ACT, CCM at odds over Covid-19 relief funds

Pemba. ACT-Wazalendo said yesterday the mismanagement of the Covid-19 recovery funds and spiralling cost of living in Zanzibar were the result of a lack of a proper policy, which has caused the state to lose billions in the process.

Speaking at a rally at Jadida and Mtambile grounds, ACT’s member of the central committee, Ismail Jussa, said Zanzibar received Sh230 billion as Covid-19 relief fund from the Union government; however, the money was channelled into other uses.

But speaking to The Citizen regarding the mismanagement allegations, CCM’s publicity secretary for Zanzibar, Khamis Mbeto, said it was unfortunate that the opposition was making such claims regarding the spending of the Covid-19 funds given the level of execution that had been achieved. According to him, the money was mainly allocated to four critical areas that included health, education, empowerment, and water and fisheries.  “They have queried why the money was transferred to CRDB Bank, but this was an investment decision that was made because there was a precedent that when this money is given through local authorities, the recipients tend to relax because there is no proper follow-up,” said Mr Mbeto.

He added: As per registration, both CRDB and PBZ are commercial banks, but we were looking for efficiency, and that is why the Sh17 billion empowerment cash was channelled through CRDB.

Mr Mbeto also said that the number of boats that had been made and delivered by May 2023 stood at 278, whereas the water sector was allocated Sh33 billion.

“A 1 million-cubic-foot tank has been constructed, and part of the money will go into replacing the pipes and redistribution system because most of the water system in both Unguja and Pemba was dilapidated because it dated to colonial days,” he said.

He added: “In the health sector, he said the revolutionary government of Zanzibar has constructed 12 modern hospitals and nine modern schools from the C Covid-19 relief fund.”

But in his argument, which cited the 2022 Controller and Auditor General’s report, Mr Jusa said the ministry of Blue Economy and Fisheries was one of the institutions that benefited from the money, but in the CAG report, it has been shown that a lot of money went to waste or was misused.

“Most of the companies that were given the contracts did not deliver; under the arrangement, 502 boats were supposed to be delivered; however, by July 2022, 427 boats had not been delivered. There are other boats that were ordered, but the makers were not paid the Sh552 million plus $934, 000,” said Mr Jussa.

 He also queried the transfer of public funds to CRDB Bank instead of the People’s Bank of Zanzibar. “What is so special about these commercial banks that the government is forced to channel money through CRDB Bank?” he queried.

 Further citing the CAG’s report, Jussa said there was an overpayment of advance to contractors worth Sh3.28 billion on January 7, 2022, by the ministry of Health, Social Welfare, Elderly,Gender, and Children, which entered into a contract with Ms Estim Construction Company Ltd. for the construction of a new regional hospital at Lumumba in Urban West Region, Unguja, at a cost of Sh24.72 billion.

“According to management, the original contract indicated a 20 percent advance payment, but following further negotiations, it was changed to a 35 percent advance payment, and this was paid per an advance payment guarantee of the same percentage,” reads the CAG’s report.