Annual general report of the controller and - Parliament of Tanzania

4.1.4 Irregular payments in respect of Insurance Premiums for
BOT HQ Building Shs. 7.3 Billion
Payments were made in respect of insurance premiums for
the Bank’s Head Office project for which the Bank lacks
relevant, sufficient and appropriate supporting documents
such as insurance policies, endorsements or policy covers.
Furthermore, premiums charged and paid to the Broker
appear excessive and there were inconsistencies in the
manner the transactions were conducted. I am of the
opinion that Premiums may have been paid to the Broker
for no insurance policies and/or the Bank may have paid
excessive amounts of insurance premiums due to the
application of unjustified excessive premium rates.
Management should institute a competent independent
investigation on the transactions and take appropriate
action
4.1.5 Over payment of Value Added Tax (VAT) on the approved
Contractor’s certificates:
(i) Dar es salaam University College of Education
We observed that some of the contractors were given
advance payments at the beginning of the construction
work as per terms of contracts. These advance payments
were recovered by the University College when the
respective contractor’s issued their certificates of
completed work. In the course of examining the
corresponding payments accounts, we noted that the Value
Added Tax (VAT) paid on some of these certificates was
more than the amount which was supposed to be paid as
detailed below:
Details Shs
The Certified Value 229,896,093.00
Add: Advance Payments 93,100,833.00
Gross Value 322,996,926.00
Less: Recovery on Advance 27,930,250.00
Payment
The Amount used to Determine VAT 295,066,676.00
VAT 20% 59,013,335.00
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Office of the Controller and Auditor General PA&oBs 2007/08 84