Annual general report of the controller and - Parliament of Tanzania

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Despite the management’s follow up efforts, we are of the opinion that some of these loans and their respective accumulated accrued interests are non-performing assets and are doubtful of recovery which implies overstatement of loans portfolio by the impaired balances of Shs.58.7 billion. We recommend that non performing assets should be provided for impairment as per International Financial Reporting Standards (IAS 39 Para 59) and there after management should continue with effective recovery measures. Securities to Investment Loans Unsecured Loan to Azania Bank Limited The Fund had advanced a loan of Shs.4 billion to M/s Azania Bank Limited. On reviewing the loan agreement, which was signed on 9 th July, 2007, provision therein describing the collateral involved in case of default, could not be established. Similarly, no guarantee whatsoever was provided for in this regard. Section 2.4.1 of the Fund’s investment manual directs that security to investment loans should be first charge on fixed and immovable assets, which can be easily sold to cover any risk of default. We urge management to review its loan to Azania Bank Limited in order to comply fully with its investment policy. Loan to Kiwira Coal and Power Ltd Short term loan of USD 7,000,000 was issued to M/s Kiwira Coal and Power Ltd, repayable after six months. The agreement, which was signed on 10 ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 78 th July, 2007, does not specify the collateral offered as security, apart from stating under section 10.15 that all properties and business should be kept insured. Title deed and the respective mortgage deed for the property, however, could not be availed for verification. Section 2.4.1 of the Fund’s investment manual directs that security to investment loans should be first charge on fixed and immovable assets, which can be easily sold to cover any risk of default. Further, it was explained that the loan has been
guaranteed 75% by the government and 100% by CRDB bank undertaking. The respective guarantee agreements were not available. As at 30 th June, 2008 interest accrued in this regard was reported at Shs. 840,450,000. Neither principal nor interest has been repaid so far, though the whole amount of principal is already due for repayment for over six months now. We urge the management to review the loan agreement with M/S Kiwira Coal Power Ltd to include collateral. CRDB Bank guarantee for the loan should be availed to auditors for verification. Loan to M/s Meditech The Fund had extended a loan of Shs.1,525,368,425 to M/s Meditech on 30 th April, 2003 and the agreed due date for repayment was December, 2004. We were notified that the loan was subsequently rescheduled for repayment to commence from 30 th June, 2006. Agreement to substantiate this later development was yet to be availed for our verification. Further, current correspondences made by the Fund regarding the loan, was observed to have been made with M/s Emunio Tanzania Limited as the borrower. Legality for change of loan liability from M/s Meditech Ltd to M/s Emunio Tanzania Ltd could not be substantiated as no documentary support was availed in this regard and therefore recoverability of the loan could not be ascertained. We are of the opinion that management should consider its taking legal action against the defaulter as two years have elapsed without any repayment. ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 79
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ANNUAL GENERAL REPORT OF THE CONTRO
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Office of the Controller and Audito
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CHAPTER NINE ......................
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GTEA General Tyre East Africa HRM H
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TR Treasury Registrar TRA Tanzania
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Lastly, I would like to thank staff
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for the maintenance of a compliant
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PA & oBs Unqualified opinion Unqual
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and effective delivery of community
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year 2007/2008 the Office of the Co
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CHAPTER ONE BACKGROUND AND GENERAL
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• Preventing or minimizing the un
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1.3 Responsibilities of the Board o
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singly or jointly did the audit of
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CHAPTER TWO BASIS AND TREND OF AUDI
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addition of such an emphasis of mat
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General to access all records, book
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It is important to note that an unq
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From the above analysis, it is evid
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49. National Institute for Producti
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-- The computer hardware and softwa
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epayable after six months. The agre
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4. Tabora Urban Water Supply and Se
Page 47 and 48: was carried out by ‘The Solomon C
Page 49 and 50: 2. PresidentialParastatal Sector Re
Page 51 and 52: een reconciled by DUWASA and theref
Page 53 and 54: 4 Tanzania Standard Newspaper (TSN)
Page 55 and 56: summary total of invoices issued to
Page 57 and 58: 6. Tanzania Communi cation Regulato
Page 59 and 60: monthly reports as required by sect
Page 61 and 62: independently as required by sectio
Page 63 and 64: TANAPA obtained from the Exim Bank
Page 65 and 66: 8. Tanzania Post Corporation 9. Ins
Page 67 and 68: Procurement Notice as required by R
Page 69 and 70: 11 Muhimbili University of Health a
Page 71 and 72: Water Supply and Sewarage Authority
Page 73 and 74: elating to prior years interest cha
Page 75 and 76: CHAPTER THREE SUMMARY OF THE PREVIO
Page 77 and 78: 2. 10.2 Weak Information Technology
Page 79 and 80: eporting directly to the Chief Exec
Page 81 and 82: Concern Problems Some public corpor
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Page 87 and 88: y the liabilities imposed by variou
Page 89 and 90: Tanzania International Container Te
Page 91 and 92: while the Board of External Trade f
Page 93 and 94: 3.2.2 National Insurance Corporatio
Page 95 and 96: Kagera Sugar Company Ltd General Ty
Page 97: Emunio Tanzania Limited Kiwira Coal
Page 101 and 102: 4.0 Introduction CHAPTER FOUR EXPEN
Page 103 and 104: 4.1.3 Questionable payments (i) Nat
Page 105 and 106: The above certificate was in favour
Page 107 and 108: (iii) Tanzania Engineering and Mech
Page 109 and 110: ensure that this regulation is full
Page 111 and 112: Customer Meter No. Date connected F
Page 113 and 114: Date Number of visitors per TANAPA
Page 115 and 116: Loss of Potential Revenues from Pri
Page 117 and 118: CHAPTER FIVE INTERNAL CONTROL SYSTE
Page 119 and 120: prepared (NBC A/C No. 022103000156
Page 121 and 122: 5.6 Lack of segregation of duties.
Page 123 and 124: monthly basis to do a reconciliatio
Page 125 and 126: CHAPTER SIX PERFORMANCE REVIEW 6.0
Page 127 and 128: From the table above, the operation
Page 129 and 130: - IPTL and Songas accounted for abo
Page 131 and 132: Key performance targets not achieve
Page 133 and 134: failing to effectively and efficien
Page 135 and 136: SN Donor Year of deposit Amount 1.
Page 137 and 138: anger post 10 TANESCO Electricity c
Page 139 and 140: aired without raising Broadcasting
Page 141 and 142: 6.13.2 National Development Corpora
Page 143 and 144: CHAPTER SEVEN COMPLIANCE WITH PROCU
Page 145 and 146: of appropriate procurement methods
Page 147 and 148: evaluation committee to the tender
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A review of the tendering procedure
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Dodoma (2 sites ) 10 Singida (2 sit
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TANAPA. Furthermore, there was no e
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VAT). How the Joint venture came ab
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CHAPTER EIGHT CONTRACT MANAGEMENT 8
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3. Unjustified Single source 4. Lac
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Property Market Consult -TZS. 107,9
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Item Old rate (Shs) New rate (Shs)
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Furthermore, throughout the period
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sub-contractor or agents; and the c
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• A further invoice No. 402706 fr
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in the cost of the measured works a
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The original contract price with Gr
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of the project and not responding t
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(a) Tender Evaluation Documents We
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(i) Selling price for the entire pr
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alance (i.e. 90% of selling price)
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payment of the purchase price, whic
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a building. However, the following
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9.0 Introduction CHAPTER NINE ASSET
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No periodic physical verification e
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Lack of motor vehicles registration
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Registrar through his letter with r
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gone in dispute which has not been
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of the Authority by the then Presid
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undertake various activities and th
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9.9 Un-recovered Loans and Advances
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committed by TPB Staff during the p
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have invested the amount in other v
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3.7 Millions (2006) loan 9. Kiwira
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een executed and availed as support
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Tanzania Posts Corporation is an ag
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10.0 Introduction CHAPTER TEN HUMAN
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employees. The appraising system he
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without employment contract contrar
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to a lower rank, status and pay whi
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10.8 Accumulation of annual leave b
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11.0 Introduction CHAPTER ELEVEN CO
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Dar es Salaam City Council since th
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allowances varies from one organiza
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11.3 Parliamentarians serving as Di
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make final decisions to an autonomo
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CHAPTER TWELVE RESULTS OF PRIVATIZA
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12.1.1 Public Authorities and other
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Shs.85,905,745,060 being paid up sh
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total potential of paid up share ca
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alances as at 31 st December, 2007
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CHAPTER THIRTEEN RESULTS OF SPECIAL
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from the existing training arrangem
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evidenced by fuel adulteration whic
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esult of stock taking exercise as a
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CHAPTER FOURTEEN CONCLUSIONS AND RE
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Recommendation • The Board of Dir
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• No monthly bank reconciliations
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advertisement should be aired witho
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Office building at BoT and take app
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• The Government should enter int
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e based upon the interests of consu
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• There is an ambiguity in the ro
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in terms of likelihood of occurrenc
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14. for Universities Tanzania Commu
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28. Government Employees Provident
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9. Mzumbe University 10. University
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Annexure 2 Audits Public Authoritie
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Wildlife Research Institute (TAWIRI
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3. Kigoma/Ujiji Urban water Suppy a
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Higher learning institutions and Co
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Annual general report of the controller and - Parliament of Tanzania

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