Annual general report of the controller and - Parliament of Tanzania

a building. However, the following anomalies were noted in
contracting and contract management:
• Lack of a provision regarding review of rent
It is obvious that with time value of money the value of
USD 500 monthly rental charge of 1998 would not be
the same with that of 2018 (20 years after). We noted
that there was no provision to the contract that allow
review of rent. However, correspondences show that
there were initiatives from the institute geared at
increasing rent up to USD12,000 per annum vide their
letter dated 5 th July,2007 with reference
No.ISW/AGC/M.32/37, the same had not been
responded by Mobitel to date and no other efforts had
been made since then. The absence of a clause
regarding review of rent in the contract denies the
Institutes right to review rental charges when deems
necessary and therefore, lose an opportunity to explore
potential sources of generating income.
• Lack of the provision to demolish the Building,
removal of resudial and the tower during the Expiry
of the Contract
We noted that Mobitel (MIC) erected a building on the
Institute’s land and the tower which may still be in
existence after 20 years of contract, but there is no
provision in the contract which explain the ownership of
such building in case the contract is terminated or
expires and the responsibility for clearing of the land.
• Other weakness
In the letter NSWTI/AGC/M.32/17 of 19th October1998,
ISW queried Mobitel to forward a copy of the agreement
after Mobitel had signed. This shows that a contract was
signed without presence of other party. Also, on
12/4/1999, ISW kept on claiming to MIC (T) LTD to
present the copy otherwise the new contract would
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