Africa-Press – Tanzania. THE Parliamentary Public Accounts Committee (PAC) has expressed strong concern over serious irregularities in the implementation of the first phase of the Msalato Airport project, resulting in a loss of over 9bn/- due to mismanagement.
The committee also cited concerns about the project’s value for money, given the over 600bn/- budget overseen by the Tanzania Roads Agency (TANROADS).
It tasked the government to review the provisions of the project’s financing agreement. The review of an agreement according to PAC Chairperson, Naghenjwa Kaboyoka will help to balance the extra costs by ensuring that all unnecessary additional costs are paid by the side that occasions loss.
Ms Kaboyoka made the shocking revelation in the august House yesterday when presenting the 2024 implementation report for her committee where she noted that parliament had tasked the Controller and Auditor General (CAG) to conduct a special technical audit of the implementation of the Msalato Airport project.
According to him, the audit report found out that some engineers who were yet to be registered had been given different construction works in the project.
Also, it was found out that some buildings were constructed without building permits, contrary to regulations of urban planning law.
Regarding financial irregularities, she said, the CAG found out there were several challenges in the feasibility study of the project which resulted in an increment of 3.04bn/-, as per the Tanzania Road Geometric Manual, 2012.
“The audit report further found out that there was overpayment totalling 5.729bn/- to the contractor on various construction works which had no blessings from the procurement board,’’ she informed the House.
Furthermore, the technical audit revealed delays in paying the contractor for infrastructure works forcing the government to pay an extra of 303.814m/- in accumulated interest.
“The delays in payment took between eight and 70 days thus causing an increase in costs,’’ said Ms Kaboyoka.
Therefore, the committee chairperson said, Tanzania will be forced to pay these accrued interests as per the financing agreement with the African Development Bank (AfDB).
As the second phase of the project which is expected to kick off in April 2025 nears, PAC said that the earlier challenges in the implementation of the project have an adverse financial effect to the government including an increment on the construction cost by 6.97bn/- due to various reasons.
“We will be forced to pay 322.721m/- in interest because of delays in clearing contractors and delays in having the second contractor dealing with various building infrastructures including the passengers’ lounge and offices will hike costs due to the fact that there will be costs for hiring a consultant.
Earlier this month, the government said that the construction of the airport located in the country’s administrative capital, was progressing well, with the runway now 84 per cent complete and that it is expected to be completed by June this year.
The envisaged 272 million US dollars (over 600bn/-) robust project is expected to catalyse the country’s economy as it equally plans to offer employment opportunities to Tanzanians living in the country’s capital, Dodoma.
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