Annual general report of the controller and - Parliament of Tanzania

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.
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Office of the Controller and Auditor General PA&oBs 2007/08 79