The Controller and Auditor General (CAG), Mr Ludovick Utouh, has criticised the Kinondoni Municipal Council for failure to comply with the Public Procurement Act No 21 of 2004 and its regulations of 2005 that caused a Sh2.3 billion loss.

This criticism follows the CAG's review of the municipal operations and cash flows for the year that ended June 2009, indicated some flaws. "In view of my responsibility on the procurement legislation and taking into account the procurement transactions.

I state that the KinondoniMunicipal Council has generally not complied with the requirements of the Public Procurement Act and its underlying regulations," he said in a financial report seen by The Citizen yesterday in Dar es Salaam.

According to the report, the municipal council placed an order for three brand new tractors, but instead it was supplied with reconditioned tractors by M/s Tractor Ltd, and the municipality went ahead and paid Sh67 million for all three units, which was 70 per cent of the cost of brand new tractors.

Mr Utouh added that medical supplies and equipment worth Sh37.1 million purchased from Medical Stores Department (MSD), had not been delivered to the council.

He stated that a sum of Sh56 million was also overpaid to M/S Farm Equipment (TZ) Co Ltd for supplying 27 trailers for collecting garbage at Kinondoni municipality. Also, liquidated damages of Sh10 million was not charged and paid by M/s Farm Equipment (T) Co Ltd.

The CAG noted that revenue collection accruing from installation of 559 street light poles billboards amounting to Sh282 million,was not collected by the council from M/s A1 Outdoor (T) Ltd.

Also revenue accruing from small billboards advertisement at Magomeni division amounting to Sh376.2 million has not been collected from M/S Konsard Investment Ltd.

The National Audit Office (NAO) boss revealed that revenue collection amounting to Sh327 million in respect of fees and charges collected by the agents on behalf of the council, had not been remitted to the council.