Dar es Salaam. Tanzania
National Roads Agency (Tanroads) yesterday gave its version of the story
on how billions of shillings set for road projects were misused—but
fell short of explaining the whereabouts of Sh80 billion that cannot be
traced or accounted for.
A day after The Citizen exclusively revealed how billions of shillings meant for road construction were misused, the agency denied claims that the money, which was thus earmarked, had been misappropriated.
Tanroads chief executive officer Patrick Mfugale defended the agency against reports that Sh80 billion of the Sh252 billion set aside for the work four years ago could not be accounted for. He declined, though, to answer questions on a new audit report by the Controller and Auditor General (CAG) that details the damning revelation how the billions went missing.
According to a reliable source within the Public Accounts Committee (PAC), the audit report signed in January this year by the new CAG, Prof Mussa Juma Assad, offers a damning glimpse of how the Agency misused funds meant for construction of roads.
Parliament ordered the special audit in 2013 after queries emerged about the allocation and expenditure of a total of Sh252 billion set aside for the ministry of Works in the 2011/12 financial year.
Audit findings show that Sh47 billion out of Sh77 billion deposited at the Bank of Tanzania (BoT) for paying road contractors is either missing or cannot be accounted for. Over Sh33 billion that was shown as payments for contractor debts cannot also be accounted for. This includes over Sh30 billion shown as payment to Strabag, the company implementing the Rapid Bus Transit Project (DART) in Dar es Salaam.
In total, according to Dr Assad, Sh80 billion of the sum is either missing or cannot be traced as there is no proof of payment made to the contractors. The report says Parliament was not told the truth over the expenditure of Sh252 billion because, while the National Assembly knew the money would be used for new projects, it was instead diverted to pay debts.
At the hastily convened press conference yesterday afternoon, Mr Mfugale only clarified—by way of a document presented to Parliament—that the money was indeed budgeted to clear contractors’ debts. Asked to explain the missing funds for the same allocation to clear debts, the official declined to answer any questions despite constant prodding by The Citizen. He added: “I have not seen the report. The report might be in the hands of PAC. I would have answered your questions if I had seen the report.”
The Tanroads CEO said the graft claims were discouraging his lieutenants, who were working hard to build the country’s roads.
“Tanroads spent the Sh252 billion to pay debts it owed road contractors and consultants across the country,” said Mr Mfugale, adding that the agency owed contractors and consultants a staggering Sh1 trillion; our roads are being built at a cost.
He added that 3,500 kilometres of roads across the country were under the supervision of Tanroads and 1,154 kilometres were constructed during the fourth phase administration.
In 2010/2011, Tanroads owed Sh420 billion and the government, through the Ministry of Works, released Sh348 billion. Some Sh96 billion was allocated to the railway sector. “I have never called a press conference since I have been here,” said Mr Mfugale. “Today, I have been forced to call one to explain what had transpired.”
Impeccable sources told The Citizen in Dar es Salaam yesterday that Sh3,048,365,229 was not accounted for from a total amount of Sh252,975,000,000. After the Ministry of Works released the Sh3,048,365,229 to Tanroads, the sum was reportedly diverted without the knowledge of the ministry. The documents Tanroads used to re-allocate this amount were not submitted to relevant authorities for auditing, according to our sources.
In another development, the CAG report said the BoT governor denied having 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 that was reportedly deposited with the Bank of Tanzania (BoT) as payment for road contractors and various consultants.
The special CAG audit failed to establish whether Sh47,096,377,221.72 was paid to the relevant road contractors and consultants after the BoT governor declined to give the information required on the grounds that the law did not allow him to disclose the bank details of his clients.
Although the major task of Tanroads was to oversee, build and improve trunk roads and regional roads, the CAG report shows that Sh13,385,089,124 was used to pay for private roads and roads under district councils. Roads under district councils are traditionally constructed with money from the Road Fund Board.
The report also reveals massive misappropriation of funds budgeted for construction of trunk and regional roads in the 2010/2011 financial year.
Some road projects were allocated tiny budgets but Tanroads reportedly spent huge amounts of money paying for the same without stating the funding source. In another development, CAG investigators found that payments totalling Sh36,638,175,000 were not indicated in the monthly progress reports of consultants and contractors handling various projects.
The CAG report further reveals that payment of Sh6,175,786,959 was made to contractors who were not on the list submitted to the ministry by the Tanroads chief executive officer.
A day after The Citizen exclusively revealed how billions of shillings meant for road construction were misused, the agency denied claims that the money, which was thus earmarked, had been misappropriated.
Tanroads chief executive officer Patrick Mfugale defended the agency against reports that Sh80 billion of the Sh252 billion set aside for the work four years ago could not be accounted for. He declined, though, to answer questions on a new audit report by the Controller and Auditor General (CAG) that details the damning revelation how the billions went missing.
According to a reliable source within the Public Accounts Committee (PAC), the audit report signed in January this year by the new CAG, Prof Mussa Juma Assad, offers a damning glimpse of how the Agency misused funds meant for construction of roads.
Parliament ordered the special audit in 2013 after queries emerged about the allocation and expenditure of a total of Sh252 billion set aside for the ministry of Works in the 2011/12 financial year.
Audit findings show that Sh47 billion out of Sh77 billion deposited at the Bank of Tanzania (BoT) for paying road contractors is either missing or cannot be accounted for. Over Sh33 billion that was shown as payments for contractor debts cannot also be accounted for. This includes over Sh30 billion shown as payment to Strabag, the company implementing the Rapid Bus Transit Project (DART) in Dar es Salaam.
In total, according to Dr Assad, Sh80 billion of the sum is either missing or cannot be traced as there is no proof of payment made to the contractors. The report says Parliament was not told the truth over the expenditure of Sh252 billion because, while the National Assembly knew the money would be used for new projects, it was instead diverted to pay debts.
At the hastily convened press conference yesterday afternoon, Mr Mfugale only clarified—by way of a document presented to Parliament—that the money was indeed budgeted to clear contractors’ debts. Asked to explain the missing funds for the same allocation to clear debts, the official declined to answer any questions despite constant prodding by The Citizen. He added: “I have not seen the report. The report might be in the hands of PAC. I would have answered your questions if I had seen the report.”
The Tanroads CEO said the graft claims were discouraging his lieutenants, who were working hard to build the country’s roads.
“Tanroads spent the Sh252 billion to pay debts it owed road contractors and consultants across the country,” said Mr Mfugale, adding that the agency owed contractors and consultants a staggering Sh1 trillion; our roads are being built at a cost.
He added that 3,500 kilometres of roads across the country were under the supervision of Tanroads and 1,154 kilometres were constructed during the fourth phase administration.
In 2010/2011, Tanroads owed Sh420 billion and the government, through the Ministry of Works, released Sh348 billion. Some Sh96 billion was allocated to the railway sector. “I have never called a press conference since I have been here,” said Mr Mfugale. “Today, I have been forced to call one to explain what had transpired.”
Impeccable sources told The Citizen in Dar es Salaam yesterday that Sh3,048,365,229 was not accounted for from a total amount of Sh252,975,000,000. After the Ministry of Works released the Sh3,048,365,229 to Tanroads, the sum was reportedly diverted without the knowledge of the ministry. The documents Tanroads used to re-allocate this amount were not submitted to relevant authorities for auditing, according to our sources.
In another development, the CAG report said the BoT governor denied having 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 that was reportedly deposited with the Bank of Tanzania (BoT) as payment for road contractors and various consultants.
The special CAG audit failed to establish whether Sh47,096,377,221.72 was paid to the relevant road contractors and consultants after the BoT governor declined to give the information required on the grounds that the law did not allow him to disclose the bank details of his clients.
Although the major task of Tanroads was to oversee, build and improve trunk roads and regional roads, the CAG report shows that Sh13,385,089,124 was used to pay for private roads and roads under district councils. Roads under district councils are traditionally constructed with money from the Road Fund Board.
The report also reveals massive misappropriation of funds budgeted for construction of trunk and regional roads in the 2010/2011 financial year.
Some road projects were allocated tiny budgets but Tanroads reportedly spent huge amounts of money paying for the same without stating the funding source. In another development, CAG investigators found that payments totalling Sh36,638,175,000 were not indicated in the monthly progress reports of consultants and contractors handling various projects.
The CAG report further reveals that payment of Sh6,175,786,959 was made to contractors who were not on the list submitted to the ministry by the Tanroads chief executive officer.
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