Tanzania Railways Corporation (TRC) and Tanzania Government Flight Agency (TGFA) became the first casualties of the CAG report, after President Samia Suluhu on Sunday dissolved the TRC Board and sacked the flight agency’s Director General John Nzulule.
This comes after the 2021/22 the Controller and Auditor General (CAG), revealed massive discrepancies in the purchase of a cargo plane that would later be leased to ATCL and the purchase of locomotives and couches for the TRC.
The report indicated that the contracts that were entered in construction of the Standard Railway Gauge (SGR) were not of national interest.
According to the CAG the Tanzania Railway Corporation (TRC) twice rejected the tender to purchase the locomotives and passenger coaches from the lowest bidder at an offer of $263.4 million and instead made a non-competitive purchase of $478 million.
The decision to enter into a non-competitive purchase as a result cost the tax payer an additional $215 million (Sh507.4 billion).
Also, in the contract to purchase the locomotive and passenger coaches, TRC implemented the process without a performance guarantee, a situation that led to a loss of Euro 5.3 million (Sh13.7 billion).
On the other hand, the report said the last installment for the manufacture of a cargo plane that was ordered by the government flights agency was $37 million; however, $86 million invoice was submitted for payment to the government.
In a statement that was issued on Sunday evening the Presidency said apart from the TRC board and TGFA director, it directed the chief secretary to make sure that permanent secretaries and Director Generals of government entities read the CAG report and implement issues raised in their areas.
The president also ordered the permanent secretaries to make sure that all those implicated in the report should face legal actions as required by the law.