Annual general report of the controller and - Parliament of Tanzania

Tanzania Posts Corporation is an agent of Tanzania Postal
Bank, the former being charged with the responsibility of
collecting deposits from the Bank’s customers and
disbursing withdrawals alike. Tanzania Posts Corporation is
supposed to remit the excess deposits over withdrawals to
the Bank’s regional collection accounts within two weeks
from the transaction date.
We however, noted that, the balance due from Tanzania
Posts Corporation as at the year end was on the high side
indicating that the Corporation had not been remitting the
excess deposits as per agency agreement. The above data,
also shows that TPC Excess Deposits balance increased by
Shs.75,165,135 from Shs.1,459,117,834 as at 31.12.2006 to
Shs.1,534,282,969 as at 31.12.2007, an indication that
efforts made by the bank’s management to have the
money remitted by Tanzania Posts Corporation have so far
not been effective. Furthermore, age analysis to support
the same balance was not available for our verification.
The non-recovery of TPC Excess Deposits decreased the
Bank’s liquidity and thus forced the Bank into unnecessary
financial constraints.
(ii)Fraudulent Withdrawals by Tanzania Posts Corporation
Staff
We observed that fraudulent withdrawals by Tanzania Posts
Corporation staff increased from Shs.44,947,400 in 2006, to
Shs. 47,443,500 in 2007. The above balance includes an
amount of Shs.3,666,600 which has remained in dispute
with TPC since the year 2002 and remaining balance of
Shs.43,776,900 has not yet been reconciled with TPC or
TPC has not confirmed the same. No provision for bad and
doubtful debts has been made in the accounts in respect of
the fraudulent withdrawals amount despite the balances
not being confirmed to be recoverable and part of it being
in dispute for over five years.
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Office of the Controller and Auditor General PA&oBs 2007/08 191