Why projects have stalled across local govt authorities

Dar es Salaam. Local Government Authorities (LGAs) across the country are saddled with unfinished projects due to poor planning, inefficiencies in funds utilisation and delay by the government to release budgets on time.

According to the 2017/18 audit report by the Controller and Auditor General (CAG), the authorities failed to use more than Sh335.41 billion in the financial year, which were returned to Treasury.

Implementation of long-term projects (Capital Development Projects) aimed at securing the revenue base for most of the councils were the most affected, with more than Sh261.4 billion equivalent to 33 per cent of the total available funds not utilised, according to CAG Prof Mussa Assad.

“LGAs capacity to utilise funds available for capital development project is equal to 67 per cent in the financial year 2017/2018 which is exactly the same as in the financial year 2016/17. The unspent balances at the year-end implies slow a pace in implementing capital development projects,” CAG said in the report.

He also said that 51 per cent of over Sh146.2 billion released for the implementation of local governments projects were not used for planned activities.

“Up to June 30, 2018 a total amount of Sh72.28 billion had been spent, leaving unspent amount of Sh73.9 billion equivalent to 51 per cent of funds available,” reads part of the LGAs 2017/2018 CAG audit report on issues noted during review of projects’ financial performance.

It stated that the unspent balances were either due to ineffective project planning and execution or late release of funds by Treasury. In this regard, the CAG said that LGAs with huge un-utilised balances to ensure that all planned activities were, “re-budgeted and implemented so as to achieve the intended objectives for which funds were allocated and approved for,” he said.

The report further recommends to the respective LGAs to institute effective mechanisms for ensuring that all planned capital development projects were promptly implemented in order to provide better services to the intended communities.