Annual general report of the controller and - Parliament of Tanzania
Annual general report of the controller and - Parliament of Tanzania
Annual general report of the controller and - Parliament of Tanzania
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sub-contractor or agents; <strong>and</strong> <strong>the</strong> cost <strong>of</strong> which was<br />
duly included in <strong>the</strong> total contract price. However,<br />
<strong>the</strong> Bank also purchased CAR policy which also<br />
covers “risk <strong>of</strong> damage to <strong>the</strong> insured property”.<br />
(iv) Justification for <strong>the</strong> Bank to purchase such<br />
policies<br />
Whereas we underst<strong>and</strong> that <strong>the</strong> Bank was advised to<br />
purchase <strong>the</strong> above insurance policies by its<br />
pr<strong>of</strong>essional insurance broker <strong>and</strong> a Bank’s project<br />
manager we found no satisfactory answers to <strong>the</strong><br />
following questions:<br />
• Reasons for duplicated insurance cover for same<br />
risks as already explained above;<br />
• Whe<strong>the</strong>r it was in <strong>the</strong> best interest <strong>of</strong> <strong>the</strong> Bank<br />
for <strong>the</strong> Bank to purchase at own costs<br />
Pr<strong>of</strong>essional Indemnity Policy for its able<br />
independent consultants namely M/S Architect<br />
WEBB Uronu, M/S Design & Services; M/S Inter-<br />
Consult, <strong>and</strong> M/S Tan Consult for <strong>the</strong>ir respective<br />
pr<strong>of</strong>essional related risks; <strong>and</strong><br />
• Whe<strong>the</strong>r <strong>the</strong> Bank had any insurable interest in<br />
<strong>the</strong> pr<strong>of</strong>essional duties <strong>and</strong> obligations <strong>of</strong> <strong>the</strong>se<br />
independent consultants. Moreover, we find it<br />
logical that <strong>the</strong> Bank should have required <strong>the</strong>se<br />
consultants to maintain such policies or <strong>the</strong> Bank<br />
should have recovered insurance premiums paid<br />
by it from payments it made to <strong>the</strong>se<br />
consultants.<br />
(v) Inconsistent information on PII Policy<br />
Inconsistent information provided to <strong>the</strong> Bank<br />
management. For example, <strong>the</strong> Bank’s broker<br />
indicated in his letter to <strong>the</strong> Bank that <strong>the</strong> PII was<br />
sourced from Insurers in Europe, US <strong>and</strong> SA <strong>and</strong> that<br />
no local insurer was capable to provide <strong>the</strong> cover.<br />
This was fur<strong>the</strong>r supported by <strong>the</strong> Bank’s project<br />
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Office <strong>of</strong> <strong>the</strong> Controller <strong>and</strong> Auditor General PA&oBs 2007/08 147