Ludovick Utouh, Controller and Auditor General (CAG)
The National Audit Office of Tanzania (NOAT)
yesterday released the audited financial reports for the 2011/2012
financial showing marked improvement in expenditure.
However, Controller and Auditor General (CAG) Ludovick Utouh urged the government to review the budget system by fully involving the private sector during the preparation process.
Also, he urged that the government must ensure the timely release of funds once they are approved by Parliament.
Giving an example, Utouh said despite approving a total of 595.064bn/ for 113 local councils in the 2011/2012 financial year, only 345.568bn/- were released, bringing about a deficit of 42 percent.
On the Constituency Development Catalyst Fund (CDCF), the CAG noted that a total of 2.561bn/- approved for the Fund was not spent because of delays in released the allocated money.
He cautioned of the misguided perception that development in the country is realised from funds from development partners and other local sources, neglecting the contribution of the private sector.
“After enactment of the law to allow Public Private Partnership (PPP) the private sector must be involved during budget preparations …,” he insisted.
Utouh reported that out of 114 secretariats visited, 47 were issued with ‘Unqualified Opinion Without Emphasis’.
According to Utouh, there was no single Adverse Opinion or Disclaimer of Opinion issued compared to the 2010/2011 fiscal year when several were issued.
He attributed the improvement in financial expenditure to adherence of financial rules and following the public procurement regulations.
It was also found that civil servants’ salaries working in local authorities were subjected to more than two-third deductions due to over borrowing from financial institutions and other creditors.
However, Controller and Auditor General (CAG) Ludovick Utouh urged the government to review the budget system by fully involving the private sector during the preparation process.
Also, he urged that the government must ensure the timely release of funds once they are approved by Parliament.
Giving an example, Utouh said despite approving a total of 595.064bn/ for 113 local councils in the 2011/2012 financial year, only 345.568bn/- were released, bringing about a deficit of 42 percent.
On the Constituency Development Catalyst Fund (CDCF), the CAG noted that a total of 2.561bn/- approved for the Fund was not spent because of delays in released the allocated money.
He cautioned of the misguided perception that development in the country is realised from funds from development partners and other local sources, neglecting the contribution of the private sector.
“After enactment of the law to allow Public Private Partnership (PPP) the private sector must be involved during budget preparations …,” he insisted.
Utouh reported that out of 114 secretariats visited, 47 were issued with ‘Unqualified Opinion Without Emphasis’.
According to Utouh, there was no single Adverse Opinion or Disclaimer of Opinion issued compared to the 2010/2011 fiscal year when several were issued.
He attributed the improvement in financial expenditure to adherence of financial rules and following the public procurement regulations.
It was also found that civil servants’ salaries working in local authorities were subjected to more than two-third deductions due to over borrowing from financial institutions and other creditors.
SOURCE:
THE GUARDIAN
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