Tanzania Railways Corporation (TRC) and Tanzania Government Flight Agency (TGFA) on Sunday became the first casualties of a damning report after President Samia Suluhu Hassan dissolved the TRC Board and sacked the flight agency’s Director-General John Nzulule.
The 2021/22 report of the Controller and Auditor General (CAG) revealed massive discrepancies in the purchase of a cargo plane that was later leased to Air Tanzania, and the purchase of locomotives and couches for the TRC.
The report says that the contracts that were entered in construction of the standard railway gauge (SGR) were not of national interest.
According to the CAG, the TRC twice rejected the tender to purchase the locomotives and passenger coaches from the lowest bidder, at an offer of $263.4 million, and instead made a non-competitive purchase of $478 million.
The decision to enter into a non-competitive purchase cost the tax payer an additional $215 million.
Also, in the contract to purchase the locomotive and passenger coaches, the TRC implemented the process without a performance guarantee, a situation that led to a loss of Euro 5.3 million.
On the other hand, the report said the last installment for the manufacture of a cargo plane that was ordered by the government flights agency was $37 million. However, a $86 million invoice was submitted for payment to the government.
In a statement that was issued on Sunday evening, the presidency said it also directed the chief secretary to make sure that permanent secretaries and director-generals of government entities read the CAG report and implement issues raised in their areas.
The President also ordered the permanent secretaries to make sure that all those implicated in the report face legal action as required by the law.
