18 April 2017

Tanzania: CAG Slams 850 Billion/- Indebtedness in Ministries, Departments and Agencies

Photo: The Citizen
Tanzanian Shillings.

There are 170 legal cases involving different government institutions pending in various courts whose settlement would cost ministries and its agencies a colossal 850bn/-, it has emerged.

The Controller and Auditor General (CAG), Prof Mussa Assad, warns that the cost of running the civil service - from Ministries, Departments and Agencies (MDAs) down to the regional secretariats would have significant financial impacts. In his Central Government Annual General Report for FY 2015/16, the CAG says that some cases were at hearing, and others at mediation stages.

Of the 207 audited entities, he says, 15 MDAs and regional secretariats were facing what he described as "contingent liabilities" amounting to 850,740,035,053/13 in pending court cases.

The entities with the value of outstanding legal cases in brackets include Prime Minister's Office (8,728,170,711/49). Others are Ministry of Agriculture, Livestock and Fisheries (5,851,314,597/); Ministry of Education, Science, Technology and Vocational Training (1,189,624,889/04) and Ministry of Lands, Housing and Human Settlements Development (67,439,500,000/-).

Yet others are: Ministry of Energy and Minerals (660,767,521,003/-); Ministry of Natural Resources and Tourism (24,774,534,809/-); Ministry of Works, Transport and Communication (78,295,901,881/-); Ministry of Agriculture, Livestock and Fisheries (42,109,407/) and Rukwa Regional Secretariat (50m/-).

Also in the same league are: Ministry of Works, Transport and Communication Ministry (317,824,034/- ); Tabora Regional Secretariat (114m/-); Tanga Regional Secretariat (39,582,421/60); Kagera Regional Administrative Secretariat (90m/-); Mara Regional Secretariat (13,429,300/-) and Mtwara Regional Secretariat (3,026,522,000/).

"There is a risk of nugatory expenditure being incurred by the MDAs or RS as a result of fines or penalties which may be charged by the court in case the MDAs or RS lose these cases. In addition there are lots of expenses that are incurred by MDAs or RS in making follow up of these cases," he said.

He adds: "Taking into account of my prior year's recommendations, I further recommend the government to emphasize on each entity to have appropriate risk management strategies in place to ensure that the entity's exposure to contingent liabilities is contained and minimized at manageable level."

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