CAG commends TPA for enhanced profitability

PROFITABILITY and adherence to good governance are paramount in day-to-day operations of both public and private entities since they assure investors and the general public on the return of their investments.

Good governance is even more important in parastatals where the government expects to raise revenues to the Treasury coffers to foot the wage bill and undertake development projects for the majority of the population.

The Tanzania Ports Authority (TPA) is among a handful of parastatals which have recorded excellence in profitability and good governance during the financial year 2023/2024 as per the report by the Controller and Auditor General (CAG).

Presenting part of his findings before President Samia Suluhu Hassan on March 27, this year, at the Magogoni State House in Dar es Salaam, CAG Charles Kichere, cited TPA as among public corporations which have been recording impressive performance.

According to the CAG, TPA scored an impressive 99.5 per cent in its financial statements and was eventually presented with an unqualified audit opinion during the financial year 2023/2024.

During the fiscal year under review, TPA posted a profit of 140.48bn/- and was among 31 parastatals whose financial statements recorded profitability.

In his presentation, CAG Kichere said the performance of TPA is an example of how public institutions can prosper to new heights under proper financial management.

“I would like to commend the government for its supervision which has enabled 31 public organisations to perform well and record profit during the financial year 2023/2024,” CAG Kichere told President Samia and other delegates who attended the event. Apart from TPA, other parastatals which recorded profits include Tanzania Petroleum Development Corporation (TPDC) which posted a profit of 248.75bn/- and National Housing Corporation (NHC) which recorded a profit of 242.9bn/-.

In total, the CAG report for 2023/2024 shows that overall performance of public entities improved where 1,295 (equivalent to 99.5 per cent) audit reports were unqualified whereas only five (about 0.4 per cent) were slapped with qualified audit opinion.

Speaking during the occasion, President Samia said the government is committed to implement recommendations contained in the reports by the CAG and the Prevention and Combating of Corruption Bureau (PCCB) in order to enhance transparency and accountability in public organisations.

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The Head of State went on and assured the nation that the government will scrutinise the findings of the report and take appropriate measures to boost good governance.

“We shall follow keenly on deliberations by the National Assembly on the CAG report and in regard to the PCCB report we will take appropriate actions on all recommendations with a view of enhancing good governance,” she pledged.

Dr Samia hailed the CAG for the detailed audit report, stressing that the findings of the CAG reports showcase the commitment by the government in improving efficiency of public organisations and ensure proper use of public resources.

“Even with some challenges which have been mentioned there has been improved efficiency in management of public resources and this is a good sign towards transparency and accountability,” she noted.

The performance of TPA during that financial year has been attributed to numerous improvements implemented by port authorities under the Director General of TPA, Mr Plasduce Mbossa.

The improvements have significantly enhanced efficiency at the country’s major ports such as Dar es Salaam where the entry of a new investor DP World has also played a significant role in boosting handling of cargo.

In addition, investments in human resources and modern equipment have also enabled port authorities to reduce dwell time through improved loading and offloading of cargo at the country’s major port gateway.

Just recently, the Parliamentary Standing Committee on Infrastructure visited the port of Dar es Salaam and hailed its improved performance which it said was productive for the country.

Since President Samia assumed office on March 19, 2021, port operations in Tanzania have recorded massive milestones and thus placing Tanzania as an important gateway for trade and transport with its land-linked neighbours.

There has been a significant surge in the number of shipments handled by major coastal and inland lakes ports managed by TPA including Dar es Salaam, Tanga and Mtwara along the Indian Ocean as well as ports in Lake Victoria, Lake Tanganyika and Lake Nyasa.

Speaking to journalists on progress achieved by the authority during the four years of the Sixth Phase Government on January 24, this year, the Director General of TPA, Mr Mbossa, attributed the achievements to port development projects which are being undertaken.

TPA was established under the Tanzania Ports Authority Act Number 17 of 2004 which was amended through the TPA Act Number 7 of 2019.

The authority is tasked with developing, operating, promoting as well as ensuring safety and security in all major ports in the country including the three coastal harbours of Dar es Salaam, Tanga and Mtwara as well as three lake ports in Lake Victoria, Lake Tanganyika and Lake Nyasa.

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Through the same legislation, the TPA is also tasked to partner with the private sector in operation of port services where it acts as a landlord in some leased areas.

In general, TPA oversees a total of 131 ports out of which 32 are coastal harbours along the Indian Ocean in addition to 99 ports in the three inland lakes of Victoria, Tanganyika and Nyasa.

As part of efforts to promote ports in Tanzania and facilitate trade and transport with its land-linked neighbours, TPA has also established liason offices in Democratic Republic of Congo (DRC), Zambia, Burundi, Rwanda and Uganda in addition to Malawi and Zimbabwe.

According to Mr Mbossa, there have been significant strides recorded by TPA since the Sixth Phase Government under President Samia came to power.

During the period under review, shipments handled by TPA increased by an average of 15.2 percent per annum from 20.8 million tonnes during fiscal year 2021/2022 to 27.6 million tonnes during the financial year 2023/2024.

At the country’s major port of Dar es Salaam, shipments increased by an average of 13.4 per cent per annum from 18.7 million tonnes in 2021 to 23.9 million tonnes in 2024.

Mr Mbossa attributed the increments to port improvement projects undertaken by the Sixth Phase Government including the Dar es Salaam Maritime Gateway Project (DMGP) which now allows bigger ships to dock at the Dar es Salaam port.