The National Audit Office (NAOT) and the Controller and Auditor General (CAG) completed and submitted the audit reports to the President of the United Republic of Tanzania H.E Samia Suluhu Hassan on March 28, 2021 and which were tabled subsequently in Parliament on 8th April 2021.

The report highlighted a significant increase of the number of Local Government Authorities with 53 Qualified and 8 Adverse Audit Opinions in Financial Year 2019/20 as compared to FY 2018/19.

Presenting the findings of the analysis of the 2019/20 CAG’s Report on the Policy Forum April 2021 Breakfast Debate, Former Controller and Auditor General and Executive Director at Wajibu Institute of Public Accountability initiated the dialogue by acknowledging the efforts of the CAG CPA. Charles Kichere followed by calling to attention several issues and later bestowed recommendations.

He highlighted that the Government Information, Communication and Technology (ICT) systems are weak functioning, missing system modules and linkages between sectors thus recommended that the Government should conduct review of all ICT systems currently in use and find ways to consolidate related systems and develop missing modules and linkages including enabling audit and other accountability mechanisms to take place online.

Significantly, Utouh also cited that over the years, the rate of the implementation of the CAG’s recommendations has been significantly low and recapped during his term as the CAG, he recommended the elimination of ghost workers in the public sector which have caused the Government of Tanzania to incur billions of losses yet to be recovered to date.

Utouh accentuated as an impact of Covid-19 on the audit scope, CAG did not audit 43 Embassies and High Commission to prevent the spread of the pandemic which therefore the CAG was unable to issue an audit opinion to the Ministry of Foreign Affairs and East Africa Cooperation.

Ms. Rehema Tukai stated that in the fiscal year 2019/20, more than 68 completed development projected worth TZS 18.3 Billion from 40 LGAs were not in use citing an example of the Mlongawima Police Housings which have completed 6 years ago but lack residents up to date. She reiterated that the funds could have been used to improve social services and called upon citizens to seek accountability for development projects.

Additionally, Article 135 of the Constitution of the United Republic of Tanzania of 1977 requires that revenue collected should be remitted to the consolidated fund however the CAG has reported in 2019/20 a total of TZS 2,159.36 Billion which indicates a substantial raise from the previous financial year which amounted to TZS 1,733.45 Billion.

He proposed that the Government should come up with a mechanism of ensuring that there is increased rate of implementation of both the CAG’s and Parliamentary Oversight Committee’s recommendations.

Primarily, Executive Director at TWAWEZA, Aidan Eyakuze proposed for the adaptation of accountability system called ProZorro which used in Ukraine where everyone sees everything. A philosophy of this system is that after a tender procedure is complete, absolutely all data is disclosed, including the list of all participants, their bids, decisions of the tender committee and all qualification documents. This information is publicly accessible through Prozorro’s online analytics module. Eyakuze  accentuated that, ProZorro is   probably the best tool to ensure transparency and public scrutiny.

Eyakuze also suggested a similar open government initiative on cohesion policy in Italy known as OpenCoesione which provides access to searchable data on funds allocated and disbursed, locations, thematic areas, programming and implementing authorities, the timing required to complete operations and disbursements for each operation. All citizens and stakeholders are thus able to verify how funds are being used to meet the needs of the territories involved.

Utouh also stated 30 Public Authorities had no Board of Directors. Out of the 30 entities reported, 20 operated without board for less than a year, 9 operated without Boards for more than one year and 1 entity did not have a Board for more than two years. He then recommended that there should be a section in the Public Corporation Act 1992 that allows current board members to continue implementing their duties after expiry of their tenure until a new Board is appointed.

There are risks of misleading users of the financial statements at the Local Government Authorities due to non-adherence to financial reporting framework such as International Public Sector Accounting Standards (IPSAS).

IPSAS aims at improving the quality of general-purpose financial reporting by public sector entities, leading to better informed assessments of the resource allocation decisions made by governments, thereby increasing transparency and accountability.

Principally, Utouh presented some recommendations as a result of the analysis conducted and also informed the audience that the report would be launched in June; the recommendations stated;

• The public sector appointing authority of the Accountants should adopt the use of the carrot and stick approach in enforcing the application of the IPSASs and IFRSs in preparing financial statements.
• The Government should come up with a mechanism of ensuring that there is increased rate of implementation of both the CAG’s and Parliamentary Oversight Committee’s recommendations,
• There should be a section in the Public Corporation Act 1992 that allows current board members to continue implementing their duties after expiry of their tenure until a new Board is appointed
• The government (eGA) should conduct review of all ICT systems currently in use and find ways to consolidate related systems and develop missing modules and linkages including enabling audit and other accountability mechanisms to take place online,
• The government (eGA) to develop standard ICT Policy template for adoption in all government MDA’s and LGA’s,
• The government to effectively implement the Blueprint for regulatory reforms to improve the business environment in the country,
• The government (eGA) should conduct review of all ICT systems currently in use and find ways to consolidate related systems and develop missing modules and linkages including enabling audit and other accountability mechanisms to take place online,
• The government (eGA) to develop standard ICT Policy template for adoption in all government MDA’s and LGA’s,
• The government to effectively implement the Blueprint for regulatory reforms to improve the business environment in the country