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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Corporation 11. Sugar Board of Tanzania 8 2 6 25 12. Tanzania Gaming Board 6 2 4 33 13. Marine services Limited 6 2 4 33 In addition, three instances were noted in that, two senior government employees and one from the private sector are board members in several organizations as shown below. Since the role of Board Members needs devotion in terms of mental and time, it is unlikely for such members to contribute effectively towards the wellbeing of the corporations they are serving. S/N Board Member Entity 1. P/Secretary UDSM, DAWASCO, Mzumbe University, NSSF,NBMM 2. Senior Govt CHC, Reli Assets Holding, NIC, employee TPDC,UDSM,MNH 3. Private ARU,NCCA,BET,PPF The multiple appointments flout requirements of Section 12 of Public Corporations Act, 1992. For control purposes, every proposed appointment of board member should have been forwarded to the Treasury Registrar as required by Section 12(2) of the above Act. 11.4 External influence/interference Decision making in Public Authorities is categorised into two. First, is a managerial decision making, also referred to as operational decisions relating to the day-to-day activities. The second level are is strategic decision making or commonly known as corporate decisions which are made by the apex body of any organization. Since the public authorities are autonomous entities, the apex body for corporate decisions is the governing board. Nevertheless, other organizations, such as regulatory bodies, parent ministries etc, may advise but should not ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 210

make final decisions to an autonomous entity whether strategic or operational However, instances were noted whereby government authorities influenced TANAPA on both operational and strategic decisions. The overriding decisions involved payments of large amounts of money and contracting without following tender procedures. 11.5 Treasury Registrar’s Responsibilities in directing the Authorities As provided in the Treasury Registrar Ordinance Cap. 418 and Sect. 6 of the Public Corporations Act No. 16 of 1983 the Treasury Registrar functions in relation to Public Corporations includes:- • To keep or cause to be kept under permanent review the business and affairs of all persons and bodies of person in respect of which the Treasury Registrar holds any property or any interest in the property; • To render advice to the Government relating to the establishment of public or statutory corporations, and the vesting of any business or property in any such organizations; • To review the financial performance of public and statutory corporations with a view to recommending measures aimed at amalgamation, disestablishment or improvement of their performance; • To ensure that unless the appointment is by virtue of office ensure that no person shall be appointed to be a member of more than three Boards of Directors at the same time. 11.6 Lack of legal framework Governing establishment of Audit Committees in the Public Authorities The audit of various public Authorities revealed that there have been various standards in establishing the audit committees. The Public Finance Act, 2001 section 30 refers ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 211

Corporation<br />

11. Sugar Board <strong>of</strong> <strong>Tanzania</strong> 8 2 6 25<br />

12. <strong>Tanzania</strong> Gaming Board 6 2 4 33<br />

13. Marine services Limited 6 2 4 33<br />

In addition, three instances were noted in that, two senior<br />

government employees <strong>and</strong> one from <strong>the</strong> private sector are<br />

board members in several organizations as shown below.<br />

Since <strong>the</strong> role <strong>of</strong> Board Members needs devotion in terms <strong>of</strong><br />

mental <strong>and</strong> time, it is unlikely for such members to<br />

contribute effectively towards <strong>the</strong> wellbeing <strong>of</strong> <strong>the</strong><br />

corporations <strong>the</strong>y are serving.<br />

S/N Board Member Entity<br />

1. P/Secretary UDSM, DAWASCO, Mzumbe<br />

University, NSSF,NBMM<br />

2. Senior Govt CHC, Reli Assets Holding, NIC,<br />

employee TPDC,UDSM,MNH<br />

3. Private ARU,NCCA,BET,PPF<br />

The multiple appointments flout requirements <strong>of</strong> Section<br />

12 <strong>of</strong> Public Corporations Act, 1992. For control purposes,<br />

every proposed appointment <strong>of</strong> board member should have<br />

been forwarded to <strong>the</strong> Treasury Registrar as required by<br />

Section 12(2) <strong>of</strong> <strong>the</strong> above Act.<br />

11.4 External influence/interference<br />

Decision making in Public Authorities is categorised into<br />

two. First, is a managerial decision making, also referred to<br />

as operational decisions relating to <strong>the</strong> day-to-day<br />

activities. The second level are is strategic decision making<br />

or commonly known as corporate decisions which are made<br />

by <strong>the</strong> apex body <strong>of</strong> any organization. Since <strong>the</strong> public<br />

authorities are autonomous entities, <strong>the</strong> apex body for<br />

corporate decisions is <strong>the</strong> governing board.<br />

Never<strong>the</strong>less, o<strong>the</strong>r organizations, such as regulatory<br />

bodies, parent ministries etc, may advise but should not<br />

___________________________________________________________<br />

Office <strong>of</strong> <strong>the</strong> Controller <strong>and</strong> Auditor General PA&oBs 2007/08 210

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