VP demands tougher controls to curb public funds misuse

ARUSHA: VICE-PRESIDENT Dr Philip Mpango has called for tougher controls to combat the misuse of public funds, urging government institutions to enhance financial oversight, improve contract management and strengthen procurement processes.

He made the remarks at the opening of a working session for board chairpersons and chief executive officers (CEOs) of government institutions and public corporations in Arusha, yesterday where he stressed that such measures are vital for national economic growth and better service delivery.

“I urge public institutions and corporations to enhance financial oversight, control procurement processes, strengthen contract management and effectively supervise human resources,” he said when he opened the working session on behalf of President Samia Suluhu Hassan.

Dr Mpango noted that despite the implementation of revenue collection systems such as the Government Electronic Payment Gateway (GePG), TAUSI and the registration of Point of Sale (POS) machines, significant financial losses persist within government institutions.

These, he said, are regularly highlighted in reports by the Controller and Auditor General (CAG).

He encouraged institutions to foster stronger partnerships with international organisations to tap into global markets, technologies, research and work cultures.

“For example, the Tanzania Railways Corporation (TRC) has the opportunity to collaborate with companies from South Korea and China to enhance cargo and passenger transport. This will help position Tanzania as a gateway and trade hub for East, Central and Southern Africa, as well as parts of the Middle East and Far East,” he explained.

Dr Mpango also underscored the need to promote research and development, stating that achieving national goals demands greater professionalism, creativity and innovation in both production and service delivery.

“My appeal to you, board chairpersons and CEOs, is to uphold professionalism and strengthen research efforts for the advancement of our nation,” he said.

He further called on institutions to align with the Tanzania Vision 2050, which sets out the country’s economic aspirations for the next 25 years.

“Through this Vision, we expect that by the year 2050, Tanzania will have achieved upper middleincome economy valued at approximately 1 trillion US dollars,” he added.

The Vice-President also tasked the Office of Treasury Registrar (OTR) with accelerating the review of public institutions, including granting operational autonomy to commercial and strategic entities and merging or dissolving outdated or overlapping ones.

In a push to reduce dependence on government funding, Dr Mpango urged public institutions to formulate concrete strategies that will allow them to contribute meaningfully to the Consolidated Fund by the end of the current financial year.

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Reflecting on the theme of the meeting “Building Sustainable Partnerships in a Globally Competitive Environment: The Role of Public Enterprises” Dr Mpango reminded board chairpersons and CEOs of their critical role in providing leadership and ensuring their institutions serve the interests of citizens, who are the ultimate stakeholders.

He noted that, in today’s globalised economy, public enterprises must extend their services beyond national borders.

Citing the Organisation for Economic Co-operation and Development (OECD) 2024 report on state-owned enterprises, Dr Mpango pointed out that between 2000 and 2023, the number of public enterprises among the world’s 500 largest companies rose from 34 to 126.

These enterprises had, by 2023, created approximately 21 million jobs, held assets worth 53.5 trillion US dollars, generated annual revenues of 12 trillion US dollars and recorded profits of 730 billion US dollars.

Domestically, the Tanzanian government has invested approximately 86.29tri/- in public institutions and enterprises.

Commenting further on the meeting’s theme, Dr Mpango said it provided an opportunity to explore strategies for building resilient partnerships in a globally competitive environment.

He stressed the need for public institutions to deliver services that meet or exceed international standards.

“In this competitive environment, if we fail to produce goods and services of international quality, we risk remaining merely a market for foreign products,” he warned.

Dr Mpango called on all board chairpersons and CEOs to actively participate in the upcoming election process, describing it as a vital democratic exercise.