Controller and Auditor General (CAG) Ludovick Utouh has cleared the Ministry of Works (MoW) on allegations of misappropriation of 293bn/- during the 2011/2012 financial year.
Works Minister Dr. John Magufuli
Mr Utouh came in defence of the ministry, which is led by Dr John Magufuli, at a news conference in Dar es Salaam yesterday following press reports last week, which indicated massive misappropriation of funds at Holland House.
“The truth is that the ministry had included the funds in its financial statements for the fiscal year and yet the money had already been transferred to Tanroads (Tanzania Roads Agency).
“It was an accounting error because the expenditure was supposed to be shown in TanRoads’ books. For this mistake, the ministry earned an audit report with a qualified opinion,” the CAG explained.
Mr Utouh expressed concern that after MoW officials appeared before the parliamentary Public Accounts Committee (PAC) last Thursday, press reports indicated that the sum was misappropriated.
The CAG elaborated further that the money was transferred from the Treasury and then to the Ministry of Works before it was eventually moved to Tanroads. “TanRoads used the money to pay longstanding debts owed to contractors as well as consulting engineers who had threatened to down tools if the debts were not settled,” he stated.
The watchdog went on to praise MoW and Tanroads for the work well done in construction of roads countrywide, describing the achievements as historic. Meanwhile, the CAG has also noted with satisfaction the decision by National Assembly Speaker Anne Makinda to reorganise the PAC to improve efficiency.
The PAC will now work in two groups, PAC 1 and PAC 11, where the former will oversee the central government, ministries, departments and agencies while the later will deal with parastatals. PAC 1 will be under the chairmanship of Kigoma North MP Zitto Kabwe (Chadema) while Ludewa MP Deo Filikunjombe will head PAC 11.
The CAG had in April this year took issues with Speaker Makinda over her decision to disband the then parliamentary Public Organisations’ Accounts Committee (POAC). Mr Utouh had raised concern that the PAC alone could not effectively take charge of the central government and at the same time oversee public organisations.
In another development, the CAG said the National Audit Office of Tanzania (NAOT) has gained the much needed international exposure during its first year stint in auditing United Nation organisations across the globe. Mr Utouh said the task had also given credit to Tanzania, given the fact that six out of 15 audit reports that were approved by the UN Board of Auditors last month were conducted by the NAOT.
Tanzania, United Kingdom and China are the current members of the UN Board of Auditors. They finished the first cycle of audit in June this year. The three countries will be auditing UN agencies for the next five years.
By ALVAR MWAKYUSA, Tanzania Daily News
