Annual general report of the controller and - Parliament of Tanzania

Board of Trustees approved the disposal of the
properties. Under the circumstances, possibility that
the company was established specifically to
undertake this transaction could not be ruled out.
(b) Non Compliance to Competitive Disposal Procedures
We could not establish whether the Fund considered
disposing off the properties on competitive basis in
line with generally acceptable procedures and section
59 of the Public Procurement Act of 2004, despite the
fact that the property was initially acquired through
tendering from TIB.
There was no invitation for expression of interest on
the disposal by the Fund instead; Dr. Hawa Sinare of
M/s EPITOME Advocates of Dar es Salaam expressed
interest to buy the entire property on 10 th November,
2004 no invitation by the Fund was seen in this regard.
The Fund agreed to sale the same on 27 th December,
2004.
(c) Excessive Delay in Completion of Sales Agreement
The sale agreement of the properties was signed on
29 th October 2007, three years after the initial offer
which was made on 27 th December, 2004 by the Fund
and accepted by the buyer (Dr Hawa Sinare). We could
not substantiate how the offer made three years
previously could have effect, because an offer is not
binding unless there is consideration from the offeree.
It should be noted that the Fund suffered losses, in
this regard, in terms of time value of money by not
disposing the properties in time as the market value of
the properties Shs.600,000,000 in year 2004 is not the
same as the corresponding value in year 2007.
(d) Terms of Payments and Handing Over
According to the sales agreement which was signed
on 29 th October, 2007, the Fund was to deliver vacant
possession of the property to the purchaser within 60
days after signing of the agreement but prior to
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Office of the Controller and Auditor General PA&oBs 2007/08 162