Annual general report of the controller and - Parliament of Tanzania

alances as at 31 st December, 2007 whereby only nine (9)
debtors responded.
However, four (4) of the 9 debtors disagreed with their
balances on the ground that the Commission records
overstates their balances. The total amount claimed to be
overstated was Shs.2, 498, 518, 19. This implies that the
balance of the debtors reported may be impaired.
12.2.2 Buyers’ deposits not accounted for Shs.6,746,157,339
Included in the balance sheet of the PSRC as at 31
December 2007, were buyers’ deposits for divested
PA&oBs and sales of non-core assets amounting to
Tshs.8,448,452,794 from 316 depositors. Tests of details
regarding 211 depositors with Tshs.7,203,502,344 resulted
into Shs.6,632,693,934 in favour of 208 buyers being
accounted for as creditors instead of treating the deposits
as cash collections and without indicating their
corresponding revenue generated from those buyers. The
schedule below provides a summary of buyers’ deposits:
Category of Depositors No. of Deposited
depositors amount (Tshs)
Fully paid purchase 129 2,367,402,616
consideration
Contract price not shown 8 2,398,400,000
Over-due debtors 62 1,396,580,301
Paid over and above the 9 12,966,017
contract price
Waiting government approval 3 570,808,410
Inappropriate accounting for buyers’ deposits resulted
into overstatement of PSRC creditors and understatement
of revenues from divestiture proceeds. The
misrepresentation might result into fraudulent
misstatement.
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Office of the Controller and Auditor General PA&oBs 2007/08 221