Tanzania:Bunge team wants 3 contracts audited

From SYLIVESTER DOMASA in Dodoma

PARLIAMENT yesterday tasked the government to conduct a forensic and performance audit over controversies surrounding Mlimani City project, the Police Force and Pride Tanzania, whose contracts led to pilferage of billions of taxpayers’ money.

The parliamentary oversight arm of public funds --Public Accounts Committee (PAC) proposed earlier when tabling its performance report for 2017 in the National Assembly that the audit report would enable the government make appropriate decisions.
“A thorough analysis of the Controller Auditor General (CAG’s) report as well as a discussions with the University of Dar es Salaam (UDSM) on the Mlimani City investment project has revealed serious hitches in the management and development of the project,” stated Naghenjwa Kaboyoka, the committee Chairperson.
As a result, she said, the government and UDSM had not benefited from the project, adding that the investor, Mlimani Holding Limited (MHL) had violated the Tanzania Investment Act of 1997 by injecting 75,000 US Dollars as investment capital. The committee expressed discontent over the decision of MHL to borrow 49m US Dollars from a minority shareholder, Turnstar Holding Limited, instead of selling part of its existing 900 shares.
“The investor is reportedly violating the contract, including failure to pay 10 per cent of gross income as rent fee, failing to start construction of the three star hotel and a botanical garden,” she noted. Special Seats MP (Chadema) Ms Catherine Ruge debating the committee’s statement said what happened between UDSM and the investor over Mlimani City projectwas a “national wonder”.
The lawmaker was concerned that the government was losing heavily due to negligence of UDSM parties of the contract. Her statement was echoed by Iramba-East MP (CCM) Mr Allan Kiula, who called for immediate review of the contract to allow the government and UDSM benefit from the investment.
The committee also called for a similar audit over the agreement between the Police Force and India-based Ashok Leyland firm on procurement of 777 police vehicles. The 29.6m US Dollars credit facility deal with the Export-Import Bank of India was to finance the procurement of the police van. While the contract between the police force and the manufacturer was signed in 2013, the force went ahead and signed a deal with the bank in 2015, while the contract with Ashok had expired since 2014.
More alarmingly, the police force received only 181 vans out of the 777 cited in the contract. Tanzania Police had made a total payment of 40 per cent of the contract and the vehicles which had been brought into the country were valued at below 20 per cent of the total fund.
The committee further asked the government to immediately address the controversy surrounding ownership of Azania Bank and Pride which were causing the two financial institutions to perform badly in the local market. Other institutions that needed immediate government attention include the Tanzania Agricultural Development Bank whose operational capital was in limbo.
The committee also directed the government to institute disciplinary and legal actions against executives of the Association of Local Authorities of Tanzania (ALAT). ALAT is accused of embezzlement of over 523.9m/-, contrary to governing regulations and laws.