Annual general report of the controller and - Parliament of Tanzania

evidenced by fuel adulteration which is very high (i.e.
above 50%).
Furthermore, Section 42 (1) of the EWURA Act of 2001
(revised 2002) empowers the Authority to impose a fine not
exceeding three million Shillings or subject to
imprisonment for a term not exceeding five years or both
to any person convicted of adulteration. However, the
Authority appears to be too lenient to defaulters to impose
the higher punishment. The fines being charged encourage
adulteration practice as demonstrated in the proceding
paragraph.
If a petrol dealer takes 39,000 litres of kerosene and mixes
with 61,000 litres of diesel which gives 100,000 litres of
adulterated diesel, the sell of which results to a net gain of
TShs. 15,600,000 ( i.e. Shs. 400 gain from exemption X
39,000 number of contaminated diesel litres) in case the
dealer is not caught by EWURA’s officials. However, if the
dealer is caught by EWURA’s officials, the fine charged is
TShs. 3,000,000 which will reduce only 19% of the total
gain by unscrupulous dealer. In other words, the
unscrupulous dealer will still end up with a net gain of
TShs.12,600,000 (i.e.TShs.15,600,000 - TShs.3,000,000)
In such circumstances, fuel adulteration will continue
unless EWURA takes strong measures including confiscation
of the adultered fuel followed by imposing the maximum
punishment which is both fine and imprisonment.
13.1.6 Payment of Per Diem and Accommodation
Shs.171,175,219.03
We noted that Authority paid per diem and
accommodation to its staff and Board members
amounting to Shs. 171,175,219, when on official trips
outside the country. The per diem paid is intended to
cover full cost which is boarding and lodging costs.
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Office of the Controller and Auditor General PA&oBs 2007/08 227