By Tom Mosoba and Edward Qorro Mr Utouh: His 2007/8 audit report has ruffled some parastatals feathers Some senior official of parastatals are reportedly unhappy with the his report over corruption allegation Some senior Government officials are protesting against the recent audit report by the Controller and Auditor-General (CAG). According to reliable sources, disquiet is brewing in the Government over CAG Ludovick Utouh's report, which he tabled in Parliament in March. The report exposed serious shortcomings in the financial management of several state-run organisations. Among the parastatals said to be planning a protest over the report are the Energy and Water Utilities Regulatory Authority (Ewura), National Social Security Fund (NSSF) and Tanzania Electric Supply Company (Tanesco). Some senior officials and board members of the public utilities are reportedly unhappy with the CAG over corruption allegations and are contemplating to lodge official complaints, The Citizen has learnt. Highly placed sources in the three parastatals said there was a protest against Mr Utouh over the negative picture he had portrayed of the parastals and their management styles. "They are particularly are angered by their portrayal in the CAG's 2007/08 report as bad leaders and masterminds of the financial impropriety that cost the taxpayers billions of shillings," said one source, preferring anonymity for fear of reprisals. Some senior Bank of Tanzania (BoT) officials are also said to be fuming over queries the audit report raised in the $20 million (Sh26 billion) insurance contract for the controversial Twin Towers project. But last week, assistant Auditor-General Francis Mwakapalila defended the National Audit Office (NAO), saying it had conducted the audit professionally. Mr Mwakapalila said the audit's findings were based on transactions executed by the public authorities. He said NAO auditors had worked with 'competent contact personnel' provided by the Government agencies. "We are usually assisted by the institutions' contact personnel during the auditing exercise, therefore, I do not see where these doubts are coming from," he said when contacted for comment. However, some leaders of the state-owned organisations are reportedly arguing that they were 'unfairly condemned' without being given a chance to defend themselves against corruption allegations. "This puts to test the credibility of the CAG reports. Our organisations were tarnished and labelled corrupt without a chance to respond," said a senior NSSF manager. He said the NSSF board was "working on the matter before taking the appropriate response". Mr Mwakapalila denied claims officials of the parastatals were not given time to respond, saying the audit went through various stages, including a planning conference. "So there is always room for the institutions to air out their queries, but so far we have not heard any from them," he said. However, Ewura board chairman Simon Sayore earlier told the Parastatals Accounts and Organisations Committee that the agency was never accorded "the opportunity for an exit meeting with the CAG". Mr Sayore said Ewura had been "shocked" by media reports, which quoted the CAG report implicating the agency in questionable allowances to board members and employees, running into hundreds of millions of shillings. During the meeting, held before the current budget session and chaired by Kigoma North MP Zitto Kabwe, a NAO representative is said to have told MPs the allowance scam involved EWURA's board director. At the BoT, some officials said a statement would be issued after the completion of an internal investigation into the queries raised by the CAG. But the Alliance Insurance Corporation Limited, a private firm that acted as a front for the controversial insurance indemnity has come out to defend its role, which the CAG had questioned in his report. The company's management said while it had offered frontal services for a South Africa company to insure the central bank for the indemnity, it was not involved in any contract negotiations or execution. Mr Utouh said he had asked the Prevention and Combating of Corruption Bureau to investigate the BoT insurance contracts involving several other foreign firms. He said there was need to find out how payments, of about Sh3 billion by the foreign firms, were raised to some Sh7.3 billion in the cover transactions. On their part, some Tanesco officials are reportedly unhappy over the audit reports touching on the multi-billion shillings emergency power supply contracts. They are arguing that they should not be blamed for the controversial contracts since they played no role in the negotiations. The CAG report faults the power utility company for failing to collect an over Sh4 billion penalty from Dowans after it failed to supply power as agreed in the contract it inherited from the Richmond company. NSSF has been accused of granting questionable loans of over Sh65 billion that it has since failed to recover as beneficiaries continue to abuse terms in agreements dating to as far as 1990. It was also said to be holding billions of shillings in abeyance accounts without knowing whose benefits they were. In addition, the fund was blamed for allowing some members to withdraw Sh70 billion in savings against regulations last year. ------------------------------------- Wakuu mnakumbuka hapa GT aliwahi kumshambulia kwa report yake juu ya NSSF? Topic iko wapi mods?