CAG audit: Barking up the wrong tree

A few days after this year’s Mwenge wa Uhuru (Freedom Torch) race was inaugurated by Prime Minister Kassim Majaliwa in Geita Region early this month, the race leader, Mr Charles Kabeho, refused to launch four projects in Nyang’wale District.

This was because he smelt a rat over the cost of the projects, claiming that they did not quite reflect the value of the money spent in constructing them. This is just one of a myriad public projects whose costs don’t represent value for money.

And that is where we need to focus as we debate the Controller and Auditor General’s report for the 2016/17 financial year.

Right now, focus is on the furore started by the Kigoma Urban MP Zitto Kabwe on the whereabouts of Sh1.5 trillion in the consolidated account. Arguably, that’s a lot of money for a struggling economy like Tanzania’s.

Traditionally, audits by CAG dwell on the processes and procedures used in public expenditures. But the Nyang’wale example should make us look behind the processes and procedures – and seek to establish whether or not national budgets are fully accounted for, especially in the expenditures stakes.

We are told that expenditure during the 2016/17 financial year amounted to around Sh24 trillion. We need to see value for money in terms of results from the expenditure side regarding that fiscal year.

Otherwise, we could be barking up the wrong tree, fighting over Sh1.5 trillion while we are not quite sure whether the Sh24 trillion was spent wisely, and as appropriate.

Arguments over whether what some government ministers are saying in response to the 2016/17 CAG report is legal or illegal have left us perplexed – partly because what the ministers are saying is out of convexity. While the CAG report covers 2016/17, some ministers speak of issues which happened well after that timeline.

It is amazing that people are focusing on only few aspects, notably questionable expenditure. But, the CAG has released reports on a number of different areas – some of which have not been questioned although they also contain contentious issues on misappropriations and ill expenditures.

For instance, no one is talking about the call in the report for improvement in accountability and performance by public entities.

The report also provides an objective and constructive assessment of the extent to which the audited institutions have used public resources in carrying out their responsibilities with due regard to the economy, efficiency and effectiveness.

These are issues which make an economy vibrant or stagnate. But we do not give them much thought. We dwell on results of shortcomings instead of focusing on the root cause(s) of the shortcomings.

While we bemoan road and marine accidents, we have failed to look into this CAG report which has established inadequate enforcement of road and maritime transport safety laws and standards.

If you look into this report, you will stop wondering why our roads have become a bloodbath because CAG has established that the ministry responsible for transport did not monitor and evaluate the performance of safety in the transport sector.

CAG states that substandard road signs, markings and guardrails, as well as failure to repair worn-out road safety structures by Tanroads is a reflection of inadequate enforcement of safety laws and standards.

Likewise, non-compliance with the safety laws and standards of marine vessels was caused by inadequate enforcement of safety rules. CAG notes in his report that only 1.85 per cent of defaulters of marine regulations were penalised in 2011/2012 and 2015/2016.

In addition, Sumatra did not issue stop orders to non-compliant marine vessels; instead, they certified the vessels as fit for operation. This resulted in a level of noncompliance ranging from 52 per cent in 2011/2012 to 68 per cent in 2013/2014.

CAG also established that enforcement food safety was not carried out effectively, and the registration of food processing plants and related facilities was not carried out in an efficient and effective way.

Furthermore, there was low enforcement of safety measures in public buildings - and the implementation of development projects is not friendly to human settlements safety,

In general, CAG found that the government has not effectively managed enforcement of safety measures and controls in transportation and human settlements, as well as food processing and importation.

These are areas in which the Sh24 trillion which has been adjudicated as having been “accounted” for was spent. But the result of this expenditure was not necessarily effective.

This means that, while we question the whereabouts of Sh1.5 trillion which ostensibly has not been accounted for, we should also question if the money which was “accounted for” was justifiably spent accordingly.