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.
