[wanabidii] RE: CAG REPORT

Other major problems observed are weakness in inventory

management in some entities. This includes presence of

accumulated expired drugs of more than Shs.8.4 billion at

the Medical Store Department. The drugs have been

Office of the Controller and Auditor General PA&OBs 2010/11

xxii

accumulated since year 2002. It was further noted that there

was existence of un-reconciled inventory amounting to

Shs. 2.1 billion which has been caused by theft, cross issuing

and over issuing. Another problem noted was cash

mismanagement to a number of entities; this problem has

caused a loss of Shs.421.86 million to Mwanza Urban Water

Supply and Sewerage Authority.

Further, TCRA granted a special loan to Air Tanzania

Corporation Limited (ATCL) amounting to Shs.1.25 billion on

its effort to assist revival of the air line. However, there is

no indication or possibility of revival of the Corporation;

hence the amount loaned by TCRA is at risk of recoverability.

 

a. Members of Parliament (MPs) oversee the operations of

PA&OBs. Therefore, they should not be members of

Boards of Directors of PA&OBs to avoid conflict of

interest.

 

The best practice should have been for the Chief

Executive Officers to be appointed by the Boards of

Directors while the President should be left with the

responsibility of appointing chairpersons of the Boards of

Directors.

Results of Special Audit

The results of the special audits revealed that Treasury

Registrar and the Ministry of Finance were involved directly

in the sale of Plot No.10 off Nyerere road sold to Mohamed

Enterprises Tanzania Ltd. Also special audit noted a

controversial claim of Shs.2.349 billion raised by DRTC being

a settlement of security costs for facilitating access to Plot

No.192 off Nyerere road owned by CHC. Further,

irregularities were observed on; the sale of Tanzania Motor

Service Company (TMSC) building on Plot No.24 Ali Hassan

Mwinyi Road; Plot No.33 Saza Road Chang'ombe Industrial

area which was sold to Maungu Seed Company without due

care, and CHC deleting debts inherited from SIMU 2000

without appropriate sufficient evidence.