201 5,501,204,266 2,794,444,185
6/17 Tabora- Urambo- Transport Co. M/S 9
Kaliua Road; Anam Road Work Co
Urambo-Kaliua and M/S Jossam
road Section Company Lt JV
(28KM
TRD/HQ/1054/201 Upgrading of M/S China Henan 1/12/2019 15,888,639,013 9,069,164,828
6/17 Njombe-Moronga International
section Lot 1 Corporation Group
Total 14,842,607,293
Source: Management letter of TANROADS
CG - Annual General Report 2018 / 19 151
This is not only contrary to provisions of the contracts but also risk
when the contractor chooses to default before recovering in full the
advance paid. This might result into loss of taxpayers’ funds.
Therefore, I recommend to the TANROADS management to enhance
supervision and ensure that the advance paid is secured or recovered
in full.

8.2.4.3.2 Tanzania Electrical, Mechanical and Electronics Services

Agency (TEMESA)
During the review of the agency operations, I noted some deficiencies
in the management of five (5) contracts entered with M/S Songoro
Marine Transport Ltd for the rehabilitation and supply of ferries as
summarized hereunder, and detailed in appendix 8.12.

a) Rehabilitation of MV. Misungwi Ferry at Kigongo – Busisi in

Mwanza Region
In this contract, I noted that the contract was executed beyond the
completion time of 30 November 2019; the contractor had failed to
produce the resourceful programme of works since commencement
date of 30 August 2019 and, advance payment of TZS 153,585,600 had
been secured by Bond instead of Bank Guarantee contrary to Clause
54.1 of GCC.

b) Supply of New Ferry for Plying Between Chato - Mharamba and

Nkome in Chato District
In this contract, I noted slow pace in the construction works whereby
overall progress stood at 49% while 70% of the Contract time had
elapsed. The Contractor had been paid TZS 316,037,343 for providing
insurance covers of which were not submitted; the practical
programme of work was not produced since project commencement
date of 13 May 2019 and; advance payment of USD 114,069.51 was
secured by Bond instead of Bank Guarantee contrary to Clause 54.1
of GCC.

CG - Annual General Report 2018 / 19 152

c) Supply of New Ferry for Plying Between Mafia and Nyamisati,
Mafia District in Pwani Region
In this contract, I noted that advance paid to the contractor in respect
to foreign component amounting to TZS 449,445,675 had not been
secured by bank guarantee and, the contractor had been paid TZS
527,365,178 for providing insurance cover which was not submitted.

d) Major Rehabilitation of MV – Kigamboni in Dar es Salaam

During the review of this contract, I noted that the contract was
executed beyond the completion time of 29 July 2019 for more than
100 days without deduction of liquidated damage amounting to TZS
109,279,800; Performance Bond amounting to TZS 109,279,800 issued
by Metropolitan Tanzania Insurance Company Ltd came to an end on
30 March 2019, however the same was not extended. The contract
was signed at TZS 1,092,798,000 against the amount included in the
negotiation meeting minutes of TZS 1,067,369,491.53 which resulted
into excess of TZS 25,428,508 that was not justified. Besides, the
approval from tender board was not obtained contrary to Reg. 110 (5)
of PPR, 2013 (as amended 2016) and, the contractor had been paid
TZS 15,000,000 for providing insurance cover which was not
submitted.

e) Supply of New Ferry Plying Between Kayenze and Bezi In

Ilemela Districts in Mwanza Region
My review of this contract revealed that the agency had introduced
changes on the advance payment rate from 10% to 30% of the contract
sum without obtaining approval from tender board and hence paid
TZS 816,256,331.61 to the contractor.

It is my opinion that the above identified anomalies were caused by

inability of the agency to supervise and monitor the construction
projects, which in turn might have caused non-realization of the value
for money.

I therefore recommend to the TEMESA management to carry out

adequate supervision in all projects under implementation and ensure

CG - Annual General Report 2018 / 19 153

that projects are commenced and completed within the agreed
timeframe. Also, be capable of designing sound internal controls over
the project management and capacitate its staff on procurement and
contract management.

8.2.4.3.3 Tanzania Rural and Urban Roads Agency (TARURA)

TARURA was established through Government Gazette with GN 211 of

12 May 2017, with the aim of providing sustainable and cost-effective
maintenance and development of rural and urban roads network to
support the social economic development of Tanzania. Tanzania Rural
and Urban Road Agency (TARURA) took over operations of the Roads
Fund project from Local Government Authorities. During the review
of operation of TARURA I noted the following:

a) Loss Incurred Due to Inadequate Procurement and Contract

Managements TZS 280,351,400
During the audit of TARURA in respect of procurement and contract
compliance, I noted various losses that resulted from poor
procurement decision as well as inadequate supervision during the
contract executions as detailed hereunder:

b) Irregular Disqualification of the Lowest Evaluated Bidder

Leading to a Loss of TZS 44,956,000

Through the review of the Tender No: AE/092/2018/2019/KLI/W/40

for Upgrading Mwanga Town roads to Double Surface Dressing at
(Maliasili-Sokoni, Kanisani -Ujenzi and Sokoni) I noted that:

TARURA – Kilimanjaro awarded the contract to M/s Checotic Tanzania

Ltd on 15 March 2019 at contract price of TZS 413,139,000. However,
it was noted in tender evaluation report that the award to M/s
Checotic Tanzania Ltd was granted after disqualification of the lowest
bidder M/s Bona & Hubert Ltd, who had tendered at the price of TZS
368,183,000, due to providing same resources (key personnel and
equipment) as for the other Tender No.
AE/092/2018/2019/KLI/W/36. While the awarded tenderer, M/s

CG - Annual General Report 2018 / 19 154

Checotic Tanzania Ltd was also found to submit the bid in that Tender
No. AE/092/2018/2019/KLI/W/36 and had provided the same
equipment for the tender was awarded. Such decision has denied the
agency the opportunity of saving TZS 44,956,000 (413,139,000 -
368,183,000) from the lowest bidder and thus contributed to loss.

c) Loss Incurred Due to Inadequate Procurement Plan;

TZS 150,377,400
Sect. 49 (1) of PPA, 2011 (amended 2016) requires a procuring entity
to prepare its annual procurement plan in a rational manner and in
particular to (a) avoid emergency procurement wherever possible;
and (b) aggregate its requirements wherever possible, both within the
procuring entity and between procuring entities, to obtain value for
money and reduce procurement costs.

I noted that TARURA Headquarter through Contract No:

AE/092/2018/2019/HQ/CR/01 had procured 300 units of point of sale
(POS) machines at a price of TZS 256,850,100 (TZS 856,167 per unit)
and five (5) month later another 2000 units of point of sale machines
(POS) were procured at a Price of TZS 709,818,400 (TZS 354,909 per
unit) through contract No. AE/092/2018/2019/HQ/CR/25.

I believe that the agency could have saved TZS 150,377,40030 by

aggregating those 300 units of POS machines in the contract No.
AE/092/2018/2019/HQ/CR/01 to the later contract with reference
No. AE/092/2018/2019/HQ/CR/25 and procure at lowest price of TZS
354,909 per unit instead of TZS 856,167 per unit. It was also noted
that those 300 unit of POS machines were procured through
emergency procurement which contributed much to the additional
cost incurred and such practice was contrary to Sub Sect. 49 (1) (a
and b) of PPA, 2011 (amended 2016).

30
300 Units x (TZS 856,167 –TZS 354,909)

CG - Annual General Report 2018 / 19 155

d) Loss Due to Unrecovered Performance Guarantee on
Terminated Contract – TZS 54,074,000

Through the review of the contract No.

AE/092/2018/2019/HQ/CR/11 entered between TARURA
Headquarter and M/S Climate Consult (T) Ltd for the supply of 1,500
Point of Sale (POS) devices within four (4) weeks from the date of
signing the contract of 21 December 2018 I noted that:

The supplier was terminated for fundamental breach of the contract

through letter with Ref No. BA.310/312/15/26 dated 1 April 2019,
however the performance security with Ref No. CBAT/016/2019
worth TZS 54,074,000 was permitted to expire on 22 April 2019
without forfeiting the same and resulted into a loss.

e) Loss Emanated From Paying Road Works not Executed

TZS 30,944,000

Through the review of the contract No. AE/092/2019/KG/W/05

entered between TARURA Kigoma and M/s SK Building & Civil
Engineering Co. Ltd for the construction of storm water drains
(2.08Km) along Ntovye at Kigoma Ujiji MC at the contract price of TZS
220,791,400 I noted the following:

The employer had approved the variation of TZS 30,944,000 for

extending the roads width from 7 meters to 10.5 meters which
resulted into the contract sum being revised to TZS 251,735,400.
However, during the site visit, I observed that the road was
constructed at the width ranging from 6.8 meters to 8.5 meters
against the variation requirements of 10.5 meters, while the
contractor was paid TZS 251,680,060 out of the revised sum of TZS
251,735,400. This implies the variation proposed was paid for but not
exactly executed and hence resulted into loss of TZS 30,944,000.

From the above, it was concluded that the overall loss incurred
amounted to TZS 280,351,400 and thus the need to obtain the best

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value for money in terms of price, quality and delivery for the
procurement made was not achieved.

I therefore urge TARURA management in the execution of their

duties, to strive to achieve the highest standards of equity, taking
into account the following: (a) equality of opportunity to all tenderers
(b) fairness of treatment to all parties; and (c) the need to obtain the
best value for money in terms of price, quality and delivery having
regard to set specifications and criteria.

f)Contracts Variation above 15% not Approved by Budget

Approving Authority and Tender Board - TZS 188,251,059

Reg. 110(4) of the PPR, 2013 (Amended 2016) stipulates that,

A contract amendment shall not increase the total contract price by

more than fifteen percent of the original contract price without the
approval of Budget approving authority.

Similarly, Reg. 110(5) of PPR, 2013 (Amended 2016) states that:

The proposed variations such as additions or deductions which are not

incidental to or arising out of the contract, and which alter the scope,
extent or intention of the contract shall, in every case, be referred
to the appropriate Tender Board for approval before instructions are
issued to the tenderer.

Contrary to the above mandate, I noted that TARURA in Mkuranga and

Namtumbo District had instructed the execution of contract
variations worth TZS 188,251,059 which was above 15 percent of
original contract sum prior to obtaining approval from the budget
approving authority as well as Tender Board. Refer the table below

CG - Annual General Report 2018 / 19 157

Table 49: Contract variations not approved by Tender board
S/N
Original Revised
Contract contract sum Variation % of
Region sum (TZS) (TZS) (TZS) variation Description
1 Rehabilitation of
Coast - Mkuranga DC Kimanzichana –
Contr. No: Mkamba- Chamgoi
AE/092/CR/2018-19/W/43 584,866,700 494,166,700 90,700,000 16 Roads
2 Construction of
Concrete Bridge
along Mfuate -
Ruvuma - Namtumbo DC Miembeni Primary
Contr. No: School-Luegu
AE/092/RVM/2018-19/W/31 River – Mgombasi
Namtumbo DC 81,414,460 178,965,519 97,551,059 120 Road
Total
666,281,160 673,132,219 188,251,059
Source: Management letter of TARURA
CG - Annual General Report 2018 / 19 158
It was revealed that laxity of the responsible personnel to comply
with the mentioned mandate was the main reasons and this might
lead into wasteful spending of taxpayers’ funds.

I therefore advise the management of TARURA to comply with Sub

Reg. 110(4) and (5) of the PPR, 2013 (Amended 2016) and that insist
that any notable deviations should be investigated for further action.

8.2.4.3.4 National Food Reserve Agency (NFRA)

The National Food Reserve Agency (NFRA) is a Public Institution
established as executive agency under the Ministry of Agriculture
Food Security and Cooperatives of Tanzania for the purpose of
guaranteeing national food security during food shortage. During
review of NFRA operations, I noted the following:

a) Loss Incurred Due to Relocation of the Construction Site After

the Commencement; TZS 691,451,121
Through the review of the contract No. AE 054/2015/2016/HQ/W/19
entered between National Food Reserve Agency (NFRA) and UNIA
ARAJ REALIZACJE.SP. ZO.O of Poland for design, supply, construction,
installation, testing and commissioning of Silo Complexes,
warehouses and rehabilitation of existing facilities in Lot No. 4, 5 and
8 in Sumbawanga, Mpanda and Babati at the contract price of USD
20,280,806 and duration of 18 months, I noted that:

The Contractor was instructed to relocate to the new site with the
location number 806 and 807 from the original site with location
number 794 and 795 by the Consultant (Tanzania Building Agency).
However, it was observed that some of the construction works
amounting to USD 300,530.31 equivalent31 to TZS 691,451,121 were
already executed in the original site such as temporary works, setting
out, bushes removal, top soil removal excess soil removal,
excavations, concrete grade 20, concrete grade 25, concrete grade

31BOT exchange rate of 1 USD = TZS 2,300.77, dated 28 February 2020 (time of
writing this report)

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30 fence, demolition of fence, fence to new plot, redesigning,
internal roads and external works.

The management had informed my office that the relocation was

caused by double allocation of the respective Plot to two Government
institutions (TANESCO and NFRA) by Babati Town Council. It was also
noted that the same council had issued the Agency with the building
permit which allows the agency to conduct environmental and social
impact assessment and geotechnical investigation studies of which
the result became useless to the new relocated site. For such reasons
it was observed that NFRA had invoiced Babati Town Council to
compensate the amount, however the cost is yet to be refunded to
date.

I am of the view that the loss incurred was due to negligence of the
Babati Town Council and I thus recommend to NFRA to quantify the
actual loss and the same should be recovered from the Council.
Furthermore, I recommend to the PO-RALG to investigate the
negligence and disciplinary measures be taken against those
responsible.

b) Funds Borrowed by the Ministry of Agriculture not Refunded;

TZS 301,191,597.55
During review of the Agency operations, I noted that the agency
loaned a total amount of TZS 1,120,689,946.52 to the Ministry of
Agriculture for the past 9 years. However, it was revealed that only
TZS 819,498,348.97 was refunded by the Ministry while TZS
301,191,597.55 was yet to be recovered up to the time of audit august
2019 as detailed in the table below:

Table 50: Borrowed Funds Not Refunded

Period of Borrowing Outstanding Amount %
(TZS)
Within one year 108,279,215.00 36

Over One year to four years 177,489,076.36 59

CG - Annual General Report 2018 / 19 160

 Period of Borrowing Outstanding Amount %
(TZS)
Over five years 15,423,306.19 5

Total 301,191,597.55 100

Source: Management letter of NFRA

It is my opinion that this regular borrowing of funds from the agencies

should be discouraged due to the facts that it limits the achievement
of the intended objectives incorporated in the annual budget due to
uncertainty surrounding the refunds.

I then recommend the government through Chief Secretary to come

up with strong directives to regulate this inter-borrowing between
Government institutions; likewise, the Ministry of Agriculture is
advised to refund the amount to NFRA.

8.2.4.3.5 Tanzania Building Agency (TBA)

Tanzania Buildings Agency (TBA) is the government’s executive
agency under the Ministry of Works (MoW) with a primary mandate of
providing quality accommodation to the Government and public
servants as well as offering building consultancy services to the
Government.

a) Irregularities on the Construction of Government Buildings

Tanzania Building Agency (TBA) was contracted by other Government
Institutions to construct new office buildings at Dodoma Region
(Capital City) to facilitate the relocation of government activities.
During the review of the project implementation status I revealed
some weaknesses on the construction works as summarized below:
and detailed in the appendix 8.8.

b) Design and Construction of Office Building for the proposed

National Electoral Commission (NEC) Headquarter.
In this project, I noted the existence of loss amounting to TZS
8,854,624,244.25 from the rejected claims (Variation 1&2), this

CG - Annual General Report 2018 / 19 161

claims were rejected because the contractor (TBA) had executed
addition works without obtaining the approval from the employer
(NEC) as required by Sub Clause 13.3 of GCC. I further noted that the
contract was terminated on November 2019 and transferred to SUMA
JKT. The implication of this is that the funds obtained from other
projects to finance the variation will not be recovered and hence
affect other projects’ cash flow.

c) Design Review, Modification and Construction of TANROADS

Headquarters Building on Plot No.8, Block ‘F’ at the Njedengwa
Investment Area in Dodoma Municipality
I noted the progress of works was not convincing as at the time of
audit, January 2020, the overall progress stood at 30% while 100% of
the Contract time had elapsed. I further noted the contractor TBA
was executing the construction works without having valid contract
whereby the original contract had expired since 19 December 2019.

d) Proposed Design and Construction of Head Quarter and Zonal

Office for Ethics Secretariat in Dodoma Region
In this project, I revealed that the construction works commenced on
5 January 2018 while the contract was signed on 14 June 2019 (1.5
years later).

From my previous report, I pointed mismanagement of the

construction materials and funds; insufficient number of technical
personnel and equipment and; under release of the project funds
from the clients were the main reasons for unsatisfactory progress of
works. Hence through my previous report I addressed TBA
management to design sound internal controls over the project
management, however no improvement was observed during the
reporting time.

I also noted TBA reputation continued to deteriorate whereby the

agency was terminated due to underperformance in two (2) major
construction projects which are: the construction of prison’s

CG - Annual General Report 2018 / 19 162

residential houses at Ukonga and designing and constructing office
building for the proposed National Electoral Commission (NEC)
Headquarter. This has affected the growth of the Agency toward self-
financing.

I therefore recommend to the TBA management to engage its

resources towards achieving primary mandate of providing
consultancy services to the Government while developing strategies
necessary to survive in the construction industry.

8.2.4.3.6 Drilling and Dam Construction Agency (DDCA)

The Drilling and Dam Construction Agency (DDCA) was created under
the Ministry of Water and Irrigation. DDCA came into existence
following the Executive Agencies Act. No. 30 of 1997 and was
launched on the 26th of March 1999. The role of DDCA is to develop
sustainable and safe water sources through efficient means and at
cost effective price. This objective is in line with the national
objective of alleviating poverty and improving the health of people
through provision of clean, safe, and adequate water supply to rural
and urban population.

a) Abandoned Procured Pump Test Kits for 6 Years;

TZS 840,000,000
During the audit of DDCA non-current assets I noted that the Agency
purchased five (5) Pump test kits at the Contract Price of TZS
840,000,000 since 2014, however these pump kits were found to be
grounded at head quarter’s vehicles yard for almost 6 years.

Upon request of logbooks for the pump test kits, I was told that no
logbooks were available for the kits as they were not in use since they
were delivered in 2014. These pump test kits were purchased using
WSDPI funds for the purpose of testing activities, yet no value has
been realized.

The management informed my office that the specification of the

pumping test kits was confined to the capacity of electric generators,

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crane and its accessories; the trailer was not considered as the major
factor for its operations. This resulted on getting pumping test kits
mounted on trailers that cannot easily be used in our working
environment with undulating and rough terrain.

In my view the procurement process was not properly done as the

needs for this equipment and specification requirements were not
properly established at that time. This may lead to non-realization of
the value for money for the expenditure incurred. Also, conditions of
this equipment is going to deteriorating over the time due to wear
and tear.

I recommend to DDCA management to look for alternative solution of

ensuring the machines are in use to achieve the intended objective.
Also, I recommend the investigative authority to establish if there
was an aspect of negligence in the procurement stage.

8.3 Matters Raised During the Audit of Other Government Entities

During the audit of Government entities operations, I noted various

weaknesses as discussed hereunder:
8.3.1 National Identification Authority (NIDA)
The National Identification Authority (NIDA) is responsible for
registration and issuance of National Identification Cards to Tanzania
citizens and legal residents.

a) Low Pace in Issuing National Identification Number and ID Cards

During the review of the production statistics for the month of
February 2020, I noted that NIDA managed to register 21,692,122
persons out of the planned 24,008,729 persons. However out of
registered 21,692,122 persons, only 17,100,178 persons were issued
with National Identification Number while the remaining 4,591,944
registered persons (equivalent to 21%) were yet to receive their
National Identification Number (NIN).
I further noted that out of 17,100,178 persons issued with National
Identification Number (NIN), only 5,996,304 ID cards were produced

CG - Annual General Report 2018 / 19 164

leaving 11,103,874 persons with ID numbers (equivalent to 65%) yet
to receive the ID cards.
After having identified low ID production pace, I then analysed
effectiveness of the ID production systems and revealed that NIDA
had procured a new ID Personalization Printer from the Supplier M/s
Atlantic Zeiser GmbH at a price of Euro 3,304,650 Vide Contract No:
EA/061/2018-2019/HQ/G/01-Lot 3 dated 22 July 2019. However, the
machine was not installed because the remaining cards inventory
were not compatible (well matched) with software installed in the
printer machine and hence limited the IDs production.
I am of the view that, delays on issuance of national identification
numbers to the eligible citizen restricted them with the access to
mobile communication since the registration of SIM Cards requires
mobile owner to have NIDA Identification number. And failure to do
so, the network service providers were directed to block all
unregistered SIM Card from 20 January 2020.
Therefore, I recommend to the management of NIDA to speed up the
process of issuing registration number to the registered persons to
allow owner of mobile phones to comply with TCRA directives of all
cards to register their lines biometrically.
b) Possible Loss From Advance Paid to the Expired Contract not
Recovered; TZS 28,215,446,470
On 21 April 2011, NIDA entered into a contract agreement with IRIS
Corporation Berhad of Malaysia (Contractor) for the Procurement and
Supply of Goods and Equipment and the implementation of the
National ID system based on Smartcard Technology at contract price
of USD 149,956,303 with completion time of 13 September 2016, later
revised to 14 March 2018.

During the contract review, I revealed that the Contractor was paid
advance amounting to USD 29,991,260 (equivalent to TZS
47,992,080,000) on 16 September 2011. However, it was noted that
only TZS 19,776,633,530 was recovered up to the time of audit in

CG - Annual General Report 2018 / 19 165

January 2020 leaving TZS 28,215,446,470 not yet recovered. Even
though the Contract had expired since 14 March 2018 (2 years ago).
My further audit scrutiny revealed that the Contractor had an
outstanding payment claims amounted to USD 5,933,536.56
(equivalent to TZS 13,651,584,240.42) which was not enough to
offset in full the outstanding advance amounted to TZS
28,215,446,470.
In my opinion, the deficiency was due to inadequate management of
this contract by NIDA and may lead to loss of taxpayers’ money if not
addressed properly.
The management of NIDA is recommended to offset the outstanding
advance of TZS 28,215,446,470 with the unpaid contractor claims of
TZS 13,651,584,240.42 and ensure the remaining advance of TZS
14,563,862,229.58 is recovered from the Contractor. Also, the parent
Ministry (Home affairs) should ensure the Authority recovers the
amount.
c) Loss of ICT Equipment Supporting Biometric Voters Registration
(BVR) machines
NIDA had introduced its offices in various district councils and equip
those offices with necessary biometric voters’ registration equipment
to facilitate national ID registrations activities.
However, my review of the Regional ICT equipment reports revealed
that several ICT equipment supporting BVR machines were
missing/stolen in various councils, as detailed in the table below:
Table 51: Loss of Equipment at District NIDA Offices
S/N Device stolen Quantity Region Location
1 Laptop 1 Tabora Kaliua
2 Camera 1 Tabora Kaliua
1 Tabora
3 Solar Uyui
1 Tabora
4 Camera Uyui
1 Tabora
5 Disk Tabora CBD
1 Tabora
6 Laptop Tabora CBD

CG - Annual General Report 2018 / 19 166

 S/N Device stolen Quantity Region Location
1 Tabora
7 Laptop Tabora CBD
8 Adaptor 1 Tabora Tabora CBD
9 Camera 1 Njombe Njombe DC
10 Camera 1 Njombe Njombe DC
Camera 1 Iringa
11 Cannon Iringa DC
12 Laptop Lenovo 1 Iringa Iringa DC
13 Laptop 2 Arusha Arumeru DC
14 Camera 2 Arusha Arumeru DC
15 Desktop 1 Arusha Arumeru DC
16 Extension 2 Arusha Arumeru DC
17 Dermalog 1 Arusha Arumeru DC
18 Laptop 9 Arusha Arumeru DC
19 Camera Canon 4 Arusha Arumeru DC
Total 33
Source Management letter of REA:

The management informed my office that the stolen equipment had

been reported to PO-RALG responsible to manage the affairs of the
District Councils. However, it is known that the existence of non-
operation BVR equipment was slowing down the pace of registration
exercise.
I therefore recommend NIDA to take immediate action to ensure all
equipment lost are replaced in order to resume the registration pace.
Also, NIDA is recommended to enhance security of the registration
equipment and ensure necessary measures are taken to recover the
lost equipment as well as legal actions are taken against responsible
personnel for loss of equipment.
8.3.2 Rural Energy Agency (REA)
Rural Energy Agency (REA) is an autonomous body under the Ministry
of Energy of the United Republic of Tanzania. Its main role is to
promote and facilitate improved access to modern energy services in
rural areas of Mainland Tanzania.

CG - Annual General Report 2018 / 19 167

a) Low Pace in Electrified Customers in Rural Areas
REA signed Contracts with various Contractors for Supply and
Installation of medium and low voltage lines, Distribution of
transformers and connection of customers in un-electrified rural
areas in Tanzania Mainland under turnkey phase III round I. The
completion period was 24 months.

Review of the progress report of January 2020 together with Site visit
conducted in thirteen (13) regions noted that the overall
infrastructure construction works were at good stage. However, I
noted low pace in connecting customers with electricity whereby, out
of 8,462 customers expected to be connected with 3PH, only 625
customers (7%) were connected; and 90,606 costumers expected to
be connected with 1PH, only 21,820 customers (24%) were connected
while 6 months remaining to the completion time of June 2020. For
details refer to the table below:
Table 52: Status of actual customer connection against contractual scope
3PH- 1PH-
expected Connected expected Connected
Region
to be to be
connected Number % connected Number %
Kilimanjaro 778 5 1% 7,326 668 9%
Singida 864 121 14% 8,660 781 9%
Morogoro 889 55 6% 8,512 1,422 17%
Mtwara 585 22 4% 5,454 1,390 25%
Lindi 533 13 2% 4,795 1,347 28%
Manyara 578 68 12% 5,348 1,715 32%
Tanga 153 77 50% 5,784 1,791 31%
Arusha 126 41 33% 5,428 2,013 37%
Geita 1011 72 7% 11,933 3,552 30%
Mwanza 968 42 4% 8,716 2,201 25%
Kagera 917 8 1% 8,235 1,950 24%
Dodoma 1060 101 10% 10,415 2,990 29%
Total 8462 625 7% 90,606 21,820 24%
Source: Management letter of REA

CG - Annual General Report 2018 / 19 168

I was informed by the management that the low pace in connecting
electricity to customers was attributed to several factors including
untimely availability of ABC conductors and readiness of consumers
in terms of timely undertaking of in-house wiring and payment of
connection fees. However, it is in my opinion that further delays may
limit the government objective of electrifying rural areas with
affordable energy.

It is therefore recommended to REA to: (a) engage in sensitization

programs for creation of awareness to the rural community on
benefits of electrification, so that rural economic development will
be promoted as a result of the use of electricity; and (b) to request
all contractors submit materials delivery schedules and enforce
compliance to the contractual obligations by ensuring timely delivery
of materials.

b) Payments of Salaries to Staff not Under Rural Energy Agency

Service - TZS 146,021,086.40
I have reviewed REA payroll for the year 2018/2019 and revealed that
an amount of TZS 146, 021,086.40 was paid to four (4) staffs in
respect of salaries for the month of June to October 2019. However,
those staff were found to have been transferred to other various
Government Agencies. It was also noted that the management had
delayed to inform PO-PSM to remove those staff in the Agency payroll
as evidenced through a letter with reference No:
CAB/143/166/01/VOL.II/84 & 96 dated 4 October 2019 and 7
November 2019 respectively. This had contributed much to such
nugatory payments.

The management informed my office that the Agency was requested

to pay transferred staff since their emoluments were budgeted by the
Agency before being transferred to other institutions and their salary
levels were higher compared to salaries of the receiving institutions.
However, no evidence for the payment requested was availed during
the time of audit. In my view, this weakness could result to double

CG - Annual General Report 2018 / 19 169

payment of salaries or existence of ghost workers if not addressed
properly by the internal control of the Agency.

I therefore recommend to the REA management to ensure adequate

control over payroll management. Additionally, the weakness should
be investigated by PO-PSM to ensure the staff mentioned are not
benefiting by double payment of salaries.

8.3.3 Mzinga Holding Company Limited

a) Addition Cost Incurred from the Construction Projects

TZS 318,150,958.15
During the review of the operations of Mzinga holding Co. Ltd I noted
the existence of loss amounted to TZS 318,150,958.15 in four (4)
major building construction of government offices at Ihumwa,
Dodoma. This loss was due to the project expenditures incurred
amounted to TZS 3,494,321,198.15 which exceeded the receipts of
TZS 3,176,170,240 as shown in the table below:

Table 53: Table: Project Revenue and Expenditure

S/ Project Revised Actual Difference (TZS)
N Contract Sum Expenditures
(TZS) Incurred (TZS)

1. Prime
Minister's
Office- 1,081,644,660.00 1,296,194,434.86 214,549,774.86
Ihumwa
Dodoma
2. Ministry of
Minerals-
1,026,108,080.00 1,083,610,227.55 57,502,147.55
Ihumwa
Dodoma
3. Ministry of
Health-
1,068,417,500.00 1,114,516,535.74 46,099,035.74
Ihumwa
Dodoma
Total (TZS) 3,176,170,240 3,494,321,198.15 318,150,958.15

Source: Management letter

CG - Annual General Report 2018 / 19 170

I was told by the management that the losses incurred was mainly
attributed to inaccurate project estimates by the Consultant
Tanzania Building Agency and observed another cause was due to
inadequate supervision of the projects. In my opinion, if the trend of
making losses in executing the projects is not addressed the going
concern of the Company is at risk.

I then recommend to the management of Mzinga Holding Co Ltd to

factor in all cost associated with the project at realistic market price
during tendering stage. Also, I advise the management to review in
detail the provided drawings and bill of quantities and raise comment
for any deficiencies noted before entering into contractual
commitments.

b) Imprest Issued to Non-Staff Members; TZS 626,881,740

During the audit I noted that the Company had 35 staff members,
however, imprest amounting to TZS 626,881,740 was issued to non-
staff’s members contrary to regulation98 of Public Finance
regulations to facilitate payment of various expenses on the
Company’s behalf. Refer to Appendix 8.9.

I was informed by the management that those staff had been

seconded from Public service due to the limited number of staff,
however no evidence was availed to substantiate the statement
provided.

I believe, this deficiency increases the possible risk of loss of

government moneys, misappropriation, and lack of accountability.

Therefore, I urge Mzinga Holding Company Ltd to avail evidence for

the seconded staff and failure to do so, the same should be
recovered.

c) Under-Payment of VAT to TRA ; TZS 306,848,832.34

Para 7.1 of Tax Refund Manual of March 2013, states thus:

CG - Annual General Report 2018 / 19 171

In order to mitigate risks in processing tax refunds it is necessary to
ensure utmost care and accuracy and provision of high-quality
services, refund claims work must be properly organized. It is
essential that the detailed working is documented and performed
according to the approved procedures.

During the review of VAT returns (Output against Input tax) from July
2018 to June 2019 I revealed that the Company had net Value Added
Tax (VAT) amounted to TZS 306,848,832.34. However, the same was
yet to be transferred to TRA as shown in the table below:

Table 54: Table: Under payment of VAT

S/N Details VAT amount as VAT amount Differences
per Company paid by client (TZS)
(input) (TZS) (output) (TZS)
1 VAT 627,052,049.42 933,900,881.76 306,848,832.34
Source: Management letter

I was informed by the management that underpayment of VAT was

caused by payment delays from Clients. However, there is a
possibility that the VAT moneys were used to finance other activities
of the Company of which may result to loss of government revenue or
possible penalties imposed on late submission of VAT returns.

I urged the management of Mzinga Holding Co Ltd to transfer Value

Added Tax amounted to TZS 306,848,832.34 to Tanzania Revenue
Authority (TRA) and also, Tanzania Revenue Authority (TRA) is advised
to conduct Tax audits on the Company records to assess the level of
non-compliance on Tax issues.

8.3.4 Mzinga Corporation

a) Strategic Corporate Plan not Put into Action

Mzinga Corporation has strategic corporate plan of 15 years started
from year 2011 to 2026 of which was approved on 05 October 2010. I
reviewed the direction of the Corporation towards the established
goals under strategic plans and noted that:

CG - Annual General Report 2018 / 19 172

The Corporation is carrying out some activities which are not defined
in strategic corporate plan such as agriculture activities, Vocation
Training Centre, training institution and milling machine while the
activities defined in the Strategic Corporate plan were not performed
for 8 years (2011 to 2019) as discussed hereunder:

• Para 8.1.2 and 9.3.4 of the Strategic Plan shows that Mzinga
Corporation is expected to establish subsidiary companies that will
form formidable economic wing, and that subsidiary will be listed
in stock exchange market to enable sell of shares. However, one
subsidiary company has been registered and is yet to be listed in
stock of exchange market.

• Para 7.5 (vii) of Strategic Plan indicates that Mzinga expected to

establish research Centre of excellence starting year 2009/2010.
However, no Centre was established to date.

I was informed by the management that the implementation of the

15 years Strategic Corporate Plan (2011-2026) becomes difficult due
to inadequate development funds from treasury. And due to that It
is my believe that the Company is working against the objectives that
established it and hence the future of the company is at risk.

I recommend to the management of Mzinga Corporation to define

new strategic plan to incorporate activities not defined before and
omit unattained goals in order to provide a clear direction toward
the growth of the Corporation.

8.3.5 Tanzania Police Force Corporation Sole

a) Lack of Revenue for three Consecutive Years

TPFCS activities are mainly financed by revenue from various
activities such as recreation and welfare funds, lost reports, arms and
ammunitions registration and compounded fines, revenue from
contracting and consulting works, income from investment, and
annual Government budgetary support.

CG - Annual General Report 2018 / 19 173

I reviewed the operations of the TPFCS and revealed it lacks revenue
for the three consecutive years32. I was informed that inadequate
preparation of the funding modalities during its establishment was
the main reason and as such it inhibited the achievement of intended
objectives stipulated in its establishment statement

I therefore advise the Ministry of Home Affairs to assess the relevance

of TPFCS and if found of not viable the same is advised to be
dissolved.

8.4 Matters Raised During the Audit of Water Basin Boards

Water Basin Boards were established in accordance with the Water
Utilization (Control and Regulation) Act, 1974 and its subsequent
amendments. But the former Act has been replaced with the Water
Resources Management Act, 2009.

In the year under audit, I managed to audit 14 Water Boards and the
audit observations and recommendations are as follows:

8.4.1 Short Release of Funds From Water Sector Development

Program (WSDP) by TZS 31,299,787,199.39
In the financial year 2018/2019, 12 Water Basin Boards had received
development grants of TZS 13,274,070,420.61 from the Government
through WSDP. I analysed the release and noted that the fund was
under released by TZS 31,299,787,199.39 (70%) compared to the
approved budget of TZS 44,573,857,620. The funds received were
able to finance only 30% of the development projects which indicated
that the planned development activities were affected by 70% less
funds, as shown in the table below:

32 2016/17,2017/18 AND 2018/19

CG - Annual General Report 2018 / 19 174

Table 55: Under release of Exchequer issues
Approved Budget Actual
for Development Development Grant (Under)/Over Release
S/N Name of the Entity Grant (TZS) released (TZS) (TZS) %
1.
Lake Nyasa Basin Water Board 1,000,000,000.00 578,388,216.00 (421,611,784.00) (42)
2. Lake Rukwa Basin Water Board
(LRBWB) 1,278,241,000.00 799,174,377.00 (479,066,623.00) (37)
Handeni Trunk Main Water
3. Supply and Sanitation Authority
(HTMWSSA) 2,660,000,000.00 2,478,950,306.00 (181,049,694.00) (7)
4. Makonde Plateu Water Supply
and Sanitation Authority 1,534,392,000.00 877,028,732.00 (657,363,268.00) (43)
5. Ruvuma Basin and Southern
Coast Water Board 2,205,000,000.00 644,869,802.00 (1,560,130,198.00) (71)
6.
Rufiji Water Basin Board 5,196,320,620.00 1,377,240,223.61 (3,819,080,396.39) (73)
7.
Internal Drainage Basin 11,758,254,000.00 726,082,325.00 (11,032,171,675.00) (94)
8.
Pangani Basin Water Board 3,500,000,000.00 190,428,000.00 (3,309,572,000.00) (95)
9.
Wami-Ruvu Basin Water Board 13,512,000,000.00 4,196,548,400.00 (9,315,451,600.00) 69
10. Mugango - kiabakari Water
Supply and Sanitation Authority 324,000,000.00 574,402,010.00 250,402,010.00 77
CG - Annual General Report 2018 / 19 175
 Approved Budget Actual
for Development Development Grant (Under)/Over Release
S/N Name of the Entity Grant (TZS) released (TZS) (TZS) %
11. Lake Victoria Basin Water
Board 605,650,000.00 426,924,000.00 (178,726,000.00) (30)
Maswa Water Supply and
12. Sanitation Authority
(MAUWASA) 1,000,000,000.00 404,034,029.00 (595,965,971.00) (60)
Total 44,573,857,620.00 13,274,070,420.61 (31,299,787,199.39) (70)
Source: Management letter
CG - Annual General Report 2018 / 19 176
For these Water Basin Boards to continue providing water services to
the public, I recommend to the Management of the Ministry of Water
and Irrigation to make close follow ups with the Ministry of Finance
and Planning for timely release of the WSDP funds.
8.4.2 Maswa Water Supply and Sanitation Authority

8.4.2.1 Undelivered Float Pump Procured Since March 2017;

TZS 76,670,000
During the audit of the receivables, I noted that on 17 March 2017 the
Authority had paid the advance of TZS 76,670,000 to Maji Central
Stores in respect of the Supply of Submersible Floating Pump (FGYT
H = 25, Q=432 cubic meter per hour, KW 37, RPM 2920) float pump.
However, up to the time of writing this report March 2020, the order
placed for the pumps was not yet delivered to the Stores for the
period of up to 3 years.

The management had informed my office that it had taken some

measures by communicating the issue to the supplier together with
the Ministry of Water and Irrigation; however, the same was yet to be
settled. This meant that the intended objectives were not achieved
for all that period. Even if the pumps were to be delivered now,
they may not be of use due to changes in the current needs.
I recommend the Maji Central Stores to refund the amount together
with prevailing Bank of Tanzania borrowing interest rate from the
date when advance was apid up to the date when ythe amount will
be recovered. I urge the Ministry of Irrigation to follow the
implementation of the recommendation.
8.5 Matters Raised During the Audit of Special Funds

8.5.1 Roads Fund Board (RFB)

Roads Fund Board was established with the primary objective of
providing sustainable funding for road maintenance to implementing
agencies through collection, disbursement and monitoring its
utilization for socio-economic wellbeing of the public. During the
review of operations of the Roads Fund Board, I noted the following:

The Controller and Auditor General 177 CG - Annual General Report 2018-19
a) Fuel levy and Transit Charges not Transferred to RFB;
TZS 7,063,022,941
Fuel levy and transit charges are collected by TRA at the point of
discharging fuel importation and Entry point in Customs boarders and
then transferred to TRA banks accounts. TRA then transfers the same
to BOT Roads Fund Account maintained by Treasury and finally the
Accountant General (ACCGEN) transfers the funds to Roads Fund
Collection account after obtaining the approval from the
Commissioner of Budget. This process was designed to ensure
compliance with Sub Sect. 4 (2) of the Roads and Fuels Tolls Act, CAP
220 (Revised 2006) which requires all monies collected as roads and
fuel tolls to be deposited in the account of the Fund.

Contrary to the above, I noted that as at 30th June 2019 Tanzania

Revenue Authority (TRA) had collected fuel and roads toll of TZS
769,922,822,057; however only TZS 762,859,799,116 was deposited
in the Fund account. Consequently TZS 7,063,022,941 had not been
transferred to the fund account up to the end of financial year as
detailed in the Table below:
Table 56: Funds not transferred to RFB TZS
Amount Amount Amount not
Details collected transferred transferred
Fuel levy 747,160,592,365 740,306,382,757 6,854,209,608
Transit
charges 22,762,229,692 22,553,416,359 208,813,333
Total 769,922,822,057 762,859,799,116 7,063,022,941
I believe the intended objective of providing sustainable funding for
road maintenance could be affected and impact our roads condition.
I therefore recommend to the Ministry of Finance and Planning
through ACCGEN Office and Tanzania Revenue Authority (TRA) to
transfer TZS 7,063,022,941 to Roads Fund Board.
8.6 Matters Raised During the Audit of Regional Referral Hospitals
On 1 July 2018, the Government had transferred all referral hospitals
to the Ministry for Health, Community Development, Gender, Elderly

CG - Annual General Report 2018 / 19 178

and Children from the President’s Office – Regional Administration
and Local Government Authority (PO-RALG) in order to improve
quality health services. In this financial year 2018/19 I audited 28
referral hospital and noted major shortcoming facing referral
hospitals as detailed in Appendix 8.11 and summarized hereunder:
• The staffing level in the Regional Referral Hospitals is still a
matter of concern as I noted during my audit that 18 referral
hospitals need 5,047 personnel to meet the required staff
complement.

• Referral hospitals are still facing the problem of insufficient

medical equipment whereby I noted shortage of 312 medical
equipment in 3 referral hospitals. This problem if not addressed
will continue to obstruct the provision of quality health services
to the public.
• I noted absence of tender boards in 12 referral hospitals which
were still depending on RS Tender Board, to approve
procurement. In the absence of Tender Boards, some of the
procurement made were found to have no approval contrary to
Sub Sect. 31 (1) of PPA, 2011 (amended 2016)

• Existence of the rejected claims amounted to TZS

1,483,391,945.19 from NHIF were also noted during my audit of 19
Referral hospitals. It was noted that inadequate internal controls
particularly on the awareness of entrusted staff, thoroughly
reviewed, and follow up of claims contributed much to these
rejected claims.

• In addition, I noted in 3 Regional referral hospitals the existence

of the procurement of medicine amounted to TZS 319,529,796
were made without obtaining approval from the Medical Store
Department contrary to Reg. 140 (4) and (5) of PPR, 2013
(amended 2016).

CG - Annual General Report 2018 / 19 179

The above weaknesses were attributed to; low employment permit
provided by PO-PSM to Ministry of Health; insufficient funding from
the Treasury to procure medical equipment needed; and inadequate
internal control of procurement management and handling of the
NHIF refund claims. It is my view that effort is needed to address the
noted issues in order to achieve the target of providing quality health
services to the public.
I recommend that the Government through the Ministry for Health,
Community Development, Gender, Elderly and Children should ensure
that the resources in terms of staffing and equipment are adequately
made available to the hospitals to facilitate the provision of quality
services. Moreover, the Parent Ministry is recommended to
communicate with PPRA and provide the directives on establishment
of Hospital Tender Boards; and finally I recommend to the referral
hospitals to enhance internal controls in order to minimize the risk of
NHIF claim forms being rejected for non-compliance.
8.6.1 Cross Cutting Issues Observed During the Audit of Executive
Agencies, Special Funds, Water Basins Boards, Other
Government Entities and Region Referral Hospitals
During the audit of Executive Agencies, Water Basin Boards,
Government Special Funds and other Government Entities, I noted
cross cutting weaknesses on management of expenditure that needed
to be addressed. All the weaknesses noted occurred and were
reported in my prior year’s report. This indicates that there is little
improvement in implementing my recommendations.

8.6.1.1 Weakness on Expenditure Management

On Expenditure management I noted the following non-compliance:

a) Inadequately Supported Expenditure; TZS 2,207,923,905.90
I noted that 13 Government entities which had inadequately
supported expenditure amounting to TZS 2,207,923,905.90 did not
comply with Reg. 95 (4) of Public Finance Regulation, 2001 (as
revised in 2004). Refer Appendix 8.10. This indicates that the ability
to prevent this anomaly is still a matter of concern.

CG - Annual General Report 2018 / 19 180

Compared to prior year, I noted the increase of the unsupported
payments by 64 percent from TZS 1,347,912,012.83 in 2017-18 to
TZS 2,207,923,905.90 in 2018-19. This means that the trend of not
complying with finance laws by the entities poses the risk of payments
made for, services not rendered, ineligible beneficiaries, and
payments resulting from fraud and abuse of power is still growing
unabated.
I recommend the improvement of the internal control systems by
strengthening oversight and monitoring and improve automated
systems in order to minimize wasteful spending resulted from these
transactions. By doing so the value for money for the expenditure
incurred will be realized and also may reduce misstatements in the
financial statements.
b) Payments Not Supported by EFD Receipts;
TZS 1,388,736,882.86
Section 36 of the Tax Administration Act (TAA), 2015 requires a
person, who supplies goods, renders services or receives payments in
respect of goods supplied or services rendered to issue fiscal receipt
or fiscal invoice using Electronic Fiscal Device.

In this year, 12 audited entities had a total payments of TZS

1,388,736,882.86 which were effected without being acknowledged
by EFD, as shown in Appendix 8.10. These accounted in the decrease
of TZS 6,567,583,223.75 (83%) compared to the prior year amount TZS
7,956,320,106.61. This indicates that entities have responded well
to my prior year recommendation. See details in Appendix 8.10.
I still insist in my prior year recommendation to the Government
institutions to demand EFD receipts when making payments as
required of Section 36 of the Tax Administration Act, 2015; also, the
Agencies are urged to discontinue doing business with Suppliers who
do not use EFD machines.

CG - Annual General Report 2018 / 19 181

c) Unretired Imprest Issued; TZS 3,278,769,064.56
As noted from my previous reports, still Government institutions lack
proper control over imprest issued and as a result, I discovered that
some imprest given to the officers were not retired while no reminder
letters were issued to them to retire the same as required by PFR,
2011. This deficiency increases the risk of loss of government moneys,
misappropriation, and lack of accountability.
In this year, the total imprest payments amounted to TZS
3,278,769,064.56 in a sample of 12 audited entities were issued.
However, the same was not retired, as shown in Appendix 8.10. These
payments accounted for the increase of TZS 2,897,821,223.80 (760%)
compared to the prior year amount of TZS 380,947,840.76. This
indicates that entities have not responded well to my prior year
recommendation. Refer to details in Appendix 8.10.
According to Regulation 103 (2) of PFR, 2001, imprest is supposed to
be retired within 30 days of the close of the financial year in which
the imprest was issued, I recommend that, imprest which were not
retired within the prescribed time should be recovered from
beneficiaries.
d) Withholding Tax Not Remitted to TRA TZS 521,458,769.60
In addition, I noted withholding tax amounted to TZS 521,458,769.60
in respect of four audited entities was not remitted to Tanzania
Revenue Authority (TRA) contrary to Sect. 83 of Income Tax Act,
2004; list of entities is shown in Appendix 8.10
e) Expenditure Made Without Budget Provision
In a sample of six audited entities had expenditure of TZS
2,438,367,506.98 made out of the approved budget contrary to Reg.
46 (3) of Public Finance Regulation, 2001 as revised in 2004. Refer
to Appendix 8.10.
8.6.1.2 Weakness on Procurement Management
On Procurement management I noted the following non-compliance
instances:

CG - Annual General Report 2018 / 19 182

a) Procurement Not Supported by Framework Agreement;
TZS 280,998,828
I noted that two (2) Government Entities procured goods and services
amounted to TZS 280,998,828 from other entities without having legal
binding Contracts as shown in the table below:
Table 57: Payments without written agreements
S/N Institution Amount (TZS) Remarks
1 Pasiansi Wildlife Training 72,293,178 No framework
(PWTI) Agreement

2 Agriculture Seeds Agency 208,705,650 No framework

(ASA) Agreement
Total 280,998,828
Source: Management letters

In my view, in the absence of contract agreement when disputes arise

it could not be legally enforceable.
I recommend to the management of the responsible Government
entities to ensure any business transactions involving other parties
are supported by contracts and; also, to ensure competition during
tendering process as per Reg. 163 & 164 of the PPR, 2013.
Furthermore, I advise legal officers of the named entities to properly
advise management on how to improve controls over contract
management.
8.6.1.3 Overall Weaknesses on Compliance issues
Overall weakness noted as a result of non-compliance of Public
Finance Regulations, 2001 as revised in 2004, Public Procurement
Regulations 2013, Income Tax Act 2008 and other Regulations
amounting to TZS 9,615,782,229.90 as shown in Appendix 8.10.

This indicates that the overall non-compliance to the above mandates

has increased by TZS 3,281,186,088.40 (52 %) from the reported
amount of TZS 6,334,596,141.50 in my previous report as the trend
indicated in the figure below:

CG - Annual General Report 2018 / 19 183

Figure 27: Trend on Non-Compliance with PFA, PPA & the ITA

Trend on Non-complience
12,000,000,000.00
9,615,782,229.90
10,000,000,000.00
8,000,000,000.00 6,334,596,141.50
Amount

6,000,000,000.00
4,000,000,000.00
2,000,000,000.00
0.00
Financial Year 2017/18 2018/19
Amount 6,334,596,141.50 9,615,782,229.90

Amount

CG - Annual General Report 2018 / 19 184

 CHAPTER NINE

9.0 PROCUREMENT AND CONTRACTS MANAGEMENT

9.1 Introduction

Public Procurement is usually one of the largest expenditure

component which constitutes budgets of MDAs; hence adherence to
laws, regulations, guidelines and circulars on public procurement
becomes critical. This chapter is in view of my responsibility on the
procurement law, as stated in the Section 48 (3) of the Public
Procurement Act (PPA), 2011(as amended in 2016) which specifically
require the CAG to include an evaluation and examination of public
procurement procedures and processes as well as compliance with
procurement laws and regulation in the regularity audits. Apart from
my audit, I have included audit findings from PPRA.

9.2 Legal Framework Requirement in the Public Procurement

Public procurement in Tanzania is governed by the Public
Procurement Act No.7 of 2011(as amended in 2016) together with
Public Procurement Regulations GN No. 446 of 20th December 2013
(as amended in 2016), which decentralizes procurement system and
provides mandates for each Procuring Entity to carry out
procurement functions within the approved budget and be
accountable for all procurement decisions made. Below are the key
findings emanating from my audit of procurement and contract
management of the audited entities.

9.3 Irregularities Noted in the Contract for Supply of Pole Tents

for National Electoral Commission (NEC); TZS 6,306,146,740
On 11th April, 2019 NEC entered into contract No. IE/018/2018-
19/HQ/G/18 with M/s YELL LTD for the supply of 2,237 Pole tents
worth TZS 6,306,146,740. The pole tents were supposed to be
supplied within 60 days from 11th April 2019 to 11th June 2019 to be
used during updating of Permanent Voters’ Register. The following
anomalies were noted:

CG - Annual General Report 2018 / 19 185

a) Inadequate Tender Valuation and Post Qualification of the
Supplier.
It was expected that effective due diligence or post qualification of
supplier to be conducted in order to assess capacity (financial,
technical , equipment’s ) of the supplier however the same was not
done contrary to Sec. 53 of PPA of 2011(as amended in 2016).

b) Insufficient Pole Tents Specifications and Questionable Quality

of Supplied Pole Tents
It was expected that prior to Tender Evaluation, the required pole
tents to be supplied should have been specified with specifications
and standards which could have enabled the bidders to quote the
price, quality and standards. However, NEC management failed to
provide pole tents specification. This is contrary to Standard
Tendering document of PPRA which requires Sec.VI & V to include
Schedule of Requirements and Technical Specifications respectively.

c) Attorney General’s Comment was not Incorporated in the

Contract Document
Further, Reg.59 (5) of PPR (2013) requires the Accounting Officer,
upon receiving the comments or legal advice on the draft contract
from the Attorney General to incorporate them in the draft contract
before signing. It was noted that Attorney General’s Comments were
not taken into account as advised.

d) Delays in Making Advance Payment to the Contractor

NEC delayed to make payment of 15% as advance payment amounting
to TZS 931,000,000 for two months (60 days) which resulted to late
delivery of Tent poles for 60 days it was noted that the contractor
managed to supply 880 pole tents out of 2237 required pole tent
which is equivalent to 39% up to January 2020.

e) Extension of Time
Despite a delay of advance payment for 60 days, the supplier
requested extension of time but the same was not granted by Tender
Board in its meeting held on 6th November, 2019 contrary to GCC
clause 19.

CG - Annual General Report 2018 / 19 186

In this regard, I noted lack of contract management at National
Electoral Commission. I recommend to the Management of National
Electoral Commission (NEC) to ensure that Value for Money is
attained for effective delivery of the Pole tents on time with required
quality.

9.4 Procurement of Goods and Services out of Annual

Procurement Plan TZS 3,605,775,412
Eight (8) MDAs/RS/Embassies procured goods and services worth TZS
3,605,775,412 which were not included in the annual procurement
plan contrary to Section 49 (2) and (3) of PPA No.7 of 2011(as
amended in 2016). Since these procurements were not planned for,
it resulted in the use of budgeted resources for unplanned activities.
The overspending could throw the institution’s budget into disarray
and it also made budgetary control difficult. In my view, the lapse
was due to improper planning and I recommended that management
should carry out proper needs assessment and market surveys so that
it can obtain adequate and reliable information to afford proper
planning and implementation of procurement plans. Details are
provided in the table below

Table 58: List of entities made procurement outside plan

Vote Name of Observation Amount(TZS)
MDA/RS/Embassies

14 Fire and Rescue Force Construction of Head 1,746,146,300

Office Building in
Dodoma
91 Drugs Control and Supply and installation 13,000,000
Enforcement of voice system
Authority
98 Ministry of Works, Construction of Solid 945,474,443.75
Transport and Fence, Landscape, Lift
Communication-Works installation and Fixing
Aluminium Louvers
73 RS Iringa Construction of various 196,085,821
Buildings

CG - Annual General Report 2018 / 19 187

 Vote Name of Observation Amount(TZS)
MDA/RS/Embassies

90 RS Songwe Procurement and 11,180,789

Installation of CCTV
and Biometric Time
Attendance
Registration
2028 Tanzania Embassy in Procurement of 68,703,599
Bujumbura furniture, computers,
office equipment, and
lawn mower
50 Ministry of Finance Provision of Security 166,290,000.00
services and
Decoration of Office
for nanene and
sabasaba
21 TRA Expenditure Procurement of 458,894,460
various office Supplies.
Total 3,605,775,412

Source: Individual CAG’s management letters for the year 2018/19

Compared to 2017/18, there is an increase in non-compliance with

procurement plans. During 2017/18 there were no MDAs/RS reported
with this irregularity while in the year under review reported Eight
(8) MDAs’/RS with irregularities amounting to TZS 3,605,775,412

I recommend adherence to the procurement plans and also urge

management to conduct proper needs assessment and market
surveys to obtain adequate and reliable information to enable proper
planning and implementation of procurement activities.

9.5 Irregularities Noted in Procurement of Battery Cells,

Connectors and other Accessories for Replacement in National
ICT Broadband Backbone (NICTBB) sites TZS 1,647,512,344.
I noted that the Ministry of works, Transport & Communications
(Vote 62) made payment amounting to TZS 494,253,703 out of

CG - Annual General Report 2018 / 19 188

contract price of TZS 1,647,512,344 to TTCL as advance payment for
the above mentioned procurements which were supplied by M/S
Sagemcom Energy & Telecom Tanzania Limited.

The entire procurement procedures were undertaken by TTCL on

behalf of the Ministry. I was concerned with the procurement
procedures involved as could not clearly show supervisory role and
value for money assurance to the Ministry. I further noted the
following anomalies:
• There was no written arrangement between the Ministry and TTCL
as to whom should undertake the procurement process;
• There was no evidence that the Ministry was availed with the
contract entered between the supplier and TTCL before
payments;,
• No evidence that the Accounting Officer appointed inspection
committee for inspection of the goods supplied; and
• No evidence that the Ministry was availed with a list of replaced
obsolete batteries.

I am of the view that there is a possibility of making payments for

goods which were not received or received in condition or quantity
which do not conform to the pre-determined specifications
I recommend the Ministry in case of procurement of this nature
through its MTB and PMU to collaborate in the procurement process
to ensure value for money before payment.

9.6 Procurement of Goods and Services Without Contracts

TZS 5,460,101,227
During 2018/2019, I noted Five (5) audited entities failed to avail
contract documents in support of various procurements totalling to
TZS 5,460,101,227 appearing in their respective financial
transactions. Regulation 10(4) of Public Procurement Regulations,
2013(as amended in 2016) specifies that a procuring entity shall
ensure that payments due to tenderer are made properly and
promptly in accordance with the terms of each procurement contract
entered into. Involved entities are enumerated in the table below:

CG - Annual General Report 2018 / 19 189

Table 59: List of entities made procurements without contracts
Name of
Vote Observation Amount(TZS)
MDA/RS
38 Tanzania Procurement of Combat Suit 4,242,319,008
Peoples Defence from M/s 21st Century
Forces (TPDF) Textiles Ltd
51 Ministry of Home Supply and installation of 28,667,583
Affairs LAN cables
57 Ministry of Procurement of Motor 245,462,862
Defence and Vehicles, Drilling of Damn
National Service and Purchase of Office
Consumable
57 Ministry of Rehabilitation of external 737,974,120
Defence and reticulation and water tanks
National Service at Ngerengere Air Base
before signing of contract
39 National Service Construction of Playgrounds 205,677,653
Force (JKT) Melena and Mgulani JKT
Total 5,460,101,227
Source: Individual CAG’s management letters for the year 2018/19

I have noted a significant increase in this irregularity within the

MDAs/RS whereby in the last year audit, Five (5) audited entities
made procurements worth TZS 1,174,767,341 without contracts.

It is therefore important that all procurement transactions must be

properly supported with contracts so that any part in default of its
obligations is adequately accountable before the law. I recommend
MDAs/RS to adequately adhere to the Public Procurement legislations
by entering contractual agreements which can be enforceable by the
law.

9.7 Agricultural Chemicals Procured But Not Distributed Worth

TZS 3,341,158,850
On 18th April, 2019, I noted that the Ministry of Agriculture (Vote 43)
procured 266,596 litres of agricultural chemicals worth TZS

CG - Annual General Report 2018 / 19 190

7,771,262,000 from M/s BAJUTA International (T) Ltd and M/s PEST
GUARD Ltd.

A site visit conducted in August 2019 at Dodoma warehouse noted

that out of 266,596 litres procured, only 153,418 litres worth TZS
4,330,108,150 were issued for use to farmers and the remaining
113,178 litres worth TZS 3,341,158,850 were yet to be distributed to
the intended users.

I am of the view that failure to distribute agricultural chemicals may

lead to loss of funds due to high possibility of agricultural chemicals
to expire before reaching the targeted beneficiaries.

I recommend the Ministry to provide sufficient reason(s) regarding

the significant delay on distribution of agricultural chemicals.

9.8 Procurements Made Without Competitive Tendering

TZS 4,643,629,092
Regulations 163 & 164 of the PPR, 2013 requires procuring entity to
obtain quotations from at least three suppliers the aim being price
considerations without compromising quality. From nine (9) sampled
MDAs/RS goods and services worth TZS 4,643,629,092 were procured
from various suppliers without complying with the Regulations stated
above. List of entities not complied with the above Regulation is as
shown in the table below:

Table 60: List of entities made procurement without competitive

tendering
Vote Name of Observation Amount(TZS)
MDA/RS
38 Tanzania Supply of various 1,232,399,816
Peoples office consumables
Defence Forces
(TPDF)

CG - Annual General Report 2018 / 19 191

 Vote Name of Observation Amount(TZS)
MDA/RS
57 Ministry of Provision of Air tickets 132,033,430
Defence and and Cleaning Services
National Service
39 National Service Supply of Tractors 203,100,000
Force (JKT)
90 RS Songwe Procurement of 113,442,348
Building Materials
63 RS Geita Supply of spare parts 16,166,254
63 RS Geita Construction of 2,084,720,897
Various Buildings
awarded to one
Contractor.
47 RS Simiyu Construction of Busega 779,869,056
District Commissioner
office
75 RS Kilimanjaro Provision of services 52,696,420
for printing form six
mock examination
86 RS Tanga Maintenance Services 29,200,871
at Mkwakwani stadium
Total 4,643,629,092
Source: Individual CAG’s management letters for the year 2018/2019

The amount of procurement made without competitive tendering has

increased from TZS 4,615,040,383 to TZS 4,643,629,092 when
compared with last year’s audit. In 2017/18 ten (10) MDAs/RS were
involved.
I argue management of concerned Ministry, Departments and
Regional Secretariats to consider competitive methods of
procurement are used prior to award of contracts in the future so as
to obtain value for money in all procurement.

Non-compliance with the Procurement Act and its Regulations may

mean that no value for money was obtained

CG - Annual General Report 2018 / 19 192

9.9 Prolonged Procurement Procedures which are Not Compatible
with Belgium Environments for Rehabilitation of Head of
Mission Residential House and Chancery Office
It has come to my attention that Tanzania Embassy in Brussels
received TZS 945,814,366 equivalent to €352,519.85 in the year
2017/2018 for rehabilitation of Head of Mission residential house,
however, up to conclusion of my audit in December, 2019
rehabilitation activities had not started due to the following:

a) Application of Public Procurement Procedures which are Not

Compatible with the Host Country
I noted that the Management of the Embassy and the Parent Ministry
insisted on strict compliance with competitive tendering process in
disregard to other avenues provided by public procurement
legislation. This has been noted to be incompatible with host country
environment consequently the process has not yielded desired results
and up to the time of audit the embassy has not started renovation.

b) The Prepared Bill of Quantities did Not Aligned with the

Requirements of the Host Country
Correspondences between the Embassy, Parent Ministry and the
Prospective bidders noted that most of the bidders withdrawn from
this tendering on the ground of language barriers and incompatibility
of bill of quantities with the host country.

c) Conditional Requirement of Using Class A Licensed Contractors

Not Aligned with Classification Criteria in the Host country
I also noted that the Parent Ministry insisted involvement of
Contractors licensed with Class A for rehabilitation of the
aforementioned infrastructures. However, classification criteria in
the host country are different where class A contractors are engaged
in construction of projects ranging from € 1,000,000 and above which
is higher than the work to be done.
Further, I noted that an amount of £ 9,279.66 equivalent to TZS
24,470,463.42 out of the fund received for rehabilitation was spent

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to cover per diem for Employees from Tanzania Building Agency
(TBA) and the Ministry of Foreign Affairs and East African Cooperation
who went to the Embassy to conduct the evaluation of rehabilitation
and thus reducing the amount for rehabilitation purpose.

I recommend the management to communicate with Public

Procurement Authority (PPRA) for the guidance on the execution of
procurement in the foreign countries. I also recommend recovery of
£ 9,279.66 equivalent to TZS 24,470,463.42 from beneficiaries spent
for unintended activities.

9.10 Delivered Goods Not Inspected; TZS 1,620,940,789

Pursuant to Regulation 244(1) of PPR 2013( as amended in 2016), the
procuring entity on procuring goods or services is required to ensure
the said goods are inspected, sampled and tested to confirm whether
they meet the standards stipulated in the contract. In addition, Reg.
245 of GN No.446 of 2013 requires the Accounting Officer to appoint
a goods inspection and acceptance committee for each tender
including call off orders. My test on compliance with these
requirements of law at Seven (7) MDAs/RS noted that, the quality
assurance for the goods worth TZS 1,620,940,789 was not performed.
In other occasions, Accounting Officers did not establish the goods
inspection and acceptance committee responsible for inspecting,
testing goods and services received from the suppliers. Details are as
provided under the table below:

Table 61: List of MDA with Goods/Services not inspected

Vote Name of MDA/RS Description Amount(TZS)
39 National Service Supply of Double 319,263,270
Force (JKT) Decker Steel Beds
93 Immigration Services Supply of software and 1,066,174,918
Department hard ware
33 President's Office Supply of safe deposit 20,880,000
Ethics Secretariat lockers with individual
3 wheel combination
lock 18 – C type

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 Vote Name of MDA/RS Description Amount(TZS)
2014 Tanzanian embassy in Procurement of 20,451,941
Beijing, China various Assets
48 Ministry of Lands, Procurement of Assets 40,285,423.73
Housing and Human (HP Plotter)
Settlements
Development
49 Ministry of Water and Procurement of office 132,588,787.47
Irrigation supplies and
equipment
71 RS Coast Supply of office 21,296,449
Consumables
Total 1,620,940,789
Source: Individual CAG’s management letters for the year 2018/2019

There is an increase in irregularities relating to non-inspection of

goods prior to acceptance compared to 2017/18’s audit. In the year
2017/18 audit fourteen (14) MDAs/RS reported irregularities
amounting to TZS 628,364,144.05 while Seven (7) MDAs/RS with
irregularities amounting to TZS 1,620,940,789 have been noted in the
year under audit indicating an increase of goods received and
services rendered without being inspected.

Receiving goods without inspection by the goods inspection and

acceptance committee may create a loophole for acquiring
substandard goods or good of low quality, or goods received may not
conform to the specifications provided in the purchase contract. I
urge Accounting officers to form goods inspection and acceptance
committees whenever goods and services are procured.

9.11 Irregularities Noted in Contract for the Construction of

Sixteen (16) Courts in Tanzania Worth TZS 10,351,638,077
The Judiciary of Tanzania (Vote 40) entered into contracts with M/S
MOLADI TANZANIA LIMITED for the construction of sixteen (16) Courts
in Tanzania at a contract sum of TZS 10,351,638,077.GCC Clause 54
& SCC Clause 25 required Advance Payment to contractor to be in
the range of 30% to 50% of the contract sum. It was revealed that

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M/S MOLADI TANZANIA LTD received an advance payment of TZS
4,836,822,000 for all sixteen (16) projects. However, the following
weakness were noted:

M/S MOLADI TANZANIA LIMITED was paid additional advance payment

of TZS 1,541,245,700 for materials in all sixteen (16) earmarked
projects which were originally not part of the terms and conditions
of contract contrary to the above clauses. Besides four (4) projects
out of sixteen (16), in Bunda, Kilindi, Katavi and Lindi remained
dormant despite being paid advance payment of TZS 1,469,768,705
up to January 2020. I am of the view that there is substantial loss of
public resources due to delays in the execution of the contract.
Management should closely supervise the contractor to ensure the
construction is completed without further delay.

9.12 Stores Items Not Accounted for TZS 5,493,672,834

Regulations 198 and 203 of the PFR, 2001 requires receipts, issues
and physical balances of each item of stores items to be recorded on
a separate page of the store’s ledger showing details of purchase and
issues. During my audit I failed to confirm utilization of store of
consumable items and fuel worth TZS 5,493,672,834 procured by
eleven (11) audited entities due to non-maintenance of proper
records of the procured store in their relevant ledgers after being
received.

A comparison of financial year 2017/2018 with the year under

review, I noted an increase in poor accountability of stores and fuel
in terms of amount involved whereby in the year 2017/2018 store
items amounting to TZS 339,232,939 were not accounted for while in
2018/19 the amount involved was TZS 5,493,672,834.

Lapse in store ledgers not only deviates from store accountability but
also is indicative of misreporting of store items.

I recommend timely recording of store items to store ledgers be

enhanced to ensure efficient use of the resources in providing timely

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service to the users. The table below provides the list of entities
involved

Table 62: List of MDA with Goods not accounted in stores.

Vote Name of MDA/RS Observation Amount(TZS)
59 Law Reform Various goods 7,426,078.47
Commission
35 National Procurement of Office 28,536,291
Prosecutions Stationeries
Services (NPS)
38 Tanzania Peoples Procurement of fuel and 5,227,511,318.3
Defence Forces various consumables. 1
(TPDF)
51 Ministry of Home Purchase of various 76,284,152
Affairs consumables
33 President's Office Purchase of various 16,758,305.09
Ethics Secretariat consumables
74 RS Kigoma Procurement of fuel and 35,806,395
Office Stationery
75 RS Kilimanjaro Procurement of fuel and 11,242,918
various Office
consumables
86 RS Tanga Procurement of building 21,774,884
materials
2030 Tanzania Embassy Procurement of various 17,079,891.82
in Lilongwe office Consumables
72 RS Dodoma Procurement of Fuel 29,945,588.94
71 RS Coast Procurement of various 21,307,012
office Consumables
Total 5,493,672,834
Source: Individual CAG’s management letters for the year 2018/2019

9.13 GPSA Procured and Delivered Used Bus Which Does Not Meet
Specification TZS 508,288,800
I noted that Ministry of Natural Resources and Tourism paid GPSA a
sum of USD 219,090 (TZS 508,288,800) for the purchase of Scania
Gemilang bus.

On 27/11/2018 GPSA CEO notified the Permanent Secretary on

collection of the ordered vehicle; however, the Permanent Secretary
denied to collect the vehicle ostensibly because the delivered vehicle

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did not meet the specifications as per TEMESA’s road worthiness
report which found that the Scania bus was not brand new as it
exceeded 12 months from the date of manufacturing and had
mechanical faults to the head lamps (left hand side), steering system
and brake system.

On 08th October, 2019 the Permanent Secretary Ministry of Finance

and Planning wrote a letter to the CEO-GPSA directing CEO-GPSA to
return the bus to the supplier for replacement with the brand new
bus.

I recommend that management of Ministry of Natural Resources and

Tourism in collaboration with GPSA to increase effort on following up
replacement of a brand new bus so as to achieve the intended
objectives. Apart from that, the Accounting Officers should take
disciplinary procedures against officers involved in this procurement
and possibly legal action taken against the supplier.

9.14 Procurements not Approved by Tender Board

TZS 459,681,496
Section 35(3) of PPA, 2011(as amended in 2016) and Regulation 55 of
PPR, 2013 (as amended in 2016) requires procurement to be
approved by the Tender Board. My review on the compliance with
the same noted Five (5) MDAs/RS engaged in procurements of goods
and services amounting to TZS 459,681,496.56 without approval of
the Tender Board as shown in the table below:

Table 63: List of entities without tender board approval

Vote Name of MDA/RS Observation Amount(TZS)
62 Ministry of Works, Procurement of 132,645,832.56.
Transport and Furniture and ICT
Communication Equipment
(Transport)
90 RS Songwe Procurement of Building 233,023,066
Materials

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 Vote Name of MDA/RS Observation Amount(TZS)
33 President's Office Rehabilitation of Rest 29,170,780
Ethics Secretariat House
54 RS Njombe Variation Order No. 1 for 43,207,818
proposed construction of
Njombe Regional
commissioner’s
residential house
96 Ministry of Procurement of 21,634,000
Information, photocopier, computer
Youth, Culture and and printer machines
Sports
Total 459,681,496.56
Source: Individual CAG’s management letters for the year 2018/2019

I have noted a significant improvement in the compliance with this

legislation within MDAs/RS. The amount of procurement not
approved by Tender Board has decreased by 91% from TZS
5,373,435,190.36 reported in the year 2017/2018 to TZS
459,681,496.56.

I reiterate my recommendation that management of public entities

to comply with the PPA, 2011 and its Regulations in order to
strengthen overall procurement within the MDAs/RS.

9.15 Irregularities noted in the Contract for Revenue Collection at

Main National & Uhuru Stadia
On 12th June, 2018 the Ministry of Information, Youth, Culture and
Sports (Vote 96) entered into contract No.
ME/025/2017/2018/CR/04 with M/S Selcom Paytech PLC for
provision of electronic ticketing system at the Main National and
Uhuru stadia for sports and social events for a period of two years
starting from 01st July, 2018 to 30th June 2020 at a contract price of
4.425% of the total gate collections per sports or social event.

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I noted that as part of post qualification of suppliers, the Ministry
wrote letters to State house, TanTrade, PCCB, TRA, TAZARA, TRL and
TANESCO to seek comments on the history of the two bidders who
had qualified for the tender i.e. (M/s Maxcom Africa Ltd and M/s
Selecom Paytech PLC). The Government through letter with
reference number CAB.105/260/01‘A’/20 of 23/03/2018 informed
the Ministry not to offer the tender to any of the two bidders.
However, the Ministry proceeded to award the contract to M/s
Selecom Paytech PLC without considering the recommendation from
the Government.

What is more, there is no evidence for existence of IT staff from the

Ministry to observe the receipts sold through the Selcom data base
and the Ministry does not have mechanism of knowing the actual
number of persons who bought tickets for each sport event; they only
rely on vender’s reports.

I noted that whereas Paragraph 8(ii) of the agreement requires

service provider to remit funds to stake holder’s account within three
days in accordance to agreed ratios, test check made on the games
returns, noted that the Service Provider (Selcom) delayed to remit
gate collections totaling TZS 66,329,016 for periods from one and
half months to six months contrary to contract agreement

The Ministry’s failure to have a mechanism for confirming the

performance of Vendor’s system used to produce gates collections
implies that any loss of gates collections cannot be detected.

I recommend the Ministry to strengthen contract management

controls in respect of revenue collection at the National and Uhuru
Stadia to avoid unnecessary losses to the government on revenue
collection. I recommend the Accounting Officer to adhere to the
Government directives.

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9.16 Goods Procured and Paid for But Not Delivered
TZS 587,652,750
In Seven (7) MDAs/RS audited, I noted procurement of goods worth
TZS 587,652,750 which were not delivered despite the fact that they
had been paid for. The contractual agreement provided that the
goods were supposed to be delivered ranging from two (2) months to
nineteen (19) months, however, up to the time of this audit no goods
were delivered contrary to the contract. List of entities made
procurement but yet to be delivered is shown in the table below:

Table 64: List of entities with goods not delivered

Vot Name of MDA/RS Observation Amount(TZS)
e
02 Teachers Service Procured Motor Cycles are 16,427,250
Commission yet to be delivered by GPSA
14 Fire and Rescue Delay in delivering 96,483,200
Force procured Office furniture
14 Fire and Rescue Delay in delivering 113,575,000
Force uniforms and ceremonial
dresses
42 National Assembly Library Management 216,000,000
System not functioning
93 Immigration Procurement of Desk, 98,706,800
Services Shelves, Table and Chairs
Department
85 RS Tabora Procurement of Office 35,000,000
Generator
28 Police Force Procurement of Home 11,460,500
appliances
Total 587,652,750
Source: Individual CAG’s management letters for the year 2018/2019

As compared to 2017/18 audit, the number of MDAs/RS reported with

this anomaly decreased from thirteen (13) MDAs/RS reported in the
2017/18 to Seven (7) MDAs/RS reported during the year under
review; also the amount decreased from TZS 5,356,549,884.76 to TZS

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587,652,750 indicating improvement in compliance with this
legislation.

I recommend the concerned Accounting Officers of the respective

institutions to ensure suppliers comply with the contractual
obligations and deliver the goods without further delay.

9.17 Delayed in Completion of Construction Works Worth

TZS 22,312,690,753
Results of my audit indicated that audited entities did not manage
well the contracts entered between them and various contractors.
This weakness had contributed to the late completion of some of the
projects and sometimes substandard performance of the same.

I noted that, eighteen (18) contracts/projects worth TZS

22,312,690,753 from Sixteen (16) audited entities were executed
beyond the contractual period. I noted a delay of completion of these
projects/contract for the period ranging from one (1) month to
twenty (months).

Delays in completion of these projects might lead to costs overruns

due to price escalation. Management of the respective entities are
advised to comply with the requirements of Regulation 114 Public
Procurement Regulations of 2013 in terms of effective management
of their procurement contracts. Management need to fast track the
process of completing the ongoing delayed projects and ensure their
completion without any further delays. I also recommend that
Management of the respective entities to make follow up of their
funds from the Ministry of Finance and ensure early completion of
the projects. I further recommend the award of contract to be done
in phases depending on the availability of funds so that no certificate
will remain unpaid and attract interest arrears.

Details of these projects/contracts together with the respective

institutions are provided under Appendix 9.1.

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9.18 Irregular Hiring of Aircraft Services Under Emergency
Procurement TZS 20,976,000
I noted that the Ministry of Agriculture, Livestock & Fisheries( Vote
99) made payment amounting to TZS 20,976,000 to M/s Fly Safari
Air link Ltd in respect of hiring aircraft service for official trip from
Dar es Salaam to Mwanza and Geita to attend the National cattle
dipping event, which was held on 16th December, 2018. The event
had a prior arrangement at National level thus did not qualify to be
an emergency activity contrary to Sec. 65 of PPA 2011(as amended
in 2016).

Hiring private flights instead of available government flights may

have resulted higher cost incurred and at the same time denies the
government to generate its revenue by using its flights which also
have flying routes to Mwanza and nearby areas where the National
cattle dipping event was taking place.

The Accounting Officer should give genuine reasons which

necessitated the use of emergency procurement option of hiring a
private flight instead of using Government flight services.

9.19 PPRA Report in Compliance of MDAs with Public Procurement

Act,2011(amended 2016) and its Regulations of 2013(as
Amended in 2016)
The Public Procurement Regulatory Authority is a regulatory body
established under the Public Procurement Act, 2011 CAP. 410 and
charged with the responsibility of regulating and overseeing
implementation of the Act. PRA carried out procurement compliance
and value for money audits for the procurement conducted during
2018/19. The audits sought to determine whether contracts had been
or were being implemented in accordance with contracts provisions
and whether objectives and value for money was achieved in
spending public funds. Basing on the available resources and criteria
for selection of PEs to be audited, PPRA managed to carry out audit
to 104 PEs comprising of 43 MDAs.

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9.19.1 PMIS Roll Out and Training
PMIS facilitates online submission of procurement information to the
Authority, in line with SCMP. During the year under review, the
number of PEs registered to use PMIS increased from 449 PEs (83.15
percent of 540 PEs) to 465 PEs (86.11 percent of all 540 PEs),
compared to the previous year. Accordingly, the number of users
increased from 1,805 to 2,017 as compared to the preceding year.

9.19.2 Implementation of TANePS

PPA empowers PPRA to establish a public electronic procurement
system so as to enhance transparency, efficiency and effectiveness
in the procurement processes. During the year under review, the e-
Procurement system branded as TANePS, was piloted in 71 PEs for
procurement of CUIS by making use of framework agreements
managed by GPSA

9.19.3 Volumes and Value of Awarded Procurement Contracts

During the financial year 2018/19, procurement audits were
conducted to 104 PEs including 5 PEs branches with delegated powers
whereby the total number of all sampled and audited procurement
contracts was 7,738 with a total value of TZS 9.122 Trillion

9.19.4 Findings on Compliance Audits

The Authority conducted compliance audits by using an assessment
tool that comprises seven performance indicators namely;
institutional setup and performance, appropriate preparation and
efficiency in implementing the procurement plan, appropriateness of
tender processing, appropriateness of contracts management,
management of procurement records, use of systems developed by
PPRA; and handling of complaints.

On the basis of the seven performance areas, the outcome of the

audits for 104 PEs including 5 PE branches with delegated powers
assessed in compliance part, attained an overall compliance level of
76 percent, an increase by 2 percent compared to 74 percent

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achieved in the last Financial Year 2017/2018 procurement audits.
However, the recorded compliance level is below the targeted
compliance level of 80 percent which was set by PPRA for the
financial year 2018/2019

9.19.5 Value for Money Audit Findings

During FY 2018/19, PPRA conducted VFM audits in 290 projects worth
TZS 8,478.34 billion. Out of 290 audited projects, 10 projects
equivalent to 3.45 percent by number were major projects with value
of TZS 20 billion and above implemented by two MDAs namely:
TANROADS and Ministry of Water. The results are provided under
Appendix 9.2.

9.19.6 Investigation on Allegations, Complaints and Reported

Cases of Mis-Procurement
Pursuant to Section 10 of the PPA (2011), PPRA has been given
mandate to carry out investigations on tenders/contracts where
there are allegations of violation of PPA or its Regulations. During the
Financial Year 2018/19, the Authority conducted investigation in two
MDAs namely; Tanzania Airports Authority (TAA) and Rural Energy
Agency (REA). The results are as shown in the table below:

Table 65: Investigation on Allegations, Complaints and Reported

Cases of Miss-Procurement
Procuring Project & Audit Finding
Entity
TAA Tender for obtaining an investor for development
of a fuel farm and the fuel hydrant system for
JNIA TB III(AE-027/2014-2015/JNIA/N/36)

• The investigation revealed Lack of evidence to

establish whether the specific tender was published in
the Government Gazette by the Minister responsible
contrary to Regulation 4 of PPP Regulations of 2013;

• Commencing project execution before conducting

feasibility contrary to Section 10 of PPP Act of 2010;

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Procuring Project & Audit Finding
Entity
• Not using open competitive method of procurement to
obtain an investor and instead only selected list of
firms were invited contrary to Section 15(2) of PPP Act
of 2011 and Regulation 33 of PPP Regulations of 2013;

• No evidence was submitted to establish whether due

diligence was conducted contrary to Regulation 34(2)
of PPP Regulations of 2011

• Three members of tender board participated in the

negotiations conducted and also participated in
various decisions related to this tender and hence
there was no independence on discharging their
functions contrary to Regulation 41 of PPA, 2011;

Based on the weaknesses observed on the investigation

carried out for the above tenders, the competent
authority was advised to direct TAA to seek guidance
from the AG office on whether the contract could be
closed so as to fulfil the contractual obligations during
the construction and operation stage; and since at the
time of commencing phase II of the contract for
construction of fuel farm, there shall not be a consultant
for supervising the construction works, TAA should
engage a consultant who shall take that responsibility.
The investigation also recommended that, in case the
office of the Attorney General will confirm the contract
not to be valid, TAA should value all activities already
executed by the investor in phase I of the project so as
to establish the part which incurred loss and take
appropriate action.

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 CHAPTER TEN

10.0 EXPENDITURE MANAGEMENT

10.1 Introduction

This chapter describes significant audit observations and

recommendations on expenditure management for the financial year
ending 30th June, 2019. A full understanding of budget planning,
preparations, approval and executions is a very essential tool to
exercise effective expenditure management. It is therefore through
this chapter that Accounting Officers are generally assessed on the
compliance with various laws including Budget Act 2015 and Public
Finance act 2001(R.E 2004), regulations, directives and government
circulars.

Further, this chapter provides feedback on how resources were

utilized and managed and the way the Government has strengthened
Stewardship, Transparency, Accountability, Good governance in
promoting sound financial resource management.

The contents of this chapter are been drawn on sample basis from
individual management letters of respective Ministries, independent
Department and Embassies as such this chapter highlights significant
observations and recommendations resulting from expenditure:

10.2 Expenditure Management for Ministries, Independent

Departments and Regional Secretariats

10.2.1 Irregularities on the Transfer of Fund by Fire and Rescue

Force for Construction of Head Office in Dodoma;
TZS 1,746,146,300
I noted that Fire and Rescue Force transferred TZS 1,746,146,300 to
Singida Regional Fire Officer via Sub Treasury for construction of Fire
and Rescue Force- Head office in Dodoma which was then routed to

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Regional Fire Officer Account No 50810008615 with NMB branch for
financing the construction of the office building in Dodoma through
Force Account. The management responded that TZS 1,746,146,300
was transferred to Singida Sub Treasury due to absence of sub
Treasury office in Dodoma.

I could not substantiate the reason for transferring project funds to

Singida Region while the Project site is in Dodoma and therefore I
remain concerned with the modality of this transfer as Treasury
headquarter is in Dodoma which was appropriate for this transfer.
Consequently, my audit noted that all payments were made in cash
to two officers from Fire and Rescue Force without providing the
particulars of work to be performed that could increase risk of
carrying huge cash from Singida to Dodoma to pay for casual labour
and material. The construction of the building not only lacked
schedule of materials but also documentation of project financial
transactions was not supported with measurement of work done.

The weaknesses noted above were attributed to inadequate internal

control over expenditure management of which if not well
strengthened may create a loophole for misuse of Public Money.
Further, if not well supervised the use of force account may create a
room for misuse of public monies.

I recommend to rectify all irregularities noted on the construction of

Head office building and further make follow up by involving
investigating organs to attest the accountability of
TZS 1,746,146,300.

10.2.2 Irregularities on the Payments Made by Tanzania Police

Force for Construction of Buildings; TZS 806,685,000
Tanzania Police Force received TZS10.7 Billion for construction of 400
houses, Hostel and Class rooms aiming at improving working
environment. My review of payments made noted a number of
irregularities which need management intervention and rectification
as enumerated below:

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a) Labour Charges Paid Seven Months Prior to Procurement of
Materials; TZS 355,200,000
I noted that Tanzania Police force paid TZS 355,200,000 as labour
charges in June 2018 while material worth TZS 306,820,983 for the
same work were paid in February 2019, almost 7 months after
payment of labour charge and the paid materials were also not
available at the site as at October 2019.

b) Labour Charges Paid to Personal Account Instead of the

Bonafide Contracted Technician; TZS 145,200,000
I noted that, through PV No. 9/6 and 15/6 TZS 60 million and TZS
85.2million respectively were credited to the personal account other
than the technician who signed the contract to fix grills and plaster
for the Police Headquarter building in Dodoma.

c) Over Payment of Labour Charges for Construction of 30

Houses in Medeli East Dodoma; TZS 92,640,000
I noted that TZS 260,550,000 was paid as labour charges for
construction of 30 Houses in Medeli East Dodoma. Comparison of the
rates used to pay against the agreed rates to be used in payments on
the schedule of material revealed that TZS 92,640,000 was
overcharged contrary to the agreed rates.

d) Unbudgeted Labour Charges Paid for Construction of 30

Houses in Medeli East Dodoma TZS 105,000,000
I noted that TZS 105,000,000 was paid as labour charges for beam
forming foundation, formwork foundation and linter. However all of
these activities and related payments were not part of the schedule
of requirements.

e) Overpayment for Construction of Staff Houses TZS 54,000,000

I have noted that Tanzania Police Force intended to use six inches
blocks for all stages of construction at TZS 1,800 but physical
verification noted that the management paid for six inches blocks

CG - Annual General Report 2018 / 19 209

but the supplier delivered 5 inches blocks at TZS 1,300 and thus
resulting to overcharge of TZS 54,000,000

Table 66: Overpayment for construction of Staff houses

Name of the project Amount
overcharged (TZS)
Construction of 20 Houses in Geita 25,000,000
Construction of 50 Nzuguni Houses in Dodoma 29,000,000
Total 54,000,000

f) Items Paid for But not existing/not supplied for construction of

new Police Headquarter Dodoma TZS 54,645,000
Physical verification noted that there were some items such as 100
doors ,40 Engle valve 0.5 and TANESCO 3 phase main supply that were
paid for to the tune of TZS 54,645,000 but do not exist at the site or
no any indication/prior preparation for installation of the same

g) Abandoned Construction Site for construction of new Police

Head Quarter
Physical verification done in November 2019 discovered that activities
were stopped and no any technician on site even though all labour
charges were already paid

I am of the view that greater chances of misusing the Government

fund are likely to prevail hence deterring achievement of the
intended objectives and delays in executing activities paid for might
create another request of fund and lead to double payment due to
lack of follow up.

Management of Tanzania Police Force is recommended to (a)

strengthen controls and make follow up by closely supervising the
uncompleted works (b) take immediate action to all responsible
persons who were paid but no work was performed and (c) Task all
committees to play their vital roles which should be well explained in
their appointments.

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Furthermore, I recommend that the management of Tanzania Police
Force to be very keen in using Force Account by making a very close
supervision and exercise effective accountability otherwise it may
create the loopholes for financial indiscipline.

10.2.3 Exorbitant Costs for Hiring Chairs, Tents and Private

Vehicles by Tanzania Peoples Defence Force TZS
489,801,253.13
I have noted that Tanzania Peoples Defence Force incurred TZS
489,801,253.13 for hiring chairs, tents and Private cars for various
military occasions. My concern is that the amount spent could have
been minimized or avoided by procuring own chairs, tents and cars
as most of these costs are repetitive thus leading to escalating hiring
costs each year.

In future management is recommended to procure its own chairs,

tents and cars in order to reduce hiring costs and avoid incurring high
costs each financial year.

10.2.4 Fraudulent EFD receipt issued to Tanga Regional

Secretariat, TZS 70,000,000
I have noted that the management of Tanga Regional Secretariat paid
TZS 29,400,000 to Unit General Supplies Ltd for supplying tracksuits.
Furthermore, I noted that, the supplier had previously supplied
tracksuits worth TZS 40,600,000 which was altogether acknowledged
as TZS 70,000,000 with EFD receipt which was not genuine.

My audit tests through TRA verification system noted that Electronic

Fiscal Receipt worth TZS 70,000,000 was not genuinely produced from
the suppliers’ own EFD machine, contrary to Regulation 22 of Income
Tax (Electronic Fiscal Devices) Regulations, 2012. This regulation
requires any person who deliberately tampers with or causes
Electronic Fiscal Device not to work properly, commits an offence and
upon conviction is liable to a fine of Tanzanian shillings not less than
one million or to a term of imprisonment not exceeding three months
or both.

CG - Annual General Report 2018 / 19 211

In my opinion, issuing EFD receipts which was not genuine not only
results to a loss of revenue but also receipts undermine the objectives
of the Government on revenue collection through tax evasion as the
transaction lacked audit trails of suppliers.

I recommend that the management of Tanga Regional Secretariat to

inform investigative authority in order to reveal the root cause of the
problem. Apart from that the government as a whole should ensure
that all payments to suppliers of goods and services are acknowledged
using genuine Electronic Fiscal Receipts.

10.2.5 Inappropriate use of Imprest Account by Tanga Regional

Secretariat TZS 615,737,000
Circular No.CE.26/46/01/1/66 of 28th November, 2012 provides
directives on the use of TISS system and imprest account maintained
in the commercial Banks to facilitate un-avoided cash payments. To
the contrary, the Tanga Regional Secretariat used imprest account to
procure building materials and pay TZS 615,737,000 to various
suppliers and contractors that could have been paid through TISS.
I am of the view that making such huge payment through cash may
catalyse misappropriation of cash through colluding with
suppliers/contractors and thus value for money might not be
achieved.

It is my recommendation that all payments are made by using crossed

cheques or TISS paid directly to suppliers after complying with
procurement procedures and avoid using imprest account.

10.2.6 Fraudulent Transactions at Morogoro Sub Treasury Office;

TZS 71,958,000
My review of financial operations at Morogoro Sub Treasury office
encountered one fraudulent incidence that occasioned a loss of TZS
71,958,000 attributed to collusion by officers from Kilosa medical
college (COTC) and one official from Sub-Treasury office. Further to
that I noted the incidence was reported to the police since 24th
October, 2018 for investigation but up to the date of audit
(September, 2019) the matter was not yet concluded. The

CG - Annual General Report 2018 / 19 212

management of Sub Treasury office did not adhere to Section 7(3) (d)
and (e) of PFA, 2001(R.E 2004) that aims at ensuring effective internal
controls.

I am of the view that if internal controls are not strengthened, the

government will continue suffering loss from financial malpractices.

I recommend that the management of Accountant General’s

Department to make close follow up for proper accountability. Also,
Sub treasury offices have to enhance sound functioning of internal
controls including effective segregation of duties, timely
performance of bank reconciliations, conducting surprise cash count
and regular assessment of fraud indicators.

10.2.7 Inadequately Supported Expenditure;

TZS 5,060,449,260.43
I noted that during the financial year 2018/19 39 entities made
payments aggregating to TZS 5,060,449,260.43 which were not
adequately supported with relevant documents. Absence of these
supporting documents has limited my audit scope in authenticating
the genuine expenditure made and thus contravening Regulation 95
of Public Finance Regulations of 2001 that requires payments to be
fully supported. For more details refer to Appendix 10.1

I am of the view that inadequately supported payments have limited

my audit scope and thus the validity of the payments made cannot be
reasonably substantiated by my audit.

I am recommending that the respective Accounting officers to note

that missing payment vouchers are statutorily regarded as cash losses
that in return Accountant General has to include them in the Annual
Statement of Losses in order that they can be investigated properly
by the PAC as per PFR 18(1) (f) & (2) of 2001. Subsequently,
Accounting officers are responsible and accountable to avail the
questioned documents for verification purposes.

CG - Annual General Report 2018 / 19 213

The Accounting officers are also recommended to strengthen internal
control on financial records keeping from its initial stage of
generating the documents, custody, retrieval and destruction of such
documents. Therefore, corrective actions as per PFR 24 should be
taken on board.

From the chart below, it can be concluded that despite the fact that
the number of entities have been varying over six years, still the
inadequately supported payments have been significantly decreasing
as shown by the trend line in the figure below. This is an indication
that the respective entities have strengthened internal controls over
record keeping

Figure 28: A trend of inadequately supported payments for 6

consecutive years

A chart showing a trend of inadequately supported payments for 6 consecutive

years

35,000 50
AMOUNT IN TZS(000,000)

30,000
40

NO. OF ENTITIES
25,000
20,000 30
15,000 20
10,000
10
5,000
0 0
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
FINANCIAL YEAR

TZS in ( 000,000) No. Of Entities

10.2.8 Payment Made Without Being Authorized;

TZS 719,479,937.89
Regulation 88(1) of the Public Finance Regulations of 2001, requires
the Accounting Officer or any designated persons to sign/approve all
payment vouchers, before payment is done. But to the contrary I have
noted that eight audited entities paid TZS 719,479,937.89 without

CG - Annual General Report 2018 / 19 214

being authorized. The list of unauthorized payments is tabulated
below:

Table 67: The list of unauthorized payments

No Vote Auditee Amount(TZS)
Ministry of Defence and National
1 57 40,700,573.89
Service
2 2 Teachers Service Commission 15,655,840
Ministry of Constitution and Legal
3 41 36,021,277
Affairs
National land use planning
4 003 2,205,000
commission
5 77 Mara Regional Secretariat 25,310,000
6 18 UNESCO National Commission 24,043,000.00
7 40 Judiciary of Tanzania 10,570,000
8 72 Dodoma Regional Secretariat 28,088,044
9 5 National Irrigation Commission 536,886,203
Total 719,479,937.89

Source: Individual management letter 2018/19

The information above can be pictorially presented in the figure below:

Figure 29: Comparisons of unauthorized payments for 2017/18

and 2018/19

2017/18,
TZS 188 Million

2018/19,
TZS
719 Million

CG - Annual General Report 2018 / 19 215

By comparing with previous financial year 2017/18, unauthorized
payments have tremendously increased from TZS 188 Million to 719
Million which implies that no adequate efforts have been made to
strengthen internal controls over expenditure management.

It is my understanding that unauthorized payments may lead to

misuse of public moneys and untrusted staff may make the use of this
loophole to make fictitious payments without management
knowledge.

I recommend to the responsible Accounting Officers to ensure all

payments are appropriately authorized at all levels to mitigate the
risks involved with weak internal controls.

10.2.9 Overpayment Expenditure by TZS 459,198,571.87

Regulation 87 of the PFR of 2001 requires the Officer who signs a
voucher to certify accuracy of every detail of payments but to the
contrary I have noted that six (6) audited entities paid TZS
459,198,571.87 for purchasing various goods and services above the
required amount. The list of entities with overpaid amount is given
below in Table No 10.2 below;

Table 68: A list of entities with overpayment expenditure

Vote Name of Auditee Nature of payment Amount (TZS)
40 Judiciary of Amount paid above 75,273,219.00
Tanzania Agreed Contract sum
56 President’s Office, Excess payment of 13,121,600.00
Regional Security Services
Administration and
Local Government
86 Tanga Regional
Incorrect information 31,620,000
Secretariat sent to the Ministry of
education so as to get
excess funds for
examination
72 Dodoma Regional Overpayment to CRJE 7,537,417
Secretariat East Africa Ltd

CG - Annual General Report 2018 / 19 216

 Vote Name of Auditee Nature of payment Amount (TZS)
85 Tabora Regional Double payment of 22,779,885.87
Secretariat VAT on suppliers’
payments
Overpayment to the 22,850,228
contractor

49 Ministry of Water Delay on Completion 286,016,222

of project and
overpayment to
Contractor
Total 459,198,571.87
Source: Individual management letter 2018/19

From the chart below, it can be concluded that the amount overpaid
has increased from TZS 133.53 million to TZS 459.20 million though
the number of entities has remained the same. This is an indication
that the audited entities have not yet instituted effective internal
controls that may eliminate the problem of overpayment.

CG - Annual General Report 2018 / 19 217

Figure 30: Trend of overpayment for two comparable financial
years
500.00 7
TZS 459.20
450.00
6 Entities 6 Entities 6
400.00

350.00 5

300.00
TZS in 000,000

No. of Entities
4
250.00
3
200.00

150.00 TZS 133.53

2
100.00
1
50.00

0.00 0
2017/18 2018/19
Financial year

It is my view that the overpaid amount was attributed to inadequate

internal control over payment processing and non-adherence to
budgetary allocations that in return resulted to overpayment.

I am therefore recommending that (a) The responsible Accounting

Officer to strengthen internal control over payment processing
system (b) Make recovery of the overpaid amount. The recovered
amount should also be used to meet expenditure as per the approved
budget.

10.2.10 Weaknesses on the Management of Imprests

TZS 5,430,595,090.29
Through my review, I noted that 25 audited entities made payments
through imprest aggregating to TZS 5,430,595,090.29 which were not
appropriately accounted for. As it is generally understood that the

CG - Annual General Report 2018 / 19 218

Government uses imprest to pay for small and routine expenses or
issue cash in advance for a specific purpose, it is also important to
ensure that, its management is carefully taken on board as it may
attract deceitful and fraudulent replenishments and thus creating
loopholes for misuse of public money. Most of the noted weaknesses
are untimely retirement of imprest when they fall due, imprest
directly charged to expenditure code and some employees were
granted another imprest still in possession of an unretired imprest
contrary to Reg. 103 (7) of PFR of 2001 as detailed under Appendix
10.2.

Figure 31: Comparability of irregularities on the management of

imprest for two consecutive financial years

TZS(000,000),
2018/19,
5,430.60 TZS(000,000),
2017/18,
6,333.30

From the chart above it can be concluded that irregularities for

imprest management has decreased from TZS 6,333 million to TZS
5,430 million indicating that there is a slight improvement as
compared with previous financial year.

Therefore, I am recommending to the managements of respective

entities to ensure imprests are retired immediately after the purpose
for which they were issued has been completed and this period should
not exceed 14 working days or otherwise the amount outstanding has
to be recovered from any salary or other emoluments or from any
other amounts due to the imprest holders as required by Regulation
103(2) of PFR, 2001.

CG - Annual General Report 2018 / 19 219

10.2.11 Withholding Taxes Not Deducted TZS 23,501,217.63
Sec. 83(1)(c)(ii) of Income Tax Act, 2004 (R.E 2019) requires
withholding taxes to be deducted on Service fees and contract
payments and remit to the Commissioner within seven days after the
end of each calendar month any income tax that has been withheld
in accordance to Section 84(1) of the same Income Tax Act. However,
my audit noted that four (4) entities (List attached below) failed to
deduct and remit withholding tax of TZS 23,501,217.63 to TRA as
required by tax law.

Table 69: List of entities that did nod deduct withholding tax
S/N Vote Name of Auditee Amount TZS
1 78 Mbeya Regional Secretariat 2,655,338.78
Prime Minister’s Office- Labour, Youth,
2 65 Employment and Persons with
Disability 9,948,150.00
President’s Office and Cabinet
3 30
Secretariat 3,068,291.85
4 71 Coast Regional Secretariat 7,829,437.00
Total 23,501,217.63
Source: Individual management letter

As compared with previous General Report 2017/18 the number of

entities not complying with sec. 83(1) has slightly decreased from
7 to 4 entities though the amount not deducted and remitted to TRA
has significantly decreased from TZS 722 million to TZS 24 million as
presented in the figure below. The comparison of five years indicates
that there is up and down movement of number of entities not
complying with aforementioned section. Similarly, the amount
involved has been moving up and down as presented in the figure
below:

CG - Annual General Report 2018 / 19 220

Figure 32: Trend of entities not deducting and remitting withhold
taxes for consecutive 5 years

1,200,000 12
992,492
1,000,000 10

800,000 692,539 722,173 8

Amount in TZS

No. of Entities
600,000 6

400,000 4

200,000 109,164 2
23,501
0 0
2014/15 2015/16 2016/17 2017/18 2018/19
Financial year

Amount in TZS(000) No of Entities

I am of the view that none compliance with sect 83(1) and sec 84(1)
of Income Tax Act makes the questioned entities be statutorily liable
to pay the tax that should have been withheld in the same manner
and therefore budgetary allocations intended for other approved
objectives may be affected at the expense of not complying with tax
laws

I recommend that management of respective entities to ensure that

the outstanding withheld taxes are paid without delay and in the
future withholding tax should be appropriately deducted and
remitted to the Commissioner as required by aforementioned
citations.

10.2.12 Payments Made Without Demanding Electronic Fiscal

Device Receipts (EFD) TZS 895,372,760
It has come to my attention that TZS 895,372,760 was paid to various
suppliers without demanding EFD receipts as required by Section 36
(1) of the Tax Administration Act (TAA), 2015 and Reg. 28(1) of the

CG - Annual General Report 2018 / 19 221

Income Tax (Electronic Fiscal Devices) Regulations, 2012 as shown in
the table below. The quoted sections require both the supplier and
buyer to issue or demand the EFD receipts respectively on every
sale/purchase. My audit scope was therefore limited to authenticate
whether those suppliers were registered to issue EFD Receipts.

Table 70: List of entities that did not demand EFD receipts
S/N Vote Auditee Amount TZS

Ministry of Foreign Affairs and East

1. 1003 African Cooperation Zanzibar 21,684,389
Department

2. 2 Teachers Service Commission 1,233,236

3. 31 Vice President Office 89,892,491.67
4. 93 Immigration Services Department 6,592,602
5. 36 Katavi Regional Secretariat 3,808,122
Commission for Human Rights and
6. 55 26,199,318.82
Good Governance
7. 37 Prime Minister’s Office 3,328,000
8. 83 Shinyanga Regional Secretariat 117,534,986
9. 40 Judiciary of Tanzania 57,301,075
10. 81 Mwanza Regional Secretariat 20,779,120
President’s Office, Regional
11. 56 Administration and Local
Government 86,775,207.77
12. 70 Arusha Regional Secretariat 92,294,962
13. 86 Tanga Regional Secretariat 29,400,000
14. 80 Mtwara Regional Secretariat 122,686,053
Ministry of Health Community
15. 52 Development Gender Elderly and
Children 101,227,721
16. 72 Dodoma Regional Secretariat 3,694,600
17. 71 Coast Regional Secretariat 98,152,296
18. 79 Morogoro Regional Secretariat 12,788,580

CG - Annual General Report 2018 / 19 222

 S/N Vote Auditee Amount TZS
Total 940,916,212.26

Figure 33: Payments not supported with EFD Receipts

60,000 45
47,935 39 40
50,000
35
40,000 30
TZS in 000,000

No. of Entities
29
26 25
30,000
20 20
18
20,000 15
13 12
7,790 10
10,000 6,185
4,005 5
1,553 1,432.00 895
0 0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
Financial year

Amount in TZS( 000,000)

No of entities

Comparisons on compliance with the aforementioned tax laws over 7

years consecutively indicate that there is a remarkable achievement
of demanding and issuing EFD receipts as indicated by exponential
trend line above though the number of entities has been moving up
and down (Refer pictorially presentation above).

It is my opinion that non-demanding of EFD receipts may create a

room for Loss of Government revenue in case the questioned
transactions are not declared by the supplier in the tax returns.
Further, failure to demand EFD receipts is an offence as per
Regulation 50 and 55 of Tax Administration (General) regulations of
2016.

I am therefore recommending that the respective accounting Officers

to stop engaging with suppliers who fail to issue EFD receipts or

CG - Annual General Report 2018 / 19 223

invoices linked with TRA and ensure that in the future compliance
with tax laws should at all times be taken on board.

10.2.13 Nugatory Expenditure TZS 948,931,276.65

The government expenditure has to be incurred in such a way that it
should give benefit to the community as a whole by ensuring
provision of maximum social advantages. But to the contrary I have
noted that TZS 948,931,276.65 was fruitlessly and wastefully
expended by four (4) audited entities and thus compromising Reg. 21
(2) of PFR, 2001 as no value for money has been enjoyed by the
respective entities and such expenditure could be avoided.

Table 71: List of Entities with nugatory expenditure

Nature of
S/N Vote Auditee Amount (TZS)
expenditure
Payments for
Teachers Service
1 2 2,400,000 accommodation but
Commission
not used.
Late clearing of
National Service
2 39 57,515,912.65 procured motor
Force
vehicles
Payment for
performance
Mwanza security contrary to
Regional the special
3 81 Secretariat 3,496,333 condition
Additional costs
resulted by
Tabora Regional stoppage of the
4 85 Secretariat 41,914,448 works
Additional charges
National for late clearing of
Irrigation constrcuction
5 5 Commission 843,604,583 equipment
Total 948,931,276.65
Source: Individual management letter 2018/19

CG - Annual General Report 2018 / 19 224

By making comparisons over six years, I have noted that the nugatory
expenditure has been significantly decreasing at improving rate as
pictorially presented in the figure below. The number of entities
incurring nugatory expenditure has also been decreasing at improving
rate though this year number of entities has moved from three to
five while the amount has increased from TZS 668 million to TZS 948
million and thus indicating up and down enhancement of Internal
controls.
Figure 34: Trend of nugatory expenditure for 6 consecutive years

60,000,000 16
53,017,014
14 14
50,000,000
12
Amount in TZS(000)

40,000,000

No. of Entities
10
30,000,000 8 8
6 6
20,000,000 5
4
10,000,000 3 3
1,698,741 1,460,571 61,793 668,764 948,931 2
0 0
2013/ 2014/ 2015/ 2016/ 2017/ 2018/
14 15 16 17 18 19
Amount in TZS 1,698,74 53,017,0 1,460,57 61,793 668,764 948,931
No MDA 14 8 6 3 3 5
Finncial year

In my opinion, I believe the incurred nugatory expenditure was

attributed to inadequate internal controls over expenditure
management of which if not strengthened may create a loophole for
misuse of public money. Further, the questioned amount could be
used in other activities of high importance towards optimal utilization
of taxpayers’ money.
I am recommending the responsible Acconting officers to strengthern
internal controls that will utimately ensure compliance with Reg. 21
(2) of PFR 2001.

CG - Annual General Report 2018 / 19 225

10.2.14 Expenditure Charged to Wrong Accounting Codes
TZS 1,807,238,083.84
My audit noted that 19 entities expended TZS 1,807,238,083.84 from
wrong expenditure codes and thus contravening with Reg 46 (2) of the
Public Finance Regulations of 2001 that requires every charge of
expenditure and item of income to be classified strictly in accordance
with the details of the approved budget as the list attached in the
table below

Table 72: List of entities with wrong expenditure code

S/N Vote Auditee Amount
1 19 The Office of Solicitor General 49,684,128
Drugs Control and Enforcement
2 91 56,331,374
Authority
3 93 Immigration Services Department 7,966,930
National Housing and Building
4 23
Research Agency 479,238,848
Tanzania Cooperative
5 24
Development Commission 30,726,727
President’s Office – Public
6 9
Service Remuneration Board 1,280,000
President’s Office Public Service
7 94
Commission 27,594,106
8 75 Kilimanjaro Regional Secretariat 10,633,600
9 86 Tanga Regional Secretariat 28,100,000
37,205,999.84
10
95 Manyara Regional Secretariat 45,197,509
Dar Es Salaam Regional
11
88 Secretariat 4,287,700
12 80 Mtwara Regional Secretariat 19,476,486
13 12,614,000
72 Dodoma Regional Secretariat 81,644,400
14 84 Singida Regional Secretariat 25,702,256
15 85 Tabora Regional Secretariat 87,140,358
16 49 Ministry of Water 58,695,310
17 71 Coast Regional Secretariat 5,760,000

CG - Annual General Report 2018 / 19 226

 S/N Vote Auditee Amount
18 13 Financial Intelligent Unit 99,308,507
Ministry of Foreign Affairs and 638,649,845
19 34 East African Community
Total 1,807,238,083.84

Making payment through wrong codes is not only distorting the

rationale for budgeting but also implies misstatement of financial
statements of the audited entities.
As compared with previous year, I have noted that the payment
charged to wrong expenditure code has significantly decreased from
TZS 883,994 million to TZS 1,807 million. This is an indication of
improvement in complying with aforementioned section even though
the entities involved has increased from 10 to 19 entities as
pictorially presented below. A dotted line indicates that from
financial year 2017/18 wrong coded expenses was tremendously
attributd by Vote 21 of which the same has not occurred in the
current financial year.

Figure 35: expenditure charged to wrong accounting codes for

comparable three consecutive years

CG - Annual General Report 2018 / 19 227

 1000000 TZS 883,994 25
900000
800000 20 Entities 20
Amount in TZS(000,000)

Number of Entities
700000
600000 15
500000
400000 10 Entities 10
300000 7 Entities
200000 5
100000 TZS 751 TZS 1,807
0 0
2016/17 2017/18 2018/19
Financial year

I recommend that Accounting Officers should not be authorizing

expenditures that do not fall within the approved budget and the
Government Financial Statistics (GFS) codes and when deemed
necessary, reallocation warrant has to be sought in line with Section
41 of the Budget Act No. 11 of 2015.
10.2.15 Loan Advances Not Refunded; TZS 167,753,068
My audit noted that TZS 167,753,068 was borrowed to meet various
expenses with intention of being refunded back. But up to the time
of writing this report in February, 2020 the questioned amount was
yet to be refunded and thus affecting the intended objectives. The
entities involved is hereinafter attached in the table below;

Table 73: List of entities that did not refund advanced loans
Vote Name of Auditee Description Amount(TZS)
Shinyanga Regional Payments from 10,110,680
Secretariat miscellaneous deposit
18 UNESCO National Borrowed fund for OC 96,369,832
Commission from participatory
program
70 Arusha Regional Payment from 39,066,256
Secretariat Miscellaneous Deposit
Account but no

CG - Annual General Report 2018 / 19 228

 Vote Name of Auditee Description Amount(TZS)
specific funds
received for the same
74 Kigoma Regional Deposit account used 10,990,000
Secretariat for private activities
75 Dodoma Regional Borrowed 11,216,300
Secretariat miscellaneous deposit
funds
85 Tabora Regional Loans not refunded to 6,173,800
Secretariat Miscellaneous Deposit
account
Total 173,926,868
Source: Individual management letter 2018/19

Un-refunded amount was attributed to inadequate monitoring and

follow up of the borrowed amount.

I am of the view that, some of the activities for which the funds were
intended by the respective entities were affected at the expenses of
borrowed amount.

I am recommending that the responsible management has to ensure

the borrowed funds are refunded and be used for the intended
purposes/activities.

10.3 Expenditure Management for Embassies

10.3.1 Exorbitant Rental Charges for Diplomatic Residential

Houses TZS 1,016,202,708
I have noted that Tanzania Embassies in Brasilia, Algiers and
Stockholm incurred TZS 1,016,202,708 for renting Diplomatic
Residential houses according to Reg.81 of Public Service (Tanzania
Foreign Service regulations) of 2016. However, the amount spent
could have been minimized or avoided by rehabilitating dilapidated
residential houses as these rental charges are repetitive thus leading
to escalating costs each year.

CG - Annual General Report 2018 / 19 229

Table 74: List of Embassies paying high rental charges
Sub- Name of Entity Details Amount TZS
vote
2031 Tanzania Embassy in Annual Rental 274,061,808.00
Brasilia charges for HOM
and HOC
2036 Tanzania Embassy in Rent payments for 514,095,600.00
Algiers leased houses
2016 Tanzania Embassy in Annual Rental 228,045,300.00
Stockholm charges for HOM
and HOC
Total 1,016,202,708
Source: Individual management letters for 2018/19

I am of the view that the costs incurred each year if aggregated may
suffice rehabilitation of dilapidated residential houses and its related
infrastructures.

I recommend that the respective Embassies in collaboration with

Ministry of Foreign Affairs and East Africa Community to rehabilitate
diplomatic residential houses in order to reduce high renting costs
and avoid incurring the same costs each financial year.

10.3.2 Inadequately Supported Payments by Various Embassies

TZS 645,066,378.66
I noted that during the financial year 2018/19 four Embassies and one
High Commission made payments aggregating to TZS 645,066,378.66
which were not adequately supported with relevant documents
contrary to Reg. 95 of Public Finance Regulations of 2001 that
requires payments to be fully supported. List of audited entities is
illustrated in the table below;

Table 75: List of Entities with inadequately supported payments

CG - Annual General Report 2018 / 19 230

 Sub
Vote Name of Entity Amount(TZS)
185,385,775
2012 Tanzania High Commission in Ottawa 17,375,576
2028 Tanzania Embassy in Bujumbura 288,473,810
2009 Tanzania Embassy in Moscow 126,990,386
2016 Tanzania Embassy in Stockholm 16,260,586.66
2017 Tanzania Embassy in Tokyo 10,580,246
Total 645,066,378.66
Source: Individual management letter 2018/19

I am of the view that inadequately supported payments have limited

my audit scope and thus the validity of the payments made cannot be
reasonably substantiated by my audit.

The management of respective Embassies are recommended to

strengthen internal control on financial records keeping from its
initial stage of generating the documents, custody, retrieval and
destruction of such documents. Therefore, corrective actions as per
PFR 24 should be taken on board.

10.3.3 Payments Made Without Approval of Authorizing Officer by

Tanzania High Commission in Kampala TZS 70,758,790
I have noted that TZS 70,758,790 was paid without approval of
authorizing officer contrary to Reg. 89 (1-2/4) of the Public Finance
Regulations of 2001. Failure of management to ensure that the
payment vouchers were properly authorized and supported with the
necessary attachments in our view, occurred largely as a result of
weak supervision in the processing of payments. We were therefore
unable to ascertain the genuineness of the payments made by the
Tanzania High Commission Kampala.

Payment made without approval by the authorizing Officer may lead

to misappropriation of public monies.
Therefore I recommend that in the future all payments should be
approved by authorizing authority.

CG - Annual General Report 2018 / 19 231

 CHAPTER ELEVEN

11.0 ASSETS AND LIABILITIES MANAGEMENT

11.1 Introduction

Government manages large number and diverse assets portfolio

across the country and abroad.
I have examined the framework in place for assets management and
tested their existence and accuracy of the information to account for
and track assets from the time of purchase to disposal. I have
concluded that while aspect of assets management framework was in
place, there are number of areas where further strengthening is
required, some of the gaps identified includes: -

11.2 Abandoned Buildings, Partially Renovated and Undeveloped

Embassies, Department and Regional Secretariat Plots
Tanzania Government owns buildings and plots in various countries
where Embassies have been established. From forty-two (42)
Embassies visited during the year under review, I noted the following:

i) Fifteen (15) Embassies with abandoned buildings that require

major renovations. I noted one case in Tanzania High Commission
Maputo where renovation work started and ended half way, has
attracted interest to the tune of USD 507, 542.05 due to delayed
payment of interim certificate raised by contractor.
ii) Eight (8) Embassies which were allocated with plots to construct
Offices and residential houses without being developed for long
time. Suncheon City for instance took back 800 square meters out
of 2000 square meters allocated to Tanzania Embassy in Seoul
Korea due to failure of developing the area.
iii) I also noted one Regional Secretariat which has two abandoned
buildings in prime areas, as well as one prison building abandoned
since 2004.

CG - Annual General Report 2018 / 19 232

Details of the above cases are shown in Appendix 11.1 of this report.
11.3 Tanzania High Commission in London Abandoned Buildings
Tanzania High Commission in London reported nine (9) buildings with
value of GBP 14,223,502, equivalents to TZS 41,931,702,945, Two
buildings of which are vacant, one building is inhabitable and six
buildings require major renovation as shown in the table below;
Table 76: Buildings owned by Tanzania High Commission in London
which needs Renovation
location Post Title Year Value in £ Status
code deed no. acquired
3 View N6 4DJ EGL3137 1978 4,500,000 Needs
Road 51 renovation
3 W1C NGL2381 2004 6,000,000 Needs
Stratford 1AS 58 renovation
Place
6 Colin NW4 NGL7065 1979 450,000 inhabitable –
deep 4RU 01 Needs major
Garden renovation
22 Beufort NW11 NGL7065 1979 551,250 Needs
Drive 6BU 00 renovation
37 Mill NW7 NGL7065 1981 441,000 Vacant, Needs
Way 3OR 03 renovation
74 The HA8 MX26116 1994 453,127 Vacant, Needs
Grove 9QB 5 renovation
78 The NW6 NGL7092 1979 882,000 Needs
Avenue 7NN 95 renovation
29 NW4 NGL7092 2005 496,125 Needs
Mayfield 3PY 95 renovation
17 NW4 MX 2005 450,000 Needs
Denehurst 3QS 62025 renovation
TOTAL 14,223,502
Source: Audited reports for 2018/19

11.4 Embassies Plots not developed

I noted undeveloped plots mostly from Embassies due to budget
constraints since not all Embassy’s budgets are fully implemented at

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each financial year. I reported three (3) Embassies in the year
2017/18 as shown in the table below:
Table 77: Embassies Plots not developed
Vote Embassy Remarks
2026 Tanzania High Kigali owns a plot at Kacyiru North in Kigali City
Commission in Rwanda, the area of the land is 2,057.57
Kigali square meters, the plot was meant for office
in respect of Head of Chancery.
2008 Tanzania High Plot (No. 157/1) to the Government of
Commission in Tanzania at Avenue Dos Martires da Machava
Maputo No.874 over forty-four years ago for the
construction of the Chancery and Official
Residence.
2005 Tanzania High 2 plots for construction of Chancery and
Commission in Residential Buildings since 1995 provided by
Nigeria the Nigeria Government
2028 Tanzania Plot with 13,800 square meters at Buterere not
Embassy in developed.
Bujumbura
2039 Tanzania 2000 square meters at tourist area of Suncheon
Embassy in National Garden with condition of developing
Seoul Korea the land within six months since January 2018.
800 square meters were taken back by the
Suncheon City.
2034 Tanzania In 2009 the Government of Comoro offered the
Embassy in Embassy a plot (4,000 square meters) with
Moroni tittle deed number 3835-DLD for its
development and use
2024 Tanzania Plot not developed for constructions of
Embassy in Chancery Office and Residence
Saudi Arabia-
Riyadh
2029 Tanzania Non development of Plot No.24 Situated in
Embassy in Diplomatic Quarters in AL-Khuwair
Muscat
Source: Audited reports for 2018/19

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In respect of the above issues, I recommend:
• Adherence to contractual terms and conditions, once contract is
signed to avoid unnecessary interests, cost overruns, delayed
schedules and unsafe working environments. I reported on the
same in the financial year 2017/18 where seven (7) Embassy
buildings were abandoned and needed major renovation.
• Timely renovation of our Embassy buildings which will benefit the
Government from paying high rent for offices and residential
houses whilst realizing value for money.

• The Government to establish effective renovation and

construction plans for Embassies which may be implemented on
phases. By so doing will aid the Government to move the impact
from one Embassy to another until all those Embassies facing
these challenges are exhausted. Since renovation and
construction requires huge amount of money which may not be
available at once.

11.5 Grounded Motor Vehicles Neither Serviced Nor Disposed off

Physical surveys conducted on 135 Ministries, Departments, RS and
Embassies, I noted thirteen (13) Ministries and Departments, eleven
(11) RS and four (4) Embassies, had a total of 222 Motor vehicles, 68
motor cycles and eighty nine (89) other equipment grounded, neither
serviced nor disposed of in accordance with Reg. 254 (1) of the Public
Finance Regulations 2001. The table below shows a list of the
respective entities with grounded motor vehicles and other
equipment.

Table 78: Grounded motor vehicles neither serviced nor disposed

Vote Ministry/Department/Regional Grounded Assets
Secretariat/Embassy
04 President's Office Records and 1 lorry truck
Archives Management
Department

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 Vote Ministry/Department/Regional Grounded Assets
Secretariat/Embassy
National Irrigation Commission 51 Motor vehicles and 86
05 Other Equipment
16 Attorney General 6 Suzuki Vitara
26 Vice President Private Office 1 Motor vehicle
30 President's Office and Cabinet 19 Motor Vehicles. 6 Beyond
Secretariat repair and 13 requiring
major repair
31 Vice President's Office 5 Motor Vehicles
34 Ministry of Foreign Affairs 18 Motor Vehicles
36 RS Katavi 2 Motor cycles and 1 Motor
vehicle
47 RS Simiyu 3 Motor Vehicles
52 Ministry of Health, Community 9 Motor vehicles
Development, Gender, Elderly
and Children
53 Ministry of Health, Community Rungemba CDTI 2 Motor
Development, Gender, Elderly Vehicles
and Children
61 National Electoral Commission 3 Motor Vehicles with no
value
70 RS Arusha 2 Motor vehicles
75 RS Kilimanjaro 10 Motor vehicles and 19
motorcycles
76 RS Lindi 5 Motor vehicles and 13
motorcycles
85 RS Tabora 6 Motor vehicles
86 RS Tanga 7 Motor vehicles
87 RS Kagera 6 Motor Vehicles
89 RS Rukwa 4 Motor Vehicles
90 RS Songwe 8 Motor vehicles
13 Motor Vehicles and 19
93 Immigration Service Department Motor cycles
95 RS Manyara 15 Motor cycles

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 Vote Ministry/Department/Regional Grounded Assets
Secretariat/Embassy
98 Ministry of Works Transport and 3 Construction Equipment
Communication
99 Ministry of Livestock and 5 Motor vehicles
Fisheries
2002 Tanzania Embassy in Berlin 2 Motor vehicles
Tanzania High Commission in 1 Motor vehicle
2006 London
2009 Tanzania Embassy in Moscow 2 Motor vehicles
Tanzania High Commission in 2 Motor vehicles
2021 Kampala
Source: Audited reports for 2018/19

I recommend Government to implement a procedure of reviewing

conditions of all assets annually including motor vehicles and other
equipment and record the information in an Asset registers, this will
enable Accounting Officers to make informed decisions on
replacement and disposal of unserviceable assets.

11.6 Absence of Title Deeds for Government Land and Buildings

Letter with Ref No.CAB142/626/01/A/42 from Chief Secretary dated
26/09/2014 and letter with Ref No. CNA.32/572/01/96 from Treasury
Registrar directed all Government Entities to have Title deeds of their
land plots.
I noted out of 135 Entities including Ministries, Departments, Regional
Secretariats and Embassies audited, only for those entities which
disclosed information on land ownership in the financial statements,
ten (10) Entities did not have the title deeds for land and buildings.
The table below presents a list of entities which have not acquired
title deeds from the Ministry responsible for Land.

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Table 79: Absence of Title Deeds for Government Land and
Buildings
Vote Ministry/Regional Secretariat/Embassy
42 National Assembly
90 Songwe Regional Secretariat
65 PMO Labor Youth, Employment and Persons with Disability
2015 Tanzania Embassy in Rome Italy
99 Ministry of Livestock and Fisheries (National Insemination Centre
- NAIC)
88 Dar es salaam Regional Secretariat, of 11 plots only two had
Certificate of Occupancy
80 Mtwara Regional Secretariat
49 Ministry of Water
2025 Tanzania High Commission Pretoria 5 plots since 1995
71 Pwani Regional Secretariat
National Irrigation Commission, 24 Plots, in Mwanza, Morogoro,
5 Dodoma, Tabora, Mbeya and Mtwara
Source: Individual CAG’s audit reports for the year 2018/19

Title deeds not only give a quick updated official record of who owns a land
but also serve as an evidence in resolving land conflicts during
encroachment. Title deed is proof of legal ownership.
Generally, I noted most of the Ministries and Department allocated with land
in Dodoma did not disclose the same in the financial statements.
In this regard, I recommend the Directorate of Government Asset
Management under the Ministry of Finance in collaboration with the
Ministry of Land and Human Settlement to fast-track the Entities
efforts to acquire Certificate of Occupancy.

11.7 Lack of Asset Maintenance Plan and Records

Reg. 276 (1) of the Public Finance Regulation, 2001 (revised 2004)
requires the use of log books and maintaining records and history of
each vehicle including performance, servicing, overheads, repairs, in
sufficient detail for periodic assessments to be made of its
performance compared with its cost of upkeep.

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Further Para 11 of assets Guideline of 2012 requires Entities to
maintain Asset Management Strategy including Asset maintenance
plan forms as part of asset management strategy. Asset management
is aimed at improving value for money from using public assets.
I examined 135 entities and found out that 18 entities did not prepare
assets maintenance plan and maintenance records contrary to
Regulation 276 of Public Finance Regulation and Para 11 of assets
Guideline of 2012. List of audited entities with the noted irregularity
are shown in the table below;
Table 80: Lack of asset maintenance plan and records
Vote Ministry/Regional Secretariat/Embassy
02 Teachers Service Commission
03 National Land Use Planning Commission
05 National Irrigation Commission
26 Vice President Private Office
48 Ministry of Land, Housing and Human Settlement Development
50 Ministry of Finance and Planning
57 Ministry of Defence and National Service
61 National Electoral Commission
67 President's Office Public Service Recruitment Secretariat
75 Kilimanjaro Regional Secretariat
84 Singida Regional Secretariat
85 Tabora Regional Secretariat
88 Dar es salaam Regional Secretariat
89 Rukwa Regional Secretariat
2013 Tanzania Embassy in Paris
2022 Tanzania Embassy in Zimbabwe
2030 Tanzania High Commission in Lusaka
2038 Tanzania Embassy in Khartoum
Source: Individual CAG’s audit reports for the year 2018/19

I recommend to Ministries, Regional Secretariats and Embassies to

comply with Reg. 276 of the Public Finance Regulations as well as
Para 11 of the Asset Guidelines of 2012 by having in place Annual
Maintenance Plan for the owned/controlled assets, such that

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maintenance work is recorded in the log books and other registers.
Plans should be updated once maintenance is completed.

11.8 Failure to Review the Residual Value and Useful Life of Assets
The Government Asset Guideline No 6(3) issued by the Paymaster
General on 10th December, 2012 states that,” if an asset has been
fully depreciated but is still being used by the Government, it
indicates that the asset’s estimated useful life has been under
estimated. Therefore, the Government will have to account for a
change in estimate using the asset’s adjusted estimated useful life”.
Also, Para 67 of IPSAS 17, Property, Plant and Equipment requires an
entity to perform a review of the residual values and useful life of its
assets at least at each reporting date.
I noted that ten (10) Entities failed to review the residual value and
useful life of its assets that caused these entities to have significant
number of assets with zero book value but which are still in use.
List of audited entities with the mentioned irregularities are
summarized in the table below;
Table 81: Failure to review the residual value and useful life of assets
Vote Ministry/Regional Secretariat/Embassy
57 Ministry of Defence and National Service
38 Tanzania Peoples' Defence Force
2020 Tanzania Permanent Mission to UN in Geneva
2008 Tanzania High Commission in Maputo
2024 Tanzania Embassy in Riyadh
41 Ministry of Constitutional and Legal Affairs
2010 Tanzania High Commission in New Delhi
84 Singida Regional Secretariat
2027 Tanzania Embassy Abu Dhabi
34 Ministry of Foreign Affairs
Source: Individual CAG’s audit reports for the year 2018/19

Failure to review the residual value and useful life of an asset at least each
reporting period is non-compliance with IPSAS 17 which may results in

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misstatement of the financial statements as well as impair the steps towards
achievement of Government goals.
Based on the above matters, I recommend, Ministries/Departments,
Regional Secretariat and Embassies to adhere to the requirements of IPSAS
17 and issued Government Asset Guideline No 6(3) in preparation of
financial statements.
11.9 Assets Purchased and Completed Houses Not in Use
TZS 1,659,696,336
I noted two entities purchased items which were not urgently needed
worth TZS 471,257,990. Up to the time of audit, these items were not
put into use.
I also noted four entities constructed and completed houses with cost
of TZS 1,188,438,346 but not in use for diverse reasons. See the table
below for details of assets purchased but not put in use.
Table 82: Assets purchased not put into use
Vote Ministry/Depa TZS Remarks
rtment/RS
59 Law Reform 269,170,136 Computers, photocopiers,
Commission printers and furniture
44 Ministry of 202,087,854 3 laboratory rooms and
Industry and Plasma Cutting Machine not
Trade in use
SUB TOTAL 471,257,990

Vote Completed Houses not in use

90 Songwe 523,233,890 Momba District Commissioner
Regional Residential house.
Secretariat Completed not handed over
29 Prison Service 58,750,000 Mkuza Prison building
Department completed since 2004
84 Singida 533,983,347 Construction of three DC's
Regional houses of Mkalama, Ikungi
Secretariat and Manyoni were completed
not in use for diverse reasons.

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 63 Geita Regional 72,471,109 One house at Magogo Area
Secretariat
SUB TOTAL 1,188,438,346
TOTAL 1,659,696,336
Source: Individual CAG’s audit reports for the year 2018/19

I recommend that, it will be the most advantageous if Entities procure

assets when urgently needed and not only because there is funds to
spend. By so doing, value for money will be obtained as well as
operations will be smooth.

Constructing houses which are ultimately not being occupied is

wastage of scarce resources where the government is not realising
value for money. I recommend better use of financial resource by
putting those houses (and other completed houses not reported here)
into use once they are ready for use.

11.10 Outstanding Receivables TZS 41,497,847,243

My audit of Account Receivables revealed 24 entities reporting
receivables amounting to TZS 41,497,847,243 when compared to
2017/18 reported receivables of TZS 222,695,169,207, there is a
decrease of TZS 181,197,321,964 equivalent to 81 percent. This is a
remarkable achievement to be embraced although Tanzania Police
Force, Ministry of Health, Prison Service Department and National
Land Use Commissions need to exert more efforts into collecting their
receivables.
List of audited entities with accrued revenue are summarized in the
table below
Table 83: Outstanding Receivables
Vote Ministry/Department/Regional Amounts in TZS
Secretariat/Embassy
57 Ministry of Defence and National Service 164,115,910
2019 Tanzania Embassy in Brussels 30,460,128
14 Fire and Rescue Force 150,000,000

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 Vote Ministry/Department/Regional Amounts in TZS
Secretariat/Embassy
29 Prison Service Department 3,800,603,346
38 Tanzania Peoples' Defence Force 54,169,951
53 Ministry of Health, Community 753,360,897
Development, Gender, Elderly and
Children
2023 Tanzania High Commission Nairobi 8,598,726
003 National Land Use Planning Commission 2,220,575,200
44 Ministry of Industry and Trade 170,000,000
93 Immigration Service Department 146,591,680
04 President's Office Records and Archives 1,361,831,435
Management
2040 Tanzania Embassy in Tel Aviv 84,568,440
2029 Tanzania Embassy in Muscat 112,915,368
96 Ministry of Information, Culture, Arts and 606,758,179
Sports
48 Ministry of Land, Housing and Human 7,813,398,487
Settlement Development
95 Manyara Regional Secretariat 3,250,000
76 Lindi Regional Secretariat 236,786,858
52 Ministry of Health, Community 9,530,694,120
Development, Gender, Elderly and
Children
72 Dodoma Regional Secretariat 28,535,899
49 Ministry of Water 319,371,768
23 Accountant General's Office 39,543,685
71 Pwani Regional Secretariat 3,600,000
28 Tanzania Police Force 13,468,124,025
50 Ministry of Finance and Planning 389,993,141
TOTAL 41,497,847,243

Government Entities should institute measures and controls on

Account receivables to minimize the risk of fraud, errors and loss.

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In this regard, I recommend Ministries, Departments and Regional
Secretariat to formulate strategies to ensure that uncollected
revenues are collected within reasonable time.

I also recommend Accounting Officers with outstanding receivables of

more than two years to exert more effort in collecting those debts
before they become uncollectible and lead to loss of Government
revenue.

11.11 Liabilities Management

Liability management is the practice of maintaining a balance
between the maturities of assets and liabilities in order to maintain
liquidity. Liability management is an essential component in the
management of public funds.

During the year, I reviewed several entities documents and noted

weaknesses in liability management which has been reported in
previous years’ reports as well: -

11.11.1 Contingent Liabilities (Outstanding Legal Cases)

A contingent liability is a potential liability that may occur in the
future, such as pending lawsuits. My audit noted fifteen (15)
Government entities with contingent liabilities amounting to TZS
639,940,032,405 pending court decision as shown in the table below;

Table 84: Contingent liabilities

Ministry/Department/Regional
Vote Secretariat/Embassy Amount (TZS)
Ministry of Works Transport and
98 Communication 5,026,857,181
36 Katavi Regional Secretariat 38,658,300
89 Rukwa Regional Secretariat 332,130,264
47 Simiyu Regional Secretariat 88,207,920
58 Ministry of Energy 494,704,250,000
69 Ministry of Natural Resources and Tourism 20,984,472,070

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 Ministry/Department/Regional
Vote Secretariat/Embassy Amount (TZS)
37 Prime Minister's Office 839,333,738
100 Ministry of Minerals 107,231,342,003
75 Kilimanjaro Regional Secretariat 126,258,649
76 Lindi Regional Secretariat 481,324,370
80 Mtwara Regional Secretariat 357,159,768
85 Tabora Regional Secretariat 51,370,960
49 Ministry of Water 7,007,423,188
50 Ministry of Finance and Planning 1,591,030,508
79 Morogoro Regional Secretariat 1,080,213,485
TOTAL 639,940,032,405
Source: Audited Financial Statements 2018/19

In respect of this matter, I recommend that risks from Contingent

Liabilities should be managed in a framework where the analysis and
measurement of risks forms a basis for developing a risk management
strategy and designing effective risk mitigation tools.

11.11.2 Accrued Expenses; TZS 2,687,140,232,434

My audit noted 82 entities had an outstanding payable balance of
TZS 2,687,140,232,434 as at the end of the financial year 2018/19,
when compared to the prior year payable balances of
TZS 3,109,419,395,085 there is a decrease of TZS 422,279,162651
equivalents to 14 per cent. Trend of outstanding payable for three
consecutive years is as shown in the figure below. Detailed summary
is found in Appendix 11.2.

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Figure 36: Trend of Outstanding Payables
Trend of Outstanding Payable for three Financial
Years
2016/17 2,658,415,707,43
8

2017/18 3,109,419,395,08
5

2,687,140,232,43
2018/19
4

Source: Audited Financial Statements for 2016/17 to 2018/19

Ministry of Defence and National Service had an outstanding payable

of TZS 1,045,499,689,187, (39%) followed by Tanzania Police Force
TZS 651,358,243,645, (24%) Tanzania Peoples’ Defence Force TZS
286,851,148,594, (11%) Ministry of Health TZS 272,629,610,089 (10%)
and Ministry of Works Transport and Communication. TZS
144,408,601,208, (5%). Other entities represented by TZS
286,392,939,710 equivalent to 11 percent of the total outstanding
payables. These votes had almost the same payable in the year
2017/18 as shown in the figure below;

Figure 37: Comparison of Outstanding Payables

Comparison of Outstanding Payables for the Financial Year 2018
and 2019
1,200,000,000,000
1,000,000,000,000
800,000,000,000
600,000,000,000
400,000,000,000
200,000,000,000
-
57 28 38 52 98

2018/19 2017/18

Source: Audited Financial Statement for 2017/18 and 2018/19

CG - Annual General Report 2018 / 19 246

Either budget allocated to these entities are not sufficient or there
has been delay in releasing funds from Treasury. The same entities
had almost the same outstanding payables in the year 2017/18 as
shown above.

Figure 38: Composition of Outstanding Payable

COMPOSITION OF OUTSTANDING PAYABLE FOR THE FINANCIAL YEAR 2018/19

Others Others, 11%

Vote 98 Vote 98, 5%

Vote 52 Vote 52, 10%
Vote 38 Vote 38, 11%
Vote 28 Vote 28, 24%

Vote 57 Vote 57, 39%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Source: Audited Financial Statement for 2018/19

11.11.3 Reporting on India Hospitals Claims

Ministry of Health, Community Development, Gender, Elderly and
Children reported payable of TZS 272,629,610,089 which included
outstanding medical bills of TZS 19,174,817,593 from referral
hospitals in India. Compared to 2018 outstanding medical bills of TZS
29,172,371,931 there is a decrease of TZS 9,997,554,338 which was
paid during the year under review as shown in table the table below;

Table 85: India Hospitals Claims Movements (Amounts in TZS)

Opening balance as at 01/07/2018 29,172,371,931
Claims received during 2018/19 0
Total claims 29,172,371,931
Less Payments during 2018/19 9,997,554,338
Outstanding balance 30/06/2019 19,174,817,593
Source: confirmation from the Ministry of Health through a letter with ref No.
CA/115/209/01/71 of 6th Feb 2020 and a report attached to that letter of
September 2019.

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There is a decrease of payable related to medical referrals in Indian
Hospitals as seen above. The reasons for decrease are attributed to
strengthened medical services at Muhimbili Hospital as well as Apollo
Hospitals refusing to accept credit referral patients. Number of
patients referred to Hospitals in India has also declined tremendously
from 139 patients in 2017/18 to 82 patients in 2018/19 equivalents to
41 percent.

11.11.4 Delayed Compensation of Acquired Land for Mchuchuma

and Liganga Project TZS 11,037,183,021
Section 3 (1) (g) of the Land Act of 1999. The Land Acts provides that
the payment of compensation should be fair, full and prompt.
Regulation 13(2) of Land Regulations, 2001 and Regulation 19(1)-(3)
of Village Land Regulations of 2001 states compensations should be
paid within six months after valuation, after which, interest is
charged at market prevailing rate.

In my audit I noted that land valuation for Mchuchuma and Liganga

project was done on August, 2015 and verification was completed by
the Chief Government Valuer on July, 2018. The value of land as per
valuation report was TZS 7,341,776,639 and TZS 3,695,406,382 for
Liganga and Mchuchuma respectively making a total of TZS
11,037,183,021. However, no compensation was made despite the
fact that six (6) months had lapsed since verification.

I therefore recommend that payment to beneficiaries for land

compensation to be made as per above mentioned Act and
Regulations to avoid increased costs from accrued interests. Failure
to pay compensation not only increase the compensation amount but
also deprive the rights of the beneficiaries since they can no longer
develop their land.

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 CHAPTER TWELVE

12.0 SPECIAL AUDIT, AUDIT OF POLITICAL PARTIES

12.1 Introduction
This part of the report underlined the significant issues spotted during
my audit of the Political Parties and Special Audits. During this year,
I have audited all 19 Political Parties and carried out 8 Special audits
as outlined below:

12.2 Audit of Political Parties

My audit of the Political Parties is entrusted by Section 18A of the
Political Parties Act CAP 258 (revised 2019) and during my audit the
Registrar of the Political Parties submitted the list of nineteen (19)
Political Parties with permanent registration for audit purposes. All
the nineteen (19) Political Parties have presented their financial
statements to my office for audit.

The audit of Political Parties included a general review of financial

transactions and internal controls and testing of the accounting
records and other supporting evidence to the extent that I considered
necessary in order to form an opinion as to whether the financial
statements were prepared fairly in accordance with the Public Sector
Accounting Standards (IPSAS). In my audit, the followings were
disclosed:

12.2.1 Source of Revenue Deposited was not Declared by CUF;

TZS 422,990,000
This financial year 2018/19, I have audited the financial statements
of CUF (Civic United Front) from the financial year 2015/16 to
2018/19. In my audit, I reviewed the Bank Statements maintained by
CUF from September 2015 to August 2016 and traced series of
deposits which totalled TZS 422,990,000. The identified deposits of
TZS 414,000,000 were related to the financial year 2015/2016 and
TZS 8,990,000 were for the financial year 2016/2017.The cash

CG - Annual General Report 2018 / 19 249

deposited were not receipted by CUF, as required by Regulation 4.3
of the CUF Financial Regulations, and the same revenue was not
reported in the Statement of Financial Performance for the
mentioned periods. I interviewed the CUF management about the
source of the fund deposited; however, no clear responses were
received.

In this aspect, I failed to determine the legitimacy of the funds

deposited. As such, the financial statements prepared and published
may mislead the users since the revenue received of TZS 422,990,000
was not reported.

In this context, I recommend the CUF management to receipt all

revenue collected from members and subsidies received from
Government or donors and the same should be reported in the
respective financial statements.

12.2.2 Assets Owned by CUF Were Not Properly Managed

I reviewed the list of Motor Vehicles owned by CUF and revealed that
out of the Sixteen (16) Motor Vehicles owned by CUF, Seven (7)
vehicles were listed by the name of CUF while the remained nine (9)
vehicles were registered by the names of the CUF members. On a
similar occasion, I noted CUF lacked title deeds for the two (2)
buildings located in Zanzibar. As a consequence, I was confined to
corroborate the ownership of the referred buildings and motor
vehicles.
It is my view that CUF would relinquish the right of ownership of the
vehicles not registered by the name of CUF, as well as buildings
lacked title deeds in the event of a legal contest.

In the light of the above, I recommend the CUF management to secure

the title deeds for two (2) buildings situated in Zanzibar and update
the vehicle ownership records to reveal the Party’s name.

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12.2.3 Loan Advanced to the One of the Radio Station by CUF was
not Refunded; TZS 85,000,000
In my audit, I noted that the Registered Board of Trustees of CUF
enforced the loan agreement of TZS 45,000,000 on 3rd January 2017
to one of the Radio Station in Tanga with the understanding of
liquidating the referred loan in three (3) years ended 3rd January
2020. It also came to my attention that CUF advanced a new
additional loan of TZS 35,000,000 on 16th February 2018 to the same
Radio Station with the repayment arrangement of two (2) years which
ended 16th February 2020 without settling the former loan, as earlier
agreed.

On a similar note, I noticed another loan amounting to TZS 5,000,000

issued on 28th May 2019 with a repayment condition of ten (10) days
from the receipt date to the same Radio Station. However, all of
these loans issued were not secured, and by the time of my audit in
January 2020, the whole amount of TZS 85,000,000 issued by CUF as
the loan was not recovered. Through my review, I further learned
that the mentioned Radio station was represented by three (3)
Directors, who are also the Directors at CUF. Under these
circumstances, I noted the significant conflict of interest in the
effected transactions.

It is my opinion that the Party’s resources stemmed from Government

subsidies were misused through advancing the unrecovered loan. As
a consequence, the value for money have not been realized as
scheduled Party’s activities were not accomplished as anticipated.

In respect to this matter, I recommend the adequate follow up

extended by CUF management to recover the said loan.

12.2.4 Doubtful Withdraws of Funds from CUF Bank Accounts;

TZS 416,000,000

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My review of various documents noticed that CUF received
Government subsidies of TZS 369,378,502.64 on 05th January 2017. I
noted that on 06th January 2017, CUF made a transfer of TZS
300,000,000 to the Personal Bank Account of one of the Party’s
member, and the remained balance of TZS 69,000,000 was cashed out
on the same date. However, no expenditure records were submitted
for my review. Along with this, I also realized a withdraw of TZS
47,000,000 from the CUF Bank account by one of the Party’s director
without the approval of the Secretary-General, as prescribed by CUF
financial regulations. Similarly, no expenditures records were
furnished for my scrutiny.

I am concerned with serious weak internal controls at CUF, which

permitted the bank transfer and withdrawals of the Party’s resources
without attention to the Secretary-General who is the Accounting
Officer.

My audit at CUF was confined and therefore, I have no assurance on

the expenditure incurred by CUF on the amount improperly
transferred and withdrawn as the expenditure records were not
provided for my review.

In this regard, I recommend the internal controls at CUF intensified,

and investigation initiated to establish the accountability of TZS
416,000,000, which its expenditure records were not presented for
my scrutiny.
12.2.5 Lack of Agreements for Loan Recoveries Made by CUF;
TZS 222,850,000
I reviewed several payment vouchers at CUF and spotted out
payments totalled TZS 222,850,000 were made to various Party’s
members. I Interviewed the CUF management about payments
effectuated, and it was clarified that payments effected were for
repaying the loans borrowed from the referred Party’s members.

CG - Annual General Report 2018 / 19 252

However, I requested the evidence to corroborate for loans recovered
and the same was not provided for my scrutiny.

I am concerned with weak internal controls that prevailed at CUF

Party and the serious misuse of the Party’s resources through the
plotted schemes.

In respect to this matter, I recommend a comprehensive review of all

payments made and in case of any ineligible payments identified
should be refunded.

12.2.6 Land Plots 5,261 Owned by CCM Lacked Title Deeds

I reviewed the assets register maintained by CCM and realized that
CCM owns 5,660 land plots across Tanzania Mainland and Zanzibar.
However, it came to my attention that out of 5,660 land plots owned,
399 plots have Title Deeds, while the remained 5,261 plots do not
have Title Deeds.

It is my concern that if no adequate follow up compelled by CCM in

securing the referred title deeds, CCM may forfeit the right of land
owned in the event of a legal contest.

I, therefore, recommend to the CCM management to fast track the

process for mentioned title deeds secured timely.
12.2.7 Nugatory Expenditure for Compensation made on Illegal
Eviction of Tenant on the Sublet Premises by the Jumuiya
ya Wazazi (CCM); TZS 60,000,000
I reviewed the lease agreement signed in 1971 between the Registrar
of Building (NHC) and Jumuiya ya Wazazi (by then TAPA) on one of
the Houses located at Swahili Mkunguni Street, Kariakoo. In my
scrutiny, I noted that Jumuiya ya Wazazi sublet one of its space to
one of the Company following the authorization issued by the Ilala
NHC Branch Manager in June 2014. On 03rd February 2016, Jumuiya
ya Wazazi issued the eviction notice to the mentioned Company to be

CG - Annual General Report 2018 / 19 253

effective from 01st May 2016. Through this notice, the said Company
brought complaints to NHC.

I further realized that NHC notified the Jumuiya ya Wazazi that the
acted sublet and eviction were both illegal, and the named Company
was directed to pay rent to NHC. Despite the fact that NHC cautioned
the Jumuiya ya Wazazi not to expel the referred Company. It further
came to my attention that Jumuiya ya Wazazi unlawful exiled the
named company. As a consequence, the discussed Company intended
to file a claim loss of TZS 800,000,000 to the court. However, Jumuiya
ya Wazazi outlaid TZS 60,000,000 as loss compensation following an
amicable agreement, and the matter was then settled.

It is my opinion that the amount of TZS 60,000,000 paid as a loss

compensation is worthless, as no benefits realized by the Jumuiya ya
Wazazi from the payments effected.

In respect to this matter, I recommend that the Jumuiya ya Wazazi

(CCM) complies with terms and conditions for contracts entered to
restrain the loss of funds due to compensation.

12.2.8 Inactive Involvement of CCM in the Jointly Owned Medical

Care Company
In my audit, I noted the Dar es Salaam Regional Executive Committee
of CCM (SUKIDAR)33 signed the contract and one of the Korean
Company in 1991 and established a Company for Medical Care. The
Company was incorporated in April 1992. Based on the Articles of
Agreement, it was agreed that the Board of Directors of the formed
Company would have six (6) members, where three (3) directors
would be from SUKIDAR (CCM), and the other three (3) members will
come from the Korean Company. In my review, I learned that the
Board of Directors of the registered Company had no even a single

33
SUKIDAR ( Shirika la Uchumi na Kilimo la Dar es Salaam)

CG - Annual General Report 2018 / 19 254

Director from SUKIDAR (CCM). As such, the management and
operations of the formed Company were wholly vested to the Korean
Company (Shareholder) in contrast to the terms of the agreement.

I further noted that Article 23.3 of the signed agreement declared the
share of profit will base on the number of shares invested after
reserving 10 percent of the profit earned, and I became aware that
CCM received TZS 92,950,000 and USD 7,500 as dividends from 1993
to 2018 from the funded Company. However, I was confined to
ascertain the completeness and correctness of the dividends received
since the financial statements of the owned Company available at
CCM were from the financial year 2012 to 2014 only.

I am concerned with the ineffective management of the investments

owned by CCM, and I am of the view that the dividends received may
not be appropriate, as the basis for the determination was not evident
during my audit.

In this regard, I recommend the active participation in all investments

made by CCM, and there is a need for all contracts be reviewed to
sustain the current business environment.

12.2.9 Established Joint Venture Projects not implemented by CCM

Further, in my audit of CCM documents, I revealed a Joint venture
agreement with one of the Company for the Construction of Inland
Container Depot (ICD), ten (10), and four (4) storey buildings in
different plots owned by CCM in Dar es Salaam in July 2015. Based on
the agreed terms, the construction was scheduled to complete within
three (3) years, and the named Company would entirely finance the
project to an estimated cost of TZS 17,958,565,557.96.

It also came to my attention that the share of interest was reckoned

at 30 percent to CCM and 70 percent to the said Company. In addition
to the agreed terms, I also realized that the monthly rent of TZS

CG - Annual General Report 2018 / 19 255

5,000,000 was to be paid to CCM Temeke by the mentioned Company.
However, during my review in January 2020, there was no
construction which was ongoing on plots offered by CCM for joint
venture, and the said Company did not pay the total monthly rent of
TZS 80,000,000 from March 2018 to June 2019, as assented in the said
arrangement.

I am concerned with the delays in executing the agreed projects

through the signed joint venture agreement, which postponed the
considerable share of profit to CCM.

In light of this, I recommend that the CCM management revises the

joint venture agreement signed to flourish with the new investment
requirements currently practiced by CCM.

12.2.10 Expenditure Outside the Approved Budget by the

CHADEMA Governing Council TZS 205,419,100
In my audit, I noticed CHADEMA expended a total of TZS 205,419,100
for completing various Party’s Political activities. However, I learned
that an amount of TZS 205,419,100 spent was not in the budget,
which was approved by the Governing Council, contrary to the
requirement of Section 2.9.4 of the CHADEMA Policies and Procedures
Manual ( 2019 edition).

I am concerned with a lapse of financial internal controls system at

CHADEMA Party, as the amount which was not budgeted by the
Governing Council may be paid for the activities not related to the
Political Party’s activities.

In this matter, I recommend to the CHADEMA management to follow

the approved Budget by the Governing Council during the
implementation of the Party’s activities.

12.2.11 Expenditure not Adequately Supported; TZS 2,132,906,798

CG - Annual General Report 2018 / 19 256

During my audit of other eleven (11) Political Parties under listed; I
noted a total of TZS 2,132,906,798 which was expended by eleven
(11)34 Political Parties in implementing various Political Parties
activities. However, I learned that the payments made were not
supported with sufficient records to evidence the carrying out of the
referred activities. Details of the Political Parties are shown in the
table below:

Table 86: List of Political Parties with Unsupported Expenditure

S/N Name of Political Party Amount (TZS)
1 NCCR Mageuzi 1,190,250
2 United Democratic Party (UDP) 31,555,000
3 Civic United Front (CUF)- 2016/17 708,917,000
4 Civic United Front (CUF)- 2017/18 628,297,500
5 Civic United Front (CUF)- 2015/16 702,800,000
6 CHADEMA 13,572,750
7 United People's Democratic Party (UPDP) 3,838,000
8 Alliance for Africa Farmer's Party (AAFP) 4,120,000
9 ACT Wazalendo 8,536,500
10 ADC (2017/18 to 2018/19) 20,110,000
11 Union for Multiparty Democracy (UMD) 1,035,000
12 Chama cha Kijamii (CCK) 2,395,000
13 Chama cha Sauti ya Umma (SAU) 6,539,798
TOTAL 2,132,906,798
Source: Financial Statements
I am concerned with weak internal controls prevailed at the named
Political Parties, and it is my opinion that payments spent without the
attachment of the vital records may be diverted to finance the
activities not related to the Political Party’s activities.

In this matter, I recommend the internal controls of the mentioned

Political Parties to be enhanced for safeguarding the members and
Parties resources.

34
NCCR Mageuzi, CUF, ACT Wazalendo, UDP, UPDP, CHADEMA, AAFP, ADC, UMD,
SAU, and CCK

CG - Annual General Report 2018 / 19 257

12.2.12 Revenue Collected by Ten (10) Political Parties Not
Banked; TZS 534,844,248
Section 15 (1) of the Political Parties Act CAP 258 (as revised in 2019)
instructs every registered Political Party, through its Trustees, to
maintain a bank account, in which all the money received by the Party
shall be deposited. In my audit, I noted a total of TZS 534,844,248
was collected by nine (9) Political Parties. However, the fund secured
were not deposited in bank accounts operated by the referred
Political Parties, in contrast to Section 15 (1) of the Political Parties
Act CAP 258 (as revised in 2019). Details are shown in the table
below;

Table 87: Revenue from Political Parties not banked

S/N Name of Political Party Amount ( TZS)
1 NCCR Mageuzi 2,196,000
2 Democratic Party (DP) 2,161,022
3 NRA 5,000,000
4 Chama cha Sauti ya Umma (SAU) 641,000
5 CUF)- 2018/2019 476,736,526
6 UPDP 2,338,000
7 ADA-TADEA 6,406,700
8 ADC- (2017/18 to 2018/19) 14,250,000
9 Chama cha Kijamii (CCK) 25,115,000
TOTAL 534,844,248
Source: Financial Statement

It is my view that the revenue collected and not banked may be

misappropriated or diverted to finance activities not related to
Political Party’s activities.

In light of the above, I recommend to the management of Political

Parties mentioned above that the revenue obtained should be
receipted and banked, as stated in the Political Parties Act CAP 258
(as revised in 2019).

CG - Annual General Report 2018 / 19 258

12.2.13 Financial Statements of the Nine (9) Political Parties were
Prepared without Following the Applicable Financial
Reporting Framework
Financial Reporting Framework is a set of criteria used to determine
measurement, recognition, presentation, and disclosure of all
material items appearing in the financial statements prepared. In my
audit, I reviewed the financial statements submitted by nine (9)
Political Parties for audit purposes. However, I realized that the
financial statements presented were prepared without stating clearly
the applicable financial reporting framework used in its preparation.
List of Political Parties involved are as shown in the table below;

Table 88: List of Political Parties prepared Financial Statements without

Stating Applicable Financial Reporting Framework
S/N Name of Political Party
1 Democratic Party (DP)
2 National League for Democracy (NLD)
3 National Reconstruction Alliance Party (NRA)
4 Chama cha Sauti ya Umma (SAU)
5 United People's Democratic Party (UPDP)
6 Alliance for Africa Farmer's Party (AAFP)
7 African Democratic Alliance (ADA-TADEA)
8 Chama cha Ukombozi wa Umma ( CHAUMMA)
9 Union for Multiparty Democracy ( UMD)
Source: Financial Statement submitted to CAG for audit purposes

In this aspect, I am concerned with neglect by the stated Political

Parties in preparing the financial statements which are not in lined
with the IPSAS framework published by the Registrar of the Political
Parties. Due to these limitations, I was confined to issue the
appropriate audit opinion on the presented financial statements by
the mentioned Political Parties.

CG - Annual General Report 2018 / 19 259

In respect to this matter, I recommend that the indicated Political
Parties to prepare financial statements using the IPSAS framework
and harmonize the uniformity and comparability of the financial
statements produced by the Political Parties.

12.2.14 Four (4) Political Parties did not Maintain Updated

Membership Registers
Section 8(C) of the Political Parties Act CAP 258 (revised 2019)
necessitates all registered Political Parties to update the register
regularly by including the list of the members and leaders at each
administrative level.

I reviewed the membership registers of the four (4) Political Parties,

and I revealed that the membership registers retained by the referred
Political Parties were not updated in contrast to Section 8(C) of the
Political Parties Act CAP 258 (revised 2019). List of the Political
Parties is tabulated in the table below:

Table 89: List of Political Parties without Updated Membership

Register
S/N Name of Political Party
1 Tanzania Labour Party (TLP) (2018/2019)
2 Alliance for Change and Transparency ( ACT Wazalendo)
3 United People's Democratic Party (UPDP)
4 Chama cha Ukombozi wa Umma (CHAUMMA)
Source: Financial Statement

It is my view that no profound measures embraced by the mentioned

Political Parties in updating the member's register. As a consequence,
I was confined to establish the legitimacy of the revenue received.

Considering the above, I recommend that the management of the

named Political Parties to update the members register and hence
acquit to the requirements of Section 8(C) Political Parties Act CAP
258 (revised 2019).

CG - Annual General Report 2018 / 19 260

12.2.15 Bank Reconciliation Statements were not Prepared by
Eight (8) Political Parties
In my audit, I also reviewed the Financial Regulations of the nineteen
(19) audited Political Parties and noted the requirements for the
preparation of the Bank Reconciliation Statements on the bank
accounts operated by the referred Political Parties. In my scrutiny, I
realized that eight (8)35 Political Parties out of the nineteen (19)
audited did not prepare the monthly bank reconciliations in contrast
to their Financial Regulations.

I am concerned with deficiencies in internal controls at the identified

Political Parties and risk of errors, fraud, and misappropriation of the
funds deposited if no reconciliation will be performed.

Regarding this matter, I recommend that the management of the

named Political Parties to reinforce internal controls and prepare the
monthly bank reconciliation statements to de-escalate the chances of
fraud or embezzlement of the member’s funds maintained at the
bank.

12.2.16 Assets Owned by Political Parties were Neither Maintained

in Register Nor Declared to the Political Parties Registrar
I reviewed the Financial Regulations of nineteen (19) audited Political
Parties and in my scrutiny, I realized that the Financial Regulations
demanded the referred Political Parties to prepare and maintain a
register, which would provide the list of all assets owned. However,
I learned that four (4)36 Political Parties did not retain the asset
register conversely to their stated Financial Regulations. On a similar
note, it came to my attention that assets listed in the UPDP register
were not in existence, as the UPDP management declined to indicate
the location of the assets inventoried. Further, I pointed out that DP,

35
NCCR Mageuzi, DP, NRA, UDP, CCM( Mtwara Region), CUF, AAFP, and ADA-TADEA
36
DP, NCCR Mageuzi, UDP, and CUF

CG - Annual General Report 2018 / 19 261

CCK and CHAUMMA did not declare the assets owned to the Registrar
of the Political Parties, as directed in Section 14(1) (b) (ii) of the
Political Parties Act CAP 258 ( as revised in 2019).

I am concerned with the unenforced asset controls revealed at the

Political Parties discussed, and I am of the view that the assets kept
may be dislocated, abused, or mistreated without management
attention.

Taking this into account, I recommend that the management of the

named Political Parties to develop the asset register, and the same
dispatched to the Registrar of the Political Parties, as stated in
Section 14(1) (b) (ii) of the Political Parties Act CAP 258 ( revised
2019).

12.3 Special Audits

My Office carries out the Special Audits in line with Section 29 of the
Public Audit Act, 2008 and Regulation 79(1) of the Public Audit
Regulations 2009. Special Audits are aimed to examine a specific area
of organization activities and are initiated following the request from
any individual or entity. The Terms of Reference are prepared by
those who requested the audit, and I may modify the Scope when I
consider necessary and with the intent to contain the expectations
from various Stakeholders, as entrusted in Regulation 80(2) of the
Public Audit Regulations 2009.

In this financial year 2018/19, I have conducted eight (8) Special

audits where seven (7) of them were carried out at the Public
Institutions, and one (1) was undertaken at the Private institution
(TGGA), which is the non-government organization. The audit at
TGGA was embarked following the request from Her Excellency Vice
President of the United Republic of Tanzania, who is the national
warden of the TGGA. I have presented the individual reports to all

CG - Annual General Report 2018 / 19 262

entities who requested the audits. The list of the Special Audits
undertaken are under listed in the table below:

Table 90: List of the Special Audits Conducted in the financial year
2018/19
S/N List of Special Audits
1. Special Audit on Contract No. AE/008/2015-2016/HQ/C/3 between
REA and SMEC International Pty Ltd and Contract No.
AE./008/2016-2017/HQ/G/9,10, and 11 between REA and Twenty-
Nine (29) Contractors on the Detailed Survey and Detailed Design
2. Special Audit on the Construction Projects (Ushirika Towers) owned
by the Tanzania Federation Cooperatives (TFC)
3. Special Audit on the Allegations Related to Fund Misappropriation
on the Fire and Rescue Force Welfare Fund at the Fire and Rescue
Force
4. Special Audit on the Issued Carrying on Temporary Assignment
(CTAs) to Visitors at Dar es Salaam Immigration Department,
Immigration Regional Office (Mtwara), and Julius Nyerere
International Airport (JNIA)
5. Special Audit on the Construction of Dormitory and Lecture Hall at
Olmotonyi Forestry Training Institute in Arusha
6. Special Audit on the Developed Joint Venture Project between
Tanzania Girl Guides Association (TGGA) and Jafferji Developers
Limited from 2010 to 2018
7. Special Audit on the Committed Expenditure of TZS 8,000,000 at
President’s Office Public Service Management and Good
Governance (POPSM) from 1st July 2019 to 4th November 2019
8. Special Audit at National Housing and Building Research Agency
(NHBRA) from 2010 to 2018
Source: Special audit reports

As far as I am concerned, I have underlined all key issues eventuated

during my audits as follows:

CG - Annual General Report 2018 / 19 263

12.3.1 Special Audit on Contract No. AE/008/2015-2016/HQ/C/3
between REA and SMEC International Pty Ltd and Contract No.
AE./008/2016-2017/HQ/G/9,10, and 11 between REA and
Twenty-Nine (29) Contractors on the Detailed Survey and Detailed
Design
I carried this Special audit following the request by PCCB through a
letter with reference No. PCCB/HQ/ENQ/66/2018/17 of 17th February
2019. The purpose of this audit was to discern the validity of
payments made to Twenty-Nine (29) Contractors and ascertain
payments made to SMEC INTERNATIONAL PTY LTD (Consulting
engineer) if were in line with terms and conditions of the signed
Contract. I was further required to determine the occasioned loss by
the REA on contracting the new Consulting Engineer (AF MERCADOS
EMI S.A) for similar consulting services, which were performed by the
former Consulting Engineer (SMEC INTERNATIONAL PTY LTD). My audit
was guided by the Terms of Reference released by the PCCB. In this
audit, I have noted the following fundamental issues:

12.3.1.1 REA Revoked the SMEC Consultancy Report in the

Tendering Process of Twenty-Nine (29) Contractors for
Power Distribution in REA Phase III (1st round ) and
occasioned the loss of TZS 1,083,301,547.62
th
On 20 October 2016, Rural Energy Agency (REA) signed the contract
No.AE/008/2015-2016/HQ/C/3 with SMEC International Pty Limited
for the Provision of Consultancy Services for Detailed Survey, Detailed
Design and Preparations of Bidding Documents for Constructions of
Medium Voltage (MV) Lines, Distribution to Sub-Stations, Low Voltage
and Connection of Customers in 7,893 villages in the Tanzania
Mainland at a contract sum of TZS 1,083,301,547.62 (VAT inclusive),
out of which a total of TZS 433,320,619.048 was paid by December
2019. The Consultancy report from SMEC International Pty Limited
was considered as a significant breakthrough for the entire process of
connecting electricity to all planned villages.

CG - Annual General Report 2018 / 19 264

That being said above, I noted that the contract duration was six (6)
months and anticipated to close in June 2017; however, the contract
was then amended and scheduled to complete on 22nd October 2018.
During my review, I further learned that on 17th January 2017, REA
and TANESCO utilized the desk information available at their disposal
and initiated the tendering of Twenty-Nine (29) Contractors, who
were employed to Construct the medium voltage lines, distribute low
voltage, and connect electricity to 3,559 villages out of 7,893 planned
in REA Phase III (1st round and 2nd round). The bidding process was
effectuated before tabling of the Consultancy Report for REA Phase
III (1st and 2nd round) by SMEC International Pty Limited on 21st June
2018.

It is my concern that the Consultancy Report from SMEC International

Pty Limited had a valuable contribution to REA in implementing its
objective. Since REA did not use the Consultancy Report prepared by
SMEC International Pty Limited in the engagement of Twenty-Nine
(29) Contractors for power distribution in 3,559 villages. In this
context, I consider the Consultancy Services of TZS 1,083,301,547.63
funded by REA and payable to SMEC International Pty Limited, did not
have value for money as the information delivered was not used for
intended objectives.

I, therefore, recommend the reasonable disciplinary measures

compelled against those involved in the occasioned loss of TZS
1,083,301,547.63 to Rural Energy Agency (REA).

12.3.1.2 Four (4) Contractors for Rural Power Distribution were

Paid TZS 335,707,277 Outside the Agreed Scope of Work
in the Original Contract and Before the Revised
Addendum
I noted that REA concluded contracts with Twenty-Nine (29)
Contractors for the Power distribution in 3,559 villages for REA Phase
III (1st round). Through my review, I figured out that the contract sum

CG - Annual General Report 2018 / 19 265

for the detailed design and detailed survey was TZS 8,757,543,768.78
(VAT inclusive) on the original contract. However, I noticed the
variations, which extended the Contract Sum to TZS
14,025,825,502.88. By December 2019, I spotted out that a total
number of TZS 6,356,849,905 (VAT inclusive) was effected to fifteen
(15) Contractors, out of Twenty Nine (29) who lodged the claims.
Further, my scrutiny to the payments made had identified four (4)
Contractors37, who were paid TZS 335,707,277 outside the agreed
scope in the original contract and before signing the new addendum
that had embraced the allowed variations.

It is my view that the payments for works different from the reached
agreements may suggest the acts of corruption, fraud, and abuse of
power by the REA (Rural Energy Agency) management.
In this respect, I recommend the management of REA (Rural Energy
Agency) all the time to implement payments in conformity with the
terms and conditions, as capitulated in the contracts.

12.3.2 Special Audit on the Construction Projects (Ushirika

Towers) Owned by the Tanzania Federation Cooperatives
( TFC)
The Acting Registrar of the Tanzania Federation of Cooperatives (TFC)
enlisted my Office through a letter with reference CFA.64/373/02/99
of 18th January 2018 to carry out this Special Audit. I conducted this
audit based on the Terms of Reference provided by TFC. The
objective of this audit was to confirm and establish the fact of the
matter on various claims that relates to Project contracts entered,
loans received and their repayments in the construction of the
Ushirika Towers. Further, I was inquired to establish the
implementations of the developed Properties (Ushirika Towers) as

37
Nipo Group LTD – Mwanza ( TZS 148,090,000) , A2Z Infra Engineering
LTD ( TZS 126,076,147), Derm Electrics ( T) LTD –Mara ( TZS 25,541,100)
and Derm Electrics ( T) LTD – Tanga ( TZS 36,000,030)

CG - Annual General Report 2018 / 19 266

outlined in the provided Terms of Reference. My audit has noted the
following irregularities:

12.3.2.1 Deficiencies in Project design have Led to the Additional Costs

for Automatic Fire Sprinklers- TZS 999,517,100
During my audit, I noted that the TFC did not install the automatic
fire sprinklers, as required by Section 22 (2) of the Fire and Rescue
Act 2007. This section requires every building which has a storey the
floor of which is more than twenty-four meters above the level of the
street or ground surface shall be provided in every room, office, and
hall with automatic fire sprinklers. On 30th April 2013, the Fire and
Rescue Force had inspected the new building (Ushirika Tower) with
Twenty (20) storeys , and more than Twenty- Four (24) meters above
the level of the ground surface.

Based on this inspection, TFC contracted Dabenco Enterprises Limited

on 28th December 2013 to set up an automatic fire sprinklers system,
at a contract price of TZS 999,517,100 and the installation was
expected to complete within two (2) weeks from the date of the
contract.
However, I noted that Dabenco Enterprises Limited had sub-
contracted the installation works to Lussavara Company Limited, and
the works were yet to complete by the time of my audit in September
2019, despite a total of TZS 905,024,562.05 being effected by TFC for
the installation works.

I am deeply concerned with the inadequate review of Architectural,

Structural, Bills of Quantities, and new building permits for twenty
(20) Storeys by the Project Consulting Engineer (ConsAfrica Limited)
that led to the omission of a critical project element. I, therefore,
viewed the consulting fee of TZS 177,500,000 paid to ConsAfrica
Limited on 30th April 2010, as the misuse of the TFC member’s fund.

CG - Annual General Report 2018 / 19 267

In the light of the facts mentioned above, I recommend that the
management of TFC to forward the matter of professional negligence
induced by ConsAfrica Limited to Architects and Quantity Surveyors
Registration Board (AQRB) for the appropriate professional charges.

12.3.2.2 Certification of Works for Payments by Consulting Engineer

(Consafrica Limited) was based on the Bills of Quantities (BOQ)
without Measuring the Actual Work Performed- TZS
4,001,851,250
In my audit, I noted that the Project Consulting Engineer (Consafrica
Limited) approved works valued TZS 22,582,944,452.41, as being
executed by the China Civil Engineering and Construction Corporation
(CCECC). However, through my verification of the actual works done,
I realized that works valued TZS 18,581,093,206.44 were only
completed, out of the works valued TZS 22,582,944,452.41 approved
for payment.

I scrutinized several Interim Payment Certificates and Bills of

Quantities to gather evidence regarding the facts. I became aware
that the Consafrica Limited endorsed Interim Payment Certificates
(IPCs) for payment based on the items listed on the Bills of Quantities
(BOQ) but not according to actual work accomplished by the China
Civil Engineering and Construction Corporation (CCECC).

On the basis of the facts mentioned above, I am of the view that the
payments of TZS 4,001,851,250 made to China Civil Engineering and
Construction Corporation (CCECC) were invalid. As, they contradicted
to the Condition No. 44 of the General Condition of Contracts (GCC),
which instructed the payments to the Contractor based on the actual
work done and not according to the itemized lists in the schedule of
requirements.

Considering the circumstances mentioned, I recommend that the

appropriate professional charges contemplated against Consafrica
Limited for professional negligence caused, in the course of approving

CG - Annual General Report 2018 / 19 268

the invalid payments to China Civil Engineering and Construction
Corporation (CCECC) for works not performed and I further
recommend the refund of TZS 4,001,851,250 by China Civil
Engineering and Construction Corporation (CCECC).

12.3.2.3 Works not Executed Despite Approved for Payments by

the Consulting Engineer -TZS 582,864,029
I reviewed the Interim Payment Certificates (IPCs) and evaluated the
works performed on the constructed and refurbished Ushirika Tower
buildings. My review underlined the IPC No. 13 of 12th September
2014, which ratified works valued TZS 17,057,275,935.85. Of the
approved works, I grasped the works valued TZS 582,864,029 which
were affirmed by the Consulting Engineer ( Cons Africa Limited), as
completed by China Civil Engineering and Construction Corporation
(CCECC). However, through my verification, I pointed out that the
said works were not executed, despite being approved by the
Consulting Engineer (Cons Africa Limited) for payments.
The approval of works that were not performed denoted the deeds of
professional negligence conjured by the Consulting Engineer (Cons
Africa Limited). As a consequence, the TFC member’s fund amounting
to TZS 582,864,029 were defalcated by China Civil Engineering and
Construction Corporation (CCECC) owing to neglect by the Consulting
Engineers (Cons Africa Limited).

In this regard, I recommend the China Civil Engineering and

Construction Corporation (CCECC) to refund the amount of TZS
582,864,029 paid for works not executed. Also, the prudent
professional measures may be considered against Consulting Engineer
(Cons Africa Limited) by Architects and Quantity Surveyors
Registration Board (AQRB) for professional negligence caused.

CG - Annual General Report 2018 / 19 269

12.3.2.4 Rental Agreement Between TFC and CRDB Bank at
Ushirika Tower was Signed without the involvement of
Cooperatives Societies Registrar as Required by
Cooperatives Societies Rules, 2004 and Withholding taxes
of TZS 288,162,453.02 was not paid by CRDB Bank to TRA
th
On 26 September 2014, the CRDB Bank signed the rental agreement
with UTT-PID and TFC for renting two (2) floors on the old and new
building with a space total of 1,613 square meters at a rental price
of USD 4,529,304 for the period of forty (40) years, which started on
01st January 2015 and would end on 31st December 2054. This rental
agreement was signed without endorsement by the Registrar of the
Cooperatives Societies, as referred in Section 51(1) of the
Cooperatives Societies Rules, 2004. I also noted the withholding taxes
amounting to USD 316,105.01 equivalent to TZS 547,980,679.0538
withheld by CRDB Bank; however, the CRDB Bank had paid only TZS
259,818,226.01 to TRA, out of TZS 547,980,679.05 retained, and TZS
288,162,453.02 was not paid by CRDB Bank by the time of my audit in
January 2020.

It also came to my attention that the signed rental agreement was

not registered to the Registrar of land, as required by Section 8(1) (a)
and 8(2)(h) of the Registration of Documents Act R.E 2002, CAP 117.
Based on this Section, it is compulsory to register any document
evidencing the grant of a lease, or a right of occupancy, for a term of
five years or less or from year to year or for periods of less than a
year, whether or not the grant includes the initial fixed term.

It is my view that the omission by the CRDB Bank to register the lease
agreement to the Registrar of land may prompt the loss of the right
of occupancy in the event of a legal contest. Also, I am in a position
that the Government has sustained the loss of TZS 288,162,453.02

38
USD 1= TZS 1,733.54 of 6 February, 2015

CG - Annual General Report 2018 / 19 270

owing to the neglect by CRDB Bank to pay the withholding taxes
retained.

In view of the above, I recommend that the management of CRDB

Bank to pay the withholding taxes of TZS 288,162,453.02 retained to
the Tanzania Revenue Authority (TRA).

12.3.3 Special Audit on the Allegations Related to Fund

Misappropriation on the Fire and Rescue Force Welfare
Fund at the Fire and Rescue Force
I was assigned by the Permanent Secretary Ministry of Home Affairs
through a letter with reference No. CAC.165/182/01/55 of 23rd
October 2019 to perform the Special audit on the Fire and Rescue
Welfare Fund following the allegations on the misappropriation of TZS
122,700,000. These accusations were rooted from the funds received
by Fire and Rescue Force from various owners of the facility to carry
out the training on fire precaution and management in compliance
with the Fire and Rescue Force (Safety Inspections and Certificates)
Regulations, 2008. My audit was designed in such a way that I would
identify and establish the funds misappropriated based on the Terms
of Reference submitted by the Permanent Secretary Ministry of Home
Affairs. Through my audit, I noted the following material issues.
12.3.3.1 Fire Training Funds Provided by NMB Bank was
Defrauded by Fire Officials – TZS 66,000,000
th
On 28 January 2019, the National Microfinance Bank (NMB)
deposited TZS 73,000,000 into the Fire and Rescue Force Welfare
Fund Bank Account No. 0150211312700 with the intent of conducting
fire training to NMB staffs in Southern, Northern, Eastern, Coastal,
Southern Highlands, Lake and Western Zones. Of the funds banked, a
total of TZS 66,000,000 was authorized by the Deputy Commissioner
for the mentioned activity, out of which a total of TZS 59,000,000
was aimed at purchasing fire training equipment, while TZS 7,000,000
was allotted for issuing Fire Training Certificates.

CG - Annual General Report 2018 / 19 271

I reviewed several records to gather the facts that the remarked
training was implemented. In my review, I noted that TZS 66,000,000
was released from the welfare Bank account and cashed out to Fire
Regional Accountant (Ilala) to purchase the fire equipment. However,
I realized that no fire equipment was purchased. Alternatively, I
found the forged fiscal receipts valued TZS 66,000,000 from one of
the Supplier’s claimed to deliver the reported fire equipment. I
interviewed the Officer from NMB Bank and confirmed that the
intended training was carried out in Southern and Northern zones,
and the fire equipment used were those granted by NMB Bank.

I am firmly concerned with the scene of conspiracy implicated by the

Fire and Rescue Force Chief Accountant and Regional Accountant
(Ilala). Their acts have swindled TZS 66,000,000 received from NMB
Bank for fire awareness training and resulted in the tremendous loss
in the Fire and Rescue Force welfare fund.

In this context, I recommend legal and disciplinary proceedings

administered against Fire and Rescue Officials who were involved.

12.3.3.2 Welfare Funds were Misappropriated by Fire and Rescue

Officials Based on the Pretense that Clients have
Deposited the Training Funds into the Welfare Bank
Account in Facts no Fund Banked - TZS 14,200,000
In my review, I learned that Fire and Rescue Officials had withdrawn
TZS 14,200,000 from Welfare Fund purported that the funds were
deposited by Three (3)39 clients for Fire Prevention and Precaution
Training. I reviewed the Welfare Fund Bank Account to attest the
amount banked; however, I became aware that no deposits by the
named clients were effected into the welfare fund bank account.
Alternatively, I found that one of the clients had Cash-in the Cheques,
which was then rejected by the Bank on the ground of endorsement

39
EM Truck ( TZS 4,000,000) , RAJ Investment ( TZS 5,000,000) and Room
to Read ( TZS 5,200,000

CG - Annual General Report 2018 / 19 272

irregularity. The Fire and Rescue officials have deliberately deceived
their employer and embezzled a total of TZS 14,200,000.

It is my opinion that the Fire and Rescue Force Commissioner for

Finance and Administration, Chief Accountant, and Regional
Accountant (Ilala) have plotted this scheme and defrauded TZS
14,200,000 from Fire and Rescue Force Welfare Fund and impaired its
going concern.

Based on the above deceptions, I recommend the legal and

disciplinary measures instituted against all officials who have
intentionally implicated the welfare fund.

12.3.4 Special Audit on the Issued Carrying on Temporary

Assignment (CTAs) to Visitors at Dar es Salaam Immigration
Department, Immigration Regional Office (Mtwara), and
Julius Nyerere International Airport (JNIA)
I executed this Special audit following the request from PCCB through
a letter with reference No. PCCB/HQ/ENQ/23/2015/OP3/85 of 26th
October 2018. I carried this audit such that I would draw inference
on various allegations related to the issuance of CTA’s Permit to
visitors who were involved in the construction of Dangote Cement
Factory in 2013 and 2014 at Dar es Salaam Immigration Department,
Immigration Regional Office (Mtwara), and Julius Nyerere
International Airport (JNIA). I was also inquired to determine if the
issued CTA’s had followed the procedures stipulated in Reg. 13(1) of
the Immigration Regulations of 1997 and further establish the loss
occasioned by the Government. In my audit I noted the following
material issues:

CG - Annual General Report 2018 / 19 273

12.3.4.1 Loss Sustained by the Government due to Issuance of
Illegal CTA’s Permits, and Unapplied Special Pass and
Resident Permits – USD 1,732,450
The Carrying on Temporary Assignments (CTA’s) were the passes
issued to any prospective visitor who wishes to enter the United
Republic of Tanzania for any temporary assignments not exceeding
ninety (90) days, as stated in Reg. 13(1) of the Immigration
Regulations 1997.

During my audit, I noticed that 1,663 CTA’s permits were issued to

725 visitors at the Immigration Department Headquarters, Mtwara
Regional Immigration Office, and Julius Nyerere International Airport
(JNIA). However, I learned that out of the 1,663 CTA’s Permits
released, a total of 414 were legally issued to 397 visitors. In contrast,
the remaining 1,249 were illegally issued to 328 visitors, as there
were no records at the Immigration Department to ratify their
validity. Further, I realized that the referred illegal permits were
issued to the visitors who arrived in the United Republic of Tanzania
for the first time, and were involved in the construction of Dangote
Cement Factory in 2013 and 2014. Due to these illegal permits, the
Government had experienced a loss of USD 65,600.

It also came to my attention that 921 CTA’s permits for renewal of

488 visitors at Dangote Cement Company were illegally renewed, as
there were no records available at the Immigration Department to
consent their legitimacy. On top of that, I learned that 629 visitors at
Dangote Cement Company had never applied for the Special Pass
contrary to the requirements of Reg. 12(1) (b) of the Immigration
Regulations of 2002; as a result, the Government occasioned the loss
of USD 377,400. Along with this, I also noted 629 visitors did not
submit a request for Resident Permit, as referred in Section 18(2) of
the Immigration Act 1995; as a consequence, the revenue of USD
1,289,450 was not received by the Government.

CG - Annual General Report 2018 / 19 274

Further, I learned that one of the Immigration Officer at Mtwara
Immigration Office was involved in processing the illegal CTA’s
permits to Dangote Cement Company. My review of records at
Dangote Cement Company Limited revealed cash of USD 261,600, and
TZS 2,000,000 were paid to the named Immigration Officer. However,
such monies collected were not surrendered as well as deposited in
the Immigration Department Bank accounts. I interviewed the
mentioned Immigration Officer, and he confirmed to commit these
scams with nine (9) other Immigration Officers at the Mtwara Regional
Immigration Office and one of the officers at Dangote Cement
Company.

I am concerned with the lack of integrity by Mtwara Regional

Immigration Officers through a fraud syndicate twisted, and that
implicated the loss of taxpayer’s fund of USD 1,732,450.

Concerning this matter, I recommend the legal and disciplinary

proceedings carried out to all Immigration Officers who were
involved, and the Dangote Cement Company should recover the loss
of USD 1,666,850 for the unapplied Special Pass and Resident Permits.

12.3.5 Special Audit on the Construction of Dormitory and Lecture

Hall at Olmotonyi Forestry Training Institute in Arusha
I received a letter with reference No. PCCB/8/3/Vol. LXXII/89 of 4th
September 2019 from PCCB that inquired my Office to undertake this
Special audit. This audit was steered by the Terms of Reference
submitted by PCCB and to contain the audit objective. I formulated
the appropriate audit procedures that aimed to establish the cost
incurred during the construction and assess if the value for money
was attained on the constructed buildings by the Olmotonyi Forestry
Training Institute in Arusha. My audit noted the following issues:

CG - Annual General Report 2018 / 19 275

12.3.5.1 Payments to the Contractor were Made Without
Measuring Actual Works Carried Out – TZS 1,903,974,600
th
On 25 October 2012, the Government of the United Republic of
Tanzania signed a Project Agreement with the Norwegian
Government for the implementation of the Project related to
“Empowering Communities through Training on Participatory Forest
Management, REDD+ and climate change initiatives” at Olmotonyi
Forestry Training Institute. The Norwegian Government agreed to
release Kr. 40,000,000 equivalent to TZS 10,907,596,000 of which TZS
1,800,704,600 was related to the construction of one storey
dormitory to accommodate 200 students and one lecture hall.
Between 07th March 2013 and 23rd June 2019, a total of Kr.37,338,
467 equivalent to TZS 9,443,063,403.84 was received by the
Olmotonyi Forestry Training Institute, which included the funds for
the construction of the mentioned buildings.

However, I learned that the Olmotonyi Forestry Institute prepared the

Bills of Quantities (BOQ) and engaged the United Builders for the
construction of the referred buildings at a contract sum of TZS
2,840,013,090. At the same time, the funds committed by the
Norwegian Government was TZS 1,800,704,600. Due to these
limitations, I noticed that the scope of works was renegotiated, and
parts of works were rescheduled to arrive at the contract sum of TZS
1,800,704,600, which would align with the amount of funds pledged
by the Donor and the contract was then finalized on 04th July 2016.

Due to the value of the planned works revised, the original work scope
was entirely reduced by 36.6 percent, and the agreed amount was
redistributed in the ratio 52:48, where 52 percent of works were
downsized in the construction of the dormitory to accommodate 100
students instead of 200 students as originally planned. In comparison,
the remained 48 percent was allocated in the lecture hall. However,
the ground for this proportion was not evidenced during my audit,

CG - Annual General Report 2018 / 19 276

despite the fact that the construction of the dormitory room to
accommodate 100 students was completed.

My review also revealed that the Consulting Engineer Kapwani

Architects was approving the payments to the Contractor (United
Builders) based on 52% of the BOQ value agreed without measuring
the actual works completed, and there were no measurement sheets
maintained. Besides this, I also noted that the Olmotonyi Forestry
Institute had effected a total of TZS 1,903,974,600 to the Contractor
(United Builders), which included all the approved variations of TZS
103,270,000 which were above the contract price. However, it came
to my attention that of the payments made to the Contractor, the
works value of TZS 11,697,900 were not executed by the Contractor.

It is my opinion that the approval of TZS 1,903,974,600 made by the

Consulting Engineer Kapwani Architects without measuring the actual
works executed has resulted in the value for money on the
constructed buildings not attained.

I am concerned with the unclear ratio of 52:48 used in the sub-division

of the BOQ value, as the basis was not evident during my audit.
Alongside this, I also take the view that the Consulting Engineer did
not adequately supervise the works executed by the Contractor; as a
result, a total of TZS 11,697,900 was effected to the mentioned
Contractor for works not completed.

In this regard, I recommend the Contractor (United Builders) to

refund a total of TZS 11,697,900 for the works not executed. Along
with this, I also recommend the Architects and Quantity Surveyors
Registration Board (AQRB) to consider the appropriate professional
charges to the Consulting Engineer Kapwani Architects for not acting
professionally in advising the Olmotonyi Forestry Training Institute
during the subdivision of construction works in a ratio of 52:48 and

CG - Annual General Report 2018 / 19 277

for not approving payments of TZS 1,903,974,600 based on actual
works performed.

12.3.6 Special Audit on the Developed Joint Venture Project

Between Tanzania Girl Guides Association ( TGGA) and
Jafferji Developers Limited From 2010 to 2018
The Tanzania Girl Guides Association (TGGA) is a non-governmental
and voluntary association dedicated to the advancement of girls and
young women both socially and economically. Her Excellency Vice
President of the United Republic of Tanzania, she is the national
warden of the TGGA. Therefore, I initiated this Special Audit
following the demand from Her Excellency Vice President of the
United Republic of Tanzania through a letter with reference No.
SH/VP/CAB.14/275/01 of 09th April 2019.The purpose of this audit
was to gather facts related to joint interests in the developed Three
(3) Towers Commercial and Residential Complex Buildings through the
joint venture agreement between TGGA and Jafferji Developers
Limited. My audit procedures were designed to address the
requirements of the Terms of Reference, which were presented by
the TGGA. Through my audit, I noted the followings:

12.3.6.1 Weakness in the Management of Joint Venture Project by

TGGA
th
On 06 May 2010, the Registered Trustees of TGGA signed a Joint
Venture Agreement with Jafferji Developers Limited. Under this
arrangement, it was asserted that the TGGA would grant it's Land Plot
No. 1,088 situated in Kibasila, Upanga, Dar es Salaam to the Jafferji
Developers Limited. Where a Three (3) Towers Commercial and
Residential Complex Buildings will be developed, such an agreement
was then revised on 06th March 2012 to contain various provisions
deemed beneficial for both parties. However, there was no
concessional period agreed.

CG - Annual General Report 2018 / 19 278

In my review, I noted that the Land Plot provided by the TGGA for
the Joint Venture was not valued, despite the fact that Recital D of
the Joint Venture Agreement required the TGGA to conduct the
valuation of the Land Plot through Chief Government Valuer. I further
learned that the tentative Project Costs was not predetermined and
jointly agreed between TGGA and Jafferji Developers Limited before
signing the Joint venture Agreement. However, through my interview
with Director from Jafferji Developers Limited, it was revealed that
the construction costs for the developed buildings were TZS
27,582,982,162, although there were no records submitted to evident
the value declared.

Along with this, I also realized that the developed Property had no
Consulting Engineer, therefore the exercise for determining the
correctness of the cost estimates was shortened. My further review
of the original and revised joint venture agreements revealed that
the mutual interests of TGGA in the developed buildings are 26%,
while the Jafferji Developers Limited owns 74%. However, the
premise for distribution of the agreed shares was not evident during
my audit; as such, I was limited to establish fairness in the share
allocation. I interrogated the TGGA officials to corroborate the facts
related to the share allocation. However, it was clarified that the
agreed shares were those tendered by the Jafferji Developers Limited
during the submission of the Project Proposal, and there was no
negotiation made between the Parties.

I further learned that TGGA had received a total space of square

meters 1,555.17 instead of square meters 2,141.55 in the ground and
second floor in one of the towers contrary to the agreed share
allocation.

To supplement to the above, I also noted that TGGA engaged the

Mohammedi Builders as Property Manager on 01st July 2018; however,
it came to my attention that the Property Manager (Mohammedi

CG - Annual General Report 2018 / 19 279

Builders) did not surrender the rent amount of TZS 204,935,305
collected from February 2018 to June 2019. Along with this, I also
realized that the Mohammedi Builders (Project Manager) is the Sister
Company to the Jafferji Developers Limited. Therefore, I noticed a
significant conflict of interest in the management of the developed
Properties. Besides that, I also noted TZS 20,000,000 paid by Jafferji
Developers Limited as mobilization costs to TGGA was defrauded by
one of the Officers at TGGA.

Further to that, I realized that between May 2010 and May 2019, a
total of TZS 1,559,733,000 was effected by the Jafferji Developers
Limited to TGGA, as liquidated damage due to the delays in the
completion of the developed Properties, as agreed in the Joint
Venture Agreement. However, a total of TZS 72,180,000 was not
confirmed banked, as no records to evident the banking were
submitted for my review.

It is my view that the Registered Board of Trustees of TGGA had

lacked the bargaining skills during the evaluation of the Jafferji
Developers Limited Project Proposal. As a consequence, I noted no
material benefits delighted by the TGGA in the Joint Venture owned.

In this context, I recommend the Registered Board of Trustees of

TGGA to procure the new Property Manager to lessen the prevailed
conflict of interest in the management of Property. Along with this,
I also recommend the conduct of the valuation to establish the
Property value as well as the review of the Joint Venture Agreement
should be carried out to embrace the concessional period.

CG - Annual General Report 2018 / 19 280

12.3.7 Special Audit on the Committed Expenditure of
TZS 8,000,000 at President’s Office Public Service
Management and Good Governance (POPSM) from 1st July
2019 to 4th November 2019
The Permanent Secretary at the POPSM inquired my office through a
letter with Reference No. CCD.273/449/01/83 of 04th November 2019
to undertake this audit. My audit procedures were designed to
establish the facts that TZS 8,000,000, which was provided as
additional costs during the Special visits by the Deputy Minister
(POPSM) in the regions of Mwanza and Simiyu, was used to cover the
breakdown of the Deputy Minister Motor vehicle with registration No.
T 505 BNS at a sum of TZS 5,000,000, while the remained TZS
3,000,000 was effected to facilitate additional allowances to
Commissioners. At the same time, the Permanent Secretary at the
POPSM requested my office to review all the expenditure committed
from Other Charges (OC) from July 2019 to November 2019. My entire
audit was headed by the Terms of Reference circulated by the
Permanent Secretary at the POPSM. In my review, I noted the
following critical weakness.

12.3.7.1 Misuse of the Taxpayers Fund under the Pretense of the

Car breakdown and additional allowances TZS 5,380,000
I reviewed the internal files and payment vouchers at POPSM that
related to a Special visit by the Deputy Minister POPSM in Mwanza and
Simiyu. In his visit, the Deputy Minister was accompanied by
Commissioners from POPSM. However, my review revealed that on
04th October 2019, the Acting Head of Communication Unit had
written an internal memorandum that requested a sum of TZS
9,100,000 claimed to suffice the unanticipated costs emerged from a
breakdown of the Deputy Minister Motor vehicle with registration No.
T 505 BNS and additional allowances for the days added. The Acting
Permanent Secretary approved a total of TZS 8,000,000, where TZS
5,000,000 was allocated to sustain the breakdown. At the same time,

CG - Annual General Report 2018 / 19 281

the remained TZS 3,000,000 was allotted to cover per diem
allowances to the named Commissioners.

The whole amount was transferred directly to the Personal Bank

account of one of the Communication Officers at POPSM. I further
learned that the explained vehicle had no major faults rather an AC,
which was defected and repaired through special imprests maintained
by the driver. At the same time, I revealed the lack of formal requests
for the additional days by the Team. Besides that, I learned that an
amount of TZS 4,014,383 out of TZS 8,000,000 taken by the named
Officer was retired on 25th October 2019 while the remained balance
of TZS 3,985,617 was not retired. Further, I pointed out that of the
unretired amount, the named Officer refunded a total of TZS
2,620,000 on 25th October 2019, and the balance of TZS 1,365,617
was yet to be repaid during the time of my audit.

I am of the view that a total TZS 5,380,000 that was not refunded by
the named Officer was misused, as there were no official requests of
TZS 8,000,000 that was confirmed during my audit.

In this foregoing, I recommend the appropriate disciplinary measures

considered against the named Officer, and a total of TZS 5,380,000
misused should be refunded.

12.3.7.2 Irregularities on the Amount Spent during the Special

Visits by the Deputy Minister in Mwanza and Simiyu;
TZS 43,856,000
I also reviewed the spending of TZS 43,856,000 for the Special visit of
Deputy Minister in Mwanza and Simiyu. In my scrutiny, I noted fuels
purchased worth TZS 4,048,000 for four (4) vehicles that were used
in the tour were not recorded in the logbooks. I further learned that
a total of TZS 4,300,000 was paid to one of the officers as imprests;
however, no retirement records were subjected for my review. Along
with this, I also noted TZS 1,000,000 was spent by one of the officers

CG - Annual General Report 2018 / 19 282

for purchasing leaflets to be used during the visits. However, I
established that no leaflets were purchased by the referred officer.
Further to that, I noted a total of TZS 35,508,000, which was not
adequately supported; as such, I was constrained to corroborate the
facts that the amount was used in the listed activities.

It is my concern that funds used during the Special Visits by the

Deputy Minister in Mwanza, and Simiyu was inappropriately used.

In this context, I recommend the internal controls at the POPSM

improved. Along with this, I also recommend disciplinary measures
be administered to four (4) drivers for the gaps in managing fuels,
and the named officer should refund a total TZS 1,000,000 for
leaflets not purchased.

12.3.7.3 Deficiencies Highlighted in the Payments Made Out of

Other Charges (OC) Funds from July 2019 to November
2019
Further, I scrutinized the Other Charges (OC) released to the POPSM
from Treasury and noted a total of TZS 933,328,000 was received by
PSPOM from 01st July 2019 to 04th November 2019. In my review, I
noted payments worth TZS 168,324,628 were effected without the
authority of the Chief Accountant. Besides this, I also realized
imprests totalling TZS 5,686,900 issued to one of the Officer was not
retired by the time of my audit. Moreover, I realized that four (4)
vehicles were repaired in the private garages without approval from
TEMESA contrast to Reg. 137 (2) of the Public Procurement Act 2013.
In the last instance, I noted TZS 4,300,000 was paid to Acting Chief
Accountant for the preparation of financial statements. The amount
paid included per diems, on transit allowance, and fuel to Dodoma;
however, there was no evidence presented during my audit confirmed
the attendance of the named accountant in the mentioned activity in
Dodoma.

CG - Annual General Report 2018 / 19 283

It is my view that internal controls at POPSM are weak. Therefore,
there is a risk of the taxpayer's fund being frequently defrauded.

In these circumstances, I recommend the overhaul of the systems of

internal controls at POPSM. Consistent with this, I also recommend
disciplinary measures imposed against the Acting Chief Accountant,
and the amount of TZS 4,300,000 swindled should be refunded.

12.3.8 Special Audit at National Housing and Building Research

Agency (NHBRA) from 2010 to 2018
My office conducted this audit following the request from the
Permanent Secretary Ministry of Land, Housing and Human
Settlements Development through a letter with CEA. 176/297/02/140
of 17th April 2018. The purpose of this audit was to gather the facts
that related to various allegations on the misappropriation of the
taxpayer’s fund through the expenditure committed by the Agency
from 2010/2011 to 2017/2018. I developed the audit procedures
aimed to address the Terms of Reference submitted by the Permanent
Secretary. In my audit, the following were spotted.

12.3.8.1 Irregularities Revealed in the Management of the NHBRA

Expenditure, Revenue, Procurement from 2010 to 2018
In my review, I noted the double payments of TZS 113,751,600 for
similar activities completed on the construction of one building in
Tarime and Morogoro.

In addition, I noticed TZS 16,990,300 was advanced to four (4)

employees for attending seminars and workshops in Uganda;
however, there were no records submitted to evident the
participation of the said training by the mentioned officers. Besides
this, I also noted payments worth TZS 3,552,069,844.03, which were
not examined by the pre-audit unit; as a consequence, I gathered that
the total payments of TZS 2,834,066,632.56, were executed without
the adequate supporting documents.

CG - Annual General Report 2018 / 19 284

Further to that, it came to my knowledge that five (5) buildings
costing TZS 418,999,895 were repaired following the directives from
the Permanent Secretary Ministry of Land, Housing and Human
Settlements Development. However, there were no contracts signed;
as a result, the correctness of the amount remunerated could not be
verified.

On the other hand, I revealed items worth TZS 318,672,014.62, which

were purchased by the NHBRA; however, there were no records in the
ledger books to confirm the receiving of the listed items. On top of
that, I noted that the acting allowances to the tune of TZS
141,308,918, were paid without the approval of the Permanent
Secretary POPSM contrary to Reg. D.19 (1) and L.16 of the Public
Service Standing Orders 2009.

Similarly, I spotted out payments amounting to TZS

1,308,660,394.98, were effected outside the approved budget
contrary to Reg. 46(3) of the Public Finance Act 2001 (as revised in
2004). Finally, I established five (5) land plots owned by the NHBRA,
which lacked title deeds and twelve (12) revenue collection books,
which were not submitted during my review.

It is my concern that the internal controls at NHBRA were weak. As a

consequence, there was misuse of the taxpayer’s fund and wastage
of the public resources.

In this regard, I recommend a thorough review of the internal

controls system at NHBRA. Along with this, I also recommend a
refund of TZS 16,990,300 by four (4) named employees who did not
attend training in Uganda. An investigation should be initiated on
the employees who misplaced the twelve (12) revenue books and
caused the NHBRA not to collect the earmarked revenue

CG - Annual General Report 2018 / 19 285

APPENDICES
Appendix 2. 1: List of audited entities issued with unqualified opinion
S/N Name Category 2018/19 2017/18 2016/17
1 Teachers Service Commission 2 Unqualified Qualified Unqualified
PO - Record and Archives Management Unqualified with
2 4 Unqualified Unqualified
Department Emphasis of Matters
Unqualified with
3 National Irrigation Commission 5 Unqualified Unqualified
Emphasis of Matters
Unqualified with
Unqualified with
4 Treasury Registrar 7 emphasis of Unqualified
Emphasis of Matters
matters
President's Office Public Service
5 9 Unqualified Unqualified Unqualified
Remuneration Board
6 Joint Financial Commission (JFC) 10 Unqualified Unqualified Unqualified
7 Judicial Service Commission 12 Unqualified Unqualified Unqualified
8 Financial Intelligence Unit 13 Unqualified Unqualified Unqualified
9 Commission for Mediation and Arbitration 15 Unqualified Unqualified Unqualified
10 Attorney General's Chambers 16 Unqualified Unqualified Unqualified
11 UNESCO Commission (Vote 18) 18 Unqualified Not Audited Not Audited
12 Office of Solicitor General 19 Unqualified Not existed Not existed
13 President's Office - State House 20 Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 286
S/N Name Category 2018/19 2017/18 2016/17
Unqualified with
14 Treasury Department 21 Unqualified Qualified
Emphasis of Matters
15 Public Debt and General Service Department 22 Unqualified Qualified Qualified
16 Accountant General's Department 23 Unqualified Unqualified Unqualified
Tanzania Cooperatives Development
17 24 Unqualified Unqualified Unqualified
Commission
18 Prime Minister's Private Office 25 Unqualified Unqualified Unqualified
19 Vice President - Private Office 26 Unqualified Unqualified Unqualified
20 Registrar of Political Parties 27 Unqualified Unqualified Unqualified
21 Police Force Department 28 Unqualified Unqualified Qualified
22 Prisons Service Department 29 Unqualified Unqualified Unqualified
23 President's Office - Cabinet Secretariat 30 Unqualified Unqualified Unqualified
24 Vice President's Office 31 Unqualified Unqualified Unqualified
President's Office Public Service
25 32 Unqualified Unqualified Unqualified
Management and Good Governance
26 President's Office Ethics Secretariat 33 Unqualified Unqualified Unqualified
Unqualified with
27 National Prosecution Services 35 emphasis of Unqualified Unqualified
matters
Unqualified with
28 Katavi Regional Secretariat 36 emphasis of Unqualified Unqualified
matters
29 Prime Minister’s Office 37 Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 287
S/N Name Category 2018/19 2017/18 2016/17
30 Tanzania Peoples Defense Forces (TPDF) 38 Unqualified Unqualified Unqualified
Unqualified with
31 National Service Force (JKT) 39 Unqualified Unqualified
emphasis of matters
Unqualified with
32 Judiciary of Tanzania 40 Unqualified Unqualified
Emphasis of Matters
33 National Assembly 42 Unqualified Unqualified Unqualified
Ministry of Agriculture, Livestock and
34 43 Unqualified Unqualified Unqualified
Fisheries
35 Ministry of Industry, Trade and Investments 44 Unqualified Unqualified Unqualified
Ministry of Education, Science, Technology
36 46 Unqualified Unqualified Unqualified
and Vocational Training
37 Simiyu Regional Secretariat 47 Unqualified Unqualified Unqualified
Ministry of Lands, Housing and Human
38 48 Unqualified Unqualified Qualified
Settlements Development
39 Ministry of Finance 50 Unqualified Unqualified Unqualified
40 Ministry of Home Affairs 51 Unqualified Unqualified Unqualified
Ministry of Health, Community Development, Unqualified with
41 52 Unqualified Unqualified
Gender Elders and Children Emphasis of Matters
Ministry of Health, Community Development,
42 53 Unqualified Unqualified Unqualified
Gender Elders and Children
Unqualified with
43 Njombe Regional Secretariat 54 Unqualified Unqualified
other matters
CG - Annual General Report 2018 / 19 288
S/N Name Category 2018/19 2017/18 2016/17
Commission for Human Rights and Good
44 55 Unqualified Unqualified Unqualified
Governance
PO - Regional Administration and Local
45 56 Unqualified Unqualified Unqualified
Government
Unqualified with Unqualified with
46 Ministry of Defence and National Service 57 Qualified
emphasis of matter Emphasis of Matters
47 Ministry of Energy & Minerals 58 Unqualified Unqualified Unqualified
48 Law Reform Commission of Tanzania 59 Unqualified Unqualified Unqualified
49 Ministry of Trade and Investiments 60 Unqualified Unqualified Not existed
50 National Electoral Commission (NEC) 61 Unqualified Unqualified Unqualified
Ministry of Works, Transport and Unqualified with
51 62 Unqualified Unqualified
Communication- Transport emphasis of matters
52 Geita Regional Secretariat 63 Unqualified Unqualified Qualified
Ministry of Livestock and Fisheries (Fisheries
53 64 Unqualified Unqualified Not existed
Sector)
Prime Minister's Office - Labour, Youth,
54 65 Unqualified Unqualified Unqualified
Employment and Persons with Disability
President's Office Public Service Recruitment
55 67 Unqualified Unqualified Unqualified
Secretariat
Unqualified with Unqualified with
56 Ministry of Natural Resources and Tourism 69 Unqualified
emphasis of matter Emphasis of Matters
Unqualified with
57 Arusha Regional Secretariat 70 Unqualified Unqualified
emphasis of matter
58 Pwani Regional Secretariat 71 Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 289
S/N Name Category 2018/19 2017/18 2016/17
59 Dodoma Regional Secretariat 72 Unqualified Unqualified Unqualified
60 Iringa Regional Secretariat 73 Unqualified Unqualified Unqualified
61 Kigoma Regional Secretariat 74 Unqualified Unqualified Unqualified
Unqualified with
62 Kilimanjaro Regional Secretariat 75 Unqualified Unqualified emphasis & other
matters
Unqualified with
63 Lindi Regional Secretariat 76 Unqualified Unqualified
emphasis of matter
64 Mara Regional Secretariat 77 Unqualified Unqualified Unqualified
65 Mbeya Regional Secretariat 78 Unqualified Unqualified Unqualified
66 Morogoro Regional Secretariat 79 Unqualified Unqualified Unqualified
67 Mtwara Regional Secretariat 80 Unqualified Unqualified Unqualified
68 Mwanza Regional Secretariat 81 Unqualified Unqualified Unqualified
69 Ruvuma Regional Secretariat 82 Unqualified Unqualified Unqualified
70 Shinyanga Regional Secretariat 83 Unqualified Unqualified Unqualified
71 Singida Regional Secretariat 84 Unqualified Unqualified Unqualified
72 Tabora Regional Secretariat 85 Unqualified Unqualified Unqualified
Unqualified with
Unqualified with
73 Tanga Regional Secretariat 86 emphasis of Unqualified
Emphasis of Matters
matters
74 Kagera Regional Secretariat 87 Unqualified Unqualified Unqualified
75 Dar es Salaam Regional Secretariat 88 Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 290
S/N Name Category 2018/19 2017/18 2016/17
Unqualified with Unqualified with
76 Rukwa Regional Secretariat 89 Unqualified
emphasis of matter other matters
77 Songwe Regional Secretariat 90 Unqualified Unqualified Unqualified
78 Drugs Control and Enforcement Authority 91 Unqualified Unqualified Qualified
79 Tanzania Commission for AIDS (TACAIDS) 92 Unqualified Unqualified Unqualified
80 Immigration Services Dep 93 Unqualified Qualified Qualified
81 President's Office Public Service Commission 94 Unqualified Unqualified Unqualified
Unqualified with
82 Manyara Regional Secretariat 95 emphasis of Unqualified Unqualified
matters
Unqualified with
Ministry of Works, Transport and Unqualified with
83 98 emphasis of Unqualified
Communication - Works Emphasis of Matters
matters
84 Ministry of Agriculture, Livestock & Fisheries 99 Unqualified Unqualified Unqualified
85 Ministry of Minerals 100 Unqualified Not existed Not existed
86 Tanzanian embassy in Berlin, Germany 2002 Unqualified Unqualified Unqualified
Tanzanian embassy in Kinshasa, Congo-
87 2004 Unqualified Unqualified Unqualified
democratic republic
88 High commission of Tanzania – Abuja 2005 Unqualified Unqualified Unqualified
89 High commission of Tanzania – London 2006 Unqualified Unqualified Unqualified
Unqualified with
90 Tanzanian embassy in Maputo, Mozambique 2008 Unqualified Unqualified
emphasis of matters
91 Tanzanian embassy in Moscow, Russia 2009 Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 291
S/N Name Category 2018/19 2017/18 2016/17
92 High commission of Tanzania - New Delhi 2010 Unqualified Unqualified Unqualified
93 Permanent mission to the UN- New York 2011 Unqualified Unqualified Unqualified
94 High commission of Tanzania – Ottawa 2012 Unqualified Unqualified Unqualified
95 Tanzanian embassy in Paris, France 2013 Unqualified Unqualified Unqaulified
96 Tanzanian embassy in Beijing, China 2014 Unqualified Unqualified Unqualified
97 Tanzanian embassy in Rome, Italy 2015 Unqualified Unqualified Unqualified
98 Tanzanian embassy in Stockholm, Sweden 2016 Unqualified Unqualified Unqualified
99 Tanzanian embassy in Tokyo, Japan 2017 Unqualified Unqualified Unqualified
Tanzanian embassy in Washington, DC,
100 2018 Unqualified Unqualified Unqualified
United States
101 Tanzanian embassy in Brussels, Belgium 2019 Unqualified Unqualified Qualified
102 Permanent mission to the UN – Geneva 2020 Unqualified Unqualified Unqualified
103 Tanzanian embassy in Kampala, Uganda 2021 Unqualified Unqualified Unqualified
104 High commission of Tanzania – Harare 2022 Unqualified Unqualified Unqualified
105 Tanzanian embassy in Nairobi, Kenya 2023 Unqualified Unqualified Unqualified
106 Tanzanian embassy in Riyadh, Saudi Arabia 2024 Unqualified Unqualified Unqualified
107 Tanzanian embassy in Pretoria, South Africa 2025 Unqualified Unqualified Unqualified
Tanzanian embassy in Abu Dhabi, United
108 2027 Unqualified Unqualified Unqualified
Arabia Emirates
109 Tanzanian embassy in Bujumbura, Burundi 2028 Unqualified Unqualified Unqualified
110 Tanzanian embassy in Muscat 2029 Unqualified Unqualified Qualified
CG - Annual General Report 2018 / 19 292
S/N Name Category 2018/19 2017/18 2016/17
111 Tanzanian embassy in Lilongwe 2030 Unqualified Unqualified Unqualified
112 Tanzanian embassy in Brasillia 2031 Unqualified Unqualified Unqualified
113 High commission of Tanzania - Kuala Lumpur 2032 Unqualified Unqualified Unqualified
Tanzanian embassy in the Hague,
114 2033 Unqualified Unqualified Unqualified
Netherlands
115 Tanzanian embassy in Kuwait 2035 Unqualified Unqualified Unqualified
116 Tanzanian embassy in Algiers 2036 Unqualified Unqualified No opinion
117 Tanzanian embassy in Ankara 2037 Unqualified Unqualified No opinion
118 Tanzania embassy in Seoul - Korea 2039 Unqualified Unqualified Not existed
119 Tanzanian embassy in Tel Aviv 2040 Unqualified Unqualified No opinion
120 Tanzanian embassy in Doha 2041 Unqualified Unqualified No opinion
121 Eastern Africa Statistical Training Centre Agency Unqualified Unqualified Unqualified
122 Tanzania Global Learning Agency (TaGLA) Agency Unqualified Unqualified Unqualified
123 Tanzania Public Service College (TPSC) Agency Unqualified Unqualified Unqualified
124 E- Government Agency Agency Unqualified Unqualified Unqualified
125 Geological Survey of Tanzania Agency Unqualified Unqualified Unqualified
Drilling and Dam Construction Agency
126 Agency Unqualified Unqualified Unqualified
(DDCA)
Fisheries Education and Training Agency
127 Agency Unqualified Unqualified Unqualified
(FETA)
128 Livestock Institute Training Agency (LITA) Agency Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 293
S/N Name Category 2018/19 2017/18 2016/17
Tanzania Electrical, Mechanical and Services
129 Agency Unqualified Unqualified Unqualified
Agency (TEMESA)
130 Water Institute Agency Unqualified Unqualified Unqualified
131 Tanzania Forest Service Agency (TFS) Agency Unqualified Unqualified Unqualified
132 National College of Tourism Agency Unqualified Unqualified Unqualified
Registration Insolvency and Trusteeship Unqualified with
133 Agency Unqualified Unqualified
Agency (RITA) emphasis of matters
Tanzania Veterinary Laboratory Agency
134 Agency Unqualified Unqualified Qualified
(TVLA)
Tanzania Rural and Urban Roads Agency
135 Agency Unqualified Unqualified Not existed
(TARURA)
136 Bagamoyo College of Art (TaSuBa) Agency Unqualified Qualified Unqualified
Agency for Development of Education
137 Agency Unqualified Not Audited Not Audited
Management (ADEM)
Occupational Safety and Health Agency
138 Agency Unqualified Unqualified Unqualified
(OSHA)
139 Tanzania Airport Authorities Agency Unqualified Unqualified Unqualified
Unqualified with
140 Dar es Salaam Rapid Transit Agency (DART) Agency Unqualified Unqualified
Emphasis of Matters
141 Government Chemist Laboratory Authority Agency Unqualified Unqualified Unqualified
142 Petroleum Bulk Procurement Agent Agency Unqualified Not Audited Not Audited
143 Tanzania Institute of Accountancy (TIA) Agency Unqualified Unqualified Unqualified
Government Procurement Service Agency
144 Agency Unqualified Unqualified Unqualified
(GPSA)
145 National Food Reserve Agency (NFRA) Agency Unqualified Not Audited Not Audited
CG - Annual General Report 2018 / 19 294
S/N Name Category 2018/19 2017/18 2016/17
146 Weights and Measures Agency (WMA) Agency Unqualified Unqualified Unqualified
147 Agriculture Seeds Agency (ASA) Agency Unqualified Unqualified Unqualified
148 Tanzania Meteorological Agency (TMA) Agency Unqualified Unqualified Unqualified
149 Tanzania National Road Agency (TANROAD) Agency Unqualified Unqualified Unqualified
Unqualified with Unqualified with
150 Tanzania Building Agency (TBA) Agency Unqualified
emphasis of matter emphasis of matters
151 Tanzania Government Flights Agency Agency Unqualified Unqualified Qualified
National Housing and Building Research
152 Agency Unqualified Unqualified Adverse
Agency
153 Lake Tanganyika Basin Water Basin BWB Unqualified Unqualified Unqualified
154 Rufiji Basin Water Board BWB Unqualified Unqualified Unqualified
Ruvuma Basin and Southern Coast Water
155 BWB Unqualified Unqualified Unqualified
Board
156 Lake Nyasa Basin Water Board BWB Unqualified Unqualified Unqualified
157 Internal Drainage Basin Water Board BWB Unqualified Unqualified Qualified
158 Wami/Ruvu Basin Water Board BWB Unqualified Unqualified Qualified
159 Lake Rukwa Basin Water Board BWB Unqualified Unqualified Unqualified
160 Lake Victoria Basin Water Board BWB Unqualified Unqualified Unqualified
161 Pangani Basin Water Board BWB Unqualified Unqualified Qualified
162 Tanzania Forest Fund (TaFF) Fund Unqualified Unqualified Unqualified
163 Tanzania Wildlife Protection Fund Fund Unqualified Unqualified Unqualified
164 National Disaster Management Fund Fund Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 295
S/N Name Category 2018/19 2017/18 2016/17
Unqualified with
Unqualified with
165 Women Development Fund (WDF) Fund Unqualified emphasis & Other
Emphasis of Matters
matters
166 Livestock Development Fund (LDF) Fund Unqualified Unqualified Unqualified
167 Plant Breeders Right Development Fund Fund Unqualified Unqualified Unqualified
168 National Fund For Antiquities Fund Unqualified Unqualified Unqualified
Empowering Mining Development Fund
169 Fund Unqualified Unqualified Unqualified
(EMDF)
170 Maji Central Stores Revolving Fund Fund Unqualified Unqualified Unqualified
171 Road Fund Board - Vote 98 Fund Unqualified Unqualified Unqualified
172 Road Fund (PO-RALG) Fund Unqualified Unqualified Not existed
173 Rural Energy Agency (REA) Fund Unqualified Unqualified Unqualified
174 Treasury Advance Fund Fund Unqualified Unqualified Unqualified
Unqualified with
175 National Water Investment Fund (NWIF) Fund Unqualified Unqualified emphasis & Other
matters
Inspection and Supervision of Cooperative
176 Fund Unqualified Unqualified Unqualified
Fund
Unqualified with
177 Agriculture Input Trust Fund (AGITF) Fund Unqualified Unqualified
Emphasis of Matters
Wanging'ombe Water Supply and Sanitation
178 NWSSA Unqualified Unqualified Unqualified
Authority
Handeni Trunk Main Water Supply and
179 NWSSA Unqualified Unqualified Unqualified
Sanitation (HTM)
Maswa Urban Water Supply and Sanitation
180 NWSSA Unqualified Unqualified Not existed
Authority
CG - Annual General Report 2018 / 19 296
S/N Name Category 2018/19 2017/18 2016/17
Makonde Plateau Water Supply and
181 NWSSA Unqualified Unqualified Unqualified
Sanitation Authority
182 Mugango/Kiabakari/Butiama NWSSA Unqualified Unqualified Qualified
183 Institute of Judicial Administration (IJA) OI Unqualified Unqualified Unqualified
Uongozi Institute (Institute of African
184 OI Unqualified Unqualified Unqualified
Leadership for Sustainable Development)
185 Mineral Resources Institute (MRI) OI Unqualified Unqualified Unqualified
Tanzania Livestock Research Institute
186 OI Unqualified Unqualified Unqualified
(TALIRI)
187 Veterinary Council of Tanzania OI Unqualified Unqualified Unqualified
188 Optometry Council OI Unqualified Unqualified Unqualified
Property and Business Formalization Program
189 OI Unqualified Unqualified Unqualified
(MKURABITA)
190 Local Government Loans Board (LGLB) OI Unqualified Unqualified Unqualified
191 African Peer Review Mechanism (APRM) OI Unqualified Unqualified Unqualified
192 Law School of Tanzania OI Unqualified Unqualified Unqualified
193 SUMA JKT - Guard Ltd OI Unqualified Unqualified Unqualified
Nelson Mandela African Institution of Science Unqualified with
194 OI Unqualified Unqualified
and Technology Emphasis of Matters
Tanzania Automotive Technology Centre Unqualified with
195 OI Unqualified Unqualified
(TATC) emphasis of matters
196 Tanzania Film Board OI Unqualified Unqualified Unqualified
197 Pharmacy Council OI Unqualified Unqualified Qualified
Traditional and Altenative Health Practices
198 OI Unqualified Unqualified Qualified
Council
CG - Annual General Report 2018 / 19 297
S/N Name Category 2018/19 2017/18 2016/17
199 Pasiansi Wildlife Training Institute OI Unqualified Unqualified Adverse
Local Government Training Institute Unqualified with
200 OI Unqualified Adverse
(Hombolo) Emphasis of Matters
201 Forestry Training Institute - Olmotonyi (FTI) OI Unqualified Unqualified Not existed
202 Town Planners Registration Board OI Unqualified Unqualified Not existed
Ministry of Foregn Affairs and East African
203 OI Unqualified Unqualified Not existed
Coorperation Zanzibar Department (SV 1003)
204 Forest Industries Training Institute (FITI) OI Unqualified Not Audited Not Audited
205 Tanzania Official Seed Certification Institute OI Unqualified Unqualified Unqualified
206 Private Hospital Advisory Board OI Unqualified Unqualified Unqualified
Unqualified with
207 Health Laboratories Practitioners Council OI Unqualified Unqualified
emphasis of matters
Unqualified with
208 Tanzanai Wildlife Management Authority OI Unqualified Unqualified
Emphasis of Matters
209 SUMA JKT - Cooperation Sole (Headquarters) OI Unqualified Unqualified Unqualified
210 SUMA JKT - Agrimachinery Industry OI Unqualified Unqualified Unqualified
211 Jitegemee Secondary School OI Unqualified Not Audited Not Audited
212 Deep See Fishing Authority OI Unqualified Unqualified Not existed
213 Kawawa Secondary School OI Unqualified Not Audited Not Audited
214 Private Health Laboratory Board OI Unqualified Unqualified Unqualified
215 Mining Commission OI Unqualified Not Audited Not Audited
216 National Identification Authority (NIDA) OI Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 298
S/N Name Category 2018/19 2017/18 2016/17
Tanzania Nursing and Midwifery Council
217 OI Unqualified Unqualified Unqualified
(TNMC)
Medical Radiology and Imaging Professional
218 OI Unqualified Unqualified Unqualified
Council
219 Prisons Corporation Sole OI Unqualified Unqualified Unqualified
SUMA JKT- Agricultural and Industrial
220 OI Unqualified Unqualified Unqualified
Department
221 SUMA JKT Construction DPT OI Unqualified Unqualified Unqualified
222 SUMA JKT (Consolidation) OI Unqualified Unqualified Unqualified
223 Medical Council of Tanganyika (MCT) OI Unqualified Unqualified Qualified
224 Marine Services Company Limited OI Unqualified Not Audited Not Audited
225 CHADEMA PP Unqualified Qualified Qualified
226 ACT-Wazalendo PP Unqualified Qualified Unqualified
Unqualified with
227 Chama cha Mapinduzi (CCM) PP Unqualified Qualified
emphasis of matter
Audited under Audited under
228 Tabora Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
229 Manyara Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
230 Songea Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
SEKEU-TOURE Regional Referal Hospital ( Audited under Audited under
231 RRH Unqualified
RRH) Regional Secretariat Regional Secretariat
Audited under Audited under
232 Katavi Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
233 Songwe Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
CG - Annual General Report 2018 / 19 299
S/N Name Category 2018/19 2017/18 2016/17
Bombo Regional Referal hospital (RRH)- Audited under Audited under
234 RRH Unqualified
Tanga Regional Secretariat Regional Secretariat
Audited under Audited under
235 Mwananyamala Regional Referral Hospital RRH
Unqualified Regional Secretariat Regional Secretariat
Audited under Audited under
236 Temeke Regional Referal Hospital (RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
237 Iringa Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Maweni Regional Referal Hospital ( RRH) - Audited under Audited under
238 RRH Unqualified
Kigoma Regional Secretariat Regional Secretariat
Audited under Audited under
239 Mbeya Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
240 Njombe Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
241 Shinyanga Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Mawenzi Regional Referral Hospital (RHH)- Audited under Audited under
242 RRH Unqualified
Kilimanjaro Regional Secretariat Regional Secretariat
Audited under Audited under
243 Amana Regional Referal Hospital (RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
244 Morogoro Regional Referral Hospital (RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Audited under Audited under
245 Dodoma Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Sumbawanga Regional Referal Hospital ( Audited under Audited under
246 RRH Unqualified
RRH) Regional Secretariat Regional Secretariat
Audited under Audited under
247 Geita Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
Tumbi Kibaha Regional Referal Hospital ( Audited under Audited under
248 RRH Unqualified
RRH) - Pwani Regional Secretariat Regional Secretariat
CG - Annual General Report 2018 / 19 300
S/N Name Category 2018/19 2017/18 2016/17
Audited under Audited under
249 Singida Regional Referal Hospital ( RRH) RRH Unqualified
Regional Secretariat Regional Secretariat
250 TRA – Expenditure TRA Unqualified Unqualified Unqualified
251 TRA – Revenue TRA Unqualified Unqualified Unqualified
252 Ministry of Water 49 Unqualified Unqualified Unqualified
253 Ministry of Constitutional and Legal Affairs 41 Unqualified Unqualified Unqualified
CG - Annual General Report 2018 / 19 301
Appendix 2. 2: Entities and their basis for qualification
Basis of Qualified Opinion
1. Mzinga Holding Company Ltd
• The Statement of Comprehensive Income for the year ended 30th June 2019 disclosed a net finance costs of TZS
143,611,814 and motor vehicles repairs and maintenance cost of TZS 26,506,000. However schedules were not availed
to confirm the accuracy of the figures disclosed in the financial statements.
• The reported figure of Revenue from construction and related activities was TZS 9,653,300,158. However, I noted that
out of the reported amount only TZS 594,624,589.43 was supported by certificate of completed work which is the basis
for determination of construction revenue for a particular year leaving TZS 9,058,675,569 not supported. Therefore I
could not confirm the correctness of the revenue figure reported.
• Prepayments to suppliers in respect of construction materials worth TZS 1,454,835,311 was not supported by list of
suppliers and the amount owed by each supplier was not availed despite several request. Therefore I could not confirm
the existence and validity of the prepayments balance reported.
• Mzinga Holding Co. Ltd reported total amount of TZS 9,653,300,158 and TZS 8,791,074,470 as revenue and cost of sales
respectively from the construction contracts in the statement of comprehensive income. However the revenue
recognized did not adhere to reporting requirement of Para 30 and 40 of IAS11.
• My review noted unretired imprest amounting to TZS 1,064,562,709.87. However only TZS 915,121,235 was reported in
the financial statement leading to understatement of receivables by TZS 149,441,474.87.
2. Musoma Regional Referral Hospital
• Statement of Financial Performance presented non-tax revenue of TZS 3,755,117,158.82. However review of the
analysis, noted that the reported amount has been overstated by TZS 545,230,364.
• I noted that loss of TZS 117,133,660 due to rejected NHIF claims was not reported in the Statement of Financial
Performance as expense.
CG - Annual General Report 2018 / 19 302
Basis of Qualified Opinion
• I noted overstatement of Property Plant and equipment by TZS 11,997,811 due to wrong calculation for depreciation
expenses, contrary to Hospital Accounting Policy.
• Included in the Statement of Changes in Net Assets is amount of TZS 3,647,895,065 being opening balance as at 1st July,
2018, however this figure could not be traced in the submitted financial statements due to absence of cross-referenced
note.
• My review of no tax revenue reported in cash flow statement noted TZS 3,100,243,145 was reported as non-tax revenue
instead of TZS 2,289,997,053 leading to unreconciled difference TZS 810,246,092
3. Tanzania Police Force Corporation Sole (TPFCS)
• TPFCS did not disclose assets in the Financial Statements for the year ended 30th June 2019. My review of the handing
over statement to the incoming TPFCS management on June 2019, I noted that it included, these assets belonged to
TPFCS since its establishment in July 2013. Although the value of these assets were not made known but the limitation
of scope is material because the motor vehicles are in operation and the pieces of land are located in the prime areas
• TPFCS did not disclose in the Financial Statements assets handled over for its operation since its establishment in July
2013.
• I noted payable worth TZS 212,400,000 out of TZS 230,500,000 disclosed in Statement of Financial Position lacked
supporting evidence.
4. Ardhi Institute Morogoro
• On the statements of changes in net assets, management has added accumulated surplus transferred to or from surplus
amounting to TZS 796,828,365.78 without evidence of the adjustment passed.
• The amount of Cash and cash equivalent was understated by TZS 66,086,802. The management reported Cash and cash
equivalent of TZS 109,083,350.58 whereas, my computation arrived at TZS 175,570,153.33
CG - Annual General Report 2018 / 19 303
Basis of Qualified Opinion
• I was not provided with necessary documents which included bank reconciliation statements, Fixed Asset Register, Stock
Taking sheet reports, List of accounts receivables requested during the audit. This limits my scope to verify the
correctness of reported balances.
5. Sokoine (Lindi) Regional Referral Hospital
• My review of the Statement of Financial Performance for the year 2018/2019 in comparison to Cash Flow Statement and
Payable under Note – 64 to the Financial Statements noted that, according to my re-computation I noted the figure of
cash paid for Wages, Salaries and Employee Benefit during the year under review was TZS 540,176,668.35.To the
contrary, my review of Cash Flow Statement has noted the sum of TZS 607,979,168.35 has been reported as the figure
of cash paid for Wages, Salaries and Employee Benefit. Consequently, I noted understatement of TZS. 90,889,340.30 in
the Cash Flow Statement.
• I noted the figure of cash paid for Supplies and Consumables during the year under review was TZS 635,962,820.65 to
the contrary, the Cash Flow Statement reported TZS 654,473,672.83 Consequently, I noted understatement of TZS.
18,510,852.18 in the Cash Flow Statement.
6. Ministry of Information, Culture, Arts and Sports (Vote 96)
• My review of Statement of Changes in Net Assets noted prior year adjustments of TZS 43,434,640.95 for the period ended
30th June 2019; and TZS 16,390,948,377.53 being prior year adjustment for the period ended 30th June 2018. These
reported prior year adjustments were not supported by either disclosure note or restated figures in the Financial
Statement.
• Further review of comparable figures in the Statement of Changes in Net Assets for the period ended 30 th June, 2018
noted that, the reported surplus in the accumulated surplus/deficit was TZS 16,612,316,609 which differs with the
corresponding operating deficit of TZS 645,775,580 for the year ended June 2018 as reported in the Statement of
Financial Performance resulting into a misstated difference of TZS 15,966,541,029.08.
CG - Annual General Report 2018 / 19 304
Basis of Qualified Opinion
• Included in the statement of financial position, is TZS 773,426,709.82 being Cash and cash equivalent balance under
Note 49 of which TZS 569,766,972.04 relates to miscellaneous deposit. However, review of Treasury reconciliation
reports, I noted that the Ministry had Cash and cash equivalent balance of TZS 317,070,052.29 relating to miscellaneous
deposit resulted into unreconciled difference of TZS 252,696,919.75.
• I noted understatement of reported figure of Property, Plant and Equipment by TZS 198,839,534 since amount of TZS
2,305,725,000 has been reported as figure of additions for buildings instead of TZS 2,504,564,534. I also noted that,
included in the cash flow statement under cash flow from operating activities is amount of TZS 1,000,000,000 being
capital expenditure under note 102, however this figure was supposed to be included in the cash flow statement under
line items of cash flow from investing activities.
• Review of the Ministry’s Financial Statements for the year ended 30th June 2019, I noted reported balances of public
buildings, staff debts, accumulated surplus/deficit and supplies debts totaling TZS 85,610,357,554 while the trial balance
showed a total of TZS 53,714,371,658.38 resulting into unreconciled difference of TZS 31,895,985,896.
• I noted the Ministry of Information, Culture, Arts and Sports owns land plots located at Mabwepande-Dar es salaam,
Kinondoni- Dar es salaam and Mtumba-Dodoma which were neither recorded in assets register nor reported in the
financial statements as land addition contrary to the requirement of Para 14 and 27 of IPSAS 17.
7. Tanzania Embassy in Cairo
• The Embassy reported cost of buildings as TZS 614,590,800. The cost of these buildings included the cost of land as they
were acquired together. However, the management failed to account for these assets separately contrary to requirement
of Para 74 of IPSAS 17.
8. Chama cha Kijamii (CCK)
• Adequate supporting evidences for payments of TZS 2,395,000 made by CCK during the year under review were not
provided. As a result, I was unable to ascertain whether the payments made were accurate, eligible and related to Party
activities.
CG - Annual General Report 2018 / 19 305
Basis of Qualified Opinion
• I noted that, payables reported in the Statements of Financial Position under Note 10 amounting to TZS 1,220,000 being
rent payable TZS 1,000,000 and Professional fees TZS 220,000 were not supported with source documents such as bills,
invoices, claims, demand notes thus their correctness and authenticity could not be ascertained.
• CCK reported cash and cash equivalents of TZS 119,320 instead of TZS 479,320 hence leading to understatement of TZS
360,000 in the statement of cash flows.
9. Simiyu Regional Referral Hospital
• My review of the Statement of Financial Performance for the year ended 30th June, 2019 recognized Supplies and
Consumables amounting to TZS 273,316,104.66 while the Cash Flow Statement showed TZS 182,426,764.36 consequently,
understatement of TZS. 90,889,340.30.
• My review of Statement of Changes in Net Assets noted that, the sum of TZS 8,311,478.38 was reported as ‘Capital
Fund Received’ and was added in the ‘Taxpayer’s fund’. Thus, Taxpayers fund was overstated by TZS 8,311,478.38
10. Fire and Rescue Force (vote 14)
• The Fire and Rescue Force is constructing a Head Office building in Dodoma. As at 30th June, 2019 an amount of TZS.
1,746,146,300 was spent towards building materials and labor costs. There were no expenditure particulars that I was
provided by management to support propriety of the expenditure which has been accounted in the Property, Plant and
Equipment as work in process.
11. Mzinga Corporation
• Reported prepayment figure overstated by TZS 6,682,900: Included in the financial statements under Note 22 is foreign
prepayment of TZS 2,518,323,520 of which TZS 6,682,900 relate to local purchases of consumable goods done during the
year. Analysis made noted that, the same was delivered and consumed during the year as the result the figure of foreign
prepayment has been overstated by TZS 6,682,900 as well as expenses was understated by the same. Therefore the
figure of profit has been overstated by the same amount.
• Failure to submit information and schedule of figures reported in the Financial Statements regardless they were
requested vide letter with Reference No. MZ/2019/01 of 12 October, 2019 as a result the scope of audit was limited.
The missing information were in respect of the following:
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Basis of Qualified Opinion
- List of Assets added during the year worth TZS 63,960,000 (cost)
- List of items making Miscellaneous income amounting to TZS 122,667,100
- Schedule of Entertainment cost amounting to TZS 45,972,850
- Utility bills amounting to TZS 377,958,480 comprising of Electricity TZS 333,295,860 and Telephone TZS 44,662,620
- List of building repaired during the year amounting to TZS 66,991,020
- Details of related party transactions amounting to TZS 4,222,855,590
• Mismatch of Financial Statements Figures and General Ledger balances: From the review of the submitted General Ledger
for the year ended 30 June 2019 I noted that the reported figures of Magadu social club, other revenue, personal
emoluments, land, building, telephone charges and furniture & fittings in the financial statements were different with
the balance in the respective Subsidiary Ledgers. I also noted reported figures of UNDP revenue, work in progress, dairy
cattle, beehives and trees & plants in the Financial Statements were not in the General Ledger.
• The financial statements did not incorporated the Statement of Comparison between Budget and Actual amounts contrary
to the requirement of Para 14 of IPSAS 24 which requires an entity to present a comparison of the budget amounts for
which it is held publicly accountable and actual amounts, either as a separate financial statement or as additional budget
columns.
• Failure to comply with the Corporation Policy for allowance on Doubtful Debts: Management has disclosed in the Notes
to the financial statements the Corporation policy for provision for doubtful debts. The policy allow to provides 25% as
allowance for doubtful debts over two years, 50% for debts of three years, 75 % for debts of four years and 100% for
debts above four years. To the contrary management provided only TZS 100,000. I could not establish how they arrived
at this figure because I was not provided with supporting Note.
12. Environmental Health Practitioners Council
• Unexplained difference between the Statement of Comparison of Budget and Actual Amounts and Cash Flow Statement
TZS 192,269,030
My review of Statement of Comparison of Budget and Actual amounts noted that, amount of TZS 143,533,200 was
reported as actual collections but included in the Cash Flow Statements is amount of TZS 335,802,230 resulting into
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Basis of Qualified Opinion
unexplained difference of TZS 192,269,030. This is contrary to the requirement of Para 21 of IPSAS 1 which elaborates
that a Statements of Comparison of Budget and Actual amounts which requires the set of financial statements to have
link with each other.
13. Tengeru Institute of Community Development (TICD)
• My review of individual employee’s personal files and employee claims I noted that, salary arrears amounting to TZS
31,435,069 were not recognized in the financial statements, hence understating the salaries expenses and payables
figures by TZS 31,435,069.
• My review of Cash Flow Statement noted that, the sum of TZS 1,686,913,000 has been reported as receipts of employees’
salaries and supported by Note 32. However, I noted the sum of TZS 1,537,105,640 has been reported as employee’s
salaries paid and supported by Note 33 without including deduction figure of TZS 149,807,360. Hence, the sum of TZS
149,807,360 has been understated in the Cash Flow Statement.
• My review of Statement of Changes in Net Assets noted TZS 7,080,346,741 being an opening figure for net assets instead
of TZS 6,939,375,551 resulted into overstatement of reported opening net assets by TZS 140,971,190.
• I noted that, the sum of TZS 28,068,312 being amortization of capital grants incorrectly reported in the Statement of
Changes in Net Assets instead of Statement of Financial Performance.
• My review of Cash Flow Statement noted that, an amount of TZS 28,068,312 being reported as Work in Progress (WIP)
and supported by Note 41. However the figure has not been reflected in the Statement of Financial Position.
• Overstated figure of taxpayer fund in the Statement of Changes in Net Assets TZS 175,927,535
My review of Statement of Changes in Net Assets noted that, there is movements of taxpayers’ funds between the
financial year 2018/2019 being TZS 8,055,838,025, and 2017/2018 TZS 7,879,910,490 resulting to increase of TZS
175,927,535. This is contrary to Para 17 of Accountant General Circular No. 6 with reference No.EG.3/102/02/03 of
28th May, 2019 on the treatments of taxpayers’ Fund which advocated that, after the financial year 2016/2017 the
reported figure of taxpayer’s fund by Entity shall remain Static. Consequently, the reported figure of taxpayers fund
has been overstated by TZS 175,927,535.
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Basis of Qualified Opinion
• Wrong picking of prior year comparative figures TZS 3,460,973,882.80
My review of financial statements for the year ended 30th June, 2019 has noted that, there is wrong picking of prior
year figures into Comparative figures with respect to Revenue from non-Exchange Transaction; Total income; Total
expenses; Property, plant and equipment; Equity; Loan Board Payments to students as a result creating a cumulative
misstatements of TZS 3,460,973,882.80.
14. Business Registration and Licensing Agency
• My review of General ledger noted adjustments of TZS 1,145,103,983.82 made without narrations and approval contrary
to Reg. 120 of Public Finance Regulations, 2001 which requires adjustment to be authorized or approved by responsible
persons.
• Receivables not Disclosed in the Financial Statements: I noted that there are five mandatory services offered by the
Agency annually which include annual subscription for companies, trademarks, Business names, and Patent right.
However my review noted that receivable of TZS 2,682,416,000 emanated from active services were excluded from
reported receivable.
• Acquired land in Dodoma not Valued: I noted in the financial year 2016/17, BRELA paid TZS 1,664,150 to acquire land in
Dodoma. However as at 30th June, 2019 the acquired Land was not valued instead the value of land reflected in the
financial statements is amount paid to acquire the land not the value of the land contrary to paragraph 14 of IPSAS 17.
15. Ministry of Foreign Affairs and East African Cooperation (Vote 34)
• Failure to correct prior years omissions TZS 91,110,623.05
Payables amounting to TZS 91,110,623.05 in respect of TANESCO bills for previous years have been reported as payable
during the year 2018/2019 instead of restating comparable figures and making appropriate adjustments in the statement
of changes in net assets/equity as per requirement of IPSAS 3.
• Assets transferred to other entities are included in the reported balance of PPE TZS 661,414,561
Assets mainly motor vehicles with historical costs of TZS 661,414,561 (NBV TZS 146,981,013) which had been transferred
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Basis of Qualified Opinion
to other government institutions are still in the ministry’s assets register and have been included in PPE balance
reported in the financial statements. Reporting assets which had been transferred to other government entities in the
Ministry of Foreign Affairs financial statements is overstatement of PPE, accumulated depreciation and depreciation
charge balances.
• The Ministry land plots have not been recognized in the financial statements TZS 3,896,430,000
Ministry of Foreign Affairs and East African Cooperation owns three land plots: plot number 219/50 located at Shaban
Robert/Garden Avenue-Dar es salaam ( 2,287m2) valued at TZS3,818,430,000; a plot located at Minister’s residential
Area D-Dodoma (600 m2) valued at 78,000,000; and a plot located at Mtumba government city (39,400 m2). These
land plots have been omitted in the financial statements. Omission of the value of land amounting to TZS
3,896,430,000 in the financial statements is the evidence that the reported balance of PPE is understated.
• Unsupported Adjustments in the Financial Statements.
From the review of the statement of changes in net assets/equity for the year ended 30 June 2019 the audit team
noted adjustments which have been made on accumulated surplus but it could not establish the nature of those
adjustments and we were not provided with supporting schedules as well as calculations as a result we could not
confirm their validity and correctness:
a) Adjustment in respect to prior years accumulated depreciation amounting to TZS 263,297,494.62 which has
been reduced from accumulated surplus at the beginning of the year 2018/2019.
b) Prior year adjustments amounting to 20,246,940,079.41 has been added to accumulated surplus at the beginning
of the year 2018/2019
c) Also there is an adjustment for prior years accumulated depreciation amounting to TZS 8,814,878,290.03 which
is added to accumulated surplus at the beginning of the year 2017/2018
• Mismatch of PPE costs between assets register and financial statements TZS 322,559,435,408
My review of PPE movement schedule (note 59) and assets register noted mismatch of PPE costs between assets register
and reported PPE costs (note 59). According to assets register the total costs of PPE is TZS 5,187,592,166 while their
costs as per financial statement is TZS 327,747,027,574 resulting to un explained difference of TZS 322,559,435,408
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Basis of Qualified Opinion
• Accounts payable has been understated by TZS 54,832,452.71
In December 2018 the Ministry engaged Tanzania Building agency (TBA) (in substance-without formal written
agreement) as project consultant. A letter dated 11th December 2018 with reference No. GB/109/300/82/18 from
TBA to the Ministry raised fee Note No. 1 amounting to TZS 54,832,452.71 likewise, government bill No. 1771835 with
the same amount was also raised for the same purpose. The amount was yet to be paid up to the time of writing this
report (January 23rd 2020). Although the said amount was yet to be paid but it is omitted in the accounts payable
reported in the financial statements.
• Understatement of payables TZS 390,776,654
Reported in the Individual Financial statement of embassies (Paris, London& Brussels) includes amount of payables
TZS 390,776,654(car loan) which was not reflected in the ministry’s financial statements
• Disposal of PPE TZS 371,168,262.58 not recognized properly
Disposal of PPE TZS 371,168,262.58 properly adjusted to PPE schedule. However, no adjustment was passed to
accumulated surplus nor accumulated depreciation. Hence the accumulated surplus was understated by the same
amount
• Foreign Exchange Gain/Loss not recognized in the Financial statements
Non recognition of foreign exchange loss/gain in the financial statements TZS 571,022,931.81 and TZS 114,129,653
respectively. Hence the financial statements was misstated TZS 685,152,584.81
• Unexplained variations of other receipts reported in the financial statement TZS 14,747,852,816
The first version of Financial Statements –Cash flows statement reported other receipts TZS 1,227,566,006.66 while
the final version reported TZS 15,975,418,822.31 resulting to unexplained variation of TZS 14,747,852,816-Delete
• Unreconciled difference of cash and cash Equivalent – Deposit TZS 4,928,977,947.29
I noticed unreconciled balance between the amount reported under Note 49 of Cash and cash equivalent and amount
reported in the statement of cash flows-Deposit by TZS 4,928,977,947.29
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Basis of Qualified Opinion
Note 49 reported cash and cash equivalent deposit amounting to TZS 13,400,427,051.68 while Cash flow statement –
deposit reported TZS 18,329,404,998.98. Hence the balance of deposit in the statement of cash and cash equivalent was
misstated by TZS 4,928,977,947.29
16. Tanzania High Commission in Lusaka
• The reported PPE balance has been understated
From the review of the financial statements I noted that Tanzania High Commission in Lusaka owns land and buildings,
since preparation Embassy financial statements management has been disclosing only the value (NBV) of buildings and
omitting the value of lands on the statement of financial position. No disclosure has been made in the financial statements
on measures which have been taken by management for determination of the value of their land. Our concern is that
omission of the value of land in the financial statements implies that the reported figures of PPEs as well as depreciation
have been understated.
• Failure to disclose the nature of prior year errors
From the review of financial statements I noted that management has restated 90 per cent of comparable figures as per
audited financial statements for the year 2017/2018. For instance all items on of the statement of financial performance
have been restated; all items of cash flows statements except for cash and cash equivalent at the end of the year have
been restated; and six out of twelve items of the statement of financial position have been restated. Management has
provided under commentary a schedule which shows audited figures, adjustment made and restated figures. However we
noted the following:
a) Although management has restated most of figures on the financial statements but no disclosure has been made
in the financial statements on the nature of the prior period errors contrary to the requirement of para 54 (a) of
IPSAS 3. Therefore we could not establish the reason for restatements and confirm their validity.
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Basis of Qualified Opinion
b) Some figures have been restated in the financial statements but not included in a schedule of restated items for
instance cash and cash equivalent, personnel emolument, inventories, accounts payable and deferred income.
• The reported figures have not been verified
During the quality review exercise management of the Embassy submitted revised financial statements. The revised
financial statements have different figures with those figures audited by the audit team. Due to this fact we cannot give
any assurance on the validity and correctness of the reported figures.
• Failure to disclose budget information in line with Para 14 (c) of IPSAS 24
Management has not provided in notes to the financial statements explanations of significant variation between original
budget and final budget, also no explanation of significant variation between budget & actual amounts as per requirement
of Para 14 (c) of IPSAS 24
• Management has reported exchange loss on the statement of financial performance and has reported exchange gain on
the cash flows statement
From the review of financial statements I noted that management has reported the exchange loss of TZS 60,319,838.16
on the statement of financial performance while on the cash flows statement they have reported an exchange gain of TZS
88,027,997.50. No explanation was provided in respect to this inconsistence.
17. Consolidated Financial Statements
• Mismatch of elimination between payables and receivables TZS 789.35 billion
My review of consolidated financial statements noted receivables of TZS 5,392,734,195,600 were eliminated against
payables and accruals of TZS 6,182,079,208,670, resulting into uneliminated balance of TZS 789,345,013,070.
Management of the Ministry of Finance and Planning was unable to justify the noted mismatch and remained unadjusted.
Thus, payables and accruals balance in the consolidated financial position has been misstated by TZS 789,345,013,070.
• Understatement of comparative figure of assets TZS 1,213.89 billion
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Basis of Qualified Opinion
My review of PPE and intangible assets (Note 72 & 76) noted that the opening balances of cost and accumulated
depreciation differs with the audited closing balance of 2017/18 which resulted into net understatement of TZS
1,202,414,566,000 and TZS 11,474,013,000 for PPE and Intangible assets respectively. The cost for PPE was overstated
by TZS 395,931,416,000 while intangible assets were understated by TZS 7,934,708,000. Likewise, accumulated
depreciation and amortization for PPE and intangible assets were understated by TZS 1,598,345,982 and TZs 3,539,306
respectively.
• Mismatch of reported addition of PPEs and Intangible Asset TZS 399.26 billion
My review of PPE and intangible assets (Note 72 & 76) noted monetary addition of TZS 4,849,038,558,000 and TZS
75,483,165,000 respectively. However, these additions were not supported with the individual financial statements.
Further, I noted that the mismatch between individual financial statements and consolidated financial statements were
attributed to aggregation of additions monetary and non-monetary, fair value adjustment, transfer and disposal.
Furthermore, I noted mismatch of TZS 399,263,070,000 between reported total monetary additions in the consolidated
cash flow statement of TZS 5,323,784,793,000 against TZS 4,924,521,723,000 in the movement schedules of PPE and
intangible assets.
• Overstatement of Government Securities TZS 1,224.09 billion
I noted non elimination of government securities (Treasury bills and bonds) owned by subsidiary (BoT) of TZS
1,257,650,150,000 contrary to para 40 (c) of IPSAS 35 which requires elimination in full inter entities assets and
liabilities. Also, i noted non- recognition of corporate bonds TZS 33,564,194,000 contrary to the requirement of Para
40(a) of IPSAS 35 which requires the consolidating entity to combine like items of assets, liabilities, net assets, revenue,
expenses and cash flows. This has resulted into net overstatement of reported government securities in the consolidated
financial statements of TZS 1,224,085,956,000.
• Non-adjustment of impairment loss computed under Expected Credit Loss Model (IFRS 9) TZS 84,533,877,064
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Basis of Qualified Opinion
My review of consolidated financial statements (CFS) noted non-adjustment of impairment loss of financial assets
computed under expected credit loss (ECL) model of TZS 84,533,877,064. Subsidiaries reporting under International
Financial Reporting Standard (IFRS) Framework have adopted IFRS 9 (financial instrument) from 1st January 2018 which
has changed the computation of impairment loss from incurred loss model to ECL. However, management has neither
adopted IPSAS 41 (Financial Instrument) nor adjusted impairment loss of subsidiaries computed under ECL model to align
with incurred loss model under IPSAS 29. This is contrary to para 41 of IPSAS 35 which requires adjustment when members
of the economic entity use accounting policies other than those adopted in the consolidated financial statements.
18. Ligula Regional Referral Hospital (RRH)
Inappropriate recognition of recurrent deferred income TZS 158,505,557
Included in the statement of financial position is amount of TZS 158,505,557 being reported as recurrent deferred income under
note 71.However this figure relate to exchange transaction, therefore could not be disclosed as per requirement of IPSAS 23.
Inconsistency reporting of figure for PPE resulting into difference of TZS 356,199,139.84
Included in the Statement of Financial Position is amount of TZS 14,113,961,804.17 being reported as carrying value of Property,
Plant and Equipment under note 59. However its relevant cross referenced note disclosed amount of TZS 14,470,160,944 resulted
into difference of TZS 356,199,139.84.
Unsupported taxpayer’s fund TZS 14,996,617,663
Included in the statement of changes in net assets is amount of TZS 14,996,617,663 being opening balance as at 1st July, 2018,
however I could not be able trace this figure in the submitted financial statements due to absence of cross-referenced note.
Inconsistency reporting of non-tax revenue resulting into difference of TZS 83,083,828.99
Included in the Statement of Financial Performance is amount of TZS 1,745,420,877.51 which has been reported as non-tax
revenue under note 31. However its relevant cross referenced note disclosed amount of TZS 1,662,337,048.52 resulted into
difference of TZS 83,083,828.99
Failure to classify expenses in the relevant line items TZS 1,539,545,750.95
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Basis of Qualified Opinion
Included in the Statement of Financial Performance is amount of TZS 1,539,545,750.95 which has been reported as other
expenses under note 41. However this figure relate to various items which could be classified in their relevant items. I also
noted the same amount of TZS 1,539,545,750.95 has been cross referenced to amount of TZS 1,639,839,538.96 resulted into
difference of TZS 100,293,788.01.
Understatement of reported figure of supplies and consumables in the cash flow statement TZS 248,389,386.00
Included in the cash flow statement is amount of TZS 125,796,206.63 being reported supplies and consumable goods under note
20. However re-performed reconciliation noted that, amount of TZS 374,185,592.63 was supposed to be reported as supplies
and consumable goods resulting into understatement of the reported figure in the cash flow statement by TZS 248,389,386.00.
19. Bukoba Regional Referral Hospital
Understated figure of cash paid for Supplies and Consumables in the Statement of Cash Flow – TZS 1,283,060,444.14
My review of the Statement of Financial Performance for the year 2018/2019 in comparison to Cash Flow Statement and Payable
under Note – 64 to the Financial Statements has noted that, according to my re-computation I noted the figure of cash paid for
Supplies and Consumables during the year under review was TZS 2,925,522,217.14 To the contrary, my review of Cash Flow
Statement has noted the sum of TZS 1,642,461,773 has been reported as the figure of cash paid for Supplies and Consumables.
Consequently, I noted understatement of TZS. 1,283,060,444.14 in the Cash Flow Statement.
20. Tanzania High Commission in Kigali
Revenue overstated by TZS 210,685,317
Included in the statement of financial performance is amount of TZS 210,685,317 being amortization of recurrent revenue. My
review noticed that such revenue was not part and parcel of revenue collected during the year, as a result revenue figure was
overstated by TZS 210,685,317.
Unreconciled balance of deferred income TZS 60,653,168.68
My computation of deferred income came up with closing balance of TZS 420,725,188.68, however the reported balance was
TZS 360,072,020.00 resulting to misstatement (unreconciled balance) of TZS 60,653,168.68
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Basis of Qualified Opinion
21. Mount Meru Regional Referral Hospital
(i) Unexplained difference of payables figure between statement of financial position and disclosure Note TZS
56,847,462
Included in the Statement of Financial Position is amount of TZS 597,146,370 being reported as payable and cross referenced to
Note 64. However its relevant cross referenced Note disclosed amount of TZS 653,993,833 resulted into unexplained difference
of TZS 56,847,463.
(ii) Understated reported cash paid figure of supplies and consumables in the cash flow statement TZS 1,119,054,567
Included in the Cash flow Statement is amount of TZS 1,474,648,314 being reported a cash paid figure in respect of supplies and
consumables while an audit recomputed figure of cash paid for supplies and consumables of TZS 2,593,702,881, resulting into
unreconciled difference of TZS 1,119,054,567.
22. Tanzania Embassy in Moroni (Sub Vote 2034)
I noted significant misstatements in prior-year (comparative figure) for expenditure resulted to overstatement amounting to TZS
71,324,215 As I conclude my audit in March 2020 the Embassy was yet to revise their financial statement to accommodate the
misstatements.
I could not verify adjustments from TZS 396,964,262 to TZS 379,510,466 made to the Taxpayers’ Fund in the statement of
changes in net assets for financial year ended 30th June 2019 due to lack of supporting details and journal vouchers.
Notwithstanding, Adjustment made on Accumulated surplus/(deficit) for the comparative figure (at 30 June,2018) on the
Statement of Changes in net asset amounting to TZS 394,945,128.40 but no disclosure has been made in the financial statements
on the nature of the prior period errors contrary to the requirement of para 54 (a) of IPSAS 3. Therefore we could not establish
the reason for restatements and confirm their validity.
Although management has restated Property, Plant and Equipment on comparative figure from TZS 1,411,284,260.60 to TZS
1,282,654,846.00 on the financial statements but no disclosure has been made in the financial statements on the nature of the
prior period errors contrary to the requirement of para 54 (a) of IPSAS 3. Therefore we could not establish the reason for
restatements and confirm their validity.
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Basis of Qualified Opinion
23. Tanzania Embassy Khartoum
Non recognition of land and building in the statements of financial position
Tanzania Embassy Khartoum has two buildings one at square No. 42 House No.6, Khartoum East, Abu Garja Street, Khartoum for
head of mission residence and another at Block No. 6/1 (4) 5A, Elmak Nimir Street, Khartoum West, Khartoum for Chancery. The
value of the land and buildings were not recognized in the financial statements under the line item of Property Plant and
Equipment (PPE) contrary to para 14 of IPSAS 17.
Overstatement of the amount of cash and cash equivalent TZS 66,541,659.22
I noticed that, included in the statement of cash flow and statement of budget is TZS 66,541,659.22 which is disclosed as
remittance receivable and correctly reported in the statement of financial position and note 51 of the financial statements,
hence the reported cash and cash balance was overstated by TZS 66,541,659.22
Unreconciled balance of Tax payer’s fund TZS TZS 80,162,759.22
I reviewed the Statement of change in net assets and noted that, Tax Payer’s Fund has increased from TZS 80,162,759.22 to TZS
160,325,518.98. However, the amount of Tax Payer’s Fund included in the statement of financial position was TZS 80,162,759.22
resulting to unexplained difference of TZS 80,162,759.22
Overstated Exchequer Issues Reported to the Statement of Financial Performance TZS 91,885,619.61
The amount of exchequer issues released reported to the statement of F/performance as per Note 66 is TZS 1,065,214,645.03.
However, total payments as per cash flows for both recurrent expenditure and acquisition of PPE add up to TZS 973,329,025.42
which should be the amount amortized during the year, hence resulting to unexplained (difference) overstatement of TZS
91,885,619.61
There is a decrease in receivable (Note 51) by TZS 81,604,621 during the year under review as the reported figure (closing
balance ) is disclosed as fund in transit(refer para 2 on page 22 of the F/statements). However, the inflows from receivables not
reflected in the Cash flow statement
Unreconciled Deferred Grant TZS 234,057,245.97
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Basis of Qualified Opinion
Embassy of Khartoum had unreconciled amount of deferred grant TZS 234,057,245.97
24. Ministry of Works Transport and Communication (Communication Sector – Vote 68)
1. Salary arrears not recorded in the financial statements TZS 87,040,750
I noted payable figure of TZS 1,732,501,802 as at 30 June 2019 in the Statement of Financial Position does not include Staff
salary arrears totalling TZS 87,040,750 as a result of staff promotions. Therefore, the reported payable has been understated
by TZS 87,040,750.
2. Inappropriate recognitions and presentations of expenditure TZS 960,000,000
The Ministry had paid a total amount of TZS 960,000,000 in respect of supply and installations of street signage and house
numbers in twelve town Councils.
• The figure of Prepayments for the financial year 2017/18 was understated by TZS 960,000,000. On 25/06/2018 amount
TZS 960,000,000 was transferred to VETA for execution of contract but this figure was not reported as prepayment.
• My review noted that, amount of TZS 960,000,000 has been reported as Property, Plant and Equipment as disclosed
under Note 59 of the Financial Statements for the financial year 2017/18 contrary to the requirements of Para 14 IPSAS
17. I also noted the depreciation was charged to non-existing assets.
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Appendix 2. 3: Entities and their basis for adverse opinion
Basis of Adverse Opinion
1. National Land Use Planning Commission (Vote 3)
The Statement of Cash Flows reported an amount of TZS 2,204,662,874.51 as a decrease in trade and other receivables in the
cash inflows and a decrease in payable amounting to TZS 165,900,259.54 in the cash outflows which is not correct treatment
under direct method for preparation of Cash Flows Statement. Hence Cash Flows was overstated by TZS 2,370,563,134.05 in
total.
Taxpayer’s fund reported in the Statement of Financial Position includes opening balance of TZS 711,209,456.15, Surplus of TZS
364,691,199.67 and an adjustment of TZS 1,422,077,967.53. However the reported adjusted amount was not justified by the
Management and hence Net assets were misstated by an amount of TZS 1,422,077,967.53.
The Statement of Financial Position for the year ended 30th June 2019 had reported a reserve of TZS 2,862,669,823.02 of which
includes Taxpayers fund of TZS 2,497,978,623.35 and Surplus of TZS 364,691,199.67. However, the amount of Surplus was already
adjusted and included in the reported Taxpayers fund hence the amount of Surplus was reported twice.
The Commission had paid an amount of TZS 424,967,169.37 to Government Procurement Service Agency for procurement of
motor vehicles. Up to the time of audit August 2019, the vehicles were not delivered and no any prepayments were recognized
in the Statement of Financial Position as at 30 June 2019.
I could not authenticate and validate the expenses amounting to TZS 804,324,178.46 equivalent to 18 percent of the total
payments, because the payment vouchers were not supported by relevant supporting documents, contrary to Regulation 95(4)
of the Public Finance Regulations, 2001 (Revised in 2004).
2. National Convention for Construction and Reform (NCCR-MAGEUZI)
The Party failed to maintain the register for Non-current assets. Apart from that, the Party did not conduct annual verification
of the same which would be a useful supporting information for establishing the accuracy of the reported Non-current assets
worth TZS.169,474,172 in the Statement of Financial Position. Hence unable to ascertain the authenticity of the reported figure.
CG - Annual General Report 2018 / 19 320
Basis of Adverse Opinion
Failure of management to produce supporting schedule and age analysis of the reported balance amount of TZS 36,659,047 that
was under note 6 of the Statement of Financial Position as a result I was not able to confirm whether the amount is properly
included in Account Receivable.
Included in payments are expenditure amounting to TZS 1,190,250 that were not supported by third party documentation. There
were no alternative procedures that I could perform to obtain sufficient audit evidence regarding these payments and I am
therefore unable to confirm whether the amount is properly included in the expenditure.
Management could not provide evidence to support depreciation of Property, Plant and Equipment (PPE) amount TZS 5,624,569
Included in the Statement of Financial Performance the figure.
3. Civic United Front (CUF)
Absence of proper Accounting System
I noted that, CUF did not keep records of business transactions on regular and systematic manner as a result there was no
adequate accounting information for reporting purposes. In absence of the adequacy accounting system I could not be able to
follow the whole processes in order to provide an assurance on the integrity of financial data provided by the CUF.
Bank reconciliation not performed
In absence of Bank reconciliation statements I could not be able to ascertain the accuracy of the cash and cash equivalent figure
of TZS 255,796,369 reported in the statement of financial position.
I reviewed the Statements of Financial Performance with regards to classifications of expenses items and found that there was
no defined chart of accounts for categories of expenses in line with its operations and hence some of the capital expenditure
reported as expenses.
Under reporting of Party Investments TZS 56,133,000: I reviewed the Statement of Financial Position for the four years ended
30 June 2019 and I have noted that, the Part had reported an Investment of TZS 1,148,154,149 for the year 2015/2016, TZS
13,542,000 for the year 2016/2017, TZS 42,609,000 for the year 2017/2018 and TZS 25,784,576 for the year 2018/2019. On the
CG - Annual General Report 2018 / 19 321
Basis of Adverse Opinion
year ended 30 June 2017 an adjustment of TZS 1,148,154,149 was made as write-off Investments. Based on the amount paid
annually for Investment from year 2017 to 2019, the expected total amount of Investment at the end of the year 2019 was TZS
81,917,576, however only TZS 25,784,576 was reported results into understatement of TZS 56,133,000.
Inaccurate information captured in the financial statements
Other receivables reported an amount of TZS 10,007,000 and was cross referenced by Note 7; however I noted that its
corresponding disclosure Notes was Note 6 for Staff advance & Note 7 Other receivables imprest amounting to TZS 11,282,000
resulting into unexplained difference of TZS 1,275,000.
Statement of Financial Performance;
Party Meeting reported an amount of TZS 352,905,370 and was cross referenced by Note 5, however on page 11 of the financial
statement, I noted that the corresponding Note for Party meeting was disclosure Note 5 with a reported amount of TZS
328,365,370 resulting into unsupported amount of TZS 24,540,000.
Administrative Expenses reported an amount of TZS 983,288,997 while its corresponding Note 8 reported an amount of TZS
656,186,337 results into unsupported amount of TZS 327,102,660.
Election Expenses reported an amount of TZS 332,560,620 while its corresponding Note 9 reported an amount of TZS 96,060,620
results into unsupported amount of TZS 236,500,000.
4. National League for Democracy (NLD)
Inaccurate presentation of statement of Changes in Net Assets. The statement does not show properly its components as well as
figures pertaining to each component. Further, reported Net Assets in the Statement of Financial Position differs from that
reported in the Statement of Changes in Net Assets.
5. Tanzania Embassy in Addis Ababa
Unconfirmed payments in the Cash Flow Statement TZS 564,931,947.50
My review of the Statement of Financial Performance as well as Cash Flows Statement, noted payments amounting to TZS
564,931,947.50 on the Cash Flows Statement that could not be traced in the other statements including the notes to the financial
CG - Annual General Report 2018 / 19 322
Basis of Adverse Opinion
statements. Furthermore, while conducting audit, I was not provided with evidence to support such payments hence I could not
confirm correctness and validity of the figure of TZS 564,931,947.50.
Incorrect Deferred Income
According to Note 30 for Deferred Income–Revenue, the figure to be amortized and recognised as revenue in the statement of
financial performance during the year was TZS1,682,939,348.58. However, Management wrongly recognized TZS
1,498,196,464.55 which is the remittance during the year. This has resulted to understatement of revenue by TZS184,742,884.03.
My review of the Statement of Financial Position as at 30 June 2019 and Note 34 to the financial statements noted that,
Management reported Deferred Income–Capital of TZS169,055,970.89 for 2018/19 and TZS567,371,697.25 for 2017/2018.
However, there were no capital grants received by the Embassy in 2017/2018 and 2018/2019 but Management reported Capital
Grants additions of TZS(391,503,707.12) and TZS21,917,307.25 for the years 2018/19 and 2017/18 respectively. I was not
provided with supporting evidence in relation to these figures as well as explanation on how they were obtained.
I noted that at the beginning of the financial year, the Embassy had a Deferred Income–Revenue balance of TZS226,928,739.74
and received addition of TZS 1,498,196,464.55 thus making total revenue grants available to be TZS 1,725,125,204. While the
whole amount of TZS1, 725,125,204 was supposed to be amortized, Management only amortized TZS 1,498,196,464.55 leaving
TZS 226,928,739.74 unamortized for the year 2018/19.
Improper disclosure of prior years’ errors
Review of the financial statements noted that comparative figures (2017/2018) for Other receipt and Cash and Cash Equivalent
at the beginning of the year in the cash flows statement did not match with figures in the audited financial statements for the
year 2017/2018. I further reviewed the Statement of Changes of Net Assets and noted that there were no prior year adjustments.
Nevertheless, there was no explanation provided by management in the financial statements in respect to restated figures.
Misappropriation of Revenue collected from Visa Fee TZS 485,653,337.54
The analysis of visa fees revenue for three years indicated collections of TZS 560,545,435 from which TZS 68,636,838.01 was
remitted to consolidated fund leaving the amount of TZS 491,908,596.99 unremitted. However, the reported closing balance of
cash (unremitted collections) as at 30th June 2019 was TZS 6,255,259.45 hence leaving the amount of TZS 485,653,337.54
CG - Annual General Report 2018 / 19 323
Basis of Adverse Opinion
unreported. This amount was neither banked nor cash available at the Office as at the time of audit in January 2020. In addition,
no evidence was submitted to show on how these funds were spent. Therefore, I could not confirm its accountability.
Understatement of the reported figure of revenue from Visas TZS 11,069,703
I reviewed Cash flows Statement for the year ended 30 June 2019 as well as receipt books and noted that the reported figure
for visa fee revenue of TZS 194, 387,012 had been understated in comparison with revenue of TZS 205,456,715 as per receipt
books resulting to understatement of revenue by TZS11,069,703.
Five exchequer receipt books missing
I reviewed counterfoil register for receipt books and found that five (5) exchequer receipt books which were under the custody
of financial attaché were missing and subsequently not produced for audit verification.
Overstatement of funds transferred to National Reserve Fund TZ 48,002,504.62
Management reported in the financial statements that, for three years the total amount of TZS116,639,342.63 was transferred
to BoT Foreign Affairs Account Number 9921143401. However, I reviewed the BOT bank statement for the same period and found
that, the total amount of revenue credited to that account for three years from Tanzania Embassy in Addis Ababa was TZS
68,636,838.01 resulting into overstatement of the reported transfers by TZS 48,002,504.62.
CG - Annual General Report 2018 / 19 324
Appendix 2. 4: Entities and their basis for disclaimer of opinion
Basis of Disclaimer of opinion
1. Alliance for Africa Farmers Party
• The submitted Financial Statements were not prepared in accordance with IPSAS Accrual which could be the basis for
evaluation.
2. African Democratic Alliance (ADA TADEA)
• The submitted financial statements were not prepared in accordance with the requirement of IPSAS accrual basis of
accounting which would be the basis for evaluation.
3. Chama Cha Ukombozi wa Umma (CHAUMMA)
• Management of CHAUMMA did not maintain primary books of accounts and necessary records of incomes and expenditures
thus my access to full information of the party’s financial information was limited. Therefore, I was unable to ascertain
the accuracy and fairness of the information presented in the financial statements.
4. Demokrasia Makini
• The submitted Financial Statements were not prepared in accordance with International Public Sector Accounting
Standards (IPSAS) Accrual Basis of accounting which would be a basis for evaluation.
5. Democratic Party (DP)
• I was not able to audit the Financial Statements of Democratic Party because they were prepared on IPSAS Cash basis of
Accounting contrary to Para. 5 of Political Parties Financial Accounting Guidelines issued on July, 2018 which requires
Political Parties to prepare Financial Statements on IPSAS Accrual basis of Accounting.
6. National Reconstruction Alliance (NRA)
• I noted that the management prepared only the Statement of Receipts and Payment without indicating the Financial
Reporting Framework adopted that deemed to be acceptable for preparation of the Financial Statements. I was therefore
unable to determine the basis of forming my audit opinion.
CG - Annual General Report 2018 / 19 325
Basis of Disclaimer of opinion
• I noted in the Statement of Receipts and Payments, an income of TZS 9,500,000 of which TZS 5,000,000 was supported
by documents to support the source and genuineness of the transactions; while TZS 4,500,000 were not supported by
documents and their source was not disclosed in the Financial Statement to substantiate validity and genuineness of the
transactions. There were no alternative procedures that I could perform to obtain sufficient audit evidence regarding
these income.
7. Alliance for Democratic Change (ADC)
• Management did not maintain primary books of accounts thus my access to full information of the party’s financial
information was limited. Therefore, I was unable to satisfy myself by alternative means concerning the accuracy of the
financial statements submitted by Alliance for Democratic Change (ADC) Management.
8. Chama cha Sauti ya Umma (SAU)
• I noted that there was no clear documented financial reporting framework to guide the preparation of the financial
statements. This is contrary to the NBAA Technical Pronouncement No.3 of 2009 with regards to Tanzania migration to
IFRSs, IPSASs and ISAs with effect from 1st July, 2004 which requires every entity in the country, whether small or large
to prepare its financial statements in accordance with International Financial Reporting Standards (IFRSs) or
International Public Sector Accounting Standards (IPSASs) as the case may be
• I am of view that the basis for preparation of the financial statements was not clear stated in some instance the
financial statements were declared to be prepared under cash basis and in other side the financial statements were
declared to be prepared under accrual basis.
• Addition to the explanation above the Party explanations reported in the statement management responsibilities
reported that the financial statements were prepares in conformity with International Financial Reporting Standards
(IFRS).
• The Party failed to provide payments vouchers and their related supporting documents as such I was not able to verify
payments of TZS 6,539,789. I was unable to satisfy myself by alternative means concerning the payments made during
the year, which are stated in the statement of Income and Expenditure.
CG - Annual General Report 2018 / 19 326
Basis of Disclaimer of opinion
• Payables of TZS 5,679,900 were not supported with any supporting documents as such I was unable to verify whether
payables of TZS 5,679,900 was accurate, occurred, complete and relating to the Party activities.
9. United Democratic Party (UDP)
• Management of UDP did not maintain primary books of accounts and necessary records of incomes and expenditures thus
my access to the party’s full financial information was limited. Therefore, I was unable to ascertain the accuracy and
fairness of the information presented in the financial statements.
10. United Peoples’ Democratic Party (UPDP)
• The submitted financial statements were not prepared in accordance with the International Public Sector Accounting
Standards which would be the basis of evaluation.
11. Tanzania Labour Party(TLP)
• I was not able to audit the Financial Statements of Tanzania Labour Party because they were prepared on International
Financial Reporting Standards (IFRS) framework contrary to Reporting Framework acceptable by the Political Parties
Registrar which requires Political Parties to prepare financial statements on IPSAS Accrual basis of Accounting. This
implies that the Party departed from IPSAS accrual basis of accounting.
12. Union for Multiparty Democracy (UMD)
I was not able to verify Revenue of TZS 4,002,000 and its expenditure reported in the statement of financial performance, as I
was not provided with acknowledgement receipts and some of the payments vouchers with a total of TZS 1,035,000 and their
related supporting documents. Hence I was unable to satisfy myself by alternative means concerning the financial statements
submitted by management of Union for Multiparty Democracy.
The Financial statements do not disclose the applicable Financial Reporting Framework, including significant accounting policies
such as basis for preparation, Notes and supporting schedules as required by NBAA Technical Pronouncement No.3 of 2009.
CG - Annual General Report 2018 / 19 327
Appendix 3. 1: Follow up on the implementation of the previous year’s audit recommendations
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
1. 2006/07 Weakness in managing Government Amendment has been made The amended Under
guarantee to Debt policy and the Government loans implementation
The Ministry is advised to go through Government Loans, Guarantees and Grants
the Act and regulations by making Guarantee and Grants Act Act No. 30 of 1974 and
amendment on the Guarantee Acts No. 30 of 1974. All these will review of National
and Regulations to suit the current be tabled in the Parliament debt Strategy (NDS)
conditions. for approval soon. The debt are still awaited.
strategy has been amended.
2. 2013/14 Inadequate Management of Registrar Act is at the final No current year status Under
stage. At present the
Government Investments and implementation
Cabinet paper proposing
Other Interests
enactment of Treasury
The Government to set up a standby
Registrar Act is waiting to
investment funds from dividends
be discussed at Cabinet
and miscellaneous revenue in order
Meeting. The paper has
to safeguard Government
incorporated all IMTC
investments, and also participate in
recommendations.
investment avenues that the
Government may deem necessary.
Furthermore, I am advising the
Government to regularly review
investment performance and
strategies of the companies in which
it has minority shareholdings in
order to determine the
performance of such investments.
CG - Annual General Report 2018 / 19 328
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
3. 2014/15 The process of consolidation of The Government has We acknowledge the Under
financial statements for MDAs, LGAs managed to consolidate Efforts made by the implementation
and GBEs not automated the financial Government.
The Government should: Configure statement for all Public However
EPCOR system to automatically
Sector entities which The underway in-
consolidate MDAs, LGAs and GBEs
Speed up its efforts to integrate the includes LGA, MDAs, and house
Tanzania Embassies and High GBEs and the same were Software is awaited.
Commissions in the EPICOR accounting audited and published for Likewise we advise
package so as to enhance their 2014/15 and 2015/16 the Government to
valuation in order to determine the consolidated Accounts. set
amount of liabilities of retirees and Moreover, the efforts of Timeframe or
pensioners that is due to Government ensuring that the Implementing the
budgetary controls and credibility of process of prospective
their financial statements Harmonize consolidation is software.
the database of LGA’s and MDA’s so
automated is
as to be able to automatically run
their financial statements from the underway by introduction
EPICOR system and finally develop of the
advanced means to integrate the in-house made software
financial statements of Government which is in thefinal
entities that are using EPICOR but stages of
their nature of operation implementation.
necessitated separation of their
database.
CG - Annual General Report 2018 / 19 329
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
4. 2014/15 Absence of actuarial valuation for The Government is I will assess the Under
provision of Government Pension continuing with the efforts Implementation of our implementation
TZS 597.4 billion of ensuring that Recommendation my
CAG Recommendation The actuarial valuation for next audit
Government to comply with IPSAS 25
Pensioners paid by
for accounting for employees benefits
by conducting actuarial. Treasury is conducted. In
so doing this activity is
budgeted
for in the financial year
2017/18
5. 2014/15 Out dated National Debt Strategy The Government is in the No current year Under
and the Government Loans, Grants process updated implementation
and Guarantees Act of reviewing the National Response
The Government to review the Debt
National Debt Strategy and also to
Strategy and also to ensure
ensure the National Debt Management
Policy comes into force and also that
expedite amendments of Government National Debt Management
Loans Guarantees, and Grants Act, Policy
1974 (R.E 2004) in order to address comes into force and
challenges of Public debt and Public amending
debt management. Government, Loans
Guarantees
CG - Annual General Report 2018 / 19 330
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
and Grants Act, 1974 (R.E
2004) in order to address
challenges of
Public debt and
Public debt
management.
6. 2014/15 Dormant debts -TZS 2,090 billion The negotiations with Parish No current year Under
Government expedites the Club updated implementation
negotiations with lender countries (PC VII) bilateral debt Response
with a view to determine the debt relief
position and start servicing these arrangement with the
debts. remaining
PAIS Club and Non-Paris
Club creditors is going and
once the agreement is
concluded the dormant
accounts in respect will
be resolved.
CG - Annual General Report 2018 / 19 331
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
7. 2014/15 Special audit on the Financial Based on the new No current year Under
Statements of the Local calculation of updated implementation
Government Reform Programme TZS 5,296,804,582 the Response
Phase II (Decentralization by Government has started
Devolution) -(LGRP II D By D) for the refunding LGRP II money
year ended 30th June, 2013 after individual DPs
The implementing partners in submitting their request.
collaboration with development Up to now TZS
partner to conduct in-depth 2,967,000,003.71 has been
investigations of all deficiencies paid to Sweden (TZS
noted. 1,266,110,550), Germany
(TZS 805,533,493.71),
Ireland (TZS 508,278,590),
and Netherlands (TZS
387,077,370).PO RALG is
waiting for requests from
two countries from Finland
and Japan so that the refund
can be effected.
8. 2015/16 Results of special audits for NIDA Investigation was carried Investigation report Not
Investigative authority should do a out and results were and evidences of its implemented
thorough investigation on the issued. The Government is implementation
identified indicators of fraud as implementing the awaited for
outlined in this audit and recommendation of verification
appropriate actions be taken Investigative Authorities.
against the parties involved.
CG - Annual General Report 2018 / 19 332
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
9. 2015/16 Special audit of GAVI ALLIANCE Government through Response noted. Not
grant for Measles Rubella for the Ministry of Verification to be implemented
financial year 2014 done upon
Health has taken
Apart from strengthening internal submission of
disciplinary Measures
controls as a measure to address evidence
against all officers
noted weaknesses in the special
mentioned in the CAG
audits, disciplinary and legal action
report. Measures included
should be taken to those officers who
demotion in rank, and
have been implicated in such
refund of funds. PCCB is
misconduct of misappropriation of
still investigating all
Government funds. Action must
suspicions pertaining to
be t a k e n by Investigative organs
Rubella campaign, 2014.
like NPS, DCI and PCCB as law
enforcement organs.
10. 2016/17 Special audit on revenue collection i) Government has Management Under
and plots acquisitions at Immigration filed the response
implementation
Service Department Vote 93 Criminal Case No. 319
noted, verification
i) Management should ensure that of 2017 at Arusha
to be done upon
all remaining misappropriated Resident Magistrate
submission of
funds to a tune of USD 127,184 Court for theft of
evidences
equivalent to TZS 205 million are Public money.
refunded and deposited to the ii) Government through
respective Government account. the
ii) Also, appropriate disciplinary and Immigration
legal measures should be taken to Department has
those who were involved in such reminded Moses
CG - Annual General Report 2018 / 19 333
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
transactions from initiation, Ndembo, Lukas Mniko
payments process and approval of and Anne J. Liberity
the same. through letter with
Ref. No CPF 1767/30
dated 27/04/2018,
CPF 1498/54
dated 27/04/2018
and CPF
3482/18 dated
27/04/2018
respectively to recover
the loss.
iii) Moreover, Government
through the
Immigration
Department in
collaboration with
electronic Government
Agency (eGA), BOT
and Ministry of Finance
and Planning has
established an
integrated Immigration
control systems
through an e-
Immigration project
CG - Annual General Report 2018 / 19 334
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
for the purpose of
minimizing/control
losses of revenue.
11. 2016/17 Special Audit of Tanzania Teachers No response No response Not
Union implemented
(TTU).
Managements are urged to strengthen
systems of Internal Controls, as the
most weaknesses noted originated
from existence of inadequate Internal
Controls.
(i) (i) Apart from strengthening
internal controls as a measure to
address noted weaknesses in the
special audits, disciplinary and
legal action should be taken to
those officers who did not fulfil their
obligations effectively and thus
causing losses to the members funds.
(ii) (ii) Audit Committee should be
Established with the primary
purpose of providing oversight of the
financial reporting process, the
audit process, the system of
internal controls and compliance
with laws and regulations.
CG - Annual General Report 2018 / 19 335
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
The TTU management should ensure
that the established investments of
MCBL and Mwalimu House are
effectively managed through
established Investment policy that
will set goals and the means of
attainment of the planned goals.
12. 2016/17 Special Audit at Immigration No response No response Not
Service implemented
Departme
nt
Management should ensure that all
remaining misappropriated funds to
a tune of USD 127,184 equivalent to
TZS
205 million are refunded and
deposited to the respective
Government account. Also,
appropriate disciplinary and legal
measures should be taken to those
who were involved in such
transactions from initiation,
payments process and approval of
the same.
13. 2016/17 Special Audit at the The Government has Management Under
CG - Annual General Report 2018 / 19 336
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
National Suspended the contract of response noted, implementation
the particular building; verification to be
Identification Authority (NIDA)
meanwhile the responsible done upon
(i) To recover TZS 402,210,885.02 Management of that submission of
from BMTL (There after known contract has been suspended evidences
as Copy Cat Tanzania Ltd) for too. Also there is ongoing
rental charged on inflated office investigation conducted with
space. various investigations
ii) To recover TZS 167,445,671.91 institutions.
from GIL for extra money paid The Government also, has
by using Commercial Banks taken some measures of
exchange rate instead of BOT writing letters to the
exchange rate as per building owner, asking him
requirement of the contract. to return the improper
iii) To recover USD 551,500 amount that has been paid to
from him, as instructed by CAG in
his special audit report. The
Gotham International Limited (GIL) following are the references
an amount which was paid for and dates of the letters (CA
activity of Legal Advisory Service 2/182/04/84 of 30th
which GIL did not perform though September 2016 and CA
was part of the contract but 2/182/04/90 of 27th
instead the activity was performed October, 2016).
by M/S School of Law in partnership Furthermore, the legal
with M/S Law Partners for that action is on progress to all
amount of USD which was again paid of them through PCCB.
by NIDA.
CG - Annual General Report 2018 / 19 337
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
14. 2017/18 Special Audit of ALAT Funds i) Measures of strengthening Management response Under
Internal Control have already noted, verification to implementation
i) ALAT Management to strengthen
started by requesting Chief be done upon
systems of Internal Controls, as
Internal Auditor of PO RALG submission of
most of the weaknesses
to include the ALAT in the evidences
identified originated from failure
schedule of Internal Audit
of Internal Controls and
quarterly.
management overriding controls.
ii) The Implementation of this
ii) A thorough investigation,
measure started in March
disciplinary and appropriate
2018 whereby the team of
legal action should be taken to
Internal Auditors from PO-
those officers for not fulfilling
RALG conducted Debt
their obligations effectively and
verifications and
thus causing losses to the ALAT
transactional audit at ALAT
funds.
offices.
Disciplinary and Legal action
already taken to the officers
who were proved to cause
the losses of the ALAT funds
15. 2016/17 Special audit on construction of The Government through Management Under
Transmission and distribution the response noted,
implementation
network for Mtwara Energy verification to be
Ministry of energy has
Project (MEP). done upon
written a letter to
i) The total management cost of US$ submission of
Wentworth Gas Ltd (M/S
evidences.
2,696,848 should not be paid by Umoja Light Company
CG - Annual General Report 2018 / 19 338
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
the MEM to Wentworth Gas Ltd Ltd) with reference No.
as claimed by the Company Ltd. CBD.180/229/01 dated 8th
ii) The Ministry of Energy & Mineral February 2018 to claim the
Management should deduct from recovery of USD
the Property Plant and 8,426,819.33. The Ministry
Equipment costs a total of US$ is now making follow up to
1,768,631 as they are not receive the amount from
recoverable under MEP and MICRA the said Company as early
as raised by Wentworth Gas Ltd. as possible.
16. 2017/18 Inefficiencies in revenue collection To ensure that controls Management response Under
The Government should strengthen on revenue collection in noted, verification to implementation
controls over collection of revenue respect of Airport and be done upon
from airport and port departure Port Departure Service submission of
service charges and other sources charges are enhanced, evidences.
and ensure that all revenue proposals have been
leakages are timely plugged. submitted to amend the
Airport and Port
Departure Service Act to
compel Airlines and their
Agents to file monthly
Revenue Returns of all
remittances they make to
TRA.
Operators have been
requested in writing to
CG - Annual General Report 2018 / 19 339
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
attach a list of passengers
from whom charges have
been collected whenever
the remit collected
amount.
The Strategy in place now
is to place TRA Resident
Officers in all major
Airports and Ports in the
country (we have started
with JNIA); who will be
assigned the duty of
overseeing daily collection
of Departure Service
Charges and perform
weekly/monthly revenue
reconciliation of remitted
charges.
17. 2017/18 Challenges in Revenue Mobilization (i) The Tax Revenue The government Under
and Recommendations Appeals Board and the response have noted implementation
For the past five years TRA has been Tax Revenue Appeals and the
missing the targets with exception Tribunal have government’s
of 2015/2016 and revenue collect. increased the number
strategies to
There are various challenges that of sessions for hearing
require Government attention to of appeals in Dar es institute controls on
tax appeals.
CG - Annual General Report 2018 / 19 340
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
improve revenue collections which Salaam where most of Likewise, the
include; ion trend were below the the appeals originate collection strategies
approved estimate by 7.3 percent and upcountry on the outstanding
on average in the past five years. Regions such as tax liabilities based
The following recommendations Arusha. The measure
on updated Tax
were issued: will significantly
reduce the backlog of payers’ data will be
(i) Existence of several pending pending appeals and verified in my
tax disputes expedite recovery of upcoming audit.
The government should enhance payable taxes. The
efficiency of the tax appeal organs Court of Appeal has
by allocating required number of also prioritized tax The government
human resources and members for appeals hence responses have been
TRAT and TRAB; and releasing included them in noted, however; the
sufficient funds. every hearing session. implementation of
this strategy will be
(ii) Inadequate follow ups on (ii) The TRA Debt
outstanding tax liabilities (tax Management Units assessed during our
arrears) and assessed taxes have been aligned and subsequent audits.
worked out collection
strategies for follow
Government should exert more up and prompt
efforts to recover the taxes from recovery of previous
the taxpayers. This can be achieved as well as current
by enhancing the debt management outstanding taxes.
department and strategies at TRA in The strategies are
order to collect on time all taxes as based on updated Tax
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they become due and avoid long payer’s data.
outstanding taxes in arrears from
assessments made. (iii) follow up and prompt
recovery of previous
(iii) Improper tax audits and tax as well as current
assessments done by tax outstanding taxes.
officers. The strategies are
The government should enhance based on updated Tax
capacity and competency to all payer’s data/records
officers in the tax audit and tax including:-
assessments functions.
The Government
through TRA
Management has
taken into
consideration all CAG
Audit queries and
recommendations by
issuing assessments to
all taxpayers whose
previous assessments
were found with
anomalies.
Assessments worth
TZS 39.5 billion have
been issued and
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collection of tax
thereon is in progress.
Moreover, the staff gap and
skills is expected to be
reduced since TRA has
recruited 250 new
employees who are
currently undertaking
induction course at our
Institute of Tax
Administration (ITA).
19. 2017/18 Taxes tied up in the appeal The Government through The government Under
machinery pending rulings Tax Revenue Appeals response is noted, implementation
The Government needs to improve Board and the Tax however, I will keep
operations and performance of Tax Revenue Appeals Tribunal making follow ups
Appeals Organs by allocating and have increased the
on the improvement
releasing adequate funds for the number of sessions for
operations of tax appeal organs, hearing of appeals in Dar on the pending
and allocate adequate human es Salaam where most of appeal cases during
resources to enable hearing and the appeals originate and my next audit.
concluding of tax cases to take upcountry Regions such
reasonable time. as Arusha. The measure
will significantly reduce
the backlog of pending
appeals and expedite
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Year the
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recovery of payable
taxes. The Court of
Appeal has also
prioritized tax appeals
hence include them in
every hearing session and
delivered judgments and
rulings expeditiously.
20. 2017/18 Inefficiency in handling and The Government through I will keep making Under
resolving Tax Objections TRA has formed special follow up to ensure implementation
The Government should expedite team to assist in resolving that the remaining
handling of tax objection outstanding objections. tax objections are
applications in order to resolve the The exercise has
settled.
overdue tax objections. This can commenced within Dar es
be done by increasing the number Salaam Regions (Ilala,
of competent and experienced Temeke and Kinondoni,
personnel in Tax Audit Unit and LTD) of which 54
Technical Services Unit; and objections for Kinondoni
strengthen its tax assessment Tax Region were
process. attended out of which 32
objections were settled
while the remaining are
at the final stage of
completion. Also out of
objections worth TZS
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34,485,974,108.75, for
LTD, 22 objections with
monetary value of TZS.
29,496,581,046.85 have
been resolved and more
effort is being exerted to
clear the remaining
balance of 32 cases worth
TZS. 4,989,393,061.90
21. 2017/18 VAT not paid TZS The Government has I acknowledge the Under
4,417,426,199.94, Long noted the auditor’s effort made by TRA implementation
outstanding tax arrears TZS recommendations. in ensuring the
114,463,396,095.22 and Efforts have been made collection of the
Outstanding fines from tax through TRA to recover
outstanding VAT. I
offences TZS 723,311340 the outstanding VAT;
The government should exert more where TZS still urge the
efforts in collection of all taxes in 162,411,685.96 has been authority to ensure
arrears. This can be achieved by recovered out of TZS fully collection of
making arrangement with 4,417,426,199.94. Other the outstanding
taxpayers to settle their tax remaining balance is amount.
liabilities through installments and under recovery process
enforcing the current tax amnesty and once paid, the
for interest and penalties to recovery evidence will be
ensure that all outstanding taxes submitted.
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PMG’s Response
are recovered without further
delays.
22. 2017/18 Weaknesses in tax audits and tax Government has noted Submission of Not
assessments the audit mentioned implemented
The government should make recommendation. The evidences is
thorough verification of taxpayers’ management of TRA is awaited for
financial statements, VAT returns compiling the evidences
verification
analysis, returns of income and for 76 months which will
other information submitted by be submitted to CAG for
taxpayers to ensure that they verification.
depict true affairs of taxpayers, Also TRA is enhancing in-
and take strict measures according house training on tax
to the law to taxpayers who submit assessment techniques to
wrong/falsified information. Make auditors in order to
close follow ups to taxpayers to improve performance.
ensure that PAYE, SDL and
withholding taxes are remitted
timely to TRA.
25. 2017/18 Assessment over efficiencies in TZS 972,772,705 and USD The improvement Under
revenue collection 1,495,234 resulted from in the noted implementation
• The Government should the difference between inefficiencies in
strengthen controls in number of passengers the revenue
managing the processes and remitted to TRA in Form
collection is still
procedures of airport and port AS-1 by Airline Operators
assessed to
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service departure charges by and the records ensure all the
ensuring complete information manifested by Airline mentioned
is obtained and confirmation on Operators. The remaining controls are
remittances are supported by amount of TZS strengthened.
the number of passengers 120,360,000 and USD
embarking at ports and airports 1,251,400 were not
to avoid under remittance by remitted by seven
taxpayers; Operators in various
• Timely reconcile the details of airports including Dar es
passengers and revenue salaam, Dodoma,
collected based on records of Bukoba, Mwanza,
Tanzania Airport Authority and Kilimanjaro, Songea,
Port Authority against Musoma, Tanga, Kahama
remittances made by airline Arusha na Iringa. The
operators and marine service Management is making
companies; reconciliation of the
• Ensure airline operators and differences noted in form
marine service companies file AS-1 submitted to TRA,
regular returns to TRA Airlines Operators and
indicating number and details Airport Authorities. To
of passengers carried by them strengthen controls on
(airline operators and marine collections, TRA has
service companies) embarking stationed Resident
from airports, private owned Officers on major airports
airstrips and ports; starting with JNIA.
• Consider conducting a thorough
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special review on airport and
port departure service charges
in order to address noted risks
in this area which hamper
revenue collections;
• Recover all unremitted airport
and port departure service
charges from airline operators,
Tanzania Airport Authority and
Marine Company;
26. 2017/18 Disposal/transfer of exempted Government has noted the The government’s Not
motor vehicles to non-beneficiaries auditor’s recommendation response is noted, Implemented
without payment of duties TZS and will strengthen controls however, its
114,524,502 and make close monitoring implementation
a) Government to strengthen of exemptions to motor
will be verified
controls and make close vehicles. The taxes which
monitoring of exemptions to motor were not collected will be during my
vehicles to avoid possible misuse followed up and evidence for upcoming audits.
by the beneficiaries including collection will be submitted
disposal or transfer of the same for audit verification.
without payment of duties.
b) Government to collect taxes of
TZS 114,524,502 on the disposed
exempted motor vehicles,
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including penalties/fines for non-
compliance with the EACCMA Act.
27. 2017/18 Assessment of controls over a) Demand letter with The government Under
exempted fuel imported for ref response is noted, implementation
consumption in mines TRA/CCE/OPM/11/55 the TRAB’s
a) Government to recover taxes on /2018 was issued to decision is
exempted fuels transferred to sub- Bulyanhulu Gold Mine
awaited. But the
contractors and other non- Ltd demanding the
beneficiaries amounting to TZS duties and taxes. The
TRA is also
401,332,896. Mining Company has insisted to ensure
b) The Government has to conduct disputed and appealed effective controls
frequent monitoring and inspection to Tax Revenue over exemption
of the beneficiaries of the Appeals Board vide on fuels are in
exemptions to ensure beneficiaries appeal number 27 of place.
and companies adhere to the 2019. TRA awaits for
requirements of the legislations and TRAB’s decision.
avoid losses arising from abuses and b) In respect of misuse of
misuse of tax exemptions. tax exemptions, the
Government through
TRA will continue to
conduct frequent
monitoring and
inspection of the
beneficiaries of the
exemptions so as to
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ensure beneficiaries
and companies adhere
to the requirements of
the legislations.
28. 2017/18 Weaknesses noted during a) The Government will I acknowledge the Under
assessment of Controls over Tax issue and/or renew effort done by implementation
Exemptions on fuel consumed by Government Notice on TRA by issuing the
Strategic Investors time to avoid demand note to
a) Government has to issue companies to operate
ensure collection
Government Notice on time to without Notices;
avoid companies to operate b) The Government will
of the tax from
without Government Notices. continue to check M/s Kagera sugar
b) The Government has to renew thoroughly, the and M/s Mount
Government Notices for accuracy of quantity of Meru Ltd. The
exempted fuel on time to avoid fuel submitted for tax recovery will be
controls breakdown that may refund by verifying and verified.
lead to loss of government re-computing figures in
revenue when Government the reports basing on
Notices are issued machine (s) hours and
retrospectively. rate of consumption
(c) Government should thoroughly before granting tax
check the accuracy of quantity refunds.
of fuel submitted for tax c) TRA has issued Demand
refund by verifying and re- Note for recovering
computing figures in the overpaid tax refunds to
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reports basing on machine (s) Kagera Sugar and Mount
hours and rate of consumption Meru Millers Limited
before granting tax refunds. through demand letters
d) Government has to conduct a with ref. number
thorough verification of fuel TRA/CE/OPM/04//2019
consumed by strategic and
investors and keep TRA/CE/OPM/05/88/20
records/evidences before 19 respectively.
granting approval for payment
of tax refunds.
e) To recover the overpaid tax
refunds of TZS 122,109,804.40
from Kagera Sugar Limited
and Mount Meru Millers
Limited.
29. 2017/18 Ineffective controls over collection i) Payment information The government Under
of taxes and management of goods on duties and taxes response is noted implementation
under Inland Containers Depot amounting to TZS. towards the
(ICDs) 3,875,869,752 were progress of
a) Make timely follow up with submitted to the
implementation
importers/Clearing and forwarding Auditor for
Agents and ensure that all verification. Efforts of my
assessment declarations are paid are being made to recommendation.
on time, including collection of obtain documentary
TZS 4,734,719,220.80 plus any evidence of payment
penalty or accrued interest as per for the remaining
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PMG’s Response
requirement of Sec. 249 of the balance amounting to
EACCM, 2004. TZS. 858,849,468.80.
b) Strengthen controls over goods ii) Most of the referred
deposited in customs warehouses transactions were
by ensuring that proper actions are cancelled declarations
taken to dispose goods timely and that did not complete
in a manner deemed appropriate the process. TRA is
as required by the law. making efforts to
c) Timely conduct auctions at ensure that CFAs
reasonable prices on all overstayed complete cancellation
goods and any other actions of declarations on
deemed reasonable to dispose the time, where it is
overstayed goods. envisaged necessary to
cancel.
iii) The Government
through TRA will
strengthen controls
over goods deposited
in customs warehouses
by ensuring that
proper actions are
taken to dispose goods
timely.
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30. 2017/18 Inadequate controls and i) Government through The government Under
monitoring over transit cargo TRA will continue to response is noted implementation
and export goods strengthen controls of towards the
i) Government strengthens transit cargo to ensure progress of
controls over transit cargo by the goods reaches the
implementation
complying with transit control intended destination.
procedures to avoid illegal ii) The documentary of my
localization and loss of evidence for the recommendation.
government revenue. clearance of goods
ii) Government recovers taxes with Bond enforce
amounting to TZS worth TZS.
57,748,315,692.68 being taxes 54,147,684,511.20
on non-exportation transit have been submitted
cargo (dry cargo and fuel). for verification.
iii) Government recovers VAT of Follow-ups are being
TZS 649,451,067.85 from goods made to obtain and
not exported, and to submit documentary
strengthen controls over evidence for the
exported goods such that all remaining balance of
customs procedures must be TZS. 2,951,180,113.68
completed before goods are for verification.
exported. iii) Documentary
evidence for the
clearance of exports
of goods with VAT
amounting to TZS.
649,451,067.85 have
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Year the
PMG’s Response
been submitted to
auditor for
verification.
31. 2017/18 Misstatement of disbursements The Government has made The government Under
due to inadequate Internal Control some effort to improve response is noted implementation
in Recording and Reporting internal control over towards the
The government should verify all recording and reporting of progress of
disbursements from receiving disbursements. Regarding
implementation
parties/implementing agents prior the mode of receiving
to recording the same as disbursement of my
disbursements in CS-DRMS. Also notifications, Government recommendation.
consider designing controls that will took corrective measures However; the
enable accuracy of financial whereby a special team report and the
statements data taken from CS- was formed to conduct a actions taken are
DRMS. study on the best way in awaited.
respect of disbursement
flows. Once the report is
ready, proper action will
be taken to solve the
currently existing
challenge.
32. 2017/18 Delay in Debt Servicing with The Government has set The government Under
BoT- 212.7 billion aside funds in financial response towards implementation
Government is advised to (i) year 2018/19 and by end the progress of
promptly effect payment of of June 2019 the implementation of
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liquidity management costs and obligation will be fully my
Interest on overdraft to comply settled upon completion recommendation is
with BOT Act 2006 and MoU. An of verification. noted. However;
enhancement to the budget of Regarding amendments the fund set aside
Vote 22 to accommodate to the Bank of Tanzania
by the government
repayment of such charges is the Act 2006 to allow the
right option going forward, and (ii) Bank set off any for the FY
consider making necessary government obligations 2018/2019 to
amendments to the Bank of it will be contrary to:- settle the
Tanzania Act 2006 to allow the i) Article 135 of the obligation will be
Bank set off any government Constitution of the verified during
obligations against her share of United Republic of next audits.
dividends whenever government Tanzania which requires
has obligations with the BOT. Both that, All revenues and
measures will enable ever-growing moneys raised or
arrears of liquidity management received for the
costs and interests to be avoided purposes of the
in future. Government to be paid
into and from the
Consolidated Fund and;
ii) IPSAS 1 which
stipulates that, assets
and liabilities, and
revenue and expenses,
may not be offset unless
offsetting is permitted or
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Year the
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required by another
IPSAS.
33. 2017/18 Failure to recognize Payables Management has noted the The government Under
arising from pension contribution concern, and will look into response is noted implementation
in arrears possibility of utilizing the towards the
The government should consider, available software to progress of
utilizing its available software handle the matter.
implementation of
including Lawson and GSPP in
obtaining real-time data regarding my
payable statutory contributions and recommendation.
pay the same timely in order to
avoid unnecessary arrears to the
government and understatement of
payables.
34. 2017/18 Overstatement of terminal The Government will The government Under
benefits by employers – TZS continue to conduct response is noted implementation
282,975,824.31 practical training to the towards the
Anomalies raise concern over the Government entities progress of
adequacy of the review mechanism entitled to prepare and
implementation of
of pension papers, capacity of the review pension papers on
preparers and reviewers in terms of matters relating to my
competence and experience on pension documentation recommendation.
pension matters and laws, and and laws; to improve
documentation of pension files on their capacity and hence
the side of employers.
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PMG’s Response
accurate pension
computation.
35. 2017/18 Inappropriate Disclosure and The Government through The progress reiterated
Measurement of Equity the Office of Treasury towards
investments Held for Trading Registrar will comply implementation of
The previous year’s with the requirement of my recommendation
recommendation is reiterated; IPSAS 29, Financial
is noted.
the Government should measure Instruments disclosure,
equity investments held for to ensure that proper
trading at fair value and disclose measurements are
key (relevant) information on complied with.
the acquired shares Furthermore, the
Government is of opinion
that, IPSAS
implementation is still
going on therefore
compliance issue is now
the priority after the
lapse of the transitional
period. The Entities with
equity investment have
been directed to comply
with the requirement of
the IPSAS 29.
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36. 2017/18 Non-appointment of the Non- The Government will The progress Under
Governmental Organization (NGO) implement the audit towards implementation
Director recommendation by implementation of
The Director and the Board need to ensuring that the my recommendation
be appointed and should be Director and the Board
is noted.
independent from the Ministry by are appointed so as to
exercising its mandate as stipulated exercise its mandate as
under the NGOs Act No. 24 of 2002 stipulated under the
amended by Sec. 4 - 11 of Part IV of NGOs Act No. 24 of 2002.
the Amendment Act No 11 of 2005
and related regulations for the
proper management of the NGOs
operations.
37. 2017/18 Ministerial Advisory Board not The government through The progress Under
Appointed the responsible Ministers towards implementation
It is recommended that Ministers will ensure that Ministerial implementation of
responsible, to establish the Advisory Boards (MAB) are my recommendation
Ministerial Advisory Boards (MAB) established as per the
is noted.
as per the requirement of the Act, requirement of the Act.
for an effective management of
agencies in achieving their
objectives.
38. 2017/18 Challenges facing NPS in the The Government has The progress Under
Implementation of Forfeiture noted the auditor’s towards implementation
and Recovery Laws recommendation and it implementation of
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The Government is advised to will consider the my recommendation
harmonize government organs/ possibility and is noted.
investigative Agencies with a practicality of
view to establishing a single harmonizing government
legislation recognized in the organs/investigative
proceedings of Crime Act (Cap. Agencies with a view to
256 R.E.2002) which deals with establishing a single
the Assets recovery and legislation recognized in
Forfeited process. the proceedings of Crime
Act (Cap. 256 R.E.2002)
which deals with the
Assets recovery and
Forfeited process.
39. 2017/18 Low pace in ID Production due National Identification The government Under
to ineffective contract (NIDA) is on progress to response is noted. implementation
Therefore, the Government to; (a) upgrade printing Follow up of the
settle the unpaid contractor capacity of Identity speed of ID
claims without further delays and; Cards in its
production will
(b) evaluate the performance of Personalization solution.
the contractor and deciding on The upgrade shall continuously be
whether to extend the completion involve seamless monitored.
period; or enter into a new integration on its current
contractual agreement with ongoing personalization
another contractor. operation without
resulting in any
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PMG’s Response
discernible errors or
complications with
minimum downtime
resulting from the
upgrading of
Personalization. The
upgrade will increase ID
Production trend and
involve the following:
i. The Authority is now
pursuing a
procurement of new
printing machines
that can provide a
throughput of not less
than 9000 cards per
hour to meet
authority target and
current production
demand.
ii. Running 24 hours
shifts on the existing
printers so that to
increase production
hours to
accommodate
current backlog.
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iii. Upgrade/corrective
maintenance on the
existing printers so
that to maintain
performance and
producing to the level
targeted when
installed.
Upon timely purchasing
and installation of new
personalization machine
the Authority will be
able to personalize all
qualified applications
which have been
registered and verified
by Immigration
Department before the
end of the year 2019.
40. 2017/18 Escalating hiring costs of motor The Government agrees The government Under
vehicles by Tanzania Embassies with the Auditor’s response is noted. implementation
in Moroni and Brasilia TZS recommendations. The The matter will be
87,461,046.99 Government will prioritize verified during my
The Government through the purchase of motor vehicles
subsequent audits
Management of the Ministry of for the embassies in need,
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Foreign Affairs and East African depending on the
Cooperation should avoid availability of the
escalating hiring costs incurred by resources.
the Embassies by procuring its own
vehicles.
41. 2017/18 Inadequately Supported The Government through The government Under
Expenditure TZS the Accountant General response is noted. implementation
4,369,240,033.86. has been issuing Circulars Verification will be
The respective Accounting Officers to remind the Accounting done on individual
should take note that missing officers and Chief
reports to ensure its
Payment Vouchers are statutorily Accountants to ensure
regarded as cash losses that in that all payments made by implementation.
return Accountant General has to them are adequately
include them in the Annual supported. As of recent,
Statement of Losses the Government issued
Circular No. 6 on
preparation of financial
reports and closure of the
financial year 2018/19;
where section XXXV
emphasizes the need to
ensure adequate
accounting procedures are
adhered to avoid
unnecessary audit queries.
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42. 2017/18 Unclaimed Withholding Taxes The Government will The government Under
Amounting to TZS 722,173,494.09 continue to remind the response is noted. Implementation
The Management of respective Accounting Officers to
entities to ensure that the ensure that the
outstanding withheld taxes are paid outstanding withheld
without delay and in the future taxes are paid without
withholding tax should be delay, and in the future
appropriately deducted and withholding tax are timely
remitted to the Commissioner as and appropriately
required by aforementioned deducted and remitted to
citations. the Commissioner as
required by
aforementioned citations.
43. 2017/18 Payments not supported with The Government will keep The government Under
Electronic Fiscal Devices (EFD) on reminding Accounting response is noted. Implementation
Receipts worth TZS Officers to engage with
1,432,407,818.97 suppliers using EFD
machine or invoices linked
The respective Accounting Officers with TRA, to comply with
should engage with suppliers using tax laws.
EFD machine or invoices linked with
TRA and in the future the
compliance with tax laws should be
observed accordingly.
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44. 2017/18 Abandoned, Partially completed The Government has The developed plots Under
and undeveloped plots developed 15 years Plan to all the mentioned implementation
The Government should establish 2017/2018 – 2031/2032 embassies and
effective housing construction plans focusing on building, commissions will
since; planning plays an important acquisition and
continuously be
role in ensuring the housing projects rehabilitation of
are completed within the specified Tanzania Embassies assessed.
budget. Success is contingent on the office and residential
availability of funding and the buildings. Some of
Government commitment to projects planned to be
complete the established buildings. implemented are under
I called upon the Government to this Plan includes
look for alternative sources of rehabilitation of
finance in order to accomplish Tanzania Missions office
construction of buildings, and residential buildings
rehabilitation and development of in Harare, Zimbabwe,
acquired plots. Kampala, Uganda;
Beijing, China; Pretoria,
South Africa; Cairo,
Egypt; Lilongwe, Malawi
and Kinshasa, DRC; and
Washington DC, USA. It
also intends to
implement the
construction of
Ambassador’s residence
in Addis Ababa, Ethiopia;
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office buildings in
Bujumbura, Burundi and
office building in Muscat,
Oman. In the financial
year 2019/2020, the
Government through
Ministry of Foreign and
East Africa co-operation
has set aside budget of
TZS. 4,000,000,000.00
for implementation of
various development
projects.
45. 2017/18 Inadequate Maintenance of Asset The Government is The follow ups to Under
Register continuing with the ensure maintenance Implementation
It is advised that the noted Entities process of enhancing asset of assets register
should update the Asset register recognition and across the
timely so as a proper system of preparation of asset
government entities
tracking their assets can be register. In enhancing this,
established and for proper the revised guideline on will be assessed
reporting. An up-to-date fixed asset asset management 2019 during my
register serves as audit evidence was issued and published subsequent audits.
that need to express opinion on the in the MoFP web site.
credibility of a financial statement. Follow up on compliance
of the guideline and
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preparation of asset
register will be expedited.
46. 2017/18 Neither Disposed off nor serviced The Government will make The follow ups will Not
Grounded motor vehicles follow up to all MDAs on be assessed during Implemented
Government is advised to the compliance with the my subsequent
implement a procedure for annual requirement of Public audits.
review of the condition of all Finance Regulations 253-
vehicles and other equipment and 255 on surveying and
to record the information in an disposing un-serviceable
Asset register, this will enable assets.
Accounting Officers to make
decisions on disposal of
unserviceable assets or which do not
have a useful economic life.
47. 2017/18 Absence of Ownership documents As per Reg. 8 (7) of the I will make follow Under
for Government Land and Public Finance Act, 2001 ups on the Implementation
Buildings and Public Assets availability of
Director of Government Asset Management Guidelines ownership
Management under the Ministry of (RE.2019), The
documents for
Finance is advised to expedite the Government through
Entities efforts to acquire the Title Ministry of Finance and government’s
deeds by liaising with the relevant Planning vide circular lands and
Authorities. No. 3 of 2016/17 with buildings.
Ref. No.
CG - Annual General Report 2018 / 19 366
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
EB/AG/FNA/16/VOL.
I/76 dated 27th
December, 2016 issued
directives to all
Accounting Officers in
Government institutions
including Ministries,
Agencies and Regional
Secretariats, Local
Government Authorities
and State Owned
Enterprises to ensure
that assets are
identified, valued and
title deeds are obtained
from relevant
Authorities.
48. 2017/18 Payments to Supplier above Due to most of the staff Government’s Under
Contract Price USD 148,243.73 involved being retired response is noted, Implementation
It is recommended that a refund of from civil servant I will verify the
additional payments by Supplier and services, the implementation
institution of legal and disciplinary Management of NEC has
when the PCCB
measures to NEC officials who wrote a letter with a
colluded with Supplier and reference No. investigation will
misappropriated public money. CJB.182/237/01 dated be finalized and
the disciplinary
CG - Annual General Report 2018 / 19 367
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
11th April 2019 to actions taken to
Prevention and those who are
Combating of Corruption involved in
Bureau (PCCB) to misappropriation
proceed with Legal
of public money.
Procedures for
employees who are
suspected to collude
with supplier. Letter
with Ref. No.
IE/018/2012/2013/HQ/
G/19A/01 dated 13th
June, 2019 has been
written to supplier to
account for and provide
clarification on the USD
148,243.73 paid over and
above the contract value
of USD 385,650 paid for
the training of technical
team that was scheduled
to be conducted in the
Netherlands but not
undertaken.
CG - Annual General Report 2018 / 19 368
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
49. 2017/18 Payment for Construction Works The Government has The government’s Under
Not Certified by Consulting initiated an Investigation response is noted, Implementation
Engineer TZS 5,482,610,339.86 through relevant organs. the matter will be
and fraudulent Payments of TZS Though the entire verified after
570,508,125 amount overpaid has
submission of
It is recommended the TAA to been deducted from the
initiate the investigation on PV. amount due to the investigation
No 10 and 03 before handling contractor through the report and
project and refund of retention settlement agreement respective
money to the Contractor. dated 29th April, 2o19. disciplinary actions
However the retention taken.
money is still not paid
until the completion of
investigation.
50. 2017/18 Different Prices were charged for The case is under The government’s Under
Similar AFIS Gadgets and leading investigation by different response is noted, implementation
to Overpayment of TZS Government Agencies and the matter will be
556,647,610 once the investigation verified after
Legal and disciplinary measures report is out the proper submission of
should be taken against all measures will be taken investigation report
responsible officers who accordingly. and respective
contributed to the loss of TZS disciplinary actions
556,647,610. taken.
CG - Annual General Report 2018 / 19 369
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
51. 2017/18 No Training for 30 Experts Costing MS Lugumi Enterprises has The government’s Under
TZS 604,390,244 been instructed to train 30 response is noted, I implementation
The training of 30 experts finalized experts as stipulated in am waiting for the
by M/s Lugumi Enterprises Limited contract number delivery mentioned
or refund training costs paid. ME.014/PF/2011/2012/G/
service(s) as per
12 Lot 1 or refund TZS
604,390,244 paid to him. contractual terms
and/or refund of
the money.
52. 2017/18 Missing 58 Dell Optiplex Monitors MS Lugumi Enterprises has The government’s Under
with 22 Inches Model L2250p written the commitment response is noted, I implementation
costing TZS 159,166,100 letter with no reference am waiting for the
Number dated August 01, delivery the items
Legal and disciplinary measures be 2018 to Permanent
questioned.
instituted against Forensic Unit Secretary Ministry of Home
officials for failure to maintain Affair committing himself
custody of 58 Dell Optiplex to replace all 271 Dell
Monitors. Optiplex Monitors With 22
Inches.
53. 2017/18 Payment to supplier for service MS Lugumi Enterprises has The government’s Under
not executed TZS 3,304,000,000 been instructed to response is noted, implementation
The completion of maintenance and complete the service I am waiting for
support services by the M/S Lugumi maintenance as stipulated the delivery
Enterprises Limited to twenty six in contract No
mentioned
(26) regions as stated in the signed ME.014/PF/2011/2012/G/
contract. 12 Lot 1
CG - Annual General Report 2018 / 19 370
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
service(s) as per
contractual terms.
54. 2017/18 Payments for Undelivered 213 Lugumi Enterprises has The government’s Under
Dell Monitors “22” Inches been ordered to refund response is noted, I implementation
(”L2250P 22" Wide Hybrid 0282 TZS. 195,221,682 paid to am waiting for the
TCO-5.0 1680X105075Hz) Costing him for undelivered 213 delivery the items
TZS 431,658,635 Dell Monitors "22"inches as
questioned.
per contract
The Tanzania Police Force not to No.ME.014/PF/2011/2012
accept delivery of these monitors as /G/12.
they are virtually incompatible with
the AFIS. M/S Lugumi Enterprises
Limited be required to refund TZS
195,221,682.
55. 2017/18 Payments for Police Uniforms not The investigation for this The government’s Under
delivered to Police Quarter Master case is underway by response is noted, Implementation
Store TZS 16,660,000,000 different Government the matter will be
agencies and once the verified upon
The refund by the M/S Daissy investigation report is out
completion of
General Traders for uniforms not the proper measures will
delivered and the imposition of be taken accordingly. investigation and
legal and disciplinary measures to respective actions.
all police officials involved in
CG - Annual General Report 2018 / 19 371
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
occasioning this loss to the
Government.
56. 2017/18 Irregularities noted in the The 22 Vehicles are in The government’s Not
procured 777 Ashok Leyland process to be returned response is noted, Implemented.
vehicles USD 29,606,100 back to the owner namely however; the
There should be replacement of 22 Ashock Leyland. Tanzania delivery of 22
Vehicles worth USD 572,506 found Revenue Authority has
vehicles is awaited
defective and rejected by the issued guideline stipulated
Tanzania Police Force and with the letter with Ref. to be verified.
immediate delivery of remained Na. TRA/CE/CSC/C.20/6
280 vehicles worth USD 6,759,648 dated 30th May, 2019
and spare parts worth USD directing the procedure to
5,510,429 as such avoiding be followed.
recurring commitment charges on
the unutilized loan balance of USD
13,477,570.30. Also, the
Government should always
analyze all loans critically and
desist from loans with commercial
terms that seem to be expensive.
Moreover, encourage the National
and Debt Management
Committees to act professionally
and apply all procedures
stipulated in Government loans,
CG - Annual General Report 2018 / 19 372
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
Guarantees & Grant Act, 1974
(Revised 2003) and its Regulations.
57. 2017/18 Payments to Supplier above Due to most of the stall Government’s Under
Contract Price USD 148,243.73 involved being retired response is noted, I implementation
It is recommended that refund of from civil servant will verify the
additional payments by Supplier and services, the implementation
institution of legal and disciplinary Management of NEC has
when the PCCB
measures to NEC officials who wrote a letter with a
colluded with Supplier and reference number investigation will be
misappropriated public money. CJB.1$2/237/01 dated finalized and the
11th April 2019 to disciplinary actions
Prevention and taken to those who
Combating of corruption are involved in
Bureau (PCCB) to misappropriation of
proceed with legal public money.
procedures for
employees who are
suspected to collude
with supplier, Another
letter with reference
number I
E/01$/2012/2013/HQ/G
/19A/01 dated 43t5
June 2019 has been
wrote to Supplier to
CG - Annual General Report 2018 / 19 373
S/N Financial Audit Recommendation Response by PMG Audit Comments on Status
Year the
PMG’s Response
account for and provide
clarification on the USD
148,243.73 paid over and
above the contract value
and USD 385,650 paid for
the training of technical
team that was scheduled
to be conducted in the
Netherland but not
undertaken.
CG - Annual General Report 2018 / 19 374
Appendix 3. 2: Follow up on the implementation of the PAC’s Directives
S/N Financial PAC Directives Response by Government Audit comments Status
Year
1. 2011/12 Repayment of The Government directed the Internal The government Under
Government Auditor General to verify all debts due responses are noted. implementation
debt to PSPF to We will assess the
The Government was Social Security Schemes such as PSPF, implementation
directed to LAPF, NSSF and GEPF of which the during our next Audit.
immediately settle verification process is at final stage of
accrued debt by PSPF so Completion. All verified debts will be
as to alleviate future consolidated to in order to determine
financial burden in total debts due. The Government is
servicing prospective underway to issue Treasury bills to all
retirees. Social Security Schemes within this
financial year.
2. 2011/12 Investigation for The Government of Tanzania paid a Criminal investigation Under
allegations on the total are yet to be implementation.
Construction of VIP of TZS 1,042,286 ,911.00 only in the concluded as directed
lounge at Julius Nyerere whole project and; In that view the by PAC
International Airport Government did not get a loss of 9.0
(JNIA) Billion as indicated by PAC.
PAC directed the
Government through its
organs like PCCB to
CG - Annual General Report 2018 / 19 375
S/N Financial PAC Directives Response by Government Audit comments Status
Year
undertake criminal
investigation in respect of
individuals alleged to be
involved in causing loss of
more than TZS 9.0billion
to the Government and
take appropriate legal
action.
3. 2014/15 Insufficient funds for The PAC directives are taken into There were no updated Under
Public Investments account. The office of Treasury response from implementation
The PAC recommended Registrar has included the the Government for
Establishment of special recommendations of establishing current year status
investment fund under special investment fund to the cabinet
the paper which is proposing enactment of
Treasury Registrar by new TR act.
using retention scheme so
that the money in that
fund may be used as
capital to invest or
acquire additional shares
in institutions under
CG - Annual General Report 2018 / 19 376
S/N Financial PAC Directives Response by Government Audit comments Status
Year
which the Government
holds shares
4. 2015/16 Long outstanding account Up to 30 February 2018, National Management response Under
receivable for SUMA JKT by Service noted. Follow ups to implementation
various individuals and Corporation Sole had total outstanding be made on next year
Institutions Accounts Receivables of TZS. audit
The Government to conduct 47,249,129,569. The follow-up
thorough scrutiny so as to Measures were taken by SUMA JKT to
identify the procedures ensure effective collection of Accounts
used in providing credit Receivable;
facility of tractors to
various individuals and The Management has established
Institutions. The SUMA JKT AUCTION MART for the
Government to take strict purpose
measures according to the Of strengthening debts collection
terms of credit facility mechanism.
contracts so as to collect
overdue receivables. The The management has shortlisted the
Government to take strict names of members of the Parliament
measures of eliminating (Debtors) to Assembly Clerk in order to
CG - Annual General Report 2018 / 19 377
S/N Financial PAC Directives Response by Government Audit comments Status
Year
shortfalls in providing deduct in their salaries as directed by
credit facility and PAC with reference letter SUMA JKT
individuals who will be 187- 1 (CEO) on date 03 November
found guilty in the 2017.
respective credit facility. The management has shortlisted all
names of Civil servant (debtors) to the
Paymaster General in order to deduct
in their salaries and Pension as directed
by PAC with reference letter SUMA JKT
187.2/CEO dated 03 November 2017.
The Management has improved internal
management by increasing the number
of professionals Accountants, Lawyers,
Market and procurement officers in
order to increase efficiency in the
Project.
5. 2015/16 Misuse of Public monies in Disciplinary and Legal action Management response Under
Association of Local have noted. Follow ups to be implementation
Authorities (ALAT) TZS already been taken to the officers who made next year audit.
523,929,646.06 were proved to cause the losses of the
The Government is advised ALAT funds. ALAT through
to take legal and Executive Committee Meeting held in
CG - Annual General Report 2018 / 19 378
S/N Financial PAC Directives Response by Government Audit comments Status
Year
disciplinary measures to all 31 January, 2018 to 2 February, 2018
officers who were involved recommended/approved the
in this malpractice. disciplinary and Legal action to be
taken. The status is as follow:
vi) Accountant charged and suspended
from working (Disciplinary action is on
progress)
Termination of contracts of three
officers (Legal, Research and Financial
Manager); and
Firing of two officers (EX-Secretary
General and Information and
communicating officer). Furthermore,
the legal action is on progress to all of
them through PCCB.
6. 2015/16 Un refunded money In efforts to improve Government Management response Under
collected by TRA on Revenue collection, the Government noted. Follow ups to implementation
behalf of other MDAs made decision for some sources of be made next
The Government through revenue to be collected by TRA year audit
Ministry of Finance to considering level of efficiency and
fully implement Legal systems that are already developed
condition and regulation within TRA. Further, it should
CG - Annual General Report 2018 / 19 379
S/N Financial PAC Directives Response by Government Audit comments Status
Year
concerning revenue remember that the Government
collected by TRA and then abolished the Retention system in
refund the same to the 2016/17 following enactment of
respective institution. Budget Act No. 11 of 2015 phase 58(a)
to (c) which emphasize that all
Government revenue should be
collected and remitted to the
Government. Consolidated Account
and that the respective institutions will
be disbursed with funds in accordance
with their approved budget.
Following this decision, allocation of
funds to all MDAs will be done in
accordance with their approved
budget.
7. 2017/18 Presence of large The TRA Debt Management Units have The government Under
amounts of tax revenue been aligned and worked out collection response have noted implementation
collected by the Tanzania strategies for follow up and prompt and the government’s
Revenue Authority (TRA) recovery of previous as well as current strategies to institute
due to a number of outstanding taxes. The strategies are controls on tax
factors such as inaccurate based on updated Tax payer’s data appeals. Likewise, the
CG - Annual General Report 2018 / 19 380
S/N Financial PAC Directives Response by Government Audit comments Status
Year
tax estimates as well as collection strategies
tax disputes which are not on the outstanding tax
timely resolved. liabilities based on
updated Tax payers’
data will be verified in
my upcoming audit.
8. 2017/18 Unsatisfactory Permit for construction was granted on At Mpuguso TC, Under
management of the 4/9/2019 and the construction work in Management response Implementation
specific construction and in progress Construction activities are has been noted.
renovation contracts in at final stage of completion for lot 2 Follow up on
the Ministry of Education, and expected to be handed over on construction of
Science and Technology, 28/02/2020 by Contractor M/S Lukolo assembly hall will be
which resulted to an made on 2019/2020
increase in construction At Kitangali TC, Contractor M/S
costs that led to losses to Engineering Construction ltd has
the Government under handed over teachers houses and the
the following areas houses are already occupied, The
Construction of dining construction activities for lot 2 at
hall at Mpuguso teachers Kitangali TC are at final stage of
college TZS completion.
3,814,349,468.
CG - Annual General Report 2018 / 19 381
S/N Financial PAC Directives Response by Government Audit comments Status
Year
Construction and At Shinyanga TC, Construction activities
renovation of Kitangali are at final stage of completion for and
Teachers College TZS expected to be handed over on
2,167,873,042. 31/3/2020 by Contractor M/S Afriq
Construction and Engineering &Construction Co Ltd.
renovation of Shinyanga
Teachers College TZS
4,891,555,788,
9. 2017/18 Delays in Implementation No up response The current review of Under
of Tanzania Building the TBA projects implementation
Agency's Projects (TBA). indicates that most of
TBA has to improve and the projects are still
strengthen supervision and in progress in
management of Projects to progress, therefore, I
ensure that all projects are am of the view that,
commenced and finalized the progress to
within the agreed improve and
timeframes of the strengthen project
Contract; and; supervision and
TBA has to design effective internal controls is
mechanisms for the
CG - Annual General Report 2018 / 19 382
S/N Financial PAC Directives Response by Government Audit comments Status
Year
management of internal still a challenge to
controls in the TBA.
implementation of projects
especially in the area of
expenditure management,
building materials and
human resources to speed
up the implementation of
the Projects.
CG - Annual General Report 2018 / 19 383
Appendix 4. 1: Estimates, Exchequer issues and Actual Expenditure for Supply Vote
UNUTILIZED
EXCHEQUER ISSED ACTUAL (UNDER)/OVER FUND/(OVER
VOTE MINISTRIES APPROVED ESTIMATES AND RECEIVED EXPENDITURE RELEASE UTILIZATION)
26 Vice President 6,777,655,920.05 6,206,361,578.05 6,145,236,151.25 (571,294,342.00) 61,125,426.80
Vice President’s Office 10,002,082,523.28 8,539,126,919.61 8,531,796,448.07
31 (1,462,955,603.67) 7,330,471.54
Foreign Affairs & Inter. 134,376,081,255.6
170,877,596,563.55 138,176,767,123.24
34 Cooperation 8 (32,700,829,440.31) 3,800,685,867.56
Prime Minister’s Office 17,427,714,000.00 12,277,917,980.00 12,277,905,813.33
37 (5,149,796,020.00) 12,166.67
Constitutional and Legal 7,101,620,455.00
7,147,831,721.00 7,102,853,455.00
41 Affairs (44,978,266.00) 1,233,000.00
Agriculture, Food Security 60,105,258,437.43
68,171,440,331.90 60,471,709,174.23
43 & Cooperative (7,699,731,157.67) 366,450,736.80
Ministry of Industry, Trade 25,924,644,154.24
26,138,137,394.00 25,925,864,154.00
44 and Investment (212,273,240.00) 1,219,999.76
National Audit Office 62,190,532,057.00 47,405,405,757.00 47,387,087,104.00
45 14,785,126,300.00) 18,318,653.00
Education and Vocational 57,859,213,800.00
481,218,847,692 459,501,018,087.10
46 Training (21,717,829,604.90) 1,641,804,287.10
Lands and Human 40,157,517,257.92
48,264,474,527.10 40,210,277,951.10
48 Settlement (8,054,196,576.00) 52,760,693.18
Water and Irrigation 24,363,869,000 21,145,327,351 21,040,755,657.02
49 (3,218,541,649.00) 104,571,693.98
Finance 72,507,403,444.95 71,141,795,650.22 69,910,134,574.64
50 (1,365,607,794.73) 1,231,661,075.58
Home Affairs 20,567,678,000.00 18,589,311,130.05 18,589,311,130.05
51 (1,978,366,869.95) 0.00
Health and Social Welfare 361,976,018,461.0
362,728,907,732 361,976,018,460
52 0 (752,889,272.00) -1.00
Community Development, 22,269,010,629.41
28,057,976,592.00 22,303,643,861.60
53 Gender & Children (5,754,332,730.40) 34,633,232.19
Regional Administration & 35,551,560,373.03
43,524,438,364 35,575,296,951
56 Local Government (7,949,141,413.00) 23,736,577.97
defense and National 16,711,032,156.95
19,827,132,646.00 16,711,032,156.95
57 Service (3,116,100,489.05) 0.00
CG - Annual General Report 2018 / 19 384
 UNUTILIZED
EXCHEQUER ISSED ACTUAL (UNDER)/OVER FUND/(OVER
VOTE MINISTRIES APPROVED ESTIMATES AND RECEIVED EXPENDITURE RELEASE UTILIZATION)
Energy 28,230,870,306.34 23,461,595,367.34 23,022,467,785.88
58 (4,769,274,939.00) 439,127,581.46
Ministry of Industry, Trade
20,084,987,750.42 20,062,968,748.42
60 and Investment 20,057,748,734.00 (22,019,002.00) 5,220,014.42
Works, Transport and 89,936,884,181.07
92,468,885,005.37 89,949,434,991.61
62 Communication -Transport (2,519,450,013.76) 12,550,810.54
Ministry of Livestock
Development and Fisheries- 14,816,400,000 14,296,981,787
64 Fisheries 14,287,182,387.00 (519,418,213.00) 9,799,400.00
Labour, Employment 12,085,530,190.25
14,648,110,287.74 12,107,173,689.80
65 &Youth Development (2,540,936,597.94) 21,643,499.55
Works, Transport and 3,902,584,164.49
Communication- 4,503,347,754.97 3,904,840,030.97
68 Communication (598,507,724.00) 2,255,866.48
Natural Resources And 86,332,766,543.15 60,970,439,198.66 60,941,979,303.65
69 Tourism (25,362,327,344.49) 28,459,895.01
Information ,Culture And 29,241,576,056.31
32,292,414,450 29,277,375,444
96 Sports (3,015,039,006.00) 35,799,387.69
Works, Transport and 42,597,223,709.49
43,907,615,755.20 42,601,134,846.85
98 Communication -Works (1,306,480,908.35) 3,911,137.36
Livestock Development And 33,268,397,125.48 27,706,139,362.71 27,703,875,602.46
99 Fisheries-livestock (5,562,257,762.77) 2,263,760.25
Ministry Minerals 41,937,561,332.00 34,768,445,863.27
100 34,802,306,862.00 (7,135,254,470.00) 33,860,998.73
REGIONS
Katavi 4,039,988,573.00 3,119,178,174.00 3,081,075,973.62
36 (920,810,399.00) 38,102,200.38
Simiyu 4,767,712,088 4,569,434,197 4,543,600,577.13
47 (198,277,890.60) 25,833,620.00
Njombe 5,206,443,303 4,095,241,102 4,095,184,705.43
54 (1,111,202,201.00) 56,396.57
Geita 5,861,386,144 4,654,332,733 4,654,332,733.00
63 (1,207,053,411.00) 0.00
Arusha 12,538,482,432 7,961,279,217
70 7,961,279,216.66 (4,577,203,215.34) 0.00
CG - Annual General Report 2018 / 19 385
 UNUTILIZED
EXCHEQUER ISSED ACTUAL (UNDER)/OVER FUND/(OVER
VOTE MINISTRIES APPROVED ESTIMATES AND RECEIVED EXPENDITURE RELEASE UTILIZATION)
Pwani 6,727,099,000 5,804,033,673
71 5,804,033,673.00 (923,065,327.00) 0.00
Dodoma 12,227,077,855 8,291,380,428 8,291,349,970.46
72 (3,935,697,427.00) 30,457.54
Iringa 9,486,856,400.00 6,559,887,714.00 6,557,887,454.40
73 (2,926,968,686.00) 2,000,259.60
Kigoma 6,827,630,567 5,114,746,807 5,086,646,886.00
74 (1,712,883,760.00) 28,099,921.00
Kilimanjaro 11,492,202,317 7,718,450,319
75 7,714,475,741.28 (3,773,751,998.00) 3,974,577.72
Lindi
76 7,728,533,734.53 5,461,757,983.52 5,452,607,983.52 (2,266,775,751.01) 9,150,000.00
Mara 8,859,324,381 5,446,834,081 5,388,364,933.47
77 (3,412,490,300.00) 58,469,147.53
Mbeya 9,261,970,027.00 5,680,503,413.00 5,680,145,986.00
78 (3,581,466,614.00) 357,427.00
Morogoro 14,885,001,622 9,843,160,380
79 9,841,920,395.07 (5,041,841,242.00) 1,239,984.93
Mtwara
80 7,755,486,264.00 7,280,396,967.71 7,280,396,967.71 (475,089,296.29) 0.00
Mwanza 10,796,042,527 6,288,447,585 6,274,456,926.00
81 (4,507,594,942.00) 13,990,659.00
Ruvuma 10,873,506,943.24 6,966,389,809.94 6,891,043,208.94
82 (3,907,117,133.30) 75,346,601.00
Shinyanga 7,656,607,552.00 5,296,562,649.00 5,296,562,649.00
83 (2,360,044,903.00) 0.00
Singida 9,044,515,445 6,422,555,063 6,244,905,751.74
84 (2,621,960,382.00) 177,649,311.26
Tabora 11,427,547,440 6,396,130,672 6,391,433,175.50
85 (5,031,416,768.00) 4,697,496.50
Tanga 11,464,546,311 8,227,754,411
86 8,172,301,578.14 (3,236,791,900.00) 55,452,832.86
Kagera 10,636,489,640 6,967,543,640.00 6,967,543,640.00
87 (3,668,946,000.00) 0.00
Dar es Salaam
88 5,024,914,848.81 4,474,593,973.81 4,438,211,182.76 (550,320,875.00) 36,382,791.05
Rukwa 4,310,644,617.00 3,719,467,807.00 3,651,280,043.51
89 (591,176,810.00) 68,187,763.49
CG - Annual General Report 2018 / 19 386
 UNUTILIZED
EXCHEQUER ISSED ACTUAL (UNDER)/OVER FUND/(OVER
VOTE MINISTRIES APPROVED ESTIMATES AND RECEIVED EXPENDITURE RELEASE UTILIZATION)
Songwe 3,766,345,835 3,419,064,464 3,419,064,463.93
90 (347,281,371.12) 0.00
Manyara 7,098,253,200 5,099,993,012
95 5,095,006,180.87 (1,998,260,188.00) 4,986,831.13
COMMISSIONS
Teachers Service 9,721,163,400.00
12,515,260,000.00 9,721,861,000.00
2 Commission (2,793,399,000.00) 697,600.00
National Land Use and 1,685,964,200.00
2,081,926,000.00 1,685,964,200.00
3 Planning Commission (395,961,800.00) 0.00
PO Records and Archive 2,232,622,016.00
2,969,632,000.00 2,235,119,000.00
4 management (734,513,000.00) 2,496,984.00
National Irrigation 8,866,453,191.67
9,227,065,691.82 9,041,053,891.82
5 Commission (186,011,800.00) 174,600,700.15
Treasury Registrar 54,880,917,300.00 17,429,883,108.78 17,429,883,108.78
7 (37,451,034,191.22) 0.00
Secretariat of Public 2,148,943,816.82 1,730,162,967.15 1,730,162,967.15
9 Remuneration Board (418,780,849.67) 0.00
Joint Finance Commission 2,155,075,000.00 1,739,624,128.00 1,738,904,223.33
10 (415,450,872.00) 719,904.67
Judiciary Commission 1,062,341,932.14
1,104,731,800 1,063,697,862
12 Service (41,033,938.00) 1,355,929.86
Financial Intelligent Unit 2,121,805,800 2,121,805,800 2,093,984,915.62
13 27,820,884.38
Commission for Mediation 3,029,235,930.17
3,941,928,298.00 3,210,072,747.00
15 and Arbitration (731,855,551.00) 180,836,816.83
UNESCO Commission 666,855,000.00 516,980,000.00 516,980,000.00
18 (149,875,000.00) 0.00
Cooperative Development 7,173,298,223.68
8,656,906,619.68 7,174,868,223.68
24 Commission (1,482,038,396.00) 1,570,000.00
Human Rights & Governance 4,960,863,000.00 4,941,210,000.00 4,902,275,083.71
55 (19,653,000.00) 38,934,916.29
Law Reform Commission 3,207,993,400.00 2,937,932,600.00 2,793,731,239.73
59 (270,060,800.00) 144,201,360.27
Electoral Commission 23,915,311,338.00 22,583,309,434.36 22,576,893,012.00
61 (1,332,001,903.64) 6,416,422.36
CG - Annual General Report 2018 / 19 387
 UNUTILIZED
EXCHEQUER ISSED ACTUAL (UNDER)/OVER FUND/(OVER
VOTE MINISTRIES APPROVED ESTIMATES AND RECEIVED EXPENDITURE RELEASE UTILIZATION)
Drugs Control Commission 5,939,553,055.00 5,939,553,055.00 5,916,561,998.94
91 22,991,056.06
Tanzania Commission for 2,246,959,562.62
2,630,285,862.52 2,246,959,562.52
92 AIDS (TACAIDS) (383,326,300.00) 0
Public Service Commission 4,403,479,000.00 3,950,351,185.58 3,950,112,277.83
94 (453,127,814.42) 238,907.75
DEPARTMENTS WITHIN RESPECTIVE MINISTRIES
Fire and Rescue Force 39,555,216,986.00 36,894,612,786.00 36,894,247,127.92
14 (2,660,604,200.00) 365,658.08
Attorney General 9,985,880,926.00 7,805,786,926.00 7,789,843,787.16
16 (2,180,094,000.00) 15,943,138.84
Office of Solicitor General 5,430,655,578.00 3,841,676,778.00 3,828,443,222.89
19 (1,588,978,800.00) 13,233,555.11
President's Office State 21,763,439,811.96
22,644,912,748 21,763,439,814.83
20 House (881,472,933.17) 2.87
The Treasury 527,183,833,776.14 444,946,720,170.03 443,886,179,464.3
21 5 (82,237,113,606.11) 1,060,540,705.68
Public Debt and General 9,100,996,634,657 (491,192,478,697.00
9,604,970,217,632 9,113,777,738,935
22 Services .25 ) 12,781,104,277.75
Accountant General's Office 57,382,649,905 51,369,108,037 48,713,069,909.00
23 (6,013,541,868.00) 2,656,038,128.00
Prime Ministers 7,649,193,186.91 7,171,002,686.91 7,170,953,306.82
25 (478,190,500.00) 49,380.09
Registrar of Political Parties 20,562,705,646 20,152,766,370 18,261,728,634.03
27 (409,939,276.00) 1,891,037,735.97
Home Affairs - Police Force 713,567,977,753.7
727,248,829,388 715,042,312,188
28 7 (12,206,517,200.00) 1,474,334,434.23
Prisons (Ministry of Home 213,734,828,142.4
225,592,221,910.00 214,886,309,616.28
29 Affairs) 7 (10,705,912,293.72) 1,151,481,473.81
President Office and 439,266,915,746.8
439,514,579,045.02 439,266,984,602.46
30 Cabinet Secretariat 5 (247,594,442.56) 68,855.61
President's Office - Public 29,983,719,293.57
32,629,096,895.00 30,505,108,975.67
32 Service Management (2,123,987,919.33) 521,389,682.10
President's office Ethics 8,558,001,592.14 7,635,069,210.00
7,659,723,224.14
33 Secretariat (898,278,368.00) 24,654,014.14
CG - Annual General Report 2018 / 19 388
 UNUTILIZED
EXCHEQUER ISSED ACTUAL (UNDER)/OVER FUND/(OVER
VOTE MINISTRIES APPROVED ESTIMATES AND RECEIVED EXPENDITURE RELEASE UTILIZATION)
Public Prosecution Division 16,532,536,118.90 14,568,829,358.90 14,556,380,817.13
35 (1,963,706,760.00) 12,448,541.77
Defense 1,412,556,473,151
1,453,687,740,486.14 1,412,556,473,151.59
38 .59 (41,131,267,334.55) 0.00
The National Service 352,725,872,130.4
356,832,344,110.00 352,725,872,130.42
39 2 (4,106,471,979.58) 0.00
Judiciary 107,467,815,724.3
111,572,133,160.72 107,467,815,724.54
40 2 (4,104,317,436.18) 0.22
National Assembly 113,932,125,517.7
117,205,487,000.00 114,010,286,347.00
42 8 (3,195,200,653.00) 78,160,829.22
Public Service Recruitment 2,942,184,295.00 2,504,601,049.24 2,489,558,157.61
67 Secretariat (437,583,245.76) 15,042,891.63
Immigration Department 67,133,298,524.69 54,095,550,025.00 54,002,889,273.42
93 (13,037,748,499.69) 92,660,751.58
16,104,391,935,777.6 15,140,562,366,008. 15,109,626,485, (963,829,569,769. 30,935,880,050.40
TOTAL 0 40 957.70 25)
16,104.39 15,140.56 15,109.63 (963.83) 30.94
Amount in TZS Billions
CG - Annual General Report 2018 / 19 389
Appendix 4. 2: Estimates, Exchequer issues and Actual Expenditure for Development Vote (Amount in billions TZS)
VOTE MINISTRIES Approved estimate Exchequer issue Actual Expenditure (Under)/ Over
Unutilized
(TZS) received (TZS) (TZS) release (TZS)
Fund/(Over
utilization)
31 Vice President’s Office 5,063,340,000 2,411,619,538.44 2,411,619,538 (2,651,720,462)
34 Foreign Affairs & Inter. (11,400,000,000)
11,400,000,000
Cooperation
37 Prime Minister’s Office 36,391,441,000.00 20,697,840,907.09 20,697,840,907 (15,693,600,093)
41 Constitutional and Legal Affairs 4,176,217,734 2,703,684,617.00 2,703,684,617 (1,472,533,117)
43 Agriculture, Food Security & 58,507,281,654 (41,424,770,706) 315,134,988
100,247,187,349.30 58,822,416,642.83
Cooperative
44 Ministry of Industry, Trade and 13,259,221,314 (79,765,303,686)
93,024,525,000 13,259,221,314.00
Investment
45 National Audit Office 13,712,092,000 2,340,930,884.00 2,340,930,884 (11,371,161,116)
46 Education and Vocational 766,531,835,269 (157,982,730,008) 625,196,870
925,139,762,146.63 767,157,032,138.49
Training
48 Lands and Human Settlement 30,537,602,000 16,858,308,152.46 16,858,307,771 (13,679,293,848) 382
49 Water and Irrigation 671,504,113,290 436,127,604,775.00 436,125,583,223 (235,376,508,515) 2,021,552
50 Finance 27,050,427,086.45 10,956,721,151.72 10,934,125,793 (16,093,705,935) 22,595,359
51 Home affairs 70,558,077,005.20 65,443,077,005.20 65,443,077,005 (5,115,000,000)
52 Health and Social Welfare 569,789,272,370.33 274,163,321,956.53 273,350,122,463 (295,625,950,414) 813,199,493
53 Community Development, 1,804,881,701 (3,108,963,299)
4,913,845,000 1,804,881,701.00
Gender & Children -
56 Regional Administration & Local 303,356,437,766 (65,148,951,878)
368,505,389,644 303,356,437,766.00
Government -
57 Defence and National Service 192,950,241,361 (27,049,758,639)
220,000,000,000 192,950,241,361.42
-
58 Energy and Mineral 1,960,341,000,000 1,535,361,612,996.86 1,535,359,280,363 (424,979,387,003) 2,332,634
CG - Annual General Report 2018 / 19 390
VOTE MINISTRIES Approved estimate Exchequer issue Actual Expenditure (Under)/ Over
Unutilized
(TZS) received (TZS) (TZS) release (TZS)
Fund/(Over
utilization)
Ministry of Industry, Trade and (6,619,468,827)
7,000,000,000.00 380,531,173.00
60 Investment 380,531,173.00 -
62 Works, Transport and 2,303,053,115,253 1,040,231,253,087.67 1,040,231,253,088 (1,262,821,862,165)
Communication -Transport -
Ministry of Livestock (1,900,329,340)
Development and Fisheries- 7,126,680,000 5,226,350,660.00 (1)
64 Fisheries 5,226,350,660.52
65 PO Labour, Youth, employment 12,066,957,111 (1,578,804,020) 5,254,238,869
18,900,000,000.00 17,321,195,980.00
and Disability
President's Office- Public (251,773,750) 37,852,191
67 Service recruitment secretariat 750,000,000.00 498,226,249.66 460,374,058.66
68 Works, Transport and 3,670,500,019 (11,329,499,980)
15,000,000,000.00 3,670,500,020.00
Communication-Communication
69 Natural Resources And Tourism 29,978,082,000 314,473,108.50 314,473,109 (29,663,608,892)
96 Information ,Culture And Sports 8,700,000,000 5,318,683,678.00 5,286,812,928 (3,381,316,322) 31,870,750
98 Works, Transport and 1,905,968,310,194 (110,664,017,370) 14,020,806
2,016,646,348,370.56 1,905,982,331,000.44
Communication -Works
99 Livestock Development And 5,000,000,000 2,173,188,086.00 2,173,188,086 (2,826,811,914)
Fisheries-livestock
100 Ministry of Minerals 50,432,978,963 34,938,221,349.37 34,936,857,948 (15,494,757,614) 1,363,401
REGIONS
36 Katavi 4,783,539,000 2,376,377,373.00 2,348,051,116 (2,407,161,627) 28,326,257
47 Simiyu 6,217,109,197 4,569,435,197 4,510,476,086.23 (1,647,674,000) 58,959,111
54 Njombe 1,769,487,783 (2,999,521,158)
5,062,500,000 2,062,978,842.00
293,491,059
63 Geita 4,745,052,000 3,236,998,096.00 3,236,998,096 (1,508,053,904)
70 Arusha 2,389,153,490 1,587,939,521.00 (801,213,969) 1,068,079,200
519,860,321.28
CG - Annual General Report 2018 / 19 391
VOTE MINISTRIES Approved estimate Exchequer issue Actual Expenditure (Under)/ Over
Unutilized
(TZS) received (TZS) (TZS) release (TZS)
Fund/(Over
utilization)
71 Pwani 4,607,831,000 2,430,601,172.00 2,429,895,532 (2,177,229,828) 705,640
72 Dodoma 10,385,026,808 2,634,782,244.73 2,265,079,267 (7,750,244,563) 369,702,978
73 Iringa 1,169,039,014 (1,450,114,200)
2,631,496,000 1,181,381,800.00
12,342,786
74 Kigoma 3,377,132,812 1,382,043,960.00 (1,995,088,852) 798,763,826
583,280,134
75 Kilimanjaro 3,107,569,000 1,740,697,700.00 (1,366,871,300)
1,740,697,700.00
76 Lindi 2,143,138,000 1,421,190,034.34 1,421,190,034 (721,947,966)
77 Mara 2,488,196,000 1,017,307,209.00 1,015,058,824 (1,470,888,791) 2,248,385
78 Mbeya 2,640,473,000 1,559,435,176.00 1,558,710,563 (1,081,037,824) 724,613
79 Morogoro 762,137,181 (1,106,509,289)
1,869,431,400 762,922,111
784,930
80 Mtwara 7,755,486,264 1,632,175,600.00 1,632,175,600 (6,123,310,664)
81 Mwanza 3,971,995,000 2,537,819,025.00 2,528,614,902 (1,434,175,975) 9,204,123
82 Ruvuma 2,399,723,000 2,399,723,000.00 2,398,851,501 871,499
83 Shinyanga 12,323,888,000 1,503,708,901.00 1,503,708,901 (10,820,179,099)
84 Singida 2,537,647,938 2,438,469,544.00 2,438,469,544 (99,178,394)
85 Tabora 2,404,168,403 (127,963,000)
2,537,185,768 2,409,222,768.00
5,054,365
86 Tanga (193,007,284)
4,338,225,000 4,145,217,716.00
4,138,753,142.48 6,464,574
87 Kagera 2,005,157,136.35 (1,032,797,138)
3,087,135,674 2,054,338,536.00
49,181,400
88 Dar es Salaam 1,759,071,740 (1,785,360,300)
3,544,999,000 1,759,638,700.23
566,960
CG - Annual General Report 2018 / 19 392
VOTE MINISTRIES Approved estimate Exchequer issue Actual Expenditure (Under)/ Over
Unutilized
(TZS) received (TZS) (TZS) release (TZS)
Fund/(Over
utilization)
89 Rukwa 1,948,057,600 1,721,132,220.50 1,718,845,137 (226,925,380) 2,287,083
90 Songwe 4,652,922,000 2,755,022,768.00 2,755,022,767 (1,897,899,232)
1
95 Manyara (1,728,369,800)
3,217,891,000 1,489,521,200.00
1,489,521,200.00 -
COMMISSION
National Land Use and Planning 2,000,000,000 (3,000,000,000)
5,000,000,000 2,000,000,000.00
3 Commission -
Records and Archives (2,960,323,631)
5,178,872,000.00 2,218,548,368.89
4 Management Department 2,218,548,365.89 3
5 National Irrigation Commission 17,520,458,000 6,283,399,280.43 5,802,708,325 (11,237,058,720) 480,690,956
7 Treasury Register 2,000,000,000 999,895,000.00 927,245,085 (1,000,105,000) 72,649,916
13 Financial Intelligent Unit (248,363,000)
248,363,000.00
-
55 Human Rights & Governance 1,323,088,234 (473,849,766)
1,796,938,000 1,323,088,234.00
Commission (0)
53,104,924,388 53,104,924,388.00 3,561,691
61 National electoral commission 53101362697
92 Tanzania Commission for AIDS 6,898,909,698 (3,401,090,303)
10,300,000,000 6,898,909,697.50
(TACAIDS) -
DEPARTMENTS WITHIN RESPECTIVE MINISTRIES
14 Fire and Rescue Force 4,500,000,000 3,000,000,000.00 1,100,000,000 (1,500,000,000) 1,900,000,000
16 Attorney General 2,000,000 1,000,000.00 (1,000,000) 1,000,000
19 Office of Solicitor General 248,363,000 (248,363,000)
21 The Treasury 400,088,011,604 70,090,544,085.00 70,081,041,763 (329,997,467,519)
9,502,322
23 Accountant General's Office 7,100,000,000 6,929,722,442.00 6,838,128,692 (170,277,558) 91,593,750
CG - Annual General Report 2018 / 19 393
VOTE MINISTRIES Approved estimate Exchequer issue Actual Expenditure (Under)/ Over
Unutilized
(TZS) received (TZS) (TZS) release (TZS)
Fund/(Over
utilization)
28 Home Affairs - Police Force 7,000,000,000 (3,749,851,000)
10,749,851,000 7,000,000,000.00
-
29 Prisons (Ministry of Home 1,273,792,000 (3,762,031,000) 8,000
5,035,831,000.00 1,273,800,000.00
Affairs)
30 President Office and Cabinet 153,320,121,307 (23,445,288,080)
176,765,409,387.42 153,320,121,307.66
Secretariat
32 President's Office - Public 10,786,626,775 (152,373,225)
10,939,000,000 10,786,626,775.00
Service Management
33 Ethics Secretariat 4,049,999,999.67 1,736,645,546.91 1,736,645,547 (2,313,354,453)
38 Defense 8,000,000,000.00 3,346,034,214.00 3,346,034,214 (4,653,965,786)
39 The National Service 6,000,000,000 7,000,000,000.00 7,000,000,000 1,000,000,000
40 Judiciary 22,837,041,466 (12,296,832,088)
35,973,722,000.00 23,676,889,912.22
839,848,447
42 National Assembly 8,194,108,500 (712,500,000)
8,906,608,500 8,194,108,500.00
0
93 Immigration Department (10,000,000,000)
10,000,000,000
-
TOTAL 10,467,212,652,043 7,144,464,245,467.09 7,131,237,804,297 (3,322,748,406,576) 13,226,441,170
Amount in Billion 10,467.21 7,144.46 7,131.24 (3,322.75) 13.23
CG - Annual General Report 2018 / 19 394
Appendix 5. 1: TRA Outstanding prior year's audit recommendations
Domestic
Customs and Excise Large Taxpayers Tax Investigation
No Year Revenue Total
Department Department Department
Department
1 2001/2002 1 - - - 1
2 2002/2003 - - - - -
3 2003/2004 - - - - -
4 2004/2005 2 - - - 2
5 2005/2006 4 - - - 4
6 2006/2007 3 - - - 3
7 2007/2008 5 1 - 1 7
8 2008/2009 1 2 - 2 5
9 2009/2010 2 2 - 2 6
10 2010/2011 1 4 - 1 6
11 2011/2012 2 5 - - 7
12 2012/2013 1 6 - 2 9
13 2013/2014 2 6 - 4 12
14 2014/2015 13 13 - 6 32
15 2015/2016 15 7 6 13 41
16 2016/2017 15 7 4 19 45
Sub Total 67 53 10 50 180
17 2017/2018 62 17 10 14 103
Total 129 70 20 64 283
CG - Annual General Report 2018 / 19 395
Appendix 5. 2: Trend of revenue collection for Tanzania and Other EAC Countries, 2014/15-2018/2019
Financial years [All figures in TZS Million]
Details
2014/15 2015/16 2016/17 2017/18 2018/19
Targeted Collections 12,078,015 13,220,252 15,293,899 17,365,052 18,332,665
Actual Collections 10,743,765 13,238,045 14,271,382 15,405,441 15,764,661
(under)/over collection (1,334,250) 17,793 (1,022,517) (1,959,611) (2,568,004)
(under)/over collection in % (11) 0.13 (6.69) (11.28) (14.01)
Tax-Yield (Tax/GDP);
Tanzania 11.60% 12.90% 13.20% 12.80% 11.4%
Uganda 12.30% 12.80% 14.00% 14.20% 15.4%
Kenya 18.70% 18.80% 19.30% 18.50% 15.5%
Rwanda 15.10% 16.10% 15.20% 15.80% 16.3%
Burundi 13.70% 13.00% 13.40% 13.00% 14.8%
Source: TRA Statistics, 2014-2019
CG - Annual General Report 2018 / 19 396
Appendix 5. 3: Consolidation of Controlled Entities’ Financial Statements lacking ownership
S/N. NAME OF ENTITY
1. Ngorongoro Conservation Area Authority
2. National Board of Accountants and Auditors (NBAA)
3. Tanzania Insurance Regulatory Authority
4. College of Business Education
5. National Economic Empowerment Council
6. Tanzania Commission of Science and Technology
7. Tanzania Institute of Education (TIE)
8. National Insurance Corporation of Tanzania Limited
9. Itigi District Council
10. Meru District Council
11. Chunya District Council
12. Ilala Municipal Council
13. Musoma District Council
14. Newala District Council
15. Lindi District Council
16. National Environment Management Council
17. TEA Research Institute of Tanzania
18. Institute of Rural Development Planning Dodoma
19. Compliance Audit of Institute of Social Work
20. Tanzania-Mozambique Centre for Foreign Relations
CG - Annual General Report 2018 / 19 397
S/N. NAME OF ENTITY
21. National Institute of Transport
22. Kibiti District Council
23. Ushetu District Council
24. President’s Office Regional Administration and Local Government
25. Commission for Human Rights and Good Governance
26. Ministry of Health, Community development, gender elderly and children
27. Office of the Solicitor General
28. President’s Office and Cabinet Secretariat and State House
29. Ministry of Minerals
30. Ministry of Foreign Affairs and East African Cooperation
31. Vice President Office
32. President’s Office Public Service Management and Good Governance
33. Prime Minister’s Office Labour, Youth, Employment and Persons with Disability
34. Handeni Town Council
35. Nanyumbu District Council
36. Moshi District Council
37. Serengeti District Council
38. Simiyu District Council
39. Moshi Municipal Council
40. Mafia District Council
41. Tanzania Meat Board (TMB)
CG - Annual General Report 2018 / 19 398
S/N. NAME OF ENTITY
42. Institute of Accountancy Arusha (IAA)
43. National Institute for Productivity (NIP)
44. Tanzania Sisal Board (TSB)
45. Tanzania Agriculture Development Bank (TADB)
46. Tanzania Postal Bank (TPB)
47. Tanzania Investment Bank (TIB)
48. MZUMBE University
49. EWURA
50. Public Procurement Appeal Authority
51. TTCL - PESA
52. TTCL - TRUST
53. DUWASA
54. Tanzania Investment Bank - RASILIMALI
55. National Health Insurance Fund (NHIF)
56. National Social Security Fund
57. UTT AMIS
58. State Mining Corporation (STAMICO)
59. National Bureau of Statistics
60. Small Enterprises Loan Fund (SELF) Microfinance
61. Tanzania Education Authority (TEA)
62. Muhimbili University of Health Allied Science (MUHAS)
CG - Annual General Report 2018 / 19 399
S/N. NAME OF ENTITY
63. Jakaya Kikwete Cardiac Insititute (JKCI)
64. Institute of Finance Management (IFM)
65. Arusha Technical College (ATC)
66. Vocational Education Training Authority (VETA)
67. Mwalimu Nyerere University of Agriculture and Technology
68. Procurement and Supplies Professional and Technician Board (PSPTB)
69. Tanzania Communication Regulatory Authority (TCRA)
70. SUGAR BOARD
71. Land Transport Regulatory Authority (LATRA)
72. Tanzania Coffee Board (TCB)
73. MARINE - Reserve
74. Tanzania Pytherium Board - Pytherium (TPB)
75. Petroleum Upstream Regulatory Authority (PURA)
76. TANESCO
77. MUHIMBILI National Hospital
78. TTCL
79. DAWASA
80. Cashewnut Industry Development Trust Fund (CIDTF)
81. Air Tanzania Corporation Limited (ATCL)
82. EWURA Consumer Consultative Council
83. Tanzania Fertilizer Company (TFC)
CG - Annual General Report 2018 / 19 400
S/N. NAME OF ENTITY
84. SUMATRA Consumer Consultative Council
85. Tanzania Railway Corporation (TRC)
CG - Annual General Report 2018 / 19 401
Appendix 6. 1: Entities with Internal Audit weaknesses
S/N Vote Name of Entity Weakness
MDAs
1 61 National Electoral Commission • Internal Audit Unit had only six (6)Internal Auditors instead of eight
Auditors
2 TR 003 National Land Use Planning • No Internal Audit Unit established.
Commission
3 33 President’s Office Ethics • Unit has three(3) staff instead of (5) five staff as per staff
Secretariat establishment
4 18 UNESCO National Commission • No Internal Audit Unit established
5 05 National Irrigation Commission • Internal Audit Unit had only one staff member
Regional Secretariat
1 90 Songwe • The Unit has one (1) staff instead of three (3) as required by
establishment
• Insufficient funds allocation.
2 47 Geita • The Unit has two (2) staff member instead of three (3) as required by
staff establishment.
• The Unit has no transport facility.
3 87 Kagera • The Unit has one (1) staff instead of three (3) as required by
establishment
• Insufficient facilities to support their work such as Computers and
transport facilities
4 47 Simiyu • The Unit has two (2) staff instead of three (3) as required by
establishment.
• The Unit had no transport facility.
5 88 Dar es salaam • The Unit has two (2) staff instead of three (3) required by
establishment.
CG - Annual General Report 2018 / 19 402
S/N Vote Name of Entity Weakness
• Lack of appropriate transport facilities.
6 76 Lindi • The Unit has two (2) staff instead of three (3) as required by
establishment.
• Insufficient budget allocation
7 95 Manyara • The Unit has two (2) staff instead of three (3) staff required by
establishment.
• Insufficient budget allocation
8 86 Tanga • Insufficient budget allocation.
• Lack of working tools like computer.
9 72 Dodoma • Internal audit unit has deficiency of one auditor.
• Lack of appropriate transport facilities such as Motor vehicle.
10 Tabora • The Unit has one (1) staff instead of three (3) staff required by
establishment.
11 71 Pwani • The Unit had (two) 2 staff instead of (three) 3 as required by
establishment.
• Lack of appropriate transport facilities such as Motor vehicle.
• Insufficient budget allocation.
Agencies
1 Agricultural Seed Agency • There was only one staff attached to the Agency instead of three (3)
staff that correspond to the Agency’s staff establishment.
2 Tanzania Veterinary • The Unit has only one Internal Auditor to carry out all activities,
Laboratory Agency instead of the required two.
Other Institutions
1 Mzinga Corporation • Internal Audit Unit has two (2) Internal Audit staff instead of (5)
required.
2 Pasiansi Wildlife Training • No Internal Audit function established within the Entity.
Institute(PWTI)
CG - Annual General Report 2018 / 19 403
S/N Vote Name of Entity Weakness
3 Tanzania Automotive • There is only one Internal Auditor while the required number is two
Technology Centre (2) auditors
4 Institute of Judicial • Internal Audit unit has only one Internal Auditor instead of three (3)
Administration (IJA) Lushoto auditors
5 Tanzania Livestock Research • No Internal Audit Function established within the Entity.
Institute
6 Mining Commission • Lack of approved Internal Audit charter.
Source: Management letters
CG - Annual General Report 2018 / 19 404
Appendix 6. 2: Entities with deficiencies in Audit Committee
S/N Vote Name of Entity Deficiencies
MDA’s
1 TR 003 National Land Use Planning • No Audit Committee established
Commission
2 12 Judicial Service Commission • Two members of the Audit Committee are also the members of Tender
Board.
3 68 Ministry Of Works, Transport And • The tenure of Audit Committee member expired since 31 April 2019
Communication- Communication
Sector
4 04 President Office Records and • The Audit committee met twice instead of four meeting required as
Archives per Reg.32 of PFR of 2001(revised 2004) requirement.
Management Department
5 94 President’s Office-Public Service • A copy of Annual report on audit committee functions was not
Commission submitted to the Controller and Auditor-General
6 09 President’s Office - Public Service • Audit committee did not prepare annual report on their functions as
Remuneration Board require by Reg.32 (1)(g) of PFR of 20
7 67 President’s Office- Public Service • No evidence that the Audit Committee reviewed and approved the
Recruitment Secretariat final accounts before they were submitted for annual audit and no
copy of report which was submitted to audit including the Annual
Report on its functions as required by Regulation 32 (1) of the PFR
2011.
8 18 UNESCO National Commission • No Audit Committee established
9 96 Ministry of Information, Culture, • Audit committee did not prepare annual report on their functions as
Arts and Sports required by Reg.32 (1)(g) of PFR of 20
CG - Annual General Report 2018 / 19 405
S/N Vote Name of Entity Deficiencies
10 96 Ministry of Information, Culture, Audit committee did not prepare annual report on their functions as
Arts And Sports required by Reg.32 (1)(g) of PFR of 20
11 05 National Irrigation Commission • The Audit committee met twice instead of four times as per Reg.32 of
PFR of 2001(revised 2004) requirement.
Regional Secretariat
1 47 Simiyu • No evidence that the Committee provides advice to the Accounting
Officer on the preparation and review of financial statements of the
Regional Secretariat as per Regulation 32(1) (f) of the Public Finance
Regulations, 2001(Revised, 2004).
2 74 Kigoma • Audit Committee conducted only one meeting for the financial year
2018/2019 instead four meeting required.
3 54 Njombe • The Audit Committee did not review the effectiveness of the internal
and financial controls, accounting practices and audit processes.
Contrary to the requirement of charter
4 81 Mwanza • Secretariat has four (4) audit committee members but all are from
within the organization without any member from outside the
Secretariat.
5 76 Lindi • Composition of the committee is not in line with requirement of
required laws and regulations. Chairperson has to be a member from
another entity which is not the case.
• Audit committee did not prepare annual report on their functions.
CG - Annual General Report 2018 / 19 406
S/N Vote Name of Entity Deficiencies
• Conducted only one meeting during the audited year instead of four
(4) meeting required.
6 80 Mtwara • There was no evidence to confirm that Audit Committee reviewed
financial statements in terms of compliance with prescribed
accounting framework.
7 72 Dodoma • Committee did not prepare its annual report of their functions.
8 85 Tabora • The audit committee did not prepare an annual report on its functions,
contrary to its charter requirement.
9 71 Pwani • In 2018/19 the Audit committee conducted only one meeting which
was instead of having four meetings in each financial year.
Agencies
1 The Eastern Africa Statistical • The committee did not perform annual self-assessment on its main
Training Centre (EASTC) activities to ensure that the audit committee is meeting its objectives
efficiently and effectively.
2 Tanzania Veterinary Laboratory • The Committee conducted only one meeting contrary 4 meeting
Agency required by Reg.32 (1) (a) of the PFR 2001(amended 2004
3 Tanzania Global Learning Agency • Audit Committee met once in four quarters contrary to the
requirements regulation.
Other Institution
1 Mzinga • The committee did not make a follow up on implementation of the
Corporation matters reported by the internal audit unit and those reported by the
Controller and Auditor General.
CG - Annual General Report 2018 / 19 407
S/N Vote Name of Entity Deficiencies
• Committee met three times instead of meeting quarterly as per
requirement of Regulation 32 (1) of Public Finance Regulations
(Revised 2004).
2 TR 105 Town Planners Registration Board • No establishment of Audit Committee
3 Tanzania Automotive Technology • Audit Committee did not review risk management and related policies
Centre that poses a risk that some controls might be ineffective and some
risks might have not been controlled.
4 Institute of Judicial Administration • The audit Committee has not performed risk assessment, and review
(IJA) Lushoto of the effectiveness of internal control mechanism as provided in Audit
Committee guideline. annual audit committee report was not
prepared and submit to the Controller and Auditor General
5 Nelson Mandela-African Institution • Audit Committee met only twice for the whole financial year instead
of Science and Technology of meeting at least once a quarter as required by regulation.
6 Local Government Training Institute • Tenure of Audit committee was expired on 30 April 2018 since that
time audit committee members were yet to be appointed.
7 TR 06 Ardhi Institute Morogoro • Audit committee not established
8 Marine Services Company Ltd • No Risk Management Policy prepared
Source: Management letters
CG - Annual General Report 2018 / 19 408
Appendix 6. 3: HIV and AIDS Reduction
S/N Vote Name of Entity Deficiencies
MDA’s
1 19 The Office of Solicitor • No activity for HIV and AIDS reduction conducted by the offices to its staff.
General
2 93 Immigration Services • There were no strategies in place (including trainings and workshop) to ensure
Department the staff are aware of non-communicable diseases contrary to the requirement of
Circular No. 2 of 2014.
3 04 President Office Records • There were no strategies in place (including trainings and workshop) to ensure
and Archives the staff are aware of non-communicable diseases contrary to the requirement of
Management Department Circular No. 2 of 2014
4 32 President’s Office – Public • Lack of health facilities such as BP Machines, Glucometer, Weight Machines
Service Management And contrary to the requirement of circular No. 2 of 2014.
Good Governance
5 40 Judiciary of Tanzania • No appointed committee dealing with HIV & AIDS infections and non-
communicable diseases for the year 2018-19
Agencies
1 Tanzania Government • No budget to support staff living with HIV & AIDS.
Flight Agency
Other Institutions
1 Uongozi Institute • HIV & AIDS focal person not appointed
• No approved budget for the HIV & AIDS to prevent and support services to staff
living with HIV & AIDS
2 National Identification • No strategies in place including trainings and workshop organized for its staff
Authority awareness of non- communicable decreases contrary to the requirement of
Circular No. 2 of 2014
CG - Annual General Report 2018 / 19 409
Appendix 6. 4: Entities with Risk Management deficiencies
S/N Vote Name of Entity Deficiencies
MDA’s
1 56 Local Government Loans Board • Lack of Corporate Strategic Plan
• Lack of LGLB Business Plan
2 15 Commission for Mediation and
Arbitration (CMA) • Lack of documented Risk Management Policy
3 68 Ministry of Works, Transport • Lack of documented Risk Management Policy
and Communication-
Communication Sector
4 27 Registrar of Political Parties • Risk management frame work was not implemented
5 100 Ministry of Minerals • Non - Existence of Risk Management Policy and Risk Register
6 23 The Accountant General’s • Non implementation of the Risk Management Framework
Department
Regional Secretariat
1 74 Kigoma • Risk registers not established.
2 82 Ruvuma • No risk assessment reports.
3 95 Manyara • Risk assessment not performed
4 86 Tanga • Non perform a risk assessment
Agencies
1 The Eastern Africa Statistical • Risk assessment not performed
Training Centre (EASTC)
2 23 National Housing and Building • No disaster recovery plan, business continuity plan, and risk management
Research Agency policy in place
CG - Annual General Report 2018 / 19 410
S/N Vote Name of Entity Deficiencies
3 Tanzania Government Flight • Lack Disaster Recovery Plan
Agency
Other Institutions
1 Mzinga Holding Company • Lack of the company strategic plan
2 SUMAJKT Agricultural and • Business Strategic Plan Document not updated
Industrial Segment
CG - Annual General Report 2018 / 19 411
Appendix 6. 5: Information and Communications Technology Deficiencies
S/N Vote Name of Entity Deficiencies
MDA’s
1 93 Immigration Services • Lack of data backup system and restoration during critical
Department situation
2 09 President’s Office - Public • No evidence provided on backups performed and stored
Service Remuneration Board established
• Non-establishment of the ICT Steering Committee
3 96 Ministry of Information, • No IT strategic committee
Culture, Arts and Sports • No backup and retention strategy of its electronic data
4 23 The Accountant General’s • Non-utilization of Assets Management Module in the Epicor
Department system.
Agencies
1 Rural and Urban Roads Agency • Lack of ICT Policy
2 Tengeru Institute of • Lack of ICT Steering Committee
Community Development
(TICD)
3 Tanzania Global Learning • Absence of IT Policy, ICT Strategic Plan, Business Continuity Plan
Agency and disaster recovery site.
Other Institution
CG - Annual General Report 2018 / 19 412
S/N Vote Name of Entity Deficiencies
1 African Peer Review • Lack of EPICOR system
Mechanism-Tanzania
2 National Identification • Lack of ICT Policy.
Authority
Regional Secretariat
1 36 Katavi • There are no fire extinguishers, UPS in several computers and
standby generator in case of power cut.
2 78 Mbeya • There is no register to track RS’s ICT equipment such as laptops,
desktops and other related ICT equipment for their safeguarding
and to facilitate technical support including regular updates of
anti-virus and other program.
3 47 Simiyu • Non-maintenance of IT registers for keeping equipment’s and its
accessories
4 54 Njombe • No approved IT strategic plan.
5 82 Ruvuma • Absence of the ICT steering committee, Disaster recovery plan
6 95 Manyara • EPCOR not interfaced with Strategic Budget Allocation System
7 86 Tanga • Non approval of ICT policy
8 71 Pwani • Inadequate allocation of staff in the Information and
Communication Technology Unit needs where by only three staffs
available instead of six needed.
Embassies
1 2022 Tanzania Embassy - Harare • Unavailability of EPICOR/IFMIS
CG - Annual General Report 2018 / 19 413
 Source: Management letters
CG - Annual General Report 2018 / 19 414
Appendix 7. 1: Shortage of staffs
S/N Vote Vote Description Required Available Shortage
Staff staff
1 35 National Prosecutions Services 5,912 660 5,252
2 15 Commission for Mediation And Arbitration 401 121 280
3 31 Vice President Office 195 135 60
4 70 Arusha Regional Administrative Secretariat 373 217 156
5 54 Njombe Regional Administrative Secretariat 305 124 181
6 53 Ministry of Health, Community Development, Gender, 898 553 345
Elderly and Children
7 59 The Law Reform Commission 51 36 15
8 61 National Electoral Commission 160 87 73
9 98 Ministry Of Works, Transport And Communications 358 295 63
10 26 Vice President Office 39 18 21
11 36 Katavi Regional Administrative Secretariat 254 92 162
12 78 Mbeya Regional Administrative Secretariat 273 171 102
13 73 Iringa Regional Administrative Secretariat 270 152 118
14 89 Rukwa Regional Administrative Secretariat 254 147 107
15 90 Songwe Regional Administrative Secretariat 276 98 178
16 12 Judicial Service Commission 13 2 11
17 27 Registrar of Political Parties 51 34 17
18 55 Commission for Human Rights And Good Governance 40 6 34
19 47 Geita Regional Administrative Secretariat 324 152 172
20 87 Kagera Regional Secretariat 360 187 173
21 77 Mara Regional Administrative Secretariat 246 146 100
22 47 Simiyu Regional Administrative Secretariat 311 138 173
23 9 President Office-Public Service Remuneration Board 30 19 11
24 83 Shinyanga Regional Administrative Secretariat 132 45 87
25 67 President’s Office- Public Service Recruitment Secretariat 130 76 54
CG - Annual General Report 2018 / 19 415
S/N Vote Vote Description Required Available Shortage
Staff staff
26 18 UNESCO National Commission 62 24 38
27 52 Ministry of Health Community Development, Gender, Elderly And 198 139 59
Children
28 13 Financial Intelligence Unit 51 21 30
29 72 Dodoma Regional Administrative Secretary 392 154 238
30 74 Kigoma Regional Administrative Secretariat 355 143 212
31 75 Kilimanjaro Regional Administrative Secretariat 427 225 202
32 76 Lindi Regional Administrative Secretariat 293 159 134
33 80 Mtwara Regional Administrative Secretariat 100 49 51
34 81 Mwanza Regional Administrative Secretariat 262 193 69
35 82 Ruvuma Regional Administrative Secretariat 337 180 157
36 84 Singida Regional Administrative Secretariat 315 154 161
37 85 Tabora Regional Administrative Secretariat 265 179 86
38 95 Manyara Regional Administrative Secretariat 345 179 166
39 94 President’s Office-Public Service Commission 165 122 43
40 07 Treasury Registrar 155 124 31
Embassies
S/N Sub Sub Vote Description Required Available Shortage
Vote
41 2018 Tanzania Embassy In Washington, D.C 4 0 4
42 2030 Tanzania High Commission in Lilongwe 7 2 5
43 2010 Tanzania High Commission in New Delhi 9 4 5
44 2004 Tanzania Embassy in Kinshasa 6 3 3
45 2007 Tanzania High Commission – Lusaka 7 3 4
46 2029 Tanzania Embassy in Muscat 6 3 3
47 2006 Tanzania High Commission in London 10 5 5
CG - Annual General Report 2018 / 19 416
S/N Vote Vote Description Required Available Shortage
Staff staff
48 2008 Tanzania High Commission in Maputo 17 11 6
49 2035 Tanzania Embassy in Kuwait 5 3 2
50 2040 Tanzania Embassy Tel Aviv, Israel 5 1 4
51 2042 Tanzania Embassy in Cuba 5 1 4
52 2020 Tanzania Permanent Mission to The United Nations in Geneva 13 4 9
53 2011 Permanent Mission of The URT to The UN - New York 10 4 6
54 2037 Tanzania Embassy in Ankara, Turkey 5 1 4
55 2032 Tanzania High Commission in Kuala Lumpur 9 4 5
Total 15,496 5,805 9,691
CG - Annual General Report 2018 / 19 417
Appendix 8. 1: Actual Collection against Total approved recurrent and development estimates
Actual
Total Approved Collections from (Under)/ Over
S/N Agencies Budget (TZS) Own Source (TZS) Collection
A. Agencies with insufficient collections to finance its budget
1 Tanzania Meteorological Agency (TMA) 33,693,901,594 10,330,320,641 (23,363,580,953)
2 Government Procurement Service Agency (GPSA) 15,330,000,000 6,891,293,472 (8,438,706,528)
3 Water Institute 11,896,352,558 3,978,938,408 (7,917,414,150)
4 E-Government Agency 10,326,695,261 4,684,376,097 (5,642,319,164)
5 National Food Reserve Agency (NFRA) 40,877,897,220 35,891,533,773 (4,986,363,447)
6 Geological Survey of Tanzania (GST) 5,082,606,512 573,983,827 (4,508,622,685)
7 Government Chemist Laboratory Agency 6,734,762,640 470,513,000 (6,264,249,640)
8 National College of Tourism (NCT) 6,303,719,242 2,161,658,580 (4,142,060,662)
National Housing and Building Research Agency
9 (NHBRA) 4,222,567,085 734,686,350 (3,487,880,735)
10 Eastern Africa Statistical Training Centre 3,761,850,244 782,683,748 (2,979,166,496)
11 Agriculture Seeds Agency (ASA) 3,674,036,000 1,553,011,000 (2,121,025,000)
CG - Annual General Report 2018 / 19 418
 Actual
Total Approved Collections from (Under)/ Over
S/N Agencies Budget (TZS) Own Source (TZS) Collection
12 Fisheries Education and Training Agency (FETA) 2,550,000,000 981,313,564 (1,568,686,436)
13 Taasisi ya Sanaa na Utamaduni Bagamoyo (TaSUBA) 1,612,445,000 470,513,000 (1,141,932,000)
14 Dar es Salaam Rapid Transit Agency (DART) 41,741,887,323 4,915,064,614 (36,826,822,709)
Sub Total A. 187,808,720,679 74,419,890,074 (113,388,830,605)
B. Agency with the ability to finance its budget
1 Tanzania Global Learning Agency (TAGLA) 583,200,000 1,037,092,899 453,892,899
Agency for Development of Education Management
2 (ADEM) 2,991,268,135 3,672,097,527 680,829,392
3 Tanzania Veterinary Laboratory Agency (TVLA) 1,237,212,691 2,337,870,687 1,100,657,996
Registration, Insolvency and Trusteeship Agency
4 (RITA) 4,589,949,634 6,891,293,472 2,301,343,838
5 Livestock Training Agency (LITA) 583,034,347 3,082,446,879 2,499,412,532
6 Tanzania Public Service College (TPSC) 4,721,824,000 11,622,353,500 6,900,529,500
Tanzania Electrical, Mechanical and Services Agency
7 (TEMESA) 31,250,313,383 38,269,113,834 7,018,800,451
CG - Annual General Report 2018 / 19 419
 Actual
Total Approved Collections from (Under)/ Over
S/N Agencies Budget (TZS) Own Source (TZS) Collection
8 Occupational Safety and Health Authority (OSHA) 3,662,201,000 14,342,823,000 10,680,622,000
9 Tanzania Government Flights Agency (TGFA) 3,624,690,605 14,599,660,113 10,974,969,508
10 Tanzania Airports Authority (TAA) 31,588,353,530 45,656,776,062 14,068,422,532
11 Tanzania Institute of Accountancy (TIA) 4,684,932,000 22,503,282,659 17,818,350,659
12 Weights and Measures Agency (WMA) 5,673,424,000 23,957,061,222 18,283,637,222
13 Drilling and Dam Construction Agency (DDCA) 4,806,487,754 6,891,293,472 2,084,805,718
14 Tanzania Building Agency (TBA) 17,872,072,000 100,714,518,774 82,842,446,774
15 Tanzania Forestry Service Agency (TFSA) 27,796,832,000 130,794,203,736 102,997,371,736
16 Business Registrations and Licensing Agency (BRELA) 596,399,900 22,771,662,443 22,175,262,543
Sub Total B. 146,262,194,979 449,143,550,279 302,881,355,300
General Total (A+B) 334,070,915,658 523,563,440,353 189,492,524,695
Source: Management letters
CG - Annual General Report 2018 / 19 420
Appendix 8. 2: Approved budgets against actual funds received for recurrent and development
Approved Actual
Approved Actual Recurrent Development Development
S/N Agencies Recurrent Budget Funds received Budget Funds received
Drilling and Dam Construction
1 Agency (DDCA) 3,306,487,754 1,046,711,240 1,500,000,000 -
Fisheries Education and Training
2 Agency (FETA) 1,991,268,135 1,713,693,396 1,000,000,000 -
Tanzania Veterinary Laboratory
3 Agency (TVLA) 937,212,691 637,971,305 300,000,000 128,018,086
4 Livestock Training Agency (LITA) 483,034,347 494,109,134 100,000,000 -
Eastern Africa Statistical Training
5 Centre 3,761,850,244 3,350,174,694 - -
Occupational Safety and Health
6 Authority (OSHA) 3,662,201,000 2,205,145,000 - -
Registration, Insolvency and
7 Trusteeship Agency (RITA) 3,159,525,000 1,981,887,769 1,430,424,634 2,236,207,244
Tanzania National Roads Agency 1,428,804,095,0
8 (TANROADS) 582,535,575,000 494,265,902,000 1,447,242,021,000 00
Taasisi ya Sanaa na Utamaduni
9 Bagamoyo (TaSUBA) 1,612,445,000 998,926,000 - -
10 E-Government Agency 6,326,695,261 3,453,865,427 4,000,000,000 5,000,000,000
CG - Annual General Report 2018 / 19 421
 Approved Actual
Approved Actual Recurrent Development Development
S/N Agencies Recurrent Budget Funds received Budget Funds received
Tanzania Forestry Service Agency
11 (TFSA) 27,796,832,000 16,653,071,526 - -
Tanzania Global Learning Agency
12 (TAGLA) 583,200,000 549,424,640
Tanzania Public Service College
13 (TPSC) 4,721,824,000 4,775,505,300 - -
14 Agriculture Seeds Agency (ASA) 1,248,187,000 940,339,000 2,425,849,000 1,253,182,000
15 Geological Survey of Tanzania (GST) 5,082,606,512 4,104,747,284 - -
16 Tanzania Building Agency (TBA) 17,872,072,000 4,375,560,692 - -
Tanzania Electrical, Mechanical and
17 Services Agency (TEMESA) 10,860,921,383 6,255,048,388 20,389,392,000 3,918,704,900
Tanzania Government Flights
18 Agency (TGFA) 3,624,690,605 4,460,837,774 - 3,834,478,951
Tanzania Meteorological Agency
19 (TMA) 13,693,901,594 11,150,102,979 20,000,000,000 18,924,050,518
Weights and Measures Agency
20 (WMA) 5,673,424,000 3,251,639,000 - -
National Housing and Building
21 Research Agency (NHBRA) 4,222,567,085 1,376,908,900 - -
CG - Annual General Report 2018 / 19 422
 Approved Actual
Approved Actual Recurrent Development Development
S/N Agencies Recurrent Budget Funds received Budget Funds received
Dar es Salaam Rapid Transit Agency
22 (DART) 1,772,706,558 1,651,662,227 39,969,180,765 29,470,822,255
Government Procurement Service
23 Agency (GPSA) 15,330,000,000 13,942,100,000
24 Tanzania Airports Authority (TAA) 25,588,353,530 23,284,850,488 6,000,000,000 4,205,711,860
25 National College of Tourism (NCT) 6,303,719,242 2,635,752,533 - -
Tanzania Rural and Urban Road
26 Agency (TARURA) 210,075,277,411 75,477,601,946 231,478,906,431 173,512,351,191
Tanzania Institute of Accountancy
27 (TIA) 4,684,932,000 4,641,576,666 - -
Government Chemist laboratory
28 Agency 6,734,762,640 4,398,129,000 - -
29 Water Institute 5,026,152,558 2,764,118,300 6,870,200,000 1,293,593,443
National Food Reserve Agency
30 (NFRA) 22,931,413,220 17,872,782,535 17,946,484,000 15,736,621,000
Development of Education
31 Management (ADEM) 1,991,268,135 1,151,841,000 1,000,000,000 -
Business Registrations and
32 Licensing Agency (BRELA) 596,399,900 346,239,339
CG - Annual General Report 2018 / 19 423
 Approved Actual
Approved Actual Recurrent Development Development
S/N Agencies Recurrent Budget Funds received Budget Funds received
1,688,664,075,
Total 1,003,595,105,905 715,861,986,143 1,802,248,857,730 787
Source: Management letters
CG - Annual General Report 2018 / 19 424
Appendix 8. 3: Revenue Actual Collection Against approved estimate
Approved Budget for Actual Collections
Own Source from Own Source (Under)/Over
S/N Agencies Collections (TZS) (TZS) Collection (TZS)
A. Agencies collected below the Budgeted
1 Tanzania Building Agency (TBA) 144,622,045,173.00 100,714,518,774.00 (43,907,526,399.00)
Tanzania Electrical, Mechanical and
2 Services Agency (TEMESA) 61,798,427,169.00 6,891,293,472.00 (54,907,133,697.00)
Tanzania Government Flights Agency
3 (TGFA) 26,553,100,500.00 14,599,660,113.00 (11,953,440,387.00)
Drilling and Dam Construction Agency
4 (DDCA) 13,824,911,483.00 6,852,938,850.00 (6,971,972,633.00)
Dar es Salaam Rapid Transit Agency
5 (DART) 9,996,569,196.00 4,915,064,614.00 (5,081,504,582.00)
6 Tanzania Airports Authority (TAA) 50,064,517,106.00 45,656,776,062.00 (4,407,741,044.00)
Agency Development of Education
7 Management (ADEM) 7,631,696,665.17 3,672,097,527.02 (3,959,599,138.15)
8 Tanzania Public Service College(TPSC) 14,751,103,000.00 11,622,353,500.00 (3,128,749,500.00)
Tanzania National Roads Agency
9 (TANROADS) 43,112,450,000.00 40,863,136,000.00 (2,249,314,000.00)
10 Agriculture Seeds Agency (ASA) 3,421,513,000.00 1,553,011,000.00 (1,868,502,000.00)
CG - Annual General Report 2018 / 19 425
 Approved Budget for Actual Collections
Own Source from Own Source (Under)/Over
S/N Agencies Collections (TZS) (TZS) Collection (TZS)
11 Government Chemist laboratory Agency 25,335,017,986.00 23,957,061,221.71 (1,377,956,764.29)
12 Tanzania Institute of Accountancy (TIA) 23,826,867,000.00 22,503,282,659.12 (1,323,584,340.88)
National Housing and Building Research
13 Agency (NHBRA) 2,027,416,251.00 2,161,658,580.00 134,242,329.00
14 Tanzania Meteorological Agency (TMA) 11,560,000,000.00 10,330,320,641.00 (1,229,679,359.00)
15 Tanzania Global Learning Agency (TAGLA) 1,980,901,867.00 1,037,092,899.00 (943,808,968.00)
16 Livestock Training Agency (LITA) 3,977,286,500.00 782,683,748.00 (3,194,602,752.00)
Government Procurement Service Agency
17 (GPSA) 11,330,000,000.00 10,446,610,000.00 (883,390,000.00)
18 Eastern Africa Statistical Training Centre 1,427,957,244.00 782,683,748.00 (645,273,496.00)
19 National College of Tourism (NCT) 2,553,474,600.00 2,161,658,580.00 (391,816,020.00)
Registration, Insolvency and Trusteeship
20 Agency (RITA) 7,204,401,000.00 6,891,293,472.00 (313,107,528.00)
Fisheries Education and Training Agency
21 (FETA) 1,200,000,000.00 3,672,097,527.02 2,472,097,527.02
CG - Annual General Report 2018 / 19 426
 Approved Budget for Actual Collections
Own Source from Own Source (Under)/Over
S/N Agencies Collections (TZS) (TZS) Collection (TZS)
Tanzania Veterinary laboratory Agency
22 (TVLA) 1,650,000,000.00 470,513,000.00 (1,179,487,000.00)
Business Registrations and Licensing
23 Agency (BRELA) 25,391,064,000.00 22,771,662,443.00 (2,619,401,557.00)
Sub Total A. 495,240,719,740.17 322,537,805,987.87 (147,311,849,752.30)
B. Agencies collected beyond their Budget for own source
Occupational Safety and Health Authority
1 (OSHA) 14,342,823,000.00 14,342,823,000.00 -
Taasisi ya Sanaa na Utamaduni Bagamoyo
2 (TaSUBA) 427,000,000.00 470,513,000.00 43,513,000.00
3 Geological Survey of Tanzania (GST) 371,000,000.00 573,983,827.00 202,983,827.00
4 Water Institute 3,231,559,750.00 3,978,938,408.00 747,378,658.00
5 Weights and Measures Agency (WMA) 22,525,866,198.00 24,006,842,954.50 1,480,976,756.50
6 E-Government Agency 2,701,609,505.00 4,684,376,097.00 1,982,766,592.00
7 Tanzania Forestry Service Agency (TFSA) 126,498,300,174.00 130,794,203,736.00 4,295,903,562.00
CG - Annual General Report 2018 / 19 427
 Approved Budget for Actual Collections
Own Source from Own Source (Under)/Over
S/N Agencies Collections (TZS) (TZS) Collection (TZS)
Tanzania Rural and Urban Road Agency
8 (TARURA) 11,147,850,000.00 16,027,904,339.00 4,880,054,339.00
9 Petroleum Bulk Procurement Agency 5,284,265,500.00 7,708,826,685.23 2,424,561,185.23
10 National Food Reserve Agency (NFRA) 22,140,658,920.00 35,891,533,773.00 13,750,874,853.00
Sub Total B. 208,670,933,047.00 238,479,945,819.73 29,809,012,772.73
General Total 703,911,652,787 561,017,751,808 (142,893,900,979)
Source: Management letters
CG - Annual General Report 2018 / 19 428
Appendix 8. 4: Agencies which remitted funds to the Consolidated Account
Required
transfer amount Transferred
Annual (15% of Amount to (Under)/over
S/N Agencies Collections Collections) Treasury transferred
Agencies did not remit the required amount
1 Tanzania Building Agency 100,714,518,774 15,107,177,816 543,187,079 (14,563,990,737)
Occupational Safety and Health
2 Authority (OSHA) 14,342,823,000 2,151,423,450 1,500,000,000 (651,423,450)
Sub Total 1 115,057,341,774 17,258,601,266 2,043,187,079 (15,215,414,187)
Agencies which remitted above the requirement
Tanzania Electrical, Mechanical and
1 Services Agency (TEMESA) 6,891,293,472 1,033,694,021 1,035,551,338 1,857,317
Weights and Measures Agency
2 (WMA) 24,006,842,955 3,601,026,443 3,733,912,231 132,885,788
3 Tanzania Forest Fund 6,338,328,570 950,749,286 1,150,000,000 199,250,714
Business Registrations and Licensing
4 Agency (BRELA) 22,771,662,443 3,415,749,366 3,820,922,270 405,172,903
Tanzania Forestry Service Agency
5 (TFSA) 130,794,203,736 19,619,130,560 21,891,104,000 2,271,973,440
Sub Total 1 190,802,331,176 28,620,349,676 31,631,489,838 3,011,140,162
CG - Annual General Report 2018 / 19 429
 Required
transfer amount Transferred
Annual (15% of Amount to (Under)/over
S/N Agencies Collections Collections) Treasury transferred
Total 305,859,672,950 45,878,950,942 33,674,676,917 (12,204,274,025)
Source: Financial statement
CG - Annual General Report 2018 / 19 430
Appendix 8. 5: Lists of Entities Accounts Payable
Less than 12
S/N Entities months Above 12 months Total (TZS)
A. Agencies
1 Drilling and Dam Construction Agency (DDCA) 1,279,981,396 409,657,099 1,689,638,495
2 Fisheries Education and Training Agency (FETA) 44,243,650 - 44,243,650
3 Tanzania Veterinary laboratory Agency (TVLA) 441,084,730 218,569,359 659,654,089
4 Livestock Training Agency (LITA) - 184,953,723 184,953,723
5 Eastern Africa Statistical Training Centre 261,966,874 33,481,265 295,448,139
6 Occupational Safety and Health Authority (OSHA) - - -
Registration, Insolvency and Trusteeship Agency
7 (RITA) - - -
8 Tanzania National Roads Agency (TANROADS) 591,071,216,000 193,135,102,000 784,206,318,000
9 Taasisi ya Sanaa na Utamaduni Bagamoyo (TaSUBA) 25,096,425 145,193,575 170,290,000
Tanzania Electrical, Mechanical and Services Agency
10 (TEMESA) 11,791,953,260 14,422,653,985 26,214,607,245
11 Tanzania Building Agency (TBA) 16,888,364,359 8,905,380,452 25,793,744,811
12 Tanzania Government Flight Agency 615,595,573 4,548,046,353 5,163,641,926
13 Weights and Measures Agency (WMA) 322,726,094 325,967,431 648,693,525
National Housing and Building Research Agency
14 (NHBRA) 94,395,041 20,365,347 114,760,388
15 Tanzania Global Learning Agency (TAGLA) 366,705,285 340,923,151 707,628,436
16 Dar es Salaam Rapid Transit Agency (DART) 963,920,729 71,652,651 1,035,573,380
CG - Annual General Report 2018 / 19 431
 Less than 12
S/N Entities months Above 12 months Total (TZS)
17 Tanzania Forestry Service Agency (TFSA) 553,414,557 - 553,414,557
18 Agriculture Seeds Agency (ASA) 1,454,069,000 606,119,000 2,060,188,000
19 Tanzania Airports Authority (TAA) 4,134,515,991 1,766,272,930 5,900,788,921
20 Tanzania Meteorological Agency (TMA) 540,991,607 - 540,991,607
21 National College of Tourism (NCT) 448,015,300 328,083,046 776,098,346
22 Water Institute 460,588,235 518,389,203 978,977,438
23 Government Chemist Laboratory Authority 863,224,656 673,342,375 1,536,567,031
24 Government Procurement Services Agency 3,062,741,347 16,813,653 3,079,555,000
25 Geological Survey of Tanzania 31,081,465 73,156,716 104,238,181
26 Tanzania Rural and Urban Roads Agency (TARURA) 18,460,314,345 5,538,246,745 23,998,561,090
27 E-Government Agency 1,124,215,111 2,514,430,414 3,638,645,525
28 Tanzania Public Service College (TPSC) 547,375,279 81,995,685 629,370,964
29 Tanzania Institute of Accountancy (TIA) 958,372,601 759,192,000 1,717,564,601
CG - Annual General Report 2018 / 19 432
 Less than 12
S/N Entities months Above 12 months Total (TZS)
30 National Food Reserve Agency (NFRA) 427,691,237 556,357,417 984,048,654
Agency for Development of Education Management
31 (ADEM) 310,270,021 6,017,819 316,287,840
32 Business Registrations and Licensing Agency (BRELA) 208,049,638 171,301,343 379,350,981
B. Water Basin Boards -
1 Lake Nyasa Basin Water Board 17,004,718 176,066,244 193,070,962
2 Lake Rukwa Basin Water Board 65,141,552 61,734,555 126,876,107
3 Lake Tanganyika Basin Water Board 35,656,912 123,000,000 158,656,912
Handeni Trunk Main Water Supply and Sanitation
4 Authority 444,911,357 118,889,656 563,801,013
Mugango-Kiabakari Water Supply and Sanitation
5 Authority 613,610,044 10,981,228 624,591,272
6 Lake victoria Basin Water Board 93,196,552 - 93,196,552
Maswa Water Supply and Sanitation Authority
7 (MAUWASA) 276,080,619 128,874,930 404,955,549
8 Makonde Plateau Water Supply 973,315,651 773,209,204 1,746,524,855
9 Rufiji Basin Water Board 227,211,688 - 227,211,688
10 Internal Drainage Basin Water Board - - -
CG - Annual General Report 2018 / 19 433
 Less than 12
S/N Entities months Above 12 months Total (TZS)
Wanging’ombe Water Supply and Sanitation
11 Authority 776,153,000 21,486,000 797,639,000
12 Pangani Basin Water Board - - -
13 Wami-Ruvu Basin Water Board 5,142,111,640 146,500,000 5,288,611,640
14 Ruvuma Basin and Southern Coast Water Board 17,897,300 12,288,881 30,186,181
C. Other Institutions -
1 Institute of Judicial Administration (IJA) 15,509,988 196,403,559 211,913,547
2 African Peer Review Mechanism (Tanzania) - 33,757,804 33,757,804
3 Private Health Laboratories Board 341,270,635 51,209,739 392,480,374
4 Mzinga Corporation 4,623,982,798 6,167,800,863 10,791,783,660
5 Mzinga Holding Company Ltd 951,113,877 3,900,567,430 4,851,681,307
6 Pasiansi Wildlife Training Institute - - -
7 Prisons Corporation Sole 31,537,719 1,335,193,787 1,366,731,506
SUMA JKT- National Service Construction
8 Department 10,862,823,000 - 10,862,823,000
CG - Annual General Report 2018 / 19 434
 Less than 12
S/N Entities months Above 12 months Total (TZS)
9 SUMA Agriculture and Industrial segment - 208,696,000 208,696,000
10 SUMA JKT Guard Limited 2,948,903,650 637,216,350 3,586,120,000
11 National Service Corporation Sole (SUMA HQ) 15,797,000 76,020,000 91,817,000
12 Tanzania Automotive Technology Centre 264,472,204 235,542,467 500,014,671
Tengeru Institute of Community Development
13 (TICD) - - -
14 Tanzania Wildlife Management Authority - - -
15 Town Planners Registration Board 1,969,149 18,400,000 20,369,149
16 Tanzania Livestock Research Institute 349,045,020 1,442,563,199 1,791,608,219
7 Roads Fund Board (RFB) 14,805,393,000 11,126,826,000 25,932,219,000
18 Maji Central Store Revolving Fund (MCSRF) 84,204,900 1,218,156,468 1,302,361,368
19 Advance Fund 1,330,295,448 2,437,118,453 3,767,413,900
CG - Annual General Report 2018 / 19 435
 Less than 12
S/N Entities months Above 12 months Total (TZS)
20 Local Government Training Institute (HOMBOLO) 203,925,321 46,297,292 250,222,613
21 National Identification Authority 1,287,938,767 21,289,257,271 22,577,196,038
22 Tanzania Wildlife Protection Fund 22,001,268 - 22,001,268
Nelson Mandela African Institution of Science and
23 Technology 414,898,000 2,816,970,976 3,231,868,976
24 Pharmacy Council 15,799,138 - 15,799,138
25 Tanzania Police Force Corporation Sole 3,900,000 226,600,000 230,500,000
26 Tanzania Livestock Research Institute (TALIRI) 349,045,020 1,442,563,199 1,791,608,219
27 Roads Fund Board 14,805,393,000 11,126,826,000 25,932,219,000
28 Marine Services Company Ltd 1,045,382,000 6,711,317,000 7,756,699,000
29 Jitegemee Secondary School 814,176,000 617,587,000 1,431,763,000
30 Tanzania Nursing and Midwifery Council - 101,376,560 101,376,560
31 Mwananyamala Regional Referral Hospital 681,439,178 - 681,439,178
CG - Annual General Report 2018 / 19 436
 Less than 12
S/N Entities months Above 12 months Total (TZS)
32 Environmental Health Practitioners Council 31,768,000 - 31,768,000
33 Tanzania Wildlife Protection Fund 22,001,268 - 22,001,268
34 Tanzania Film Board (TFB) 100,000,000 - 100,000,000
35 Local Government Loans Board (LGLB) 13,887,527 - 13,887,527
Total Payables 722,664,294,075 311,237,661,506 1,033,901,955,581
CG - Annual General Report 2018 / 19 437
Appendix 8. 6: Lists of Entities Accounts receivable
Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
A. Agencies TZS TZS TZS
1. Drilling and Dam Construction Agency (DDCA) 2,103,413,889 987,039,712 3,090,453,601
Fisheries Education and Training Agency
2. (FETA) 196,356,423 18,544,626 214,901,049
Tanzania Veterinary Laboratory Agency
3. (TVLA) 189,793,839 73,324,269 263,118,108
4. Livestock Training Agency (LITA) 218,107,573 34,391,630 252,499,203
5. Eastern Africa Statistical Training Centre 179,999,434 452,235,291 632,234,725
6. Tanzania National Roads Agency (TANROADS) 157,198,026,000 15,487,183,000 172,685,209,000
Taasisi ya Sanaa na Utamaduni Bagamoyo
7. (TaSUBA) 16,695,000 21,465,000 38,160,000
Tanzania Electrical, Mechanical and Services
8. Agency(TEMESA) 16,435,869,503 17,104,264,181 33,540,133,684
9. Tanzania Building Agency (TBA) 49,395,133,872 1,697,974,675 51,093,108,547
CG - Annual General Report 2018 / 19 438
 Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
10. Tanzania Government Flight Agency 27,239,099,911 28,429,965,083 55,669,064,994
11. Weights and Measures Agency (WMA) 1,160,574,355 642,089,762 1,802,664,117
National Housing and Building Research
12. Agency(NHBRA) 231,280,588 813,773,197 1,045,053,785
13. Tanzania Global Learning Agency(TAGLA) 37,343,000 121,243,423 158,586,423
14. Dar es Salaam Rapid Transit Agency(DART) 2,473,000,806 2,486,055,463 4,959,056,269
15. Tanzania Forestry Service Agency(TFSA) 72,040,450 - 72,040,450
16. Agriculture Seeds Agency(ASA) 339,630,000 897,549,000 1,237,179,000
17. Tanzania Airports Authority(TAA) 11,107,098,397 5,457,537,725 16,564,636,122
18. Tanzania Meteorological Agency(TMA) 2,132,521,780 34,232,200 2,166,753,980
19. Water Institute - - -
20. National College of Tourism (NCT) 360,966,340 85,170,365 446,136,705
21. Government Chemist Laboratory Authority 4,561,952,800 3,971,529,162 8,533,481,962
22. Government Procurement Services Agency 1,404,963,519 3,778,060,481 5,183,024,000
23. Geological Survey of Tanzania 10,030,000 91,040,362 101,070,362
Tanzania Rural and Urban Roads Agency
24. (TARURA) 721,560,259 3,995,880,722 4,717,440,981
25. E-Government Agency 1,808,481,801 2,158,909,199 3,967,391,000
CG - Annual General Report 2018 / 19 439
 Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
26. Tanzania Institute of Accountancy (TIA) 2,908,025,479 3,635,408 2,911,660,887
27. Tanzania Public Service College(TPSC) 585,287,352 22,032,917 607,320,269
28. National Food Reserve Agency (NFRA) 235,804,088 170,525,687,401 170,761,491,489
Agency for Development of Education
29. Management (ADEM) 47,221,000 47,794,850 95,015,850
30. Petroleum Bulk Procurement Agency 3,415,471,807 10,820,651,877 14,236,123,684
31.
32. Lake Nyasa Basin Water Board 86,435,742 599,671,130 686,106,872
33. Lake Rukwa Basin Water Board 27,175,142 346,866,981 374,042,123
34. Lake Tanganyika Basin Water Board 92,600,842 515,461,209 608,062,051
Handeni Trunk Main Water Supply and
35. Sanitation Authority 98,629,999 84,386,260 183,016,259
Mugango-kiabakari Water Supply and
36. Sanitation Authority 660,000 116,357,187 117,017,187
37. Lake victoria Basin Water Board 1,244,710,315 367,841,377 1,612,551,692
CG - Annual General Report 2018 / 19 440
 Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
Maswa Water Supply and Sanitation Authority
38. (MAUWASA) 87,427,055 154,238,571 241,665,626
39. Makonde Plateau Water Supply - 668,363,328 668,363,328
40. Rufiji Basin Water Board 6,293,318 21,751,042 28,044,360
41. Internal Drainage Basin Water Board 29,424,306 42,607,694 72,032,000
Wanging’ombe Water Supply and Sanitation
42. Authority 34,709,000 79,051,000 113,760,000
43. Pangani Basin Water Board 380,901,000 664,835,000 1,045,736,000
44. Wami-Ruvu Basin Water Board 52,329,338 441,538,904 493,868,242
45. Ruvuma Basin and Southern Coast Water Board 6,978,282 58,677,800 65,656,082
46.
47. Institute of Judicial Administration (IJA) 277,773,507 165,436,470 443,209,977
48. Private Health Laboratories Board 9,751,036 500,559,339 510,310,375
49. Local Government Loans Board (LGLB) 1,015,097,335 4,165,176,358 5,180,273,693
50. Mzinga Corporation 1,188,693,067 4,984,112,775 6,172,805,842
51. Mzinga Holding Company Ltd 1,177,581,296 5,043,900,672 6,221,481,968
52. Optometry Council 19,447,500 12,513,750 31,961,250
53. Pasiansi Wildlife Training Institute - -
54. Prisons Corporation Sole 2,100,940,354 5,824,119,164 7,925,059,518
Medical Radiology and Imaging Professional
55. Council (MRIPC) 4,200,000 7,600,000 11,800,000
CG - Annual General Report 2018 / 19 441
 Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
SUMA JKT- National service construction
56. Department 5,014,797,000 - 5,014,797,000
57. SUMA Agri Machinery Project 3,619,753,000 35,100,049,000 38,719,802,000
58. SUMA JKT Guard Limited 4,978,544,280 1,386,003,843 6,364,548,123
SUMA JKT Agricultural and Industrial
59. Department 121,501,000 1,260,626,000 1,382,127,000
60. National Service Corporation Sole (SUMA HQ) 230,000,000 955,395,000 1,185,395,000
61. Tanzania Automotive Technology Centre 255,630,640 704,133,737 959,764,377
62. Tanzania Film Board (TFB) 28,000,000 - 28,000,000
Tengeru Institute of Community Development
63. (TICD) 198,024,088 262,695,345 460,719,433
Environmental Health Practitioners Council
64. (EHPC) 162,684,000 - 162,684,000
Nelson Mandela African Institution of Science
65. and Technology 1,030,427,725 6,119,912,854 7,150,340,579
66. Tanzania Wildlife Management Authority - - -
67. Town Planners Registration Board 42,526,084 17,300,000 59,826,084
68. Livestock Development Fund 3,220,000 40,896,335 44,116,335
Empowerment Mining Development Fund
69. (EMDF) 72,970,400 431,195,697 504,166,097
70. Women Development Fund (WDF) - 805,059,460 805,059,460
CG - Annual General Report 2018 / 19 442
 Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
71. National Management Disaster Fund - 487,148,192 487,148,192
72. Tanzania Wildlife Protection Fund 303,406,181 - 303,406,181
73. Pharmacy Council 94,244,965 322,037,057 416,282,022
74. Maji Central Store Revolving Fund (MCSRF) 94,185,000 434,991,989 529,176,989
75. Plant Breeders’ Right Development Fund 61,782,614 68,147,407 129,930,022
76. Roads Fund Board (RFB) 12,929,463,000 104,345,602,000 117,275,065,000
77. Advance Fund 6,205,788,584 82,554,934,094 88,760,722,678
Local Government Training Institute
78. (HOMBOLO) 281,280,727 1,187,314,019 1,468,594,746
79. National Identification Authority 276,239,754 28,486,148,057 28,762,387,811
Nelson Mandela-African Institution of Science
80. and Technology (NM-AIST) 1,030,427,725 6,119,912,854 7,150,340,579
Tanzania Official Seed Certification Institute
81. (TOSCI) 92,882,000 994,957,000 1,087,839,000
82. Tanzania Livestock Research Institute (TALIRI) - - -
83. Rural Energy Agency (REA) 369,854,713,422 7,153,298,077 377,008,011,500
CG - Annual General Report 2018 / 19 443
 Receivable less Receivable Above
S/N Entities than 12 months 12 months Total
84. Ardhi Institute Morogoro (ARIMO) 86,899,650 911,399,242 998,298,892
Inspection and Supervision Cooperative Fund
85. (ISCF) 75,393,574 472,023,399 547,416,974
86. Marine Services Company Ltd 59,680,000 279,876,000 339,556,000
87. Mining Commission 3,524,455,330 38,030,191,574 41,554,646,904
88. Jitegemee Secondary School 2,625,000 59,369,000 61,994,000
89. Mwananyamala Regional Referral Hospital 413,313,906 - 413,313,906
90. Tanzania Wildlife Protection Fund 303,406,181 303,406,181
91. Total Receivables 706,175,773,529 614,114,944,226 1,320,290,717,755
CG - Annual General Report 2018 / 19 444
Appendix 8. 7: Interest charged on unpaid Claims of Consultants and Contractors
Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
Backlog Rehabilitation of Mlandizi -
Chalinze CHICO 3,579,225,082 584,146,849 4,163,371,931
Kyamyorwa - Buzirayombo CHINA GEO 6,220,839,262 602,173,527 6,823,012,788
Uyovu-Bwanga SINOHYDRO 12,752,329,845 10,016,656,405 22,768,986,250
Bwanga-Biharamulo SINOHYDRO 31,304,487,350 11,134,116,867 42,438,604,218
Malagarasi Bridge and Associated
approach roads HANIL ENG - 459,915,044 459,915,044
Kidahwe-Uvinza-Ilunde CHICO - 382,495,632 382,495,632
Tabora - Ndono (42km) CHICO 3,798,962,709 2,500,416,134 6,299,378,843
Ndono - Urambo (52 Km) CCECC 27,813,816,174 2,499,938,677 30,313,754,851
CG - Annual General Report 2018 / 19 445
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
Kaliua - Kazilambwa (56km) CHICO 19,393,714,906 2,594,122,689 21,987,837,595
Marangu - Rombo Mkuu Genral Nile - 3,002,069,604 3,002,069,604
Rombo Mkuu - Tarakea Genral Nile - 1,160,860,034 1,160,860,034
Kia - Mererani CHICO 9,969,999,877 10,060,734,806 20,030,734,683
LEA International Ltd
in Joint Venture with
LEA Associates South
Asia PVT Ltd of India
in association with M/s
Doch Ltd 285,638,339 252,905,620 538,543,958
China Geo-Engineering
Sanya Juu - Alerai (32.2km) Corporation 16,757,020,785 2,910,670,766 19,667,691,551
Dumila - Kilosa - Mikumi (Dumila -
Ludewa section) CCECC 893,570,819 2,266,285,499 3,159,856,318
Sumbawanga - Kasanga Port CR 15G 23,625,013,801 5,709,652,238 29,334,666,039
CG - Annual General Report 2018 / 19 446
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
Construction of Sibiti Bridge along HAINAN
Ulemo - Gumanga - Sibiti road INTERNATIONAL 1,696,644,013 1,264,997,085 2,961,641,098
Construction of Kilombero bridge
Morogoro CRG15 4,098,237,068 5,163,495,181 9,261,732,249
Kavuu Bridge along Majimoto-
Inyonga RM-Katavi - 46,088,342 46,088,342
Construction of Momba Bridge 6,383,676,647 1,166,102,839 7,549,779,486
Power Construction
Corporation of China,
New Wami Bridge (Construction) Ltd 12,979,815,052 59,523,300 13,039,338,352
Isaka - Ushirombo (Rehabilitaion) CHICO - 9,745,223,730 9,745,223,730
Ushirombo- Lusahunga STRABAG 16,482,611,020 2,115,910,469 18,598,521,489
(Rehabilitaion)
SMEC (Consultant) 1,881,192,190 807,482,389 2,688,674,579
CG - Annual General Report 2018 / 19 447
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
CFTECH 58,464,783,400 22,371,680,544 80,836,463,944
Tabora - Nyahua Sect.
CES - 1,515,693,559 1,515,693,559
Manyoni-Itigi-Chaya SINOHYDRO 2,571,253,566 2,421,504,397 4,992,757,963
Nyahua -Chaya CHICO 10,521,342,828 42,599,380 10,563,942,208
Kifuru - Kinyerezi (4km) ESTIM 3,892,475,821 11,858,940 3,904,334,760
Kifuru - Kinyerezi (3.6 km) Phase 3 ESTIM 1,374,190,092 10,641,059 1,384,831,151
Tanki Bovu - Goba (9km) ESTIM - 236,014,394 236,014,394
Tegeta Kibaoni - Goba MECCO 727,736,494 489,708,202 1,217,444,696
Tabora - Sikonge (30km) CICO 18,634,753,824 413,709,974 19,048,463,797
Mto wa Mbu - Loliondo (Waso - Sale
Jct Section - 50km) CHINA WUYI CO. LTD 13,799,698,436 1,379,464,064 15,179,162,500
CG - Annual General Report 2018 / 19 448
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
China New Era
Upgrading to DSD of Kikusya - International
Ipinda - Matema (Tenende- Engineering
Matema) road -34.6 km. Corporation 21,217,952,369 13,740,975,977 34,958,928,346
Puge - Tabora SINOHYDRO 12,171,840,207 6,963,487,356 19,135,327,564
Sumbawanga-Kanazi Road JIANGX 42,566,778,920 8,855,534,992 51,422,313,912
HUNAN 50,069,102,496 6,949,244,882 57,018,347,378
Kanazi – Kizi - Kibaoni Road
NICHOLAS ODWYER 2,744,969,762 2,283,083,106 5,028,052,868
Sitalike Mpanda China Railway 7 Group 11,062,692,016 5,364,451,698 16,427,143,714
Mpanda - Ifukutwa - Vikonge China Railway 7 Group 11,364,932,133 2,058,877,952 13,423,810,085
Nyanguge - Musoma/Kisesa Bypass (
Musoma-Mwanza border) CHICO 18,210,661,302 2,185,429,535 20,396,090,836
CG - Annual General Report 2018 / 19 449
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
Kisesa Bypass NYANZA 736,385,077 1,477,723,132 2,214,108,209
NYANZA 1,051,275,643 92,000,733 1,143,276,376
Kisorya - Bulamba (51km)
DOCH 219,008,059 321,720 219,329,779
Magole - Turiani -Mziha Road CCECC - 1,177,518 1,177,518
Mwigumbi - Maswa - Bariadi - Lamadi
( Lot 3: Bariadi - Lamadi ) CCCC 29,893,331,524 7,546,527,801 37,439,859,325
Mwigumbi - Maswa - Bariadi - Lamadi CHICO 29,246,830,923 9,432,429,669 38,679,260,592
( Lot 1: Mwigumbi - Maswa )
KYONGDONG - 644,680,505 644,680,505
Mwigumbi - Maswa - Bariadi - Lamadi
( Lot 2: Maswa -Bariadi ) CHICO 33,738,983,124 1,217,945,322 34,956,928,446
LOT 1: Kidahwe - Kasulu (50km) CR15G 16,136,982,623 260,089,647 16,397,072,270
Mafia Airport Access Road CHICO 2,177,566,693 755,000,000 2,932,566,693
CG - Annual General Report 2018 / 19 450
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
China Geo-Engineering
Mpemba - Isongole (50.3 Km) Corporation (CGC) 18,685,428,073 1,218,707,921 19,904,135,994
Kagoma - Lusahunga (Construction) CHICO - 14,118,569,923 14,118,569,923
Singida - Katesh (Lot 1) SINOHYDRO - 962,970,379 962,970,379
Dareda -Minjingu (Lot 3) CHICO - 3,822,622,295 3,822,622,295
Lot 1: Njombe - Moronga Section
(53.9KM) CHICO 19,366,062,415 1,579,166,710 20,945,229,125
Lot 2: Moronga - Makete Section
(53.5KM) China Railway 7 Group 19,701,572,639 1,716,907,534 21,418,480,173
Lwanjilo - Chunya Sect. CCCC - 54,731,128 54,731,128
Chunya -Makongolosi Sect.(39km) CR15G 5,283,460,853 218,462,841 5,501,923,694
Msoga - Msolwa (Chalinze Bypass) RM - COAST - 521,507,327 521,507,327
CG - Annual General Report 2018 / 19 451
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
Cheon Kwang
Itoni - Ludewa - Manda Engineering &
(Lot 2: Lusitu Mawengi 50km) Construction Co. Ltd 10,690,562,241 1,693,588,409 12,384,150,650
Iringa - Migori (Lot 1) SIETCO 412,512,597 280,584,569 693,097,165
Fufu escarpment - Dodoma (Lot 3) CCCC 755,584,148 2,769,149,765 3,524,733,914
Dodoma - Mayamaya SINOHYDRO 7,234,141,697 8,651,734,627 15,885,876,324
Mayamaya - Mela CHICO 22,133,949,349 1,858,515,431 23,992,464,780
Mela - Bonga CR7G 1,802,349,892 1,372,483,555 3,174,833,447
Bonga - Babati and Kondoa access CHICO - 1,279,656,190 1,279,656,190
LOT A: Namtumbo-Kilimasera China Railway 7 Group 1,400,368,995 469,839,355 1,870,208,350
CCECC 1,788,085,987 596,028,662 2,384,114,649
LOT C: Matemanga-Tunduru
CHICO 6,695,662,647 57,943,732 6,753,606,379
CG - Annual General Report 2018 / 19 452
 Contractor Principal Amount
Name of the Road Project /Consultant (TZS) Interest (TZS) Total Out. Am
Mtwara – Newala – Masasi Road; Lot
1: Mtwara - Mnivata Section (50km) Dott Services 12,673,843,480 3,392,428,940 16,066,272,421
TOTAL - ROADS WORKS 721,135,907,282 221,863,439,078 942,999,346,360
Beijing Construction
Engineering group Co.
Construction of Mwanza Airport Ltd 4,817,548,960 2,162,229,109 6,979,778,068
TOTAL - AIRPORTS 4,817,548,960 2,162,229,109 6,979,778,068
TOTAL - OUTSTANDING 725,953,456,242 224,025,668,187 949,979,124,429
CG - Annual General Report 2018 / 19 453
Appendix 8. 8: Irregular noted in Construction project contracted to TBA
S/N Contract Details Audit findings
1. Employer: Ethics Commissioner, President’s Execution of works before entering into Contract Agreement.
Office-Ethics Secretariat I noted that, the execution of the project commenced on 5 January
Contr. No: IE/022/2015/2016/W/02/3 2018, however the contract was signed on 14 June 2019 which is 1.5
Contr. Details: Proposed Design and years later.
Construction of Head Quarter and Zonal Office
for Ethics Secretariat in Dodoma Region Uneven of the value of works executed and amount received from
Contr. Sum: TZS 9,064,275,060 Clients.
Sign Date: 14 June, 2019 I noted that TBA had executed value of works of TZS 1,037,605,276
Completion Date: 3 January 2019 vide IPC 2 dated 28 December 2018, however only TZS 477,613,263
was received as Advance payment. This poses the Agency to the risk
of using other funds to finance this project.
2 Employer: Tanzania National Roads Agency Poor Progress of the Work
Contr. No: MOA/2017/2018/HQ/W During the Site visit conducted on January 2020 I noted the overall
Contr. Details: Design review, Modification progress of works stood at 30% while 100% of the Contract time had
and Construction of TANROADS Headquarters lapsed. I further noted the Contractor TBA is executing the works
Building on Plot No.8, Block ‘F’ at the without having valid contract since the expiration time of 19
Njedengwa Investment Area in Dodoma December 2019.
Municipality
Contr. Sum: TZS 30,130,776,828.07 This was contributed by inadequate supervision of the project where
Sign Date: 19 September 2017 by TBA had; delayed to submit inception report and final design which
Completion Date: 19 December 2019 (Incl. of was submitted on 14 December 2017 instead of agreed date of 19
DLP) October 2017; failed to produce resourcefully programme of works;
failed to produce 16 monthly progress reports as of to January 2020
CG - Annual General Report 2018 / 19 454
 S/N Contract Details Audit findings
only one progress of August 2018 was submitted and; Incorrect
certification of the valuation of works carried out and completed of
which IPC 2 was rejected by Employer due to error and not supported
by measurement sheet.
3. Employer: National Electoral Commission Loss of TZS 8,854,624,244.25 from the rejected claims due to
Contr. No: IE/018/2016-2017/HQ/W/01 executing addition works not approved by NEC.
Contr. Details: Design and construction of I noted TBA had executed addition works (variation) amounting to TZS
office building of the proposed NEC HQ 8,854,624,244.25 before obtaining the Employer approval of which the
Contr. Sum: TZS 11,042,120,517.02 (Phase 1) claims for the variation made was rejected by the Consultancy (Ardhi
Sign Date: 1 July 2017 University Consultancy Unit) as per Sub Clause 13.3 of GCC.
Completion Date: 30 June 2018
Termination Date: November 2019 The management informed my office that the field re-measurement
(Note: The contract was terminated due to was conducted in-order to establish the project cost which propose
underperformance) changes of foundation design from sub-basement to full basement to
the Main building and also includes fourth floor which was skipped
during preparation of BOQ. However the proposed variation where not
presented to the employer for approval.
The termination of this contract on November 2019 and shifted to
SUMA Jkt, it implies that the Agency had incurred a loss of TZS
8,854,624,244.25 of which was obtained from other activities funds
with the expectation of a refunds and hence serious affect
implementation of those activities. I have a view that further
termination is expected in affected projects.
Source: TBA Management letters
CG - Annual General Report 2018 / 19 455
Appendix 8. 9: Imprest issued to non – staff members
DATE PV No CHQ No. AMOUNT (TZS) A/C No
20/07/2018 82/7 093325 3,615,000.00 8601
06/07/2018 53/7 093291 2,300,000.00 8601
20/09/2018 29/9 116679 5,000,000.00 8605
17/09/2019 20/9 116666 2,100,000.00 8605
11/07/2018 16/7 116546 3,445,000.00 8605
11/07/2018 15/7 1166545 4,392,000.00 8605
06/07/2018 14/7 116544 4,875,000.00 8605
04/07/2018 6/7 116535 4,900,000.00 8605
17/12/2018 2371 00378 4,640,000.00 8607
05/12/2018 2296 00372 4,900,000.00 8607
09/07/2018 42/7 093283 3,234,000.00 8601
14/09/2018 10/9 093372 1,555,000.00 8601
20/09/2018 23/9 093385 4,314,000.00 8601
05/10/2018 19/9 093419 1,515,000.00 8601
23/10/2018 55/10 093456 3,145,000.00 8601
18/01/2019 66/1 093581 1,500,000.00 8601
18/01/2019 91/1 093597 3,148,000.00 8601
- 20/2 093621 1,384,400.00 8601
- - 093623 1,200,000.00 8601
31/4/2019 15/4 093708 12,316,000.00 8601
31/4/2019 8/4 093700 2,126,840.00 8601
25/04/2019 39/4 093726 2,352,000.00 8601
10/05/2019 11/5 093749 4,522,000.00 8601
CG - Annual General Report 2018 / 19 456
DATE PV No CHQ No. AMOUNT (TZS) A/C No
24/05/2019 42/5 093779 1,149,500.00 8601
07/06/2019 7/6 093786 4,478,000.00 8601
07/06/2019 6/6 093785 4,500,000.00 8601
12/10/2018 17/10 116769 2,000,000.00 8605
17/10/2018 23/10 116775 5,000,000.00 8605
19/10/2018 28/10 116781 5,000,000.00 8605
22/10/2018 33/10 116786 5,000,000.00 8605
22/10/2018 24/10 116787 5,000,000.00 8605
24/10/2018 40/10 116793 5,000,000.00 8605
22/10/2018 30/10 116783 2,275,000.00 8605
09/01/2019 53/1 00987 50,000,000.00 8606
10/01/2019 57/1 000991 50,000,000.00 8606
14/01/2019 61/1 000994 50,000,000.00 8606
14/01/2019 63/1 000997 50,000,000.00 8606
18/01/2019 68/1 001002 50,000,000.00 8606
18/01/2019 69/1 001003 50,000,000.00 8606
22/01/2019 75/01 001009 5,000,000.00 8606
24/01/2019 80/1 001014 50,000,000.00 8606
24/01/2019 81/1 001016 50,000,000.00 8606
24/01/2019 85/1 001019 50,000,000.00 8606
30/01/2019 93/1 001027 50,000,000.00 8606
Total 626,881,740.00
CG - Annual General Report 2018 / 19 457
Appendix 8. 10: Weaknesses noted during audit of government expenditures
S/N Institution Amount (TZS )
Insufficient Supported Expenditure contrary to the requirements of Reg. 95 (4) of Public Finance Regulation, 2001
revised 2004
National Housing and Building Research Agency 62,910,771.08
Tanzania Global Learning Agency(TAGLA) 58,105,764.86
Tanzania Automotive Technology Centre (TATC) 194,586,562.00
Forest Industries Training Institute (FITI) 650,039,020.00
Nelson Mandela African Institution of Science and Technology 79,203,749.49
SUMAJKT Agricultural and industrial segment 248,033,146.00
1
Pharmacy Council 63,507,925.00
Mount Meru referral hospital 49,000,000.00
Maji Central Store Revolving Fund (MCSRF) 45,399,200.00
Mwananyamala Regional Referral Hospital 39,420,590.47
National Water Investment Fund (NWIF) 369,234,000.00
Medical Council of Tanganyika (MCT) 254,120,455.00
Prison Corporation Sole 94,362,722.00
Sub Total 1 2,207,923,905.90
Imprest issued yet to be retired contrary to the requirements of Reg. 103 of the Public Finance Regulation of 2001
2 revised 2004
Mzinga Corporation 273,649,490.00
CG - Annual General Report 2018 / 19 458
S/N Institution Amount (TZS )
Mzinga Holding Company Ltd 1,064,562,709.87
UONGOZI Institute 9,750,611.50
Fisheries Education and Training Agency (FETA) 2,745,000.00
Tanzania Wildlife Protection Fund 303,406,181.00
National Housing and Building Research Agency 43,380,300.00
National Management Disaster Fund 12,208,000.00
Nelson Mandela African Institution of Science and Technology 155, 463,680
Tengeru Institute of Community Development (TICD) 19,035,610.00
Ardhi institute 965,754,117.50
Rural Energy Agency 186,535,692.69
Medical Council of Tanganyika (MCT) 397,741,352.00
Sub Total 2 3,278,769,064.56
Payments made not acknowledged by EFD receipts contrary to the requirements of Regulation 28 (1) of Income
Tax of 2012 (Electronic Fiscal Devices
Nelson Mandela African Institution of Science and Technology 28,814,816.00
Songwe Designated Regional Referral Hospital 62,695,404.00
Amana Regional Referral Hospital 48,492,925.00
3
SUMAJKT Agricultural and industrial segment 158,714,648.00
Katavi Regional Referral Hospital 58,147,176.00
Iringa Regional Referral Hospital 141,597,108.00
CG - Annual General Report 2018 / 19 459
S/N Institution Amount (TZS )
Temeke regional referral hospital 35,109,566.00
National Food Reserve Agency 49,799,752.40
Ardhi institute 31,120,960.00
Tanzania Institute of Accountancy(TIA) 193,980,311.46
Local Government Training Institute (LGTI) 79,499,016.00
Jitegemee Secondary School 500,765,200.00
Sub Total 3 1,388,736,882.86
Un-budgeted Expenditure contrary to Reg. 46 (3) of Public Finance Regulation, 2001 revised 2004
Tanzania Wildlife Management Authority (TAWA) 351,008,632.00
Tanzania Forest Services Agency 720,158,135.00
Simiyu Regional Referral Hospital 43,852,208.00
Shinyanga Regional Referral Hospital 59,344,643.00
4
Maji Central Store Revolving Fund (MCSRF) 22,870,000.00
Tabora Referral Hospital 64,750,687.98
Drilling and Dam Construction Agency (DDCA) 1,176,383,201.00
Sub Total 4 2,438,367,506.98
Withholding tax not deducted and remitted to TRA contrary to Section 83 of Income Tax Act, 2008
Mzinga Holding Company Ltd 59,879,252.27
5
Forest Industries Training Institute (FITI) 33,784,920.66
Tanzania Electrical Mechanical and Electronics Services Agency (TEMESA) 392,959,596.67
CG - Annual General Report 2018 / 19 460
S/N Institution Amount (TZS )
Pharmacy Council 34,835,000.00
Sub Total 5 521,458,769.60
Grand Total (1-5) 9,615,782,229.90
CG - Annual General Report 2018 / 19 461
Appendix 8. 11: Weaknesses noted in Referral Hospitals
Shortage Non
Shortage of Establishment Procurement Not Rejected Claim by
S/N Institution of Staff Equipment of TB approved by MSD NHIF
Maweni Regional Referral
1 Hospital(MRRH) 441 144 X 199,165,824.00 107,587,535.00
Mbeya Regional Referral
2 Hospital X 53,883,300.00
Songwe Designated Regional
3 Referral Hospital 416 16 15,284,472.00
Amana Regional Referral
5 Hospital 114 X 124,803,450.00
6 Mount Meru referral hospital 229 133,788,835.00
Katavi Regional Referral
7 Hospital 477 152 X 63,820,014.00
Ligula Regional Referral
8 Hospital 418 X 66,049,145.00
Sokoine Regional Referral
9 Hospital 183 X 106,044,081.00
10 Manyara referral hospital 461 69,737,083.00
Iringa Regional Referral
11 Hospital 52 X 34,027,915.00
Musoma Regional Referral
12 Hospital 130,764,820.00
CG - Annual General Report 2018 / 19 462
 Shortage Non
Shortage of Establishment Procurement Not Rejected Claim by
S/N Institution of Staff Equipment of TB approved by MSD NHIF
Njombe Regional Referral
13 Hospital 78
Mwananyamala Regional
14 Referral Hospital 146 X 72,132,675.00
Bukoba Regional Referral
15 Hospital 428 103,050,045.00
Sekou-Toure Regional Referral
16 Hospital 327 80,982,540.00
Songea Regional Referral
17 Hospital 65 X 28,176,435.00
Tabora Regional Referral
18 Hospital 32,751,735.00
Tanga Regional Referral
19 Hospital 338 X 87,792,045.00
Temeke regional referral
20 hospital 266 X 78,803,177.00
21 Tumbi Region Referral Hospital 359 X 105,079,500.00 57,758,220.00
249
22 Mawenzi Refferal Hospital 51,438,895.00
CG - Annual General Report 2018 / 19 463
 Shortage Non
Shortage of Establishment Procurement Not Rejected Claim by
S/N Institution of Staff Equipment of TB approved by MSD NHIF
Total 5047 312 319,529,796.00 1,483,391,945.00
No. of questioned hospitals 19 3 12 3 19
Source: Referral hospitals Management lette
r
CG - Annual General Report 2018 / 19 464
Appendix 8. 12: Irregularities noted on the Rehabilitation and Supply of ferries
S/N Contracts Information. Audit findings
1. Contr. No: AE/006/2017-18/HQ/W/30 I. Contract executed beyond the Completion time.
Contr. Details: Rehabilitation of MV. During the audit time of January 2020 I noted that the Overall progress was
Misungwi Ferry at Kigongo – Busisi in at 20% while 100% of the Contract time lapsed. The reasons for project
Mwanza Region delays was not mentioned during my audit despite of several request.
Contractor: M/s Songoro Marine Transport II. Failure to submit programme of works
Ltd. I noted that the Contractor had failed to produce the practical programme
Contr. Sum: TZS 783,600,000 of work since the project commencement and the employer had not
Signed Date: 30 August 2019 withheld TZS 200,000 per the day for the submission delay contrary to SCC
Completion time: 30 November 2019. Clause 16 and GCC Clause 30.3.
III. Advance Payment secured by Bond instead of Bank Guarantee
contrary to Clause 54.1 of GCC – TZS 153,585,600
Advance Payment Bond No: 010/130/1/00344/19, dated 13/08/2019
issued by Star General insurance Tanzania ltd had expired since
06/08/2020.
CG - Annual General Report 2018 / 19 465
S/N Contracts Information. Audit findings
2. Contr. No: AE/006/2018-19/HQ/G/36 I. Slow pace in the Construction works
Contr. Details: Supply of New Ferry for During the audit time of January 2020 I noted a slow progress of work which
Plying Between Chato - Mharamba and stood at 49% of total production while 70% of the Contract time had
Nkome in Chato District elapsed. This resulted to the works equivalent to 51% of the contract sum
yet to be furnished for inspection and delivery.
Contractor: M/s Songoro Marine Transport
Ltd II. Over-payment made to the Contractor for Insurances not submitted
Contr. Sum: TZS 3,519,200,075 – TZS 316,037,343
Signed Date: 13 May 2019 I noted that TEMESA paid TZS 316,037,343 to the Contractor for providing
Completion time: 13 March 2020. Insurance covers of which were not submitted contrary to Sub Clause 14.1
of GCC. The pay item for the provision of the Insurance is required to be
paid after the submission of the Insurance policy.
III. Failure to submit programme of works
I noted that the Contractor had failed to produce the practical programme
of work since the project commencement and the employer had not
withheld TZS 200,000 per the day for the submission delay contrary to SCC
Clause 16 and GCC Clause 30.3.
IV. Advance Payment secured by Bond instead of Bank Guarantee
contrary to Clause 54.1 of GCC – USD 114,069.51
Advance Payment Bond No: 010/130/1/00330/2019, dated 06/05/2019
issued by Star General insurance Tanzania ltd expired since 04/05/2020.
CG - Annual General Report 2018 / 19 466
S/N Contracts Information. Audit findings
3. Contr. No: AE/006/2018-19/HQ/G/07 I. Advance paid not supported by Bank Guarantee – TZS 449,445,675
Contr. Details: Supply of New Ferry for I noted that the advance paid to the Contractor in respect to foreign
Plying Between Mafia and Nyamisati, components of TZS 449,445,675 (USD 194,145 at exchange rate of 2315 TZS
Mafia District In Pwani Region per USD) had not secured by a Guarantee contrary to Clause 18.1 of the
Contractor: M/s Songoro Marine Transport GCC.
Ltd
Contr. Sum: TZS 788,902,280.50 & USD II. Over-payment made to the Contractor for Insurances not submitted
1,941,450 – TZS 527,365,178
Signed Date: 30 April 2019 I noted that TEMESA paid TZS 527,365,178 to the Contractor for providing
Completion time: 30 February 2020. Insurance covers of which were not submitted contrary to Sub Clause 14.1
of GCC.
4. Contr. No: AE/006/2017-18/HQ/W/CN-33 I. Liquidated damage not deducted – TZS 109,279,800
Contr. Details: Major Rehabilitation of MV During the audit time of 4 January 2020 I noted that the Contract was
– Kigamboni in Dar es Salaam. executed beyond the Completion time of 29 July 2019 for more than 100
Contractor: M/s Songoro Marine Transport days without deduct liquidated damage amounted to TZS 109,279,800
Ltd (0.1% X 100 days (max. days) X TZS 1,092,798,000) as per 52.1 of the GCC.
Contr. Sum: TZS 1,092,798,000
Signed Date: 9 December 2018 Performance bonds expired not extended.
Completion time: 24 February 2019, revised I noted that the Performance Bond amounting to TZS 109,279,800 issued
to 29 July 2019. by Metropolitan Tanzania Insurance Company Ltd with Policy no
P/11ST1001/2018/7103/000384 dated 11th October 2018 came to an end
on 30 March 2019. However the same was not extended hence exposed the
project execution vulnerable to potential risk in case of the Contractor
defaults.
CG - Annual General Report 2018 / 19 467
S/N Contracts Information. Audit findings
II. Unjustifiable variation of Contract price which lacks approval from
Tender Boards – TZS 25,428,508
During the audit I noted that before the contract was signed the contractor
had provide the Agency with the discount which had reduce Tendered price
to TZS 1,259,496,000 VAT Inclusive as evidenced by negotiation meeting
held on 25 April 2018.
Later on, the project was exempted with Value Added Tax (18%) and
reduced further the agreed price to TZS 1,067,369,491.53 of which was
required to be accommodated in the Contract agreement.
To the contrary, the Agency had include in the Contract the Price of TZS
1,092,798,000 against the required amount of TZS 1,067,369,491.53 and
resulted to the addition price of TZS 25,428,508 which was not justified as
well as obtain approval from tender board as per Sub Reg. 110 (5) of PPR,
2013 (as amended 2016).
III. Over-payment made to the Contractor for Insurances not submitted
– TZS 15,000,000
I noted that TEMESA paid TZS 15,000,000 to the Contractor for providing
Insurance covers of which were not submitted contrary to Sub Clause 14.1
of GCC.
IV. Failure to submit programme of works
I noted that the Contractor had failed to produce the practical programme
of work since the project commencement and the employer had not
CG - Annual General Report 2018 / 19 468
 S/N Contracts Information. Audit findings
withheld TZS 200,000 per the day for the submission delay contrary to SCC
Clause 16 and GCC Clause 30.3.
5 Contr. No: AE/006/2017-18/HQ/G/CN-18 I. Introduced Changes on the Advance payment rate from 10% to 30%
Contr. Details: Supply of New Ferry Plying without obtain approval from Tender board – TZS 816,256,331.61.
Between Kayenze And Bezi In Ilemela I noted that, the Agency has paid the advance payment of TZS
Districts In Mwanza Region 816,256,331.61 vide Cheque No. 000535 and 000534 dated 12 December,
Contractor: M/s Songoro Marine Transport 2018 being 30% of the contract sum contrary to the advance of 10% of the
Ltd contract sum as stated in Clause 18 of SCC. I further noted that this
Contr. Sum: TZS 678,532,908.90 & USD variation of the contract terms was put into practice without obtain Tender
892,501.83 board approval as required by Reg. 110 (5) of PPR, 2013 (as amended
Signed Date: 29 August 2018 2016).
Completion time: 5 June 2019.
II. Failure to submit programme of works
I noted that the Contractor had failed to produce the practical programme
of work since the project commencement and the employer had not
withheld TZS 200,000 per the day for the submission delay contrary to SCC
Clause 16 and GCC Clause 30.3.
Source: TEMESA Management letter
CG - Annual General Report 2018 / 19 469
Appendix 9. 1: Delayed completion of construction works
Vote Name of MDA/RS and Observation Amount (TZS)
92 Tanzania Commission for AIDS Construction of Roadside Wellness Centre at Dumila 138,329,500
(TACAIDS)
39 National Service Force (JKT) Construction of Infrastructures for various Military Camps 6,000,000,000
93 Immigration Services Implementation of Integrated Financial Management 263, 863,921
Department System (IFMS) Epicor
90 RS Songwe Construction works for Regional Office block, RC and RAS 1,516,025,183
Residential houses
68 Ministry of Works, Transport Supply, installation & commissioning of broadband optic 977,460,514
and Communication fibre cable network connectivity
68 Ministry of Works, Transport Manufacture and supply of 44,900 house number plates 269,400,000
and Communication for 12 councils
68 Ministry of Works, Transport Supply and installation of street signage and house 960,000,000
and Communication numbers in twelve town councils
87 RS Kagera Construction and renovation of Houses and Offices for 2,534,229,120
DC’s, DAS’s and RC and extension of maternity ward
47 RS Simiyu Construction of Simiyu Regional Commissioner’s Office 5,718,387,926
81 RS Mwanza Construction of Regional Commissioner’s residential 182,670,000
house
82 RS Ruvuma Rehabilitation of Regional Commissioner's Office & 670,000,000
Construction of District Commissioners Office Nyasa
PHASE II
96 Ministry of Information, Youth, Rehabilitation of Buildings at African Liberation House in 1,353,244,060
Culture and Sports Dar es Salaam
CG - Annual General Report 2018 / 19 470
Vote Name of MDA/RS and Observation Amount (TZS)
96 Ministry of Information, Youth, Drilling borehole, pump and simtank installation, 58,730,000
Culture and Sports construction of water pump house and riser structure of
galvanized steel at Malya College of Sports Development
70 RS Arusha Renovation of various Buildings at Regional Secretariat 320,264,118
88 RS Dar es Salaam Construction of District Commissioner’s Offices at 1,618,149,133
Kigamboni and Ubungo Districts
84 RS Singida Construction of offices for District Commissioners at 2,499,097,976
Mkalama and Ikungi Districts
49 Ministry of Water and Irrigation Construction of intake, reservoir on ground, pump house 1,568,669,760.90
and guard house at Bwawani, construction of
transmission main with
electromechanical works from bwawani to ubena tank
and construction of
reservoir on 12KM riser at ubena
50 Ministry of Finance Supplying, installation and commissioning of MOFP IP 413,095,451.62
Based Conference System at the Conference halls in
Dodoma
21 TRA Expenditure Proposed construction of TRA regional office building at 1,653,267,510.7
Kibaha
Total 22,312,690,753
CG - Annual General Report 2018 / 19 471
Appendix 9. 2: VFM assessment for major projects implemented 2018/2019
Procuring Entity Project & Audit Finding
TANROADS Contract No. TRD/HQ/1004/2018/19 for Widening of Morogoro Road Section (Kimara – Kibaha) to Six
Lanes Dual Carriageway – Phase I: Kimara – DSM/Coast Boarder Section (19km) including Construction
of Kibamba, Kiluvya and Mpiji Bridges;
• Arrangement of supervision team was improper because the proposed Project Manager Resident
Engineer, and Pavement/Materials Engineer who were full time employees of Tanroads Consulting
Unit have other demanding full time roles.
• The audit also noted that on 7th May, 2019 the employer's laboratory had not been operational
because the contractor was yet to supply lab equipment.
• Payments are delayed contrary to clause 14.7 of GCC which is attracting interest charges.
Based on the weaknesses observed, TANROADS was directed to ensure that the laboratory is functional;
contractors are paid according to their contracts. The Ministry of Finance and Planning is advised to
examine the existing system on issuance of tax exemption to address existing weaknesses so as to avoid
claims by contractors against the Government on idle time spent by contractors.
Contract No. TRD/HQ/1004/2018/19 for Construction of Ubungo Interchange and associated works
• Inadequate designs were prepared which led to inadequate cost estimates;
• procurement process took 693 days from confirmation of funds availability to contract signing which
is considered too long; there is shortage of supervision staff at site; and management of exemption
of VAT and other duties is likely to increase project costs in terms of idle time spent by the contractor
while waiting for issuance of Government Notice (GN).
CG - Annual General Report 2018 / 19 472
Procuring Entity Project & Audit Finding
TANROADS was directed to ensure that adequate designs are prepared in future procurements;
procurement process is administered in an efficient manner to avoid unnecessary delays.
Contract No. TRD/HQ/1007/2018/19 for Construction of New Salender Bridge Project
• Procurement process took 451 days from confirmation of funds availability to contract signing which
is considered too long;
• management of exemption of VAT and other duties is likely to increase project costs in terms of idle
time spent by the contractor while waiting for issuance of Government Notice (GN);
Based on the weaknesses observed; TANROADS was directed to administer procurement process in an
efficient manner to avoid unnecessary delays;
Contract No. TRD/HQ/1047/2018/19 for Construction of Dar es Salaam Bus Rapid Transit (BRT)
Infrastructure - Phase 2, Lot 1: Road Works (20.3km) including Two Flyovers and 29 Bus Stations
along Kilwa Road (From CBD Kariakoo to Mbagala
• Value for money audit conducted revealed that, tender board approved the tender documents before
were finalized by the consultant;
• Procurement process took 291 days from confirmation of funds availability to contract signing which
is considered too long;
• Tender was awarded beyond the bid validity period contrary to section 71 of PPA 2011.
Based on the weaknesses observed, TANROADS was directed to ensure that the tender board is approving
the complete tender documents; to improve efficiency of procurement process and tenders are awarded
within the bid validity period.
CG - Annual General Report 2018 / 19 473
Procuring Entity Project & Audit Finding
Contract No. TRD/HQ/1009/2018/19 for Construction of Dar es Salaam Bus Rapid Transit (BRT)
Infrastructure - Phase 2, Lot 2: Building Works for Mbagala Depot, Terminals and Feeder
Stations
• The value for money audit results indicated that procurement process took 257 days from
confirmation of funds availability to contract signing which is considered too long
• The delay was due slow procurement and delayed compensation attributed to delays in project
commencement.
Based on the weaknesses observed, Tanroads was directed to ensure that procurement process is
administered in an efficient manner to avoid unnecessary delays.
MOWI Contract No. ME-011/2015-2016/W/03 for Construction and Completion of Orkesumet Water
Supply Project II - Lot II; Contract No: ME-011/2015-2016/W/03
• Value for money audit conducted revealed that, the User Department initiated procurement process
before designs were completed.
• The tender was awarded outside the bid validity period contrary to Section 71 of PPA 2011.
CG - Annual General Report 2018 / 19 474
Procuring Entity Project & Audit Finding
• Failure by the contractor to conduct campaigns against Sexually Transmitted Infections (STI) and
Sexually Transmitted Diseases (STD) including HIV/AIDS;
• Insurance cover stated under clause 13 of GCC was not provided by the contractor and the
performance security submitted by the contractor expired on 5th November, 2018
• Payments to the contractor are delayed contrary to clauses 14.2 and 14.7 of GCC;
Based on the weaknesses observed, the Ministry was directed to ensure that procurement processes are
initiated after completion of the preparation of tender document including designs; contracts are
awarded within tender validity period; the Ministry to ensure that works projects commence on time;
the contractor submits insurance cover as provided in the contract; the contractor is timely paid as per
contract terms and conditions.
CG - Annual General Report 2018 / 19 475
Appendix 10. 1: List of entities with inadequately supported payments
S/N Vote
Name of the audited entity Amount(TZS)
32,730,213.85
1. 2 Teachers Service Commission
2,898,090
2. 123 Tanzania Film Board 9,392,000
3. 14 Fire and Rescue Force 41,264,000
4. 29 Prisons Service Departments 63,916,502.38
5. 31 Vice President Office 77,563,389.04
6. 42 National Assembly 71,825,500
7. 39 National Service Force 186,874,289
8. 78 Mbeya Regional Secretariat 2,783,000
9. 89 Rukwa Regional Secretariat 8,264,760
804,324,178.46
10. 3 National land use planning Commission
9,602,604.71
11. 27 Registrar of Political Parties 9,431,866.56
12. 4 President’s Office-Records and Archives Management Department 26,571,546.12
13. 23 National Housing and Building Research Agency 62,910,771.08
14. 12 Judicial Service Commission 1,495,000
15. 51 Ministry of Home Affairs 694,492,164
16. 73 Geita Regional Secretariat 59,155,373
17. 83 Shinyanga Regional Secretariat 117,423,507
CG - Annual General Report 2018 / 19 476
 S/N Vote
Name of the audited entity Amount(TZS)
18. 67 President’s Office-Public Service Recruitment Secretariat 9,500,000
19. 9 President’s Office – Public Service Remuneration Board 37,075,000
20,542,907.59
20. 94 President’s Office Public Service Commission 268,964,080.73
21. 96 Ministry of Information, Culture, Arts and Sports 12,607,120
23,308,000
22. 18 UNESCO National Commission 43,230,000
23. 48 Ministry of Lands, Housing and Human Settlements Development 256,056,612.90
24. 32 President’s Office-Public Service Management and Good Governance 86,632,916.95
25. 40 Judiciary of Tanzania 416,149,328.40
26. 74 Kigoma Regional Secretariat 79,289,362
53,858,596
27. 81 Mwanza Regional Secretariat 23,200,000
28. 56 President’s Office, Regional Administration and Local Government 127,567,793
29. 70 Arusha Regional Secretariat 15,368,080
30. 86 Tanga Regional Secretariat 11,208,000
31. 75 Kilimanjaro Regional Secretariat 16,351,554
32. 95 Manyara Regional Secretariat 8,009,160
33. 88 Dar Es Salaam Regional Secretariat 50,175,492
34. 37,855,000
CG - Annual General Report 2018 / 19 477
 S/N Vote
Name of the audited entity Amount(TZS)
76 Lindi Regional Secretariat 27,443,465
35. 52 Ministry of Health Community Development Gender Elderly and Children 86,098,187.66
36. 49 Ministry of Water 572,440,996
88,462,500
37. 72 Dodoma Regional Secretariat 31,895,000
220,924,850
38. 85 Tabora Regional Secretariat 87,817,000
20,000,000
36,464,496
39. 71 Coast Regional Secretariat 9,035,007
5,060,449,260.43
Total
CG - Annual General Report 2018 / 19 478
Appendix 10. 2: List of entities with weaknesses on imprest management
S/N Vote Name of Auditee Amount Nature of noted weaknesses
Ministry of Defence and National Payments from Imprest Bank Account
1 57 Service 438,778,147.13 without writing Payment Voucher
160,868,320 Unretired imprest
2 51 Ministry of Home Affairs 58,550,651 Outstanding imprest
3 16 Attorney General Chambers 7,535,920 Delays in retirement of imprest
4 2 Teachers Service Commission 2,898,090 Overdue imprest
Ministry of Constitution and Legal
5 41 Mismanagement of imprest
Affairs 29,668,217
6 60 Ministry of Industry and Trade 28,297,858 Long overdue imprest
Imprests charged direct to expense accounts
National land use planning Commission before being retired and not recorded in the
7 003 654,297,500 Imprest register
Unretired imprests
2,076,129,995.46
Imprest directly charged to expenditure item
8 73 Iringa Regional Secretariat
2,700,240 code
9 44 Ministry of Industry and Trade 170,000,000 Outstanding imprest
10 38 Tanzania Peoples Defence Force 36,312,137 Unretired imprests and other irregularities
11 25 Prime Minister’s Private Office 30,000 Unretired imprests
12 43,380,300 Overdue imprest
CG - Annual General Report 2018 / 19 479
S/N Vote Name of Auditee Amount Nature of noted weaknesses
National Housing and Building Research
Agency
23
44,260,800 Imprest charged directly as expenses
13 73 Geita Regional Secretariat 1,533,000 Imprest not retired
President’s Office Public Service Imprest not fully retired and not issued to
Commission 14,146,600 the personal responsible for accountability
14 94 13,501,343 Imprest not retired
Imprest issued prior clearance of previous
Ruvuma Regional Secretariat 11,595,000 imprest
15 82 11,910,000 Imprest lately retired
16 18 UNESCO Commission 124,974,000 Imprest paid to non imprest holder
Ministry of Lands, Housing and Human 1,114,685,708.70 Imprest not retired
17 48 Settlements Development 9,295,735 Various anomalies on imprest issuance
18 54 Njombe Regional Secretariat 13,349,520 Imprest charged direct to expenditure code
10,000,000 Improper issuance of imprest
19 70 Arusha Regional Secretariat 8,587,025 Outstanding imprest in EPICOR system
20 75 Kilimanjaro Regional Secretariat 960,000 Imprest not retired
21 86 Tanga Regional Secretariat 31,681,000 Imprest charged directly as expenses
Ministry Health, Community 141,665,038 Imprest paid out of EPICOR system
Development, Gender, Elderly and
22 52 Children 48,181,783 Imprest not retired
CG - Annual General Report 2018 / 19 480
S/N Vote Name of Auditee Amount Nature of noted weaknesses
23 85 Tabora Regional Secretariat 29,180,348 Imprest charged directly as expenses
24 49 Ministry of Water 75,836,814 Imprest charged direct to expenditure code
10,604,000 Imprest charged directly as expenses
25 72 Dodoma Regional Secretariat 5,200,000 Imprest not retired
Total 5,430,595,090.29
CG - Annual General Report 2018 / 19 481
Appendix 11. 1: Buildings requiring major renovation
Sub Vote / Embassy/RS/Department
Vote
2020 Tanzania Permanent Mission to UN in Geneva
Geneva on Plot No.5277 49 Chemin d’Ecogia 1290 Versoix Geneva worth TZS 3,271,344,381 observed that the
building needs major renovation due to its bad condition, large part of the roof leaks and has developed big cracks
on walls and fungus to the roof, wall and floor. Also, leakage on sewage system which has become old therefore
need major repair or replacement.
2023 Tanzania High Commission Nairobi
A house in Plot No. RL 209/13678 with 8,094 square meters located in prime area at Upper Hill - Nairobi which is
abandoned due to its bad condition beyond repair.
2026 Tanzania High Commission in Kigali
two houses at plot number 428 15 and plot number 722. Since condition of two houses is bad the High Commission
is recommended to renovate those houses.
2008 Tanzania High Commission in Maputo
Located at Av. Dos Martires da Marhaba 852 and it has nine stories, The Government of Tanzania and Messrs
Constructors do Montego signed contract agreement on 17 January 2012 for rehabilitation of that building for
contract amount of USD 2,107,028.89. Contract Sum has been revised three times to USD 3,104,701.75 and sum
of USD 2,702,684.42 has been paid to contractor being 87.1% of the revised contract sum. Delays in effecting
payment has accrued interest to the tune of USD 507,542.05 as per letter to Permanent Secretary of the Parent
Ministry referenced ADM_23/2018 of January 2018.
Tanzania Embassy in Bujumbura
CG - Annual General Report 2018 / 19 482
Sub Vote / Embassy/RS/Department
Vote
2028 Plot No. 648/A Ruhero I in Bujumbura, abandoned building
2004 Tanzania Embassy in Kinshasa
Staff house located at Av. Okito No.33 Binza Pegeon Ngaliema, Head of Chancery residential house located at
Av.Roi Baudouin No.90 Gombe and Office Building located at No.142 Baulevard de 30 Juin Gombe. USD 138,642.60
was released for renovation since 2018 June. Renovation has not started.
2016 Tanzania Embassy in Stockholm
Two residential houses Plot No.28 Massygen and 35 Vedettvagen.
2030 Tanzania High Commission in Lusaka
Embassy owns 10 Houses and the following weaknesses noted: -
1) Chancery building is in bad condition, with several leakages, therefore, needs immediate repairs;
2) Three houses are occupied by embassy officials, one used by the Head of Mission as temporary residence,
and the two used by embassy officials, all were found to be in poor conditions
3) The remaining seven properties are in very bad condition and therefore unfit for human occupancy. All these
houses are located in prime areas.
2038 Tanzania Embassy in Khartoum
Building at Square No.42, House No.6 Khartoum East, Abu Garia Street for Ambassador residency and Block
6/1/4/5A Elmak Nimiir Street Khartoum West for Chancery, needs major renovation.
2011 Permanent Mission to the UN in New York
CG - Annual General Report 2018 / 19 483
Sub Vote / Embassy/RS/Department
Vote
1. One building located at 30 over hill Road, Mount Vernon Westchester Country, NY 10551, New York.
Formerly the building was used as the residential house for the Ambassadors. Building needs major
renovation
2. Another building, The Chancery building located at 307E 53rd Street, New York, NY 10022, have 6 floors.
The 1st and 4th floors have been vacant since December 2017. 4th floor needs minor renovation before
renting while 1st floor is in good condition.
2018 Tanzania Embassy in DC
Old chancery building located at 2139 R Street N.W. Washington D.C 20008 acquired since 1977. Vacated since
2009. Needs major renovation.
2025 Tanzania High Commission Pretoria
House No.58 situated in adenvale 5th Street in Johannesburg, South Africa, the house was under attention of High
Commission from 2005 to 2019 when it was returned to ATCL. Recently the house is habited with unknown
indigenous and needs major renovation.
House No. 846 situated at Thomas Street, Arcadia in Pretoria, South Africa, previously owned by the Revolutionary
Government of Zanzibar. the house recently owned by the Tanzanian Government although no official documents
was provided to substantiate the transfer.
These two houses are abandoned
Tanzania High Commission in Lilongwe
CG - Annual General Report 2018 / 19 484
Sub Vote / Embassy/RS/Department
Vote
2030 1. The Residential apartments were in bad condition with loads of leakages calls for immediately repairs
2. One apartment plot No. 10/536 which was used by the Head of Mission before are in bad condition such that
it is unsuitable for human settlement. House is abandoned waiting major renovation.
2022 Tanzania High Commission in Harare
1) The official building and the Residential apartments were in bad condition with loads of leakages which
calls for immediately repairs
2) One house on plot No. 91, Churchill Avenue Residential is in bad condition such that it is unsuitable for
human settlement.
29 Prison Service Department
Mkuza Prison unfinished Prison office worth TZS 92,053,950 since 2004.
88 RS Dar es salaam
Abandoned two houses on plot No. 96/1, Ada Estate and another one at Mikocheni area.
Source: Audited reports for 2018/19
CG - Annual General Report 2018 / 19 485
Appendix 11. 2: Accrued Expenses
Vote Ministry/Department/Regional Secretariat/Embassy Amount (TZS)
57 Ministry of Defence and National Service 1,045,499,689,187
28 Tanzania Police Force 651,358,243,645
38 Tanzania Peoples' Defence Force 286,851,148,594
52 Ministry of Health, Community Development, Gender, Elderly and Children 272,629,610,089
98 Ministry of Works Transport and Communication 144,408,601,208
29 Prison Service Department 99,494,174,767
39 National Service 32,483,543,887
43 Ministry of Agriculture 16,720,268,921
49 Ministry of Water 15,298,830,664
48 Ministry of Land, Housing and Human Settlement Development 12,125,539,924
93 Immigration Service Department 10,922,337,695
34 Ministry of Foreign Affairs 9,836,770,521
14 Fire and Rescue Force 4,829,423,690
25 Prime Minister's Private Office 4,203,349,838
46 Ministry of Education, Science and Technology 4,044,135,112
30 President's Office and Cabinet Secretariat 3,956,425,531
65 PMO Labor Youth, Employment and Persons with Disability 3,558,096,115
5 National Irrigation Commission 3,208,183,131
26 Vice President Private Office 3,138,761,203
CG - Annual General Report 2018 / 19 486
 Vote Ministry/Department/Regional Secretariat/Embassy Amount (TZS)
94 President's Office Public Service Commission 3,061,959,516
69 Ministry of Natural Resources and Tourism 2,560,612,778
53 Ministry of Health, Community Development, Gender, Elderly and Children 2,499,286,907
56 PO RALG 2,493,615,118
24 Tanzania Cooperative Development Commission 2,490,566,488
58 Ministry of Energy 2,461,094,189
23 Accountant General Office 2,321,026,048
31 Vice President's Office 2,102,852,146
96 Ministry of Information, Culture, Arts and Sports 2,098,015,325
35 National Prosecution Services 2,035,414,440
72 Dodoma Regional Secretariat 1,862,425,459
99 Ministry of Livestock and Fisheries 1,738,787,150
2015 Tanzania Embassy in Rome 1,737,145,660
68 Ministry of Works Transport and Communication 1,732,501,802
41 Ministry of Constitutional and Legal Affairs 1,719,373,135
37 Prime Minister's Office 1,703,586,979
76 Lindi Regional Secretariat 1,497,256,415
80 Mtwara Regional Secretariat 1,429,806,650
70 Arusha Regional Secretariat 1,415,250,609
89 Rukwa Regional Secretariat 1,365,228,284
CG - Annual General Report 2018 / 19 487
 Vote Ministry/Department/Regional Secretariat/Embassy Amount (TZS)
47 Simiyu Regional Secretariat 1,231,655,108
2009 Tanzania Embassy in Moscow 1,132,409,116
86 Tanga Regional Secretariat 1,073,733,287
100 Ministry of Minerals 1,030,656,267
61 National Electoral Commission 1,029,390,876
64 Ministry of Livestock and Fisheries 1,001,945,034
32 President Office Public Service Management 930,486,085
84 Singida Regional Secretariat 905,334,218
95 Manyara Regional Secretariat 904,147,075
55 Commission for Human Rights and Good Governance 900,578,181
67 President's Office Public Service Recruitment Secretariat 875,792,577
2034 Tanzania Embassy in Moroni 848,069,180
2020 Tanzania Permanent Mission to UN in Geneva 845,401,618
51 Ministry of Home Affairs 765,126,475
87 Kagera Regional Secretariat 758,774,514
2019 Tanzania Embassy in Brussels 734,221,327
26 Vice President's Private Office 729,148,049
74 Kigoma Regional Secretariat 706,960,118
77 Mara Regional Secretariat 686,468,748
CG - Annual General Report 2018 / 19 488
 Vote Ministry/Department/Regional Secretariat/Embassy Amount (TZS)
63 Geita Regional Secretariat 668,280,824
73 Iringa Regional Secretariat 648,796,712
78 Mbeya Regional Secretariat 635,243,371
33 President's Office Ethics Secretariat 621,313,483
62 Ministry of Works Transport and Communication 614,030,767
88 Dar es salaam Regional Secretariat 569,384,259
71 Pwani Regional Secretariat 541,106,724
36 Katavi Regional Secretariat 475,826,538
27 Registrar of Political Parties 462,463,184
75 Kilimanjaro Regional Secretariat 426,818,002
91 Drug Control and Enforcement Authority 400,392,380
60 Ministry of Industry and Trade 344,898,590
2025 Tanzania High Commission Pretoria 343,760,242
16 Office of Attorney General 269,705,405
85 Tabora Regional Secretariat 265,214,217
92 TACAIDS 191,416,535
2013 Tanzania Embassy in Paris 188,023,194
90 Songwe Regional Secretariat 130,885,434
003 National Land Use Planning Commission 120,471,747
CG - Annual General Report 2018 / 19 489
 Vote Ministry/Department/Regional Secretariat/Embassy Amount (TZS)
002 Teachers Service Commission 119,589,160
TR 23 National Housing and Building Research Agency 114,760,388
04 President's Office Records and Archives Management 105,195,486
TR 123 Tanzania Film Board 100,000,000
12 Judicial Service Commission 61,442,258
59 Law Reform Commission 54,065,551
09 President’s Office Public Service Remuneration Board 28,478,393
TR 105 Town Planners Registration Board 20,369,149
2040 Tanzania Embassy in Tel Aviv 8,954,508
TOTAL 2,690,514,123,174
Source: Audited Financial Statements 2018/19
CG - Annual General Report 2018 / 19 490