"We have received the CAG report, but what I can tell you at this juncture is that the misuse of public funds is alarming" PAC CHAIRMAN ZITTO KABWE
A total of Sh47 billion out of Sh77 billion deposited at the Bank of Tanzania (BoT) for the purpose of paying road contractors is either missing or cannot be accounted for.
The Controller and Auditor General (CAG) says over Sh33 billion that was set aside for road projects in the 2011/2012 financial year also cannot be accounted for.
This means that a total of Sh80billion is either missing or cannot be traced as there is no proof of payment purportedly made to contractors.
In a special audit, the CAG reveals that Parliament was lied to about the expenditure of Sh252 billion earmarked for the construction of new roads.
The amount was instead diverted to pay road contractors and consultants, according to the January 2015 CAG report.
Impeccable sources told The Citizen in Dar es Salaam yesterday that Sh3,048,365,229 was not accounted for from the total amount of Sh252,975,000,000.
The sources further revealed that after the Ministry of Works released the Sh3,048,365,229 to the Tanzania National Roads Agency (Tanroads), the sum was diverted without the knowledge of the ministry.
"And documents that were used by Tanroads to reallocate this amount (Sh3,048,365,229) were not submitted to relevant authorities for auditing," said the sources.
In another development, the CAG report said the BoT governor denied to have paid Sh30,599,193,960.28 to Strabag International Gmbh and China Geo-Engineering Corporation Company Ltd.
"This amount was part of Sh77,695,571,182 which was deposited with the Bank of Tanzania as payments to road contractors and various consultants," said the sources.
They added that the CAG special audit had failed to establish whether Sh47,096,377,221.72 was paid to relevant road contractors and consultants after the BoT governor had refused to give information, saying the law did not allow him to disclose banking information about his clients.
The sources said although the major task of Tanroads was to oversee, construct and improve trunk roads and regional roads, the CAG report had shown that Sh13,385,089,124 was used to pay for private roads and roads under district councils.
