Annual general report of the controller and - Parliament of Tanzania

5/6/2008 while contract became effective
1/1/2008.
• The contract required operator to deposit with the
lessor an insurance cover for general liability greater
than USD 5 Million. No evidence was produced
suggesting that the operator had complied with the
provision of the contract.
• The annual rental fee of USD 200,000 was paid on
7/8/08 based on the invoice raised on 2/4/08
contrary to the contract which spelt out that the
annual rental fee should have been paid within 90
days after effective date which was 1.1.2008. In
other instances the staffs at TPA Kigoma were noted
to be unaware of the provisions requiring the
contractor to purchase, install and maintain internal
fire fighting systems for cargo terminal. We
recommend management should as much as
practicable ensure transparency in all contracts and
involvement of branch management for smooth
execution and supervision of contracts.
8.6 Insurance for Construction of Head Office building at BoT
Review of the insurance for the construction of head office
building at BoT identified major anomalies as shown
below:-
(i) Lack of Insurance Policies and/or addendums from
insurers
From the total Insurance Premiums of US$
6,302,823.42 paid by the Bank to its Insurance
Broker between 20 February 2003 to 24 July 2007
the Bank has in its possession Insurance Policies to
support only US$ 2,478,388 worth of premiums paid.
For the rest of the premiums paid, the Bank has only
letters and invoices issued by its broker.
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Office of the Controller and Auditor General PA&oBs 2007/08 144