CAG reports unveil high corruption red flags in Tanzanian government

Dar es Salaam. Despite the decrease in fraud and corruption red flags recorded by the Controller and Auditor General (CAG), the trend is still alarming among some government institutions, analysis of the audit reports shows.

Conducted by the WAJIBU Institute of Public Accountability, the analysis shows that corruption and fraud red flags declined from Sh3.085 trillion in the 2021/22 fiscal year to Sh2.778 trillion in the 2022/23 financial year.

The decrease in red flags was equivalent to 10 percent when the 2022/23 and 2021/22 reports were compared.

Presenting the analysis at the breakfast meeting organised by Policy Forum in Dar es Salaam yesterday, WAJIBU senior officer, Mr Moses Kimaro, said while corruption and fraud red flags recorded in the public authorities amounted to Sh1.235 trillion, which is equivalent to 44.4 percent of the total identified red flags, Sh676.66 billion worth of red flags, equal to 24.4 percent, were identified in the central government.

“Red flags identified by the local government accounted for Sh641.29 billion, which is equal to 23.1 percent of the total identified red flags. Sh225.39 billion equals 8.1 percent of red flags identified in the execution of development projects,” he told participants of the meeting convened under the theme The CAG Reports 2022/23: Highlights on Persistent Challenges in Tanzania’s Public Finance Management System.

“It should be noted that local government authorities’ corruption red flags of Sh641.29 billion in 2022/23 are equivalent to a 215.3 percent increase compared to Sh297.86 billion recorded in 2021/22,” he added.

Mr Kimaro said red flags are caused by several reasons, including political interference, circumstances of corruption, and oversight weaknesses.

He shared an example of a tender number EA/055/2020-2021/HQ/W/01 announced by the Ngorongoro Conservation Area Authority (NCAA) for the construction of the NCAA’s headquarters.

He said the said tender was awarded on March 9, 2022, after post-qualification processes, at a contract price of Sh9.80 billion.

However, on April 21, 2022, the tender was cancelled in response to instructions from the Ministry of Natural Resources and Tourism, which directed the process to be restarted.

“The tendering was re-started on May 6, 2022, and the same bidder was awarded the contract at Sh10.48 billion, about Sh686.60 million higher apart from the Sh16.08 million additional tendering procedure cost,” he said.

According to him, challenges related to oversight weaknesses were noted in the analysis of the Tanzania Electric Supply Company Limited (Tanesco) and Keko Pharmaceuticals Industry data.

He said the institute recommends that state actors should enforce accountability, strengthen oversight mechanisms, increase transparency to stakeholders, scale up the anti-corruption war, publicise the Prevention and Combating of Corruption (PCCB) report, and strengthen cooperation management.

“Non-state actors are recommended to demand accountability, monitor implementation of audit recommendations, advocate for reforms, and conduct strategic litigation,” he said.

WAJIBU executive director, Ludovick Utouh, said integrity was something to be emphasised, “Because issues like the NCCA disputed tendering process, are outright corruption. Someone wasn’t ready for the process to proceed without reaping personal benefits.”

“The public should make noise for officers responsible for overseeing public funds to be uncomfortable. Corruption takes place in both public and private institutions, though the public suffers a huge blow,” Utuoh, who is a former CAG, added.

PCCB director for community education, Joseph Mwaiswelo, said a total of 375 files were opened in 2022/23 after receiving the CAG claims.

“156 files were closed due to a lack of evidence. Disciplinary measures were taken against 73 implicated people. 28 other files are still waiting for the Director of Public Prosecution's (DPP’s) permit,” he said.

“A total of 41 files were taken to the court, where the public won 40 cases and lost one. About 73 files belong to ongoing cases, and 160 other files are still under investigation,” he added.

The Public Procurement Regulatory Authority officer, Ms Alice Mcharo, said the introduction of the National e-Procurement System of Tanzania (Nest) to replace the previous Tanzanian National e-Procurement System (TANePS) is expected to address most procurement challenges.

Engineers Registration Board (ERB) assistant registrar of Finance and Administration, Mr Paul Bilabaye, said the newly adopted procurement system (Nest) reduces human interaction, noting those skipping the process have evil intentions.

“Most challenges occur after contracts have been signed. Non-state actors should scrutinize the expenditure departments because of the Sh45 trillion approved budget, and Sh31 trillion will be utilized in the procurement processes.

The Tanzania Association of Women Certified Accountants (TWCA) executive director, Ms Tumaini Lawrence, said Tanzania needs to strengthen and make better use of digital platforms, recruit public servants based on competencies, and consider making policy reviews to address noted challenges.