The Controller and Auditor General (CAG) has identified weaknesses in the management of projects undertaken by Tanzania Telecommunications Corporation (TTCL) and Tanzania Electric Supply Company Limited (Tanesco). In an audit report for the 2021/22 financial year, CAG Charles Kichere noted that TTCL completed 464 projects worth TSh 10.33 billion but failed to close them because project managers delayed submitting required documents and monitoring was inadequate. This failure to close completed projects creates a risk of fund misappropriation, as expenditures could be recorded for non‑existent projects. Kichere also highlighted that Tanesco had 167 projects valued at TSh 39.7 billion with no sign of progress during the review period. No explanations were provided for the lack of cost movement or project closure, indicating poor monitoring and a risk of misstatement in the financial statements if those projects were assumed completed and not depreciated. The CAG recommended that both TTCL and Tanesco implement proper mechanisms for monitoring and timely project closure to mitigate these risks.
In a separate audit, the CAG observed that the Medical Stores Department (MSD) and Muhimbili National Hospital (MNH)‑Mloganzila made advance payments to suppliers without appropriate terms and conditions. At MSD, 22 suppliers received advance payments totaling TSh 61.81 billion in 2021/22 without binding contracts, violating Regulation 164 of MSD’s Financial Regulations, 2011. Similarly, MNH‑Mloganzila made advance payments of TSh 178.21 million to suppliers between July 2021 and June 2022 without contractual terms. The auditor warned that such practices could amount to soft loans to suppliers lacking the capacity to deliver, resulting in a loss of funds locked as advances. He urged MSD and MNH‑Mloganzila to strengthen controls and ensure that no advance payment is made without a binding contract specifying the terms.
A special audit of a three‑star hotel construction project under the Tanzania National Parks Authority (TANAPA) in Rubambagwe‑Chato revealed that the contractor began work before the procurement process was completed. On 5 July 2019, TANAPA signed a Memorandum of Understanding (MoU) with Suma JKT Company, allowing the contractor to take possession of the site before a formal contract was signed. The MoU estimated project costs at TSh 1 billion, although the actual estimate had not yet been established. TANAPA made an advance payment of TSh 500 million to Suma JKT on 2 August 2019 and a second payment of the same amount on 17 February 2020, totaling TSh 1 billion. Procurement began on 11 July 2019 via Procurement Form No. 2, but the tender board later changed the method from national competitive bidding to a non‑competitive single‑source approach. The evaluation showed that Suma JKT had less than five years of experience and did not meet the required average annual construction turnover of TSh 1 billion stipulated in the Instructions to Bidders. Despite these shortcomings, TANAPA’s Board of Trustees entered into contract PA/037/2019‑20/W/HQ/139 on 26 March 2020, valued at TSh 11 billion, for a twelve‑month implementation starting 14 April 2020. By 31 October 2021, TANAPA had paid TSh 4.1 billion—37 percent of the total cost—while only 40 percent of the work had been completed, a figure that remained unchanged at the time of the special audit on 20 December 2021. The auditor recommended that TANAPA adhere strictly to laws, regulations, and public procurement procedures in future projects.
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