The Controller and Auditor General’s (CAG) audit of Tanzania’s infrastructure sector exposed significant financial mismanagement, project delays, and operational inefficiencies, leading to substantial taxpayer losses. Key findings include contractor fraud in road projects, operational failures of weighbridges, budget deficiencies impacting project execution, and challenges related to housing projects and maritime safety. The CAG recommends urgent reforms to improve oversight, funding, and project management.
A recent audit by the Controller and Auditor General (CAG) of Tanzania has revealed critical financial and operational issues in the country’s infrastructure sector. The audit pointed out significant mismanagement, delays, and supervision failures in various road projects, resulting in billions of shillings lost in taxpayer money. Key agencies under the Ministry of Works, including Tanroads (Tanzania National Roads Agency), TBA (Tanzania Building Agency), and Temesa (Tanzania Maritime Authority), were particularly scrutinized.
In the audit report, one notable issue was the termination of the Sh38.36 billion contract for the Ibanda-Kiwira Port trunk road project due to contractor fraud involving forged documents. Despite an advance payment of Sh3.72 billion, only 2.27 percent of the work had been completed by April 2024. Tanroads is pursuing recovery of Sh13.72 billion but faces challenges due to the issuing bank’s receivership. To avert such losses, the CAG advises a complete overhaul of Tanroads’ due diligence processes.
Another project, the Ruangwa-Nanganga Road, encountered significant delays due to late government funding, increasing its total contract value from Sh50.34 billion to Sh52.13 billion. Tanroads has not contested a Sh1.79 billion compensation claim made by the contractor, which the CAG believes could have been avoided with better project management.
Operational failures, particularly regarding weighbridge functionality, were also highlighted. Over 26,000 vehicles bypassed weighbridges due to breakages, resulting in heightened risks of road damage from overloaded traffic. The CAG underscores the need for improved maintenance and monitoring systems to combat this issue.
The audit revealed weaknesses in the Special Load Permit System that led to duplicate verifications, resulting in a potential revenue loss of Sh41.18 million. Recommendations for system upgrades and real-time monitoring were included to mitigate such abuses. Additionally, a dispute between Tanroads and IT providers over data access from key weighbridges hampered effective overload control.
Tanroads faced a budget deficit exceeding Sh1 trillion in the 2023/24 fiscal year, receiving only 52 percent of its necessary maintenance budget. Consequently, several road projects worth Sh495.24 billion were suspended or abandoned, exacerbating financial strain as unpaid contractor claims accrued interest. The CAG recommends no new projects until existing commitments are fully funded.
Administrative underfunding hindered effective supervision, with only 48 percent of the Sh22.18 billion allocated for project oversight being disbursed. This shortfall contributed to ongoing maintenance issues, resulting in potholes and drainage failures. Insufficient evaluation of road quality through the underused Sh1.3 billion survey van illustrates misallocation of resources.
Despite rising revenues from fuel levies, the road maintenance budget has remained stagnant since 2021/22, resulting in a funding gap for Tanroads and Tarura of Sh1.43 trillion. The CAG urges the Ministry of Finance and Road Fund Board to seek alternative revenue sources to address this deficit.
The audit also identified issues within the Bunju and Magomeni Housing Projects, including public servant payment defaults and inadequate enforcement of penalties for delinquent payments. These delays hindered effective cost recovery on significant investments.
Finally, the CAG highlighted safety concerns for Temesa vessels, with 32 operating without certificates of seaworthiness. The construction of a new ferry also lagged significantly, only 36 percent complete 14 months behind schedule, necessitating urgent systemic reforms to safeguard public funds and enhance service delivery in Tanzania’s infrastructure.
The CAG’s comprehensive audit of Tanzania’s infrastructure sector reveals alarming inefficiencies and financial mismanagement, threatening public safety and straining taxpayer resources. The persistent issues across multiple projects highlight the critical need for improved oversight, timely funding, and effective project execution. Implementing the CAG’s recommendations could significantly enhance the management and sustainability of Tanzania’s infrastructure investments.
Original Source: www.thecitizen.co.tz
