Annual general report of the controller and - Parliament of Tanzania

payment of the purchase price, which was agreed at
Shs.600 million. On the other hand the purchaser was
to ensure payment of purchase price no later than 7
days subsequent to completion of transfer of
property.
It was further agreed upon that payment shall be
made by bank guarantee issued by a reputable bank
undertaking to pay the whole purchase price once the
property is transferred in the name of the buyer.
Under the circumstances, the handling over deed of
the properties was signed on 16 th November, 2007,
whereby the buyer accepted the hand over pending
transfer of documents of title to the buyer’s name.
We further observed that, on 10 th June 2008, the
buyer submitted a bank guarantee issued by CRDB
Bank guaranteeing to pay to the Fund amount not
exceeding Tshs. 600 million after the properties have
been transferred in the name of the buyer and
registration of the same as mortgage in favour of
CRDB Bank.
To date process of transfer of property to the name
of buyer is yet to be concluded. In this respect, we
are of the opinion that the Fund was engaged into
vague terms and conditions which resulted into none
payment for the properties to date. We urge
management to revoke this agreement and dispose
the property on competitive basis to attain fair value
in the market.
8.12 Contract variations not certified by consulting engineer
and approved by tender board at TBC Shs.194 Million
Tanzania Broadcasting Corporation paid Thompson
Broadcasting and Media Limited of France a total Euro
114,225 equivalent to TZS 194 million for additional costs
for Civil works due to change in design of tower
foundations as a result of rock underneath Euro 93,255.00
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Office of the Controller and Auditor General PA&oBs 2007/08 163