Dodoma —
Parliament's Public Accounts Committee (PAC) has asked the government to
task the
Tanzania Ports Authority (TPA) over the three irregularities
as reported by the Controller Auditor General (CAG) reports for
financial year 2017/18.
In its audit
report, the CAG queried the TPA for failing to fully implement the
Information and Communication Technology (ICT) system aimed at improving
revenue collections, as well as purchasing land in Dodoma without
following proper procedures, and irregularity in the recruitment of 32
employees.
PAC chairperson
Naghenjwa Kaboyoka said the committee was shocked by TPA performance, as
well as the authority's failure to implement the committee's directives
for a long time now.
She said the
government mostly depends on TPA as the main source of public revenue,
but its failure to effectively implement the tax collection system
hinders its performance.
"The government
spent a lot of money to install the system which is not operational. The
President has been talking about loss of revenue at the port from time
to time," she said. The committee will not issue directives to TPA again
on installation of the system, she stressed.
"How much are we
losing due to not operating the system? The President depends upon the
TPA to generate enough revenues with which to run the country," she
said.
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She said failure to
install the new tax collecting system has caused losses to the
government, while adversely affecting revenue collections at the port.
Speaking during the
committee's meeting here, Kilindi MP Omar Kigua said in August this
year, they directed TPA and TTCS - the company which is contracted to do
the work - to make sure that the system is fully and functionally
operational.
"The one who is
contracted to install the system has implemented three-quarters of the
work and he has been paid a lot of money for it. When the TPA management
was asked, they told us that they need another company for finishing
the task," the MP said.
He said the absence
of the tax collecting system has caused the Tanzania Revenue Authority
(TRA) to do the work in stead - work which is supposed to be done by
TPA.
"This task can't be done manually; it needs to have a computerised system which we have been waiting for - in vain," he said.
The committee also
queried the TPA for purchasing land in the Ihumwa area in Dodoma City at
Sh6.3 billion without following public procurement procedures.
The committee says
payment for the land was supposed to be done in two installments of 40
per cent each, and one of 20 per cent.But TPA paid 50 per cent, which
was contrary with the procedures.
"There is nothing
worse than making payments using public funds without following
procedures... Also, it is indicated in the audit report that valuation
of the land was done three years after the purchase," Mr Kigua said.
Ole MP Juma Hamad
said absence of the tax collection system caused the TPA profit to
shrink to Sh68.5 billion in the year to June 30, 2018 from Sh78.6
billion in the year that ended on June 30, 2017.
"We did not expect a large entity like this (TPA) to declare a profit of Sh68.5 billion," he said.
Responding, TPA
board chairman Ignas Rubaratuka said TTCS was working as a
sub-contractor of ERP-SAP which has accepted to finish the job at only
70 per cent of the total costs of the project.
The TPA director
general, Deusdedit Kakoko, said they will implement what they have been
directed to do by the committee, including installation of the tax
collecting system.
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