Government pays 30bn/- for fictitious goods

CAG, Ludovick Utouh
CAG Mr Ludovick Utouh
The payment for fictitious goods worth 31bn/- is among the financial irregularities that the Controller and Auditor General (CAG) has revealed in his audit report for the 2011/12 fiscal year.

The CAG report released last week shows that the over 30bn/- public money was spent on the procurement of goods which were not delivered.

In the report that has raised eyebrows on the nation’s financial discipline, the CAG decried non-response to most of his previous recommendations: “Most of the recommendations were not responded to, an indicator of lack of seriousness on the part of the government to implement those recommendations.”

Sikika Executive Director, Irenei Kiria said in a statement over the weekend that the highly valuable CAG report is rendered useless unless the Parliament had an opportunity to discuss the document ahead of the approval of the 2013/14 national budget.

“The budget cycle needs to provide the Parliament with sufficient time to discuss the CAG’s report to evaluate the performance of all government agencies before allocating them new resources,” said Mr Kiria, adding:

“Without such heated debate, mismanagement will continue undermining the efficiency and effectiveness of the government’s development programmes.” 

The director warned that disregarding the CAG report and proceeding with discussion of the financial plans, the Parliament was denying itself of the constitutional role to oversee the government.

In 2012, the CAG recommended that the outstanding liabilities totalling 1.327trn/- be recognised in the National Accounts and be taken into account in the next year’s national budget. 

“At the end of such an indispensable debate, the members of the House should conclude if they trust in an office bearer’s ability to manage public monies according to established laws and regulations,” Mr Kiria recommended.

Kigoma South MP, David Kafulila said the House have to find a room to discuss the report before the budget session is adjourned, as 60 per cent of government spending goes to procurement.

CAG report also shows that in just one year, 2011/12, a total of 1.8tr/- was tax exempted, an increase of 800bn/- on the 2010/11 amount.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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