CONTROLLER and Auditor General (CAG) has uncovered over 100bn/- dubious purchases in public institutions.
The CAG, Professor Mussa Assad, charged
that the 105.6bn/- purchases flouted the public procurement rules,
decrying gross uncertainties over compliance and value for money in
public spending. In the audit report tabled in the National Assembly
here yesterday, the CAG accused the central government of defiance to
the Public Procurement Act, 2017.
Professor Assad said during the fiscal
year ending June 30, 2016, the public entities spent a whopping 77bn/-
in procurements of goods and services without contracts while 24bn/- was
paid through non-competitive purchases.
“At least 7bn/- was spent in procurement
from unauthorised bidders ... the local government authorities also
spent over 2bn/- and 1.2bn/- on a non-competitive bid and unauthorised
bidders, respectively,” he said. Medicines worth about 73m/- were
procured in six councils without approval from the Medical Store
Department (MSD).
The CAG, in his report, also faulted the
22.7bn/- payments involving 29 institutions in the central government
and 109 councils, whose receipts were not provided. Prof Assad urged the
government to develop a comprehensive system which will allow proper
documentation of all procurements in local and central government
authorities.
Since President John Magufuli came into
power in November 2015, he explicitly vowed to curb embezzlement of
public funds although it seems some officials in his administration are
taking a backseat to implement the directive. During the 2015/16
financial year, expired medicines worth over 10bn/- were still in store,
adding up to the storage charges, including electricity bills.
Additionally, the audit report revealed
an increasing number of abandoned state properties especially vehicles
and plots, likely adding up to operation costs.In England, for instance,
the government was compelled to spend over 50,000 pounds (over 120m/-)
to clear the bush at the embassy plot. There are several undeveloped
plots in various countries, including Nigeria (two plots), London (one),
England (ten) and Kenya.
Yet, the government spends colossal
amount in rental charges for the embassy offices instead of developing
the plots. As of last year, the CAG said the number of abandoned cars
increased by 88 per cent to 1,272 from 675 in 2015. “Abandoned cars,
motorcycles and machines at the local government authorities increased
to 652 from 92.
These properties would have been
auctioned and generated revenues to the government,” charged the CAG.
He, however, said it was worse noting that some development projects
worth over 4.5bn/- were not in use despite being completed a year ago.
The latest CAG report confirmed further
that the management and workers of the National Identification Agency
(NIDA) conspired directly or indirectly in swindling over 4.5bn/- in
quest to print IDs.
“It involved the procurement contract
for equipment and ICT facilities including ipad and computer programme,”
the report said. On mining sector, the CAG raised grave concern, saying
almost all mining companies had never recorded profit since their
inception amid continued production for over a decade.
He observed that the government had not
been gaining its appropriate dues owing to permission on the mining
firms to enjoy capital expenditure allowance holidays of between 80 and
100 per cent. “There is urgent need for the government to review this
regulation for it to rip benefits from the country’s extractive
resources,” he said.
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