Africa-Press – Tanzania. THE government has refuted allegations raised by Arusha Urban legislator Mrisho Gambo over embezzlement in Arusha City Council projects, with the Minister of State in the President’s Office for Regional Administration and Local Government, Mr Mohamed Mchengerwa, offering a detailed clarification on the matter in National Assembly, yesterday.
Last week, during the ministry’s budget discussions, Mr Gambo raised serious accusations regarding two major projects the construction of the council’s administrative building and the Samunge market.
He alleged misuse of public funds, abuse of office and discrepancies in project measurements that led increased payments to contractor.
Mr Gambo questioned the costs, stating that the eightstory administrative building should not cost 9bn/-, arguing that each floor supposedly costing over 1bn/- was unrealistic.
He also pointed out variations in the Bill of Quantity (BOQ) that allegedly led to an extra 1.5bn/- in costs.
He also criticised the allocation of 1.6bn/- in the 2025/26 council’s budget for the construction of a modern market.
Mr Gambo urged for better financial oversight and challenged the council to prioritise critical infrastructure like roads instead of demolishing existing revenue-generating structures.
Tabling the probe report to the National Assembly here in Dodoma, Minister Mchengerwa, however, dismissed the claims as unfounded.
Mr Mchengerwa explained that the construction of the Arusha City Council’s administrative building began in 2019 when Mr Gambo was the Regional Commissioner.
However, disputes between MP Gambo, Regional Commissioner John Mongela and the city council led to the suspension of the project until 2023.
The construction resumed in April 2024, with the building now reaching the sixth floor.
So far, the contractor has been paid 2.2bn/-, based on certified work verified by the city engineer. According to him, all payments are made against completed and verified work and no public funds have been misappropriated.
He emphasised that the final cost of the project will reflect accurate measurements and the total contract value is set at 3.46bn/-.
Mr Mchengerwa reaffirmed the sixth-phase government’s commitment to transparency and accountability, assuring the public that no taxpayer money will be lost.
Regarding the relocation of a market project initially planned for Engutoto, he clarified that the regional leaders decided to move it to Samunge, but after it was found that the land had private plots, the site was shifted again to Bondeni City.
The tender for construction will be announced on April 28th, this year. The project, he added, is a tribute to small-scale traders in Arusha.
He also clarified the allocation of 1.6bn/- in the 2025/26 budget, stating that the funds are not solely for demolishing shops at the small bus terminal, as claimed by Mr Gambo, but for the broader implementation of the project.
He also refuted Gambo’s claim that the current market generates over 800m/-per month, stating that the actual revenue is 74m/-.
Speaker of Parliament, Dr Tulia Ackson, underscored the importance of accurate information, especially when public funds are involved.
She reminded MPs of their responsibility to participate in council’s meeting in their constituencies and avoid making misleading statements that could alarm the public.
“These kinds of allegations are inappropriate and must be avoided to prevent unnecessary panic among citizens,” Dr Ackson stated, before referring the matter to the Parliamentary Privileges, Ethics and Powers Committee.
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