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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and Scoop News Studio at TVT Mikocheni (for GBP 53,212 and supply of internet service (for Tshs.172,000,000) awarded to P Squared Limited of UK and WiA Company Limited respectively. • The Tanzania Ports Authority Management should commission an investigation on the award in favour of a joint venture between M/s Tangerm LTD of Dar es Salaam and M/s Techno Combine Construction LTD on the construction of a container staking yard at ex- TANESCO for Shs.4,165,666,875. 14.7 Contract Management The common practice includes weak and vague contracts, breaching of contracts and absence of contracts. Given the outcomes of the review of some legal contracts that were entered into by Public Authorities and other Bodies the following recommendations are drawn:- Recommednation • TANESCO management should immediately review the Songas project cost to establish the correct amount which should be paid. • Bank of Tanzania management should review the existing contract for the extension of BOT Headquarters building work to ascertain whether it is still valid and that the Bank is safeguarded from contract risks. The review should also involve terms and conditions with sub-contractors and consulting engineers. Maximum contract price and completion timetable should be agreed with the Contractor. Since the Bank will continue to have major contractor such as Estate management and IT, it should consider developing Project Management Methodology as well as develop a programme aiming to build the Bank’s internal capacity to manage major contracts. • Bank of Tanzania management should institute a competent independent investigation on the transactions of Insurance for Construction of Head ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 238

Office building at BoT and take appropriate cause of action including recovery of the premiums. • The Board of Trustees of the National Social Security Fund (NSSF) should confirm whether value for money was attainment during implementation of Oracle ebusiness suite Applications and Core Fund Management System project by commission an investigation on the project. • The Board of Trustees at NSSF should initiate an investigation on all irregularities surrounding the transaction for disposal of Executive Apartments at ADA Estate Kinondoni area with a view to establish its propriety. The corrective measures should thereafter be taken for the Fund failure to institute the signed agreement accordingly. • Management and Board of Trustees of NSSF should confirm that value for money was realized on disposal of the Club Oasis properties or otherwise commission an independent investigation to confirm the genuineness of the whole transaction. 14.8 Assets Management The Ministry of Finance and Economic Affairs should be fully supported by the Government to set up a special unit that will be responsible for investment appraisal of public sector investments above a specified threshold. There is need for such a body considering the current situation where negative returns are being earned on GoT investments. Once a project has been appraised and found viable, GoT needs to prioritize funding for projects with the most attractive returns. 14.9 Corporate Governance Good Corporate Governance makes it mandatory for PA&oB to institute sound policies towards proper management of resources. In achieving this fundamental goal, organizations need to institute a series of aspects that shall enable them to exercise effective controls for elimination of wastes fortified by fraud, negligence, embezzlements and sloppy ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 239

<strong>and</strong> Scoop News Studio at TVT Mikocheni (for GBP<br />

53,212 <strong>and</strong> supply <strong>of</strong> internet service (for<br />

Tshs.172,000,000) awarded to P Squared Limited <strong>of</strong> UK<br />

<strong>and</strong> WiA Company Limited respectively.<br />

• The <strong>Tanzania</strong> Ports Authority Management should<br />

commission an investigation on <strong>the</strong> award in favour <strong>of</strong><br />

a joint venture between M/s Tangerm LTD <strong>of</strong> Dar es<br />

Salaam <strong>and</strong> M/s Techno Combine Construction LTD on<br />

<strong>the</strong> construction <strong>of</strong> a container staking yard at ex-<br />

TANESCO for Shs.4,165,666,875.<br />

14.7 Contract Management<br />

The common practice includes weak <strong>and</strong> vague contracts,<br />

breaching <strong>of</strong> contracts <strong>and</strong> absence <strong>of</strong> contracts. Given <strong>the</strong><br />

outcomes <strong>of</strong> <strong>the</strong> review <strong>of</strong> some legal contracts that were<br />

entered into by Public Authorities <strong>and</strong> o<strong>the</strong>r Bodies <strong>the</strong><br />

following recommendations are drawn:-<br />

Recommednation<br />

• TANESCO management should immediately review <strong>the</strong><br />

Songas project cost to establish <strong>the</strong> correct amount<br />

which should be paid.<br />

• Bank <strong>of</strong> <strong>Tanzania</strong> management should review <strong>the</strong><br />

existing contract for <strong>the</strong> extension <strong>of</strong> BOT Headquarters<br />

building work to ascertain whe<strong>the</strong>r it is still valid <strong>and</strong><br />

that <strong>the</strong> Bank is safeguarded from contract risks. The<br />

review should also involve terms <strong>and</strong> conditions with<br />

sub-contractors <strong>and</strong> consulting engineers. Maximum<br />

contract price <strong>and</strong> completion timetable should be<br />

agreed with <strong>the</strong> Contractor. Since <strong>the</strong> Bank will<br />

continue to have major contractor such as Estate<br />

management <strong>and</strong> IT, it should consider developing<br />

Project Management Methodology as well as develop a<br />

programme aiming to build <strong>the</strong> Bank’s internal capacity<br />

to manage major contracts.<br />

• Bank <strong>of</strong> <strong>Tanzania</strong> management should institute a<br />

competent independent investigation on <strong>the</strong><br />

transactions <strong>of</strong> Insurance for Construction <strong>of</strong> Head<br />

___________________________________________________________<br />

Office <strong>of</strong> <strong>the</strong> Controller <strong>and</strong> Auditor General PA&oBs 2007/08 238

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