At a breakfast policy dialogue hosted by Policy Forum and WAJIBU – Institute of Public Accountability, former Controller and Auditor General Ludovick Utouh delivered a critique of public financial management and service delivery in Tanzania, based on the findings from the latest audit reports. The event, part of Policy Forum's 2025 Breakfast Debate series, gathered stakeholders from government, civil society, and development partners to reflect on audit outcomes and budget execution trends.

Despite a rise in unqualified (clean) audit opinions, Utouh emphasised that these improvements have not translated into better service delivery or effective implementation of audit recommendations. Only 39% of CAG recommendations were fully implemented, with 22% either unaddressed or overtaken by events.

“There’s a clear disconnect between what the audit reports say and what citizens experience,” said Utouh. “A clean audit opinion means adherence to accounting standards, but it does not necessarily mean public money is being used efficiently or that services are improving.”

The presentation highlighted significant weaknesses in budget execution, including delays in disbursing TZS 427.36 billion for development projects and 66 public authorities missing out on 45% of their approved budgets. This undercuts the credibility and effectiveness of the national budget, especially as the government continues to overborrow rather than strengthen domestic revenue systems.

One of the most alarming revelations came from the water sector. Despite high investment, including the procurement of 86 drilling machines and a plan to drill 900 boreholes, by October 2024, only 39% of the boreholes had been completed. Private contractors performed the work at less than half the cost compared to public institutions, raising questions about efficiency and value for money.

The audit also uncovered red flags of corruption in public procurement, including:

- TZS 13.45 billion in contracts signed without legal vetting;

- TZS 13.79 billion in advance payments made without bank guarantees;

- Mismanagement of TZS 77.01 billion by LGAs and PO-RALG;

- A terminated TZS 38.36 billion TANROADS contract due to fraudulent

contractor submissions.

“These issues aren’t just technical, they point to systemic failures in oversight, planning, and governance,” Utouh said. “Citizens have a right to know what’s going wrong, and action must be taken.”

Recommendations include:

- Establishing a National Audit Committee and strengthening the independence of the Internal Auditor General;

- Making the CAG’s red flags a trigger for immediate investigation by law enforcement agencies, with transparent public reporting;

- Reforming the water sector to meet targets set in the National Water Policy (2002), through better planning, execution, and financial management;

- Expanding digital tax systems and reforming VAT law to support taxpayer compliance.

- Conducting proper feasibility studies for public investments and reassessing unviable partnerships such as the ACTL–TGFA contract.

The session concluded with a strong call for political will and institutional reforms to address the persistent challenges in Tanzania’s public sector.

 “Audit reports should not be filed away, they should be acted upon decisively,” Utouh urged. “Accountability is not optional if we want to build trust and deliver results.”