Respicius Mwijage
Member
- Dec 18, 2023
- 15
- 4
IntroductionThe Controller and Auditor General (CAG) plays a crucial role in safeguarding public funds in Tanzania, operating within the constitutional framework. The annual CAG report is a comprehensive document that evaluates government expenditures and holds the key to addressing issues such as embezzlement. This article explores whether the CAG Annual Report leans more towards professionalism or politics, examining various aspects of its creation, presentation, and the subsequent actions taken.
Constitutional Mandate and Responsibilities
The office of the Controller and Auditor General (CAG) is a constitutional entity, operating within the framework of the constitution and the Public Audit Act 2020. Established to safeguard public funds for the benefit of impoverished Tanzanians, the CAG's responsibilities, as outlined in Article 143 of the United Republic of Tanzania's constitution, are fundamental.
Firstly, the CAG ensures that disbursements from the Consolidated Fund align with Article 136 of the Constitution, authorizing them only when compliance is confirmed. Secondly, it verifies that funds disbursed, either from the Consolidated Fund or through parliamentary legislation, are utilized for their intended purposes, adhering to specified expenditure authorizations. The annual audit, conducted by the Controller and Auditor-General, encompasses the financial accounts of the Government, government officers' accounts, court accounts, and those administered by the Clerk of the National Assembly.
Empowered to scrutinize relevant documents, including books, records, financial statements, and reports, the Controller and Auditor-General, alongside authorized government personnel, ensure transparency. Reports, in accordance with constitutional provisions, are submitted to the President, who then instructs relevant parties to present the report to the National Assembly within seven days. Failure by the President leads to direct submission to the Speaker of the National Assembly or the Deputy Speaker if necessary.
Additionally, the Controller and Auditor-General fulfill duties mandated by legislation concerning government accounts and other public entities. While immune to directives from individuals or government departments, they are not exempt from court inquiries, maintaining their independence in executing duties in line with constitutional provisions.
CAG Annual Reports and Issues of Embezzlement
Traditionally, annual reports presented to the President expose embezzlement of public funds from government ministries, public institutions, and local government authorities. However, these reports lack information on measures taken by government officials or individuals involved in embezzlement in the subsequent year. This recurring pattern deviates from the CAG's constitutional mandate, presenting a significant anomaly.
The CAG and the Prevention and Combating of Corruption Bureau (PCCB)
Annually, when the CAG presents their report to the President, the Director General of the Prevention and Combating of Corruption Bureau (PCCB) also submits a report on the same date. Unfortunately, there is no evident link between the CAG's report and the PCCB report, raising concerns about the lack of coordination in addressing issues of embezzlement and corruption.
A Simple Overview of the CAG Report
In a straightforward chronology, the CAG report results from rigorous auditing steps. The CAG initiates the process with an entry meeting, outlining the audit's scope. Subsequently, an audit is conducted, and a provisional report with audit queries is issued. The audited entity is then given a timeframe to respond to these queries. After receiving responses, the CAG holds an exit meeting, highlighting satisfactory and unsatisfactory answers. The entity is provided with another opportunity to address unanswered queries before the final report is issued.
Thus, the CAG report serves as prima facie evidence that government officials or individuals implicated in embezzlement have failed to provide legal or lawful justification for the alleged misappropriation of public funds.
Provision of Value in the CAG Report to the Public
Beyond serving as a constitutional prerequisite, the CAG report could hold significantly more value for the public, especially Tanzanian taxpayers. It is proposed that alongside the submission of the report to the President, a supplementary report be provided, detailing government officials facing legal repercussions for their involvement in embezzling public funds. Presently, the report serves primarily as a constitutional obligation and fodder for media outlets.
The Role of Parliament in Relation to the CAG Report
The relationship between Parliament and the CAG report can be likened to a dog that barks without bearing teeth. Despite the constitutional mandate for the CAG report to be presented to Parliament, the actions taken by parliamentary members, who represent Tanzanian taxpayers, against embezzlers of public funds are largely ineffective. Parliamentary discussions surrounding the CAG report often consist of eloquent speeches and displays of seriousness, yet tangible actions against embezzlement remain lacking.
The President's Role in Addressing the CAG Report
As per the United Republic of Tanzania's constitution, the President is entrusted with safeguarding public funds. Last year, during the receipt of the CAG report, President Mama Samia Suluhu Hassan expressed deep concern over the embezzlement highlighted in the report, even going so far as to use the term "Stupid" to describe the perpetrators. However, despite such expressions of concern, little tangible action seems to have been taken against those implicated in the report. It is imperative that any steps taken against embezzlers are transparently communicated to Tanzanian taxpayers upon the receipt of subsequent reports.
Potential Measures to Enhance the Effectiveness of the CAG Report
In light of the CAG's responsibilities regarding public expenditure, it is essential to underscore that the auditing process is not merely a formality but a crucial mechanism for protecting public funds and fostering national development. Upon completion of the report, immediate action should be taken against individuals implicated in embezzlement, with relevant authorities such as the Prevention and Combating of Corruption Bureau (PCCB) promptly informed. Additionally, the CAG report presented to the President should include details of actions taken against embezzlers, enhancing transparency and accountability.
The Role of Internal and External Auditors and the Public Procurement Regulatory Authority (PPRA)
The annual CAG report consistently highlights embezzlement stemming from procurement irregularities and unsupported documentation. It is notable that within government entities, expenditures require approval from accounting officers and scrutiny by internal or external auditors. Similarly, the existence of Procurement Management Units (PMUs) aims to ensure adherence to procurement laws and fiscal responsibility. However, despite these safeguards, embezzlement persists. It is imperative for the government to prioritize professionalism, integrity, and national duty among staff in the Auditor General's office, PPRA, and the CAG. Without such measures, the CAG report will continue to reveal rampant misuse of public funds.
Dissemination of the CAG Report to Tanzanians
As previously emphasized, the CAG report serves as a comprehensive overview of public fund expenditure, derived from Tanzanian taxpayers and government loans from our international partners. Consequently, the significance attached to the Minister for Finance's budget speech, delivered on the day of the national budget reading, should be similarly extended to the day when the CAG presents the report on public fund expenditure.
Conclusion
The CAG report ought to signify a departure from the entrenched practice of embezzling public funds, instead serving as a catalyst for reforming the conduct of government officials. It should instil a sense of national duty, fostering genuine, sustainable development in our nation. It is imperative that appointing authorities scrutinize the integrity of accounting officers entrusted with managing public funds and swiftly take action to remove individuals found culpable of mismanagement. This proactive approach is essential for ensuring accountability and promoting the responsible stewardship of public resources.
The author (Respicius E. Mwijage) is a Tax lawyer with experience in Tax Dispute Resolution.
E-mail: remwijage@yahoo.com
Mob: +255 688 526 718
