The Citizen (Dar es Salaam)
Mkinga Mkinga
6 April 2011
Dodoma — The government is losing billions of shillings through embezzlement in local governments, fraudulent procurement and loan guarantees, reports tabled in Parliament yesterday by three parliamentary oversight committees show.
The reports were tabled by the chairmen of the Parliamentary Public Organisations Accounts Committee (POAC), Public Accounts Committee and Local Authorities Accounts Committee, Mr Zitto Kabwe, Mr John Cheyo and Mr Augustine Mrema, respectively.
In his report, Mr Kabwe said the government guaranteed public organisations loans to the tune of over Sh367 billion by June 30, 2008, adding that the guarantee shot up to over Sh410 billion by June 30, 2009.
“Most of these loans, which have been secured from private companies and pension funds, cannot be recovered. It is time the government stopped guaranteeing such loans,” the Kigoma North MP said.Mr Kabwe said contracts entered into by public organisations and private firms were another weakness that the government needed to urgently address.
He gave as an example the agreement between the Tanzania Tourist Board (TTB) and a major news organisation aimed at promoting the country’s national parks that cost Tanzania National Parks (Tanapa) a whopping Sh246 million.”Contract management has continued to be a big headache among public organisations, causing the organisations colossal losses,” he said.
In his presentation, Mr Cheyo said his committee had established that Tanzania Revenue Authority projections of revenues had declined.Mr Cheyo (Bariadi East-UDP) said in 2008/2009 the customs department missed its targets by nine per cent, which is equivalent to Sh168 billion, and the department of big tax payers failed to reach its targets by 14 per cent, which is almost Sh267 billion, although the domestic revenues surpassed its target by a minimal margin of 1.2 per cent.
He said his committee was not convinced by revenue collections by some ministries and government institutions, adding their collections did not reflect their sources of revenue generation.He also noted that the mining sector in 2008/09 failed to collect Sh13.052 billion from a possible collection of Sh65.19 billion.
“The government notice number 99 of 2005 which suspended the government notice number 22, but it also exempted fuel levy by allowing mining companies to pay $200,000 initially. They are later exempt from paying any fee,” Mr Cheyo noted
Mr Cheyo said there is still a problem of ghost workers which he has directed permanent secretaries to keep genuine and clear records of the employees who meet the criteria of being paid. There have been payments for dead employees, retirees and sacked workers.
“The committee has directed the permanent secretary in Public Service Management to write a report on how much has been paid to ghost workers for the last three years,” Mr Cheyo said
The LAAC chairman, Mr Augustino Mrema, said there has been a serious problem on ghost workers citing 2008/09 where a total of Sh792 million was paid by the government to ghost workers in 40 district councils.
Mr Mrema said a total of Sh1.7 billion designated for unclaimed salaries were not returned to treasury from different district councils, adding that it’s a huge loss to the nation and immediate measures should be taken to rectify the problem.He said Sh2.6 billion which were supposed to be paid for councils through cashewnut export levy for councils were not paid by the governing board thus councils experienced a loss.
Before tabling his report to the House, Mr Mrema told media that areas which have submitted their reports include Mbeya, and Morogoro municipal councils, Musoma Rural, Serengeti and Sumbawanga district councils.
Giving details, Mr Mrema, the Vunjo MP on a Tanzania Labour Party ticket said Tarime District had so far paid Sh89.1 million to ghost workers, Kilosa Sh84.1 million, Serengeti Sh39.4 million and Morogoro Sh9.4 million.
“We have observed that there is a problem of salaries paid to ghost workers…even the CAG report of 2008/09 has indicated that Sh792,949,734 has been paid to ghost workers as salaries within a year… It shows there is a serious problem,” Mr Mrema said.
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