End financial indiscipline in local councils

DAR ES SALAAM: THE concerns raised by Members of Parliament over financial mismanagement in local government authorities (LGAs) should serve as a wake-up call to council leaders across the country.

At a time when Tanzania is pursuing ambitious development goals, including the implementation of Dira 2050, public resources must be managed prudently, transparently and in the best interests of citizens.

The revelations of financial irregularities, diversion of development funds and weaknesses in revenue collection point to a worrying situation that demands urgent corrective action.

Local authorities are responsible for delivering essential services, including education, healthcare, water, sanitation and local infrastructure.

Their ability to fulfil these responsibilities depends not only on the availability of funds but also on how effectively those resources are collected, allocated and spent.

According to the Local Authorities Accounts Committee (LAAC), central government funding accounts for approximately 83 per cent of council financing.

During the 2024/25 financial year, the government disbursed 6.94tri/- to 184 councils, while own-source revenue amounted to 1.47tri/-.

Although central government support remains essential, such heavy dependence highlights the need for councils to strengthen their financial independence through improved revenue mobilisation and responsible expenditure.

More disturbing are reports that 75 councils diverted approximately 43bn/- allocated for development activities to recurrent expenditure.

Such practices undermine public trust and delay the construction of schools, health facilities and other essential infrastructure.

Development funds must be protected and used strictly for their intended purposes. Equally concerning are reported weaknesses in land administration, including plots sold outside official systems and revenue not properly reflected in council records.

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These irregularities expose public finances to potential losses and demonstrate the urgent need to strengthen digital revenue collection, record-keeping and internal controls.

Council Executive Directors and other accounting officers must take greater responsibility for financial discipline.

The Controller and Auditor General’s findings should not merely generate parliamentary debate; they must lead to timely investigations, recovery of misappropriated funds and appropriate action against officials found responsible.

At the same time, councils should identify innovative revenue sources without imposing excessive taxes and levies on already burdened residents.

Improving collection efficiency, broadening the revenue base and sealing leakages should take priority over introducing additional charges.

Ultimately, decentralisation must translate into better services and accountable leadership. Tanzanians deserve councils that protect every shilling, honour their financial obligations and prioritise development.

Sound financial management is not optional; it is fundamental to effective local governance and the country’s development ambitions.