We must find solution to misuse of public funds in LGAs

DAR ES SALAAM: THE 2023/2024 audit financial government reports released by the Controller and Auditor General (CAG) have continued to paint a gloomy picture with regard to the management of public funds in Local Government Authorities (LGAs) The problem prompted the CAG to recommend for strengthening of internal control and revenue collection systems.

According to the CAG, poor internal revenue control mechanisms and collection systems have been significantly contributing to loss of government revenue, affecting implementation of development projects.

The CAG has uncovered numerous financial irregularities, ranging from failure by local authorities to collect revenue from various sources in their areas of jurisdiction, failure to deposit the collected revenue in bank accounts and misappropriation and embezzlement of public funds.

Just to give an example, the CAG said in 2023/2024 financial year, a total of 44.96bn/- was not collected by 158 LGAs from sources such as business licences, rental charges, market stalls and liquor licences.

Experts in financial management say that financial malpractices in Tanzania’s local governments manifest themselves in the forms of inflated contracts, ghost projects, misappropriation of funds for personal use and poor financial record-keeping.

Other forms through which financial malpractices manifest themselves include lack of transparency in procurement processes, channeling funds to favoured contractors, neglecting essential services in favour of less visible projects and failing to properly monitor project implementation, often facilitated by weak accountability mechanisms and inadequate public oversight.

As a way to deal with the problem, the experts say effective management of public funds in local government requires a multi-faceted approach focused on financial planning, transparency, accountability and citizen engagement.

The approach includes developing realistic revenue projections, allocating resources based on community needs and priorities, implementing strong financial management systems and ensuring regular audits and reporting.

The experts say regular internal audits can identify weaknesses in financial management systems and help ensure compliance with regulations.

They further say that local governments should regularly report on their financial performance, including budget allocations, actual spending and the impact of their programmes on the community they serve.

According to the financial experts, effective budget execution must ensure that allocated funds are spent efficiently and effectively, with clear procedures for procurement, spending and accounting.

Though the CAG has linked poor internal revenue control mechanisms and collection systems with mismanagement of public funds in local government authorities, loss of public funds in LGAs is, to the larger extent, caused by deliberate evil acts masterminded by individuals with ill motives.

President Samia Suluhu Hassan has all along been very tough against theft, embezzlement and misappropriation of public funds.

It would again be recalled that when President Samia took over the reins of this country she unequivocally warned officials against the financial malpractices.

Civil servants, especially accounting officers ought to understand that money channeled to various development project is a public money raised from taxes paid by Tanzanians, meaning that embezzling or stealing it means stealing from Tanzanians.