DODOMA: THE construction project for special wards intended for VIP and private patients at Muhimbili National Hospital, valued at 1.36bn/-, was officially suspended in December 2023 due to a lack of funds.
Initially, the project was expected to be completed within six months.
However, it was halted before completion, prompting Muhimbili Hospital to formally terminate the contractor’s agreement in February 2024.
According to the report by the Controller and Auditor General (CAG) for the 2023/24 financial year, the Ministry of Health had approved the search for investors. However, commencing the project without secured funding was found to be a violation of public procurement regulations.
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The report also revealed a risk of loss amounting to 71.51m/- that had been paid in advance, as the guarantee for that payment had already expired.
The CAG recommended that Muhimbili Hospital ensure the availability of funds before launching any development projects.
Additionally, he emphasized the need for robust financial management systems and proper project implementation to prevent national losses.
