CAG Uncovers Critical Failures in Tanzania’s Infrastructure Sector
An audit by the Controller and Auditor General has unveiled substantial flaws in Tanzania’s infrastructure sector, highlighting financial mismanagement, project delays, and the risks posed to public safety. Key findings include wasted funds on terminated contracts stemming from fraud, budget deficits affecting maintenance, and significant operational inefficiencies in weighbridge operations. The report calls for comprehensive reforms to secure public funds and enhance infrastructure service delivery.
A recent audit by the Controller and Auditor General (CAG) has revealed critical financial and operational deficiencies in Tanzania’s infrastructure sector. This includes substantial financial losses from revoked contracts tied to fraudulent activities and increased expenses due to funding delays, thereby amplifying the risk of road damage from inadequate weighbridge operations. The audit indicates that these mismanagement issues threaten public safety and cost taxpayers billions of shillings.
The audit findings are documented in the Annual General Report for the 2023/2024 financial year, focusing on key governmental agencies under the Ministry of Works—specifically, Tanroads, TBA, and Temesa. A major point of concern is the Jabanda-Kiwira Port trunk road project, where a contract worth Sh38.36 billion was terminated due to the contractor’s submission of falsified documentation. Despite receiving an advance payment of Sh3.72 billion, progress was negligible, with only 2.27 percent of work completed by April 2024.
Tanroads is actively pursuing the recovery of Sh13.72 billion from the project, although this endeavor faces difficulties since the bank that issued performance guarantees is under receivership. Furthermore, the audit identifies delays in the Ruangwa–Nanganga Road project caused by government fund disbursement issues, which inflated the contract’s cost from Sh50.34 billion to Sh52.13 billion. The contractor’s claim for Sh1.79 billion compensation has not been contested, highlighting potential losses that could have been mitigated through improved management.
Significant operational shortcomings are observed in weighbridge operations, as over 26,000 vehicles evaded mandatory checks due to equipment failures and power outages. Specifically, the audit notes that 22,928 vehicles bypassed weighbridges in the Kagera region. The CAG warns that these gaps in compliance raise the likelihood of damage from overloaded vehicles and emphasizes the necessity for enhanced maintenance protocols and backup systems.
Additionally, the audit points out failures in the Special Load Permit System, which led to duplicate permit verifications resulting in a potential revenue loss of Sh41.18 million. Upgrades and real-time monitoring systems are recommended to tackle these inefficiencies. A dispute with IT service providers over data access from specific weighbridges has slowed enforcement actions since January 2024, creating additional complications.
The report highlights that Tanroads faced a budget deficit exceeding Sh1 trillion in 2023/24, with only 52 percent of the allocated maintenance budget released. This shortfall caused the halting of road projects valued at Sh495.24 billion, alongside an increase in interest on unpaid contractor claims. The CAG additionally urges the government to pause the initiation of new infrastructure projects until existing ones are adequately funded and completed.
Further, only 48 percent of the Sh22.18 billion allocated for supervision was disbursed, compromising oversight of 44 road maintenance contracts. This negligence has led to unresolved infrastructure issues such as potholes and drainage problems, resulting in increased long-term repair costs. A road quality survey van costing Sh1.3 billion remained underutilized due to budget limitations, leading to inadequate assessments of planned road maintenance.
Despite the rising revenue from fuel levies, the budget for road maintenance has remained stagnant at Sh856.79 billion since fiscal year 2021/22. The actual budget allocation for 2023/24 was only 47 percent of the planned amount, creating a funding gap of Sh1.43 trillion. The CAG advises the Ministry of Finance and the Road Fund Board to identify new revenue streams to address this financial discrepancy.
In housing projects, such as the Bunju Housing Project, the audit found 39 public servants owed Sh3.98 billion without any penalties enforced or the recovery of dues, resulting in only a few evictions. Similarly, the Magomeni Housing Project revealed that only 173 out of 644 residents formalized purchase agreements due to affordability issues, delaying the recovery from the Sh50.19 billion investment.
The CAG also reported that 32 Temesa vessels are operating without valid seaworthiness certificates, raising concerns about passenger safety due to unclear third-party insurance requirements. Delays in the construction of a new ferry for the Mafia–Nyamisati route, now 14 months behind schedule, are attributed to contractor shortcomings and logistical issues. The report emphasizes an urgent need for systemic reforms to enhance the management of public funds, improve infrastructure service delivery, and ensure the sustainability of Tanzania’s infrastructure investments.
The recent findings by the Controller and Auditor General reveal significant lapses in Tanzania’s infrastructure sector, including financial mismanagement, operational inefficiencies, and regulatory failures. Critical reforms are needed to safeguard public funds and enhance project oversight while addressing systemic challenges that affect road safety and public infrastructure sustainability. The recommendations urge the government to curtail the initiation of new projects until existing commitments are fully funded and resolved, thereby promoting improved fiscal management and service delivery.
Original Source: www.thecitizen.co.tz
