Audit reveals improved financial management

DAR ES SALAAM: THE 2024/2025 Controller and Auditor General (CAG) report shows significant improvement in public institutions’ financial reporting, with 99 per cent of unqualified audit opinions.

Presenting the report yesterday to President Samia Suluhu Hassan at Magogoni State House in Dar es Salaam, CAG Charles Kichere said that out of 1,339 audit reports issued, 1,326 or 99 per cent received unqualified opinions.

He said ten reports (0.8 per cent) were qualified, one (0.1 per cent) adverse, and two institutions received disclaimers. The CAG said the number of audits increased by 38 compared to 1,301 in 2023/24.

“Overall, these findings demonstrate that government financial statements largely comply with established accounting standards, reflecting improved fiscal discipline across public institutions,” said Mr Kichere.

Despite this progress, the CAG underscored the need for recommendations issued in previous audit reports to be thoroughly reviewed and implemented in order to strengthen accountability and the management of public resources.

Regarding the national debt, the CAG said that government debt rose to 110.05tri/- by June 30, 2025, up 12.7tri/- (13.04 per cent) from the previous year, driven mainly by external borrowing and a depreciation of the Tanzanian shilling against the US dollar, which added about 2tri/- in exchange rate losses.

However, he affirmed that, according to debt sustainability assessments, despite the increase, debt remains within sustainable limits: domestic debt is 35.5tri/-, external debt 74.55tri/-, the debt-to-GDP ratio stands at 40.7 per cent (below the 55 per cent ceiling), and external debt accounts for 24.9 per cent of GDP (below the 40 per cent limit). The ratio of external debt to exports is 125.5 per cent, within the 180 per cent benchmark.

On government revenue performance, the report shows that for the 2024/2025 financial year, the budget was set at 50.29 tri/-, with actual collections amounting to 47.2 tri/-, equivalent to 93.11 per cent of the target.

Domestic revenue performed strongly, reaching 99.4 per cent of the target, with the Tanzania Revenue Authority (TRA) remaining the principal contributor and exceeding its collection goals.

Speaking on the performance of commercial public institutions, he said that financial losses declined from 412.3bn/- to 307.1bn/-. However, this reduction was not driven by improved efficiency but largely due to government subsidies totalling 105.2bn/- for salaries and operational expenses.

He noted that the losses were effectively shifted to the government rather than truly reduced. Despite additional development subsidies of 159.61bn/-, 22 institutions continued to record losses over one to five years, highlighting persistent inefficiencies, rising operating costs and weak internal controls.

Air Tanzania (ATCL) posted a loss of 191bn/- in 2024/2025, a 108 per cent increase, bringing cumulative losses to 748bn/-. Meanwhile, Tanzania Railways Corporation (TRC) faces operational challenges, declining freight volumes on the MGR line and 328 accidents, resulting in losses of 3.06bn/, reflecting ongoing weaknesses in infrastructure management and oversight.

Mr Kichere said that challenges persist in the implementation of audit recommendations.

He said out of 38,181 recommendations issued in previous years, only 36.7 per cent have been fully implemented, while 43 per cent are still in progress and a small proportion remain unaddressed. This situation points to systemic weaknesses in ensuring accountability within public institutions.

The CAG recommended the wider adoption of the IFTMIS system, currently under the Prime Minister’s Office – Regional Administration and Local Government (PMORALG), noting that it has begun to yield positive results.

He suggested that the system be rolled out across all government institutions and integrated with parliamentary oversight mechanisms to enhance efficiency in tracking the implementation of audit recommendations.

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The CAG cited longstanding audit concerns, including TRA’s uncollected tax arrears of 7.24bn/- outstanding for over 17 years, the Marine Parks and Reserves Authority owed 658m/- by Mafia Island communities for more than 15 years, and the Cashewnut Board of Tanzania’s untitled assets and plots valued at 3.28bn/-, posing risks to government property ownership.