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[Dehai-WN] Busiweek.com: Tanzania: Government Vehicles Cost Locals U.S.$3.2 Billion

From: Berhane Habtemariam <Berhane.Habtemariam_at_gmx.de_at_dehai.org>
Date: Tue, 5 Jun 2012 00:08:22 +0200

Tanzania: Government Vehicles Cost Locals U.S.$3.2 Billion


By Leonard Magomba, 4 June 2012

Dar es Salaam - The massive number of government vehicles now cost taxpayers
over Tsh5t ($3.15b), as local people even fail to have a single meal a day
while the country's road and railway infrastructure systems are in a sory
state.

A recently report from the local media said, the only remaining train of the
Tanzania Railways Limited (TRL) which operates between Dar es Salaam and
Kigoma, in the Western part of Tanzania, failed to function due to
insufficient funds to repair the tired railways network.

During the annual general meeting held in Dar es Salaam two weeks ago, the
Managing Director of Tanga Cement, Mr Erik Westerberg, said poor
infrastructure, unreliable electricity and the uncontrolled inflow of
foreign cement at very low prices, were among the reasons local firms close.

"We are relying on road transport to move our products which is very costly,
"Westerberg said. "If we were to use rail transport the costs of production
would be lower."

A confidential source from the government said the recently reshuffled
cabinet, with a total of 55 ministers and their deputies, costs taxpayers
about Tsh11b ($6.93 m) for buying each one of them a Landcruiser -VX car.

According to the Public Accounts Committee's report of 2010/11, "the
government has vehicles worth Tsh5t ($3.15b ) which is equivalent to 60% of
the country's annual budget, according to the 2011/12 estimates."

The PAC's report being availed to East African Business Week in Dar es
Salaam recently, revealed that, about 60% of the Tsh5t ($3.51b) is the total
value of the expenses on the fuel guzzlers. It further described Landcruiser
VX or V8 as expensive cars in running and maintaining.

One of the government's senior drivers, who preferred anonymity said, when
he travels, normal routes around the city, his Landcruiser V8, consumes 400
litres of fuel per month. "This means a single car consumes fuel worth
around Tsh840,000 ($529.467) every month."

The senior driver said if the car goes to a garage for regular service,
which normally done after every 5,000km, the bill normally stands at about
Tsh800,000 ($504.255).

The Chief Auditor and Controller General (CAG) audit report of the central
government for the financial year ended on June 30, 2011 revealed that the
government has been losing millions of shillings on maintenance of its
vehicles.

It has been documented in the report that in 2010/2011 ministries,
departments, agencies and the office of Regional Administrative Secretariats
(MDAs&RAS) mishandled payments for the maintenance of government vehicles
amounting to Tsh77.318 m ($48,734.95). "This is minus cheating done on fuel
bills," it said.

When an MP travels to Dodoma during the assembly session, the Parliament
premises and Dodoma municipality becomes another Detroit or Tokyo motor
show, leaving one wondering how a poor country like Tanzania, can afford
buying and running such fuel guzzlers.

However, as the officials enjoy their rides in their preferred means of
transport, milllions of Tanzanians are suffering in grinding poverty, partly
because they have to maintain the senseless lavish lifestyle of people who
should be serving them.

For years now the public has been calling upon the government to review its
policy of purchasing vehicles after realising that billions of money was
spent annually on the procurement of fuel guzzlers at the expense of public
welfare.

In the 2008/2009 financial year, records show that the government spent
about Tsh150b after it ordered for 800 brand new four-wheel drive luxury
vehicles from Japan.

An expert said, such a whooping amount of money could have paved 450
kilometres of roads or given to 7,500 university students loans amounting to
Tsh5m yearly for four years, ccnsidering the fact that two weeks ago the
government failed even to disburse required money for the university
students.

Chairman of the Public Accounts Committee ( PAC) John Cheyo submitted the
committee's report to Parliament in April in which it was revealed that the
government, as of June 30, 2010, owned a fleet of cars worth billions of
dollars from tax payers.

 




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