Is Central Government Managing Money Well?
Findings from Recent Audit Reports
Why this Leaflet?
Despite the fact that the Government is currently working to strengthen local government, much of its dayto-
day operations are still highly centralized. Currently, about three-quarters of all the money that Government spends flows through central Government Ministries, Departments and Agencies (MDAs).
The MDAs get their money in large part from the taxes that all citizens pay, such as income tax or valueadded tax (VAT), as well as donor support. This money funds a range of services that are administered at the central Government level, such as salaries, major construction projects, secondary education, and national health interventions.
The Controller and Auditor General (CAG) inspects the accounts of each ministry on a yearly basis and records instances where the accounts do not give satisfactory explanation of how the money has been spent. The CAG compiles a report for each MDA, which is then tabled in the Parliament’s Public Accounts Committee (PAC) for deliberation and scrutiny. The PAC issues recommendations for follow up.
This report is then meant to be discussed in open sessions of Parliament and forwarded to the Ministry of Finance for further action. Implementation of this process has been somewhat weak. Audit reports have not been fully debated in Parliament. Significantly there appears to have been little action taken on the audit findings. This may now be changing. Soon after his election, President Kikwete announced that the CAG would be given legal powers to follow up on negative findings. He has also said that public servants found guilty of embezzlement should be handed over to the police to be prosecuted rather than go before administrative tribunals that impose more lenient “disciplinary measures.”
This leaflet presents the findings of CAG Annual Reports for MDAs for the three most recent financial 1 years for which data is publicly available (2002/03, 2003/04, and 2004/05). It highlights recent key findings, and compares the findings of the different ministries.
To access the leaflet in full in PDF, click here.