A GENERAL REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE

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A GENERAL REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE Powered By Docstoc
					A GENERAL REPORT OF THE CONTROLLER AND
  AUDITOR GENERAL ON THE PERFORMANCE
AUDIT (VFM) REPORTS FOR THE PERIOD ENDING
             31ST MARCH, 2010




Office of the Controller and Auditor General   Performance Audits General Report   iii
                    THE UNITED REPUBLIC OF TANZANIA
                         NATIONAL AUDIT OFFICE
 Telegram: “Ukaguzi"                                      Office of the Controller
 Telephone: 255(022)2115157/8                             and Auditor General
 Fax:        255(022)2117527                              Samora Avenue,
 E-mail:     ocag@nao.go.tz                               P.O. Box 9080,
 Website: www.nao.go.tz                                   DAR ES SALAAM.
 In reply please quote                                    26th March, 2010
 Ref. No.CA.4/37/01/01

Your Excellency Dr. Jakaya M. Kikwete,
The President of the United Republic of Tanzania,
State House,
P.O. Box 9120,
Dar es Salaam.

Re:      Submission of a General Report of the Controller and Auditor
         General on the Performance Audit involving five (5)
         Performance Audit Reports tabled in Parliament

Pursuant to Article 143(4) of the Constitution of the United Republic of
Tanzania of 1977 (revised 2005), and Sec.10 (1) of the Public Audit Act
No. 11 of 2008, I hereby submit to you the above mentioned report.

This report includes five (5) individual performance audit reports of
Central Government, Local Government and Pension Funds tabled
before our august Parliament as of March, 2010.

I submit.




                          Ludovick S. L. Utouh
                   CONTROLLER AND AUDITOR GENERAL




Office of the Controller and Auditor General   Performance Audits General Report     iv
                           TABLE OF CONTENTS
FOREWORD .................................................................................... xi
ACKNOWLEDGEMENT ................................................................... xv
LIST OF ABBREVIATIONS ............................................................ xvii
EXECUTIVE SUMMARY.................................................................. xix
CHAPTER ONE ................................................................................. 1
INTRODUCTION ............................................................................... 1
  1.1   Background ....................................................................... 1
    1.1.1    Introduction of Performance Audit in Tanzania ....... 1
    1.1.2    Mandate ..................................................................... 1
    1.1.3    What is performance auditing? ................................. 2
    1.1.4    Performance Audit and INTOSAI Auditing Standards 3
    1.1.5    Aims of Performance Auditing .................................. 4
    1.1.6    Introduction to 5 PA studies ...................................... 4
    1.1.7    Purpose of this general report .................................. 5
  1.2   Data validation process/scrutiny of facts ......................... 5
  1.3   Challenges of the audits ................................................... 5
  1.4   Structure of the general report ........................................ 6
CHAPTER TWO ................................................................................ 9
MANAGEMENT OF PRIMARY HEALTH CARE PERFORMANCE .......... 9
  2.1   Introduction .................................................................... 10
    2.1.1    Background to the audit .......................................... 10
    2.1.2    Audit Objective and Scope ...................................... 11
  2.2   System description .......................................................... 11
  2.3   Audit Findings and conclusions ....................................... 13
  2.4   Recommendations ........................................................... 18
  2.5   Message to Standing Committees of Parliament ............ 21
CHAPTER THREE ........................................................................... 23
INSPECTION PROGRAMME FOR SECONDARY SCHOOLS IN
TANZANIA ..................................................................................... 23
  3.1   Introduction .................................................................... 24
    3.1.1    Background to the audit .......................................... 24
    3.1.2    Audit Objective and Scope ...................................... 25
  3.2. System description .......................................................... 26
  3.3   Audit findings and conclusions ........................................ 27
  3.4   Recommendations ........................................................... 29
  3.5   Message to Standing Committee of Parliament .............. 30
CHAPTER FOUR ............................................................................ 31

Office of the Controller and Auditor General        Performance Audits General Report          v
SOLID WASTE MANAGEMENT ........................................................ 31
  4.1    Introduction .................................................................... 32
    4.1.1     Background to the audit .......................................... 32
    4.1.2     Audit objective and Scope ....................................... 33
  4.2    Solid Waste management System description ................ 33
    4.2.1     Key Players in Solid Waste management................. 33
    4.2.2     Responsibility for Solid Waste Management in
    Tanzania................................................................................. 34
  4.3    Findings of the Audit ...................................................... 35
    4.3.1     There is an increasing problem of SWM in Tanzania .... 36
    4.3.2     There is poor and varying performance among
    service providers.................................................................... 36
    4.3.3     The present system of SWM is irrational ................ 39
    4.3.4     A peculiar and ill functioning financial system in SWM ... 40
    4.3.5     Inefficient procurement of SWM Contractors/CBOs.... 41
    4.3.6     Targets for collection of solid waste are poorly
    developed .............................................................................. 42
    4.3.7     Inspection and monitoring activities are poorly
    planned, documented and evaluated .................................... 42
    4.3.8     Sanctions are rarely applied ................................... 44
    4.3.9     Lack of National standards and policies on SWM .... 45
    4.3.10 Inadequate monitoring and evaluation of SW
    activities by Central government .......................................... 45
  4.4    Main conclusions ............................................................. 46
  4.5    Recommendations ........................................................... 47
  4.6    Message to Standing Committees of Parliament ............ 54
CHAPTER FIVE .............................................................................. 57
PROCESSING OF TERMINAL BENEFITS OF RETIRED CIVIL
SERVANTS ..................................................................................... 57
  5.1    Introduction .................................................................... 58
    5.1.1     Audit Scope .............................................................. 58
    5.1.3     Methods of Implementation .................................... 59
  5.2    Systems Description ........................................................ 59
  5.3    Findings and Conclusions ................................................ 61
    5.3.1     General .................................................................... 61
    5.3.2     PSPF and LAPF ......................................................... 61
    5.3.3     MoFEA and PO-PSM (Main Employers) ..................... 65
  5.4    Recommendations ........................................................... 67
  5.5    Message to Standing Committees of Parliament ............ 71


Office of the Controller and Auditor General        Performance Audits General Report         vi
CHAPTER SIX ................................................................................. 73
MANAGEMENT OF PREVENTION AND MITIGATION OF FLOODS .. 73
  6.1   Introduction .................................................................... 74
    6.1.1    Background to the audit .......................................... 74
    6.1.2    Audit objective and Scope ....................................... 74
  6.2   Disaster Management System description ...................... 75
    6.2.1    Key Players in Disaster Management....................... 75
    6.2.2    Responsibility for Disaster Management ................. 76
  6.3   Findings of the Audit ...................................................... 78
  6.4   Main Conclusions ............................................................. 81
  6.5   Recommendations ........................................................... 83
  6.6   Post-tabling reactions and events and lessons learned .. 86
  6.7   Message to the Standing Committees of Parliament ...... 87




Office of the Controller and Auditor General       Performance Audits General Report         vii
Office of the Controller and Auditor General   Performance Audits General Report   viii
LIST OF TABLES AND FIGURES

LIST OF TABLES
Table 2.1: Comparison of Allocation of resources against
            workload
Table 2.2: Receipts of Basket Fund
Table 4.1: Performance of service providers on the collection of
            SW
Table 4.2: Performance of LGAs in terms of SW collected per
            truck and SW collected per staff
Table 4.3: Performance of Franchisee Contractors in terms of
            average SW collected per truck and SW collected per
            staff
Table 4.4: Performance of LGAs on the collection of SW fees
Table 4.5: Performance of LGAs on the monitoring and
            supervision of SW activities
Table 4.6: Applied sanctions according to LGAs




LIST OF FIGURES
Figure 2.1: The Health System in Tanzania
Figure 4.1: System Graph– Solid Waste Management in Tanzania
Figure 5.1: Flow chart for Processing Terminal Benefit
Figure 5.2: Total waiting time for the processing of terminal
            benefits
Figure 6.1: System Graph – Floods Management in Tanzania
Figure 6.2: Elements of Disaster Management
Figure 6.3: Relational Graph




Office of the Controller and Auditor General   Performance Audits General Report   ix
                                   LIST OF PHOTOS

Photo 2.1:         Visitors waiting for medical service at one of the
                   Health Centers audited
Photo 3.1:         “There is shortage of teachers in Mathematics and
                   Science like this one in the country”
Photo 4.1:         The picture is showing a stinking pile of SW at
                   Buguruni near Rozana Bus stand. This pile is just
                   next to residential houses and shops and has
                   remained uncollected for a long time.
Photo 4.2:         Transportation of SW is done by a Tractor and
                   trailer which are old and worn out as depicted in
                   this photo in Kinondoni Municipality.
Photo 5.1:         A retired civil servant is providing his details to a
                   Pension staff with the Ministry of Finance and
                   Economic Affairs. The retired officer is in the
                   process of following his terminal benefits.
Photo 6.1:         Lake Babati flooding through the main street of
                   Babati town, April 1990.
Photo 6.2:         The remains of the Mrara Bridge after the floods in
                   1990 washed away the bridge which connected
                   Babati town with its hospital. To the right is the
                   foot bridge, which was constructed for pedestrians
                   and to support the emergency pipe for water supply
                   to Babati town.




Office of the Controller and Auditor General   Performance Audits General Report   x
FOREWORD
I am pleased to present my first General Report on Performance
Audit involving five individual performance audits of the Central
Government (Ministries, Departments, Agencies and Regional
Administrative Secretariats), Local Government Authorities and
two Pension Funds tabled before our August Parliament on 11th
February 2010.

This report aims at providing our stakeholders (Members of
Parliament, Central and Local Government Officials, Media, the
Donor Community, NGOs, CBOs etc.) with a summary of findings
arising from the five (5) individual performance audits conducted
by my office as of March 2010. The details of the summarized
matters can be read from the individual performance audit
reports issued to individual Accounting Officers.

This report is being submitted to the President in accordance with
Article 143 of the Constitution of the United Republic of Tanzania
and Section 34(1) & (2) of the Public Audit Act No. 11 of 2008.

Under Article 143(4) of the Constitution of the URT, the Controller
and Auditor General is required to submit to the President every
report he makes pursuant to the provisions of sub Article (2) of
the same Article. Upon receipt of such report, the President shall
direct the responsible authority to submit such reports before the
first sitting of the National Assembly before the expiration of
seven days from the day the sitting of the National Assembly began.

The enactment of the Public Audit Act No. 11 of 2008 enhanced
the operational independence of my office in the fulfillment of
my constitutional mandate. This was a result of the efforts of his
Excellency the President of the United Republic of Tanzania.

The operational independence of my office is expected to enable
me acquire the necessary control over all the resources available
for the office including human and financial resources, which will
assist my office to perform its tasks without being under the
undue influence and control of any person or authority.

Office of the Controller and Auditor General   Performance Audits General Report   xi
The legislation has broadened the scope of audits conducted in
my office by mandating me to carry out Performance, Forensic,
Environmental and Special Audits in addition to the normal
Regularity Audits.

Following the broadening of the scope of audit, my office for the
first time managed to produce this report, which includes five (5)
tabled Performance Audit Reports. It is my hope that with the
production of this report following enactment of this new
legislation, my office has been able to contribute and will
endeavor to continue to contribute in the enhancement of public
accountability. In essence, this report has enabled me to provide
the necessary independence assurance to Parliament concerning
the proper use and accountability, transparency and probity in
the use of public resources on areas such as Provision of Primary
Health Care, Inspection Programmes for Secondary Schools, Solid
Waste Management, Processing of Terminal Benefits and
Prevention and Mitigation of Floods. Further essence was to
establish whether such resources have been effectively spent with
due regard to economy, efficiency and effectiveness as intended
and appropriated by Parliament in the above mentioned areas.

It is worth noting that while my office conducts and reports on
the performance of various Central, Local Governments and
Public Authorities programs and activities based on various laws,
rules and regulations, the ultimate responsibility for the effective
and adequate implementation of recommendations I have issued
lies with each Accounting Officer.

Parliament looks upon the Controller and Auditor General and the
National Audit Office (NAO) for assurance in regard to financial
reporting and public resources management in the Central, Local
Governments and Public Authorities, particularly regarding
efficiency and effectiveness in programme implementation. My
office contributes through recommendations given towards
improvements in public sector performance. In this regard, the
Central, Local Governments and Public Authorities and my office
each has a role to play in contributing to Parliamentary and public


Office of the Controller and Auditor General   Performance Audits General Report   xii
confidence building in public resources management. However,
while the roles of public sector entities and NAO may differ, the
desire for efficient utilization of public resources remains a
common ground.
In order to meet the Parliamentarians’ expectations and, more
broadly, of the public at large, NAO continually reviews its audit
approaches to ensure that the audit coverage provides an
effective and independent review of the performance and
accountability of public sector entities. Moreover, we seek to
ensure that our audit coverage is well targeted and addresses
priority areas so as to maximize our contribution in improving
public administration. Hence, our work acts as a catalyst in
improving efficient utilization of public resources.
I would like to acknowledge the professionalism and commitment
of my staff in achieving our goals and undertaking the work
associated with meeting our ambitious audit programs despite the
fact that they have been working in very difficult conditions
marked with insufficient funding, working tools, low salaries and
sometimes working in very remote and un-easily accessible
locations.
I hope that the National Assembly, the media and the public at
large will find the information in this report useful in holding the
Government to account for its stewardship of public funds and its
delivery of services to Tanzanians. In this regard, I will appreciate
to receive feedback on how to further improve this report in the
future.




Ludovick S.L. Utouh
CONTROLLER AND AUDITOR GENERAL
_____________________________
National Audit Office,
Dar es Salaam,

26th March, 2010


Office of the Controller and Auditor General   Performance Audits General Report   xiii
Office of the Controller and Auditor General   Performance Audits General Report   xiv
                          ACKNOWLEDGEMENT
I would like to express my gratitude to those who created an
enabling environment for me to discharge my Constitutional
obligations. I would like to thank every member of my staff for
their endeavors to once again, meet the statutory reporting
requirement. With lots of appreciation, I am obliged to pay
tribute to my family and the families of my staff members for
their tolerance during our long absence in fulfilling this
Constitutional obligation.

The basic conditions for the operations of my Office improved
greatly on 4th July, 2008 when the President of the United
Republic of Tanzania, Dr. Jakaya Mrisho Kikwete assented the
Public Audit Act No.11 of 2008. Subsequently, the Minister for
Finance and Economic Affairs endorsed our proposed Audit
Regulations of 2009. In this regard, I would like to express my
sincere appreciation to His Excellency President Dr. Jakaya Mrisho
Kikwete, the Parliament, the Minister for Finance and Economic
Affairs, the Attorney General and whoever participated in
enabling the enactment of the Public Audit Act and its Regulations
become a reality.

Further, my sincere appreciation are extended to the donor
community particularly the Swedish National Audit Office (SNAO),
the Government of Sweden through SIDA and SNAO and all well
wishers who have contributed immensely towards the
transformation of my office. Their contributions in developing the
mental acknowledgement, IT systems and physical assets have
had tremendous impact in our success.

I am equally indebted to all our other stakeholders including
Accounting Officers of the Ministry of Finance and Economic
Affairs, Ministry of Education and Vocational Training, Ministry of
Health and Social Welfare, Ministry of Infrastructure
Development, PMO-RALG, VPO-DoE, PSPF, LAPF and LGAs for the
much needed support, cooperation and for providing vital
information needed for the preparation of individual performance


Office of the Controller and Auditor General   Performance Audits General Report   xv
audit reports which were successfully tabled in Parliament and
which are the inputs of this general report.

My special appreciation are also extended to the academic
community and subject matter experts from the Universities of
Dar es salaam (UDSM), Ardhi (ARU), Muhimbili (MUHAS), National
Institute for Medical Research (NIMR), Freelance Advocates and
Retired Officers who added value through their very useful inputs
which immensely improved the output of the performance audit
reports as a result of their critical reviews.

Last but not least, I would like to thank all public servants
throughout Tanzania, whether in central or local governments
without forgetting the role of taxpayers to whom this report is
dedicated. Their invaluable contributions in building the nation
cannot be underestimated.

May the almighty God bless you all as we commit ourselves to
promote accountability on the use of public resources in the
country.




Office of the Controller and Auditor General   Performance Audits General Report   xvi
                         LIST OF ABBREVIATIONS
AMC                  –      Arusha Municipal Council
BAWASA               –      Babati Water and Sewarage Authority
CAG                  –      Controller and Auditor General
CBOs                 –      Community Based Organizations
CCHPs                –      Comprehensive Council Health Plans
CD                   –      Council Director
DAS                  –      District Administrative Secretary
DMD                  –      Disaster Management Department
DMO                  –      District Medical Officer
DoE                  –      Department of Environment
GEPF                 –      Government Employees Provident Fund
HCs                  –      Health Centers
HQ                   –      Headquarter
IMC                  –      Ilala Municipal Council
INTOSAI              –      International Organizations of Supreme Audit
                            Institutions
KMC                  –      Kinondoni Municipal Council
LAPF                 –      Local Authorities Pension Fund
LGAs                 –      Local Government Authorities
MCC                  –      Mbeya City Council
MDAs                 –      Ministries, Departments and Agencies
MoFEA                –      Ministry of Finance and Economic Affairs
MoHSW                –      Ministry of Health and Social Welfare
MoW                  –      Ministry of Works
MRS                  –      Manyara Regional Secretariat
MSD                  –      Medical Stores Department
MwCC                 –      Mwanza City Council
NAOT                 –      National Audit Office of Tanzania
NEMC                 –      National Environmental Management Council
NGOs                 –      Non Governmental organizations
NSSF                 –      National Social Security Fund
PA                   –      Performance Audit
PHC                  –      Primary Health Care
PMO                  –      Prime Minister’s Office
PMO-RALG             –      Prime      Minister’s    Office   –   Regional
                            Administration and Local Government


Office of the Controller and Auditor General   Performance Audits General Report   xvii
PMO-DMD              –      Prime Minister’s Office – Disaster Management
                            Department
PMU                  –      Procurement Management Unit
PO-PSM               –      President’s Office Public Service Management
PPF                  –      Parastatal Pension Fund
PSPF                 –      Public Service Pension Funds
RAS                  –      Regional Administrative Secretaries
REDMAC               –      Regional Disaster Management Committee
RHMT                 –      Regional Health Management Teams
SIDA                 –      Swedish International Development Agency
SNAO                 –      Swedish National Audit Office
SW                   –      Solid waste
SWM                  –      Solid Waste Management
TANDREC              –      Tanzania Disaster Relief Committee
TANROADS             –      Tanzania National Roads
TBS                  –      Tanzania Bureau of Standards
TMC                  –      Temeke Municipal Council
VPO                  –      Vice President’s Office
VPO-DOE              –      Vice President’s Office - Department of
                            Environment
WPT                  –      Waiting and processing time




Office of the Controller and Auditor General   Performance Audits General Report   xviii
                               EXECUTIVE SUMMARY

Performance Auditing is being introduced by Governments world-
wide as taxpayers, donors and the public demand more
accountability in the use of their resources. Governments are
compelled to give information on how resources have been used
and whether they have been used economically, efficiently and
effectively.

The Controller and Auditor General of Tanzania has been given
the legal mandate to carry out performance audit by virtue of
Section 28 of the Public Audit Act No.11 of 2008.

Performance Auditing is an audit of the economy, efficiency and
effectiveness with which the audited entity uses its resources in
carrying out is responsibilities. Goals for performance auditing
include improvement of programmes and operations, saving tax
payers money, providing better services to the public and
obtaining best value for money.

Performance Auditing is aiming at promoting economy, efficiency,
and effectiveness in the management of public resources.
Performance auditing (sometimes referred to as value for money
audit) has a wider scope and goes further than the physical
inspections to verify that money was spent according to the
accounting books is manifested on site in terms of physical,
observable investments. Physical verification of schools, health
clinics, bridges etc is an important follow-up exercise in itself but
does not constitute performance auditing. Its result may possibly
initiate a performance audit (pre-study) to further explore the
causes of poor, questionable investments to come up with an in-
depth analysis and recommendations.

This consolidated performance audit report summarises five (5)
performance audit reports tabled before our august Parliament.
These reports are Management of Primary Health Care, School
Inspection Programme for Secondary Schools, Management of
Solid Waste in big cities and municipalities, Processing of



Office of the Controller and Auditor General   Performance Audits General Report   xix
Terminal Benefits and Management of Prevention and Mitigation
of Floods.

Management of Primary Health Care
The Primary Health Care (PHC) is regarded as the cornerstone of
the country’s National Health Policy. PHC is often the first and in
many cases the only place of contact regarding prevention and
treatment of diseases in the community.

The Health Centers (HCs) are managed by Local Government
Authorities (LGAs).

We conducted performance audit on different PHC and found that
Health Centres in the country are not managed efficiently. Their
performance varies a lot, and much would be gained if all Health
Centres acted like the best ones.

It was also established that, resources are not allocated according
to workload. Workload and waiting time in the Health Centres
vary a lot. Performance is not being measured and appropriately
considered in allocating the available resources. The physical and
financial management system governing the operations of these
Health Centres has serious weaknesses. There is no system in
place for monitoring the Health Centres’ own spending. Health
Centres lack feed back from the Councils regarding their later on
approved budgets. HC governing committees were found to be
less effective in carrying out their tasks. The supervision visits are
neither prioritized nor planned in a proper way and nor in
accordance with stated guidelines.

To promote fair distribution of available resources to the citizens,
the Office suggests that performance and volume of activity
should be taken into consideration. This may be achieved through
establishing performance based criteria relating with the
performance at the specific Health Centres. The supervision visits
should be properly planned, conducted and followed up. Health
management information system should be strengthened to
provide accurate information to the different users.



Office of the Controller and Auditor General   Performance Audits General Report   xx
School Inspection Programme for Secondary Schools
School inspection is an important instrument for the Government
to ensure that there is good performance in secondary schools.
This makes it important that the School Inspectorate conducts
their duties in an economic, efficient and effective manner.

There has been massive failures in mathematics and science
subjects in the country’s secondary schools over the years. For
example, the percentage of failures in mathematics in National
Form Four Examination results for the year 2004 – 2006 was
between 70 – 76%, while for the science subjects was between 35
– 45%.

The Performance audit conducted on the performance of the
Directorate of School Inspectorate of the MoEVT noted that, the
school inspection directorate is not efficiently and effectively
addressing the problem of poor performing students in
mathematics and science subjects in secondary schools. There are
massive failures in Mathematics and science subjects in secondary
schools. The focus on Mathematics and Science subjects in this
audit is motivated by the fact that there is a crisis nationally on
the teaching, learning and performance in these vital subjects.

Similarly, it was found that, the planning of school inspections
does not priorities the issue of poor performing students. There is
no analysis conducted by the School Inspections concerning these
issues stating that these problems have to be given special
priority by the School Inspection Programme.

Furthermore, there are no guidelines for the inspectors on how to
handle this issue in more detail. The School inspection is routine
based which limits flexibility and problem oriented approaches.
The results of school inspections are not effectively and
efficiently communicated to various stakeholders. The wide
mandate for communication on the inspection results is not used
in a suitable way to address the issue of poor performing
students.




Office of the Controller and Auditor General   Performance Audits General Report   xxi
Based on the findings above, it is recommended that, the School
Inspectorate should be more problem oriented, learning system
with increasing elements of follow up and evaluation and poorly
performing schools should be given priority to improving school
leadership and establish a positive culture centred on teaching
and learning for students.

Management of Solid Waste in big cities and municipalities
The increasing amount of SW and insufficient handling of SW in
big cities and municipalities threatens the health of the wananchi.

The office conducted a Performance Audit on SWM (2005 – 2007)
in big cities and municipalities, namely Mwanza and Mbeya city,
Arusha, Ilala, Temeke and Kinondoni municipal councils of
Tanzania.

The Central Government through the Prime Minister’s Office
Regional Administration and Local Government Authorities is
responsible for instituting a system of SWM which can be used by
the LGAs to deal with SW in their local authorities.

The audit found severe problems in the management of SW in our
big cities. No council examined has been able to manage solid
waste efficiently. The amount of SW not taken away from LGAs is
increasing very rapidly. The councils haven’t set targets and
evaluate the performance of the service providers. This makes it
very difficult to measure the performance of service providers.
The Councils haven’t inspected the service providers properly,
applied sanctions when needed and taken actions to improve
performance. Most of the service providers do not have enough
capability to collect SW fees and the average collection of the
potential fees is less than 50%.

Similarly, the audit found out that even efficient service providers
may go bankrupt, while those who are profitable may be quite
inefficient.
The central government authorities have not intervened to make
the system function better, in spite of similar problems all over
the country.


Office of the Controller and Auditor General   Performance Audits General Report   xxii
The Central government through PMO-RALG has not taken
adequate actions to address this problem of ever increasing SW
and those not collected. Also, there is inadequate guidance or
monitoring action done by PMO-RALG to deal with this increasing
problem.

Moreover, the audit concluded that generally, the selected LGAs
have not efficiently and effectively carried out their SWM function
through the services rendered by the service providers.

This alarming problem of SW Management in Tanzania needs a
radical reform in order to address it. More money alone will not
solve the problem of poor performance in SW management.
Changes in the entire system and set up of SWM in Tanzania are
needed. Moreso, there is an urgent need of changing peoples’
attitude towards dirty. The Tanzania public should be made to
hate dirty.

Processing of Terminal Benefits for Retirees
There has been an outcry of many retirees about the bureaucracy
and waiting time for receiving pensions in the country. The
criticism has among other things concerned the poor recording
and insufficient communication to pensioners by the Pension
Funds. Most of old age people who served in the public sector are
dependent on the terminal benefits as their major source of
income after retiring from public service.

The office has conducted a Performance Audit on processing of
terminal benefits to retirees and focused on two Public Pension
Funds namely the Public Service Pension Fund (PSPF) and the
Local Authorities Pension Fund (LAPF) administered by the
Ministry of Finance and Economic Affairs and the Prime Minister’s
Office – Regional and Local Government Authorities respectively.

The audit found that the main employers i.e. Ministry of Finance
and Economic Affairs (MoFEA) and President’s Office – Public
Service Management (PO-PSM) being the overall overseers of
Pension Funds on behalf of the Government have not to a large
extent fulfilled their responsibilities of ensuring the processing of


Office of the Controller and Auditor General   Performance Audits General Report   xxiii
terminal benefits of retirees is on time and without recourse to
duress. Specifically, the audit noted that there is increasing
number of retirees waiting processing time.

Pension Fund’s system of keeping records appears to be
inefficient and ineffective. This is due to weaknesses in record
keeping by Pension Funds and Employers. Employer’s system of
keeping records is appallingly inefficient and ineffective. In
addition, the MoFEA and PO-PSM as the main employers of civil
servants have not taken any tangible action to ensure efficient
processing of terminal benefits is instituted despite the fact this is
a known and repetitive long term problem.

In conclusion, it has been noted that Pension payments to retirees
have been and continue to be a big problem in Tanzania, which
requires immediate attention.

It is then recommended that, PSPF and LAPF should review the
processing of terminal benefits of retirees’ workflow.
Communication should be improved among stakeholders to ensure
timely communication between the funds, employers and
retirees. The Pension Funds should also, create awareness to their
members of the existing programs including conducting training
on pension matters.

The MoFEA and PO-PSM as main employers of civil servants in the
country should ensure that proper records of employees are
accurately kept and submitted to Pension Funds for processing
terminal benefit payments of retirees. Clear coordination among
stakeholders should be improved.

Management of Prevention and Mitigation of Floods
Babati District in Manyara Region has experienced devastating
floods many times. The floods caused homes to be washed away,
people drowning and displaced, impassable roads, water supply
cut off, and many economic and social activities disrupted.

The audit examined how the PMO-DMD, MRS and Babati Town
Council, Babati District Council and TANROADS-Manyara have


Office of the Controller and Auditor General   Performance Audits General Report   xxiv
implemented laws, regulations, policies and national strategic
guidelines on floods management.

The audit found that, there are continued risks for further
preventable damage from floods in Babati, this is due to
inadequate and deteriorating preventive structures, inappropriate
location of residential areas, inadequate maintenance and design
of Minjingu – Dodoma trunk road and the overall unpreparedness
of those responsible for disaster management.

The Manyara Regional Disaster Management Committee together
with the Local Government councils in the affected areas have
not adequately performed their role as regards to
prevention/mitigation of floods.

The Local Government Authorities in the flood area have not
received sufficient support, monitoring, and proactive analysis
from the PMO-DMD, which does not have a national flood register.

The Babati Town Planning has not been forward looking with
regards to floods. Some of the residence and business activities
have been located at low lying areas. Plots have been located in
areas, which were supposed to be reserved for water passage

The audit recommended that the PMO-DMD should properly
execute its oversight role to ensure that the regional and district
authorities play their roles in the pre-disaster planning.

Message to Standing Committees of Parliament
This general performance audit report and the individual
performance audit reports can be used by the Standing
Committees of Parliament to question Accounting Officers at
central and local government levels on the weaknesses identified
on the five different areas audited.

Improvements in the Management of Primary Health Care, School
Inspection Programmes for Secondary Schools, Management of
Solid Waste in big cities and municipalities, Processing of
Terminal Benefits and Management of Prevention and Mitigation


Office of the Controller and Auditor General   Performance Audits General Report   xxv
of Floods concern complex systems with several actors at various
levels of government and in the private sector. These tasks
involve changes in policies and the design and development of
new operational systems. Changes for better service delivery will
by necessity be gradual and take time. The concerned
parliamentary committees are therefore advised, under the
coordination of PAC, to annually call the concerned Accounting
Officers to hearings about implementing the recommendations in
our reports.




Office of the Controller and Auditor General   Performance Audits General Report   xxvi
Office of the Controller and Auditor General   Performance Audits General Report   1
                                   CHAPTER ONE

                                  INTRODUCTION

1.1      Background
1.1.1 Introduction of Performance Audit in Tanzania
Performance Auditing is being introduced by Governments world-
wide as taxpayers, donors and the public demand more
accountability in the use of their resources. Governments are
compelled to give information on how resources have been used
and whether they have been used economically, efficiently and
effectively. As Performance Auditing is a relatively new concept
in Tanzania, this chapter aims at briefly orientating the reader
about its history, mandate, scope, and methodological approach.

Performance auditing was adopted and incorporated into
Government auditing at the Twelfth International Congress of
Supreme Audit Institutions (INTOSAI) held in Australia in 1986. It
was introduced in the region (SADC countries) during the late
1980s by the Swedish National Audit Office (SNAO) with funds
from the Swedish International Development Agency (SIDA).

The Controller and Auditor General (CAG) of the United Republic
of Tanzania started to conduct Performance Audit studies in 2005;
this is following the enactment of the Public Finance Act No.6 of
2001 which for the first time gave the CAG the mandate to
conduct Performance Audit in Tanzania.

In July, 2007 the first Performance Audit Report was tabled
before our August Parliament.         The report concerns the
prevention and mitigation of floods in Tanzania with particular
reference to Babati Town and District Councils in Manyara Region.


1.1.2 Mandate
The Controller and Auditor General of Tanzania was given the
legal mandate to carry out performance audit by the Public Audit


Office of the Controller and Auditor General   Performance Audits General Report   1
Act No.11 of 2008. Section 28 of the Act states that “The
Controller and Auditor-General shall, for the purposes of
establishing the economy, efficiency and effectiveness of any
expenditure or use of resources of the entities, enquire into,
examine, investigate and report, in so far as he considers
necessary, on; -

    (a) The expenditure of public monies and the use of resources
        by such Ministries, departments, agencies, local
        authorities and all such public authorities and other
        bodies;

    (b) The conduct of and the performance of their functions by
        accounting officers, head of department and Chief
        Executives of all such entities;

    (c) Compliance with environmental laws, regulations and
        internal environmental policies and standards;


1.1.3 What is performance auditing?

Differences compared with Financial Audit and Physical
Verification of Investments
Most people associate auditing with the checking and verification
of accounts to ascertain whether they show a true and fair view.
The aim of financial auditing is to ensure compliance with existing
regulations and detect errors, fraud and mismanagement of
resources. It has a major effect on the information that forms a
basis for decision-making, but it provides limited information on
the extent to which a Government’s programme fulfils its
objectives and goals. Financial auditing should therefore be
supplemented and complemented by an audit that examines how
well public operations have been performed, that is, to what
extent have they produced the intended results and effects. This
is the function of Performance auditing.

As well, it goes without saying that, Performance Auditing, aims
at promoting economy, efficiency, and effectiveness in the

Office of the Controller and Auditor General   Performance Audits General Report   2
management of public resources, has a wider scope and goes
further than the physical inspections to verify that money spent
according to the accounting books is manifested on site in terms
of physical, observable investments. Physical verification of
schools, health clinics, bridges etc is an important follow-up
exercise in itself. Its result may possibly initiate a performance
audit (pre-study) to further explore the causes of poor,
questionable investments to come up with in-depth analysis and
recommendations. We believe that the performance audit reports
summarized below portray and serve as examples on the
differences between performance audit, financial audit and
physical verification of investments.

Definition
Performance Auditing is an audit of the economy, efficiency and
effectiveness with which the audited entity uses its resources in
carrying out is responsibilities. Goals for performance auditing
include improvement of programmes and operations, saving tax
payers money, providing better services to the public and
obtaining best value for money. In brief, we may say that
Performance Audit examines if taxpayers’ money has been spent
for the right purpose in the right way.

1.1.4 Performance Audit and INTOSAI Auditing Standards
INTOSAI Auditing Standard No.38 and 40 state the following: -

“The full scope of government auditing includes regularity and
performance audit”

‘’Performance auditing is concerned with the audit of economy,
efficiency and effectiveness and embraces:

    (a) Audit of the economy of administrative activities in
        accordance with sound administrative principles, and
        practices, and management policies:

    (b) Audit of the efficiency of utilization human, financial and
        other resources, including examination of information
        systems,    performance     measures     and     monitoring

Office of the Controller and Auditor General   Performance Audits General Report   3
         arrangements, and procedures followed by audited entities
         for remedying identified deficiencies: and

    (c) Audit of the effectiveness of performance in relation to
        achievement of the objectives of the audited entity, and
        audit of the actual impact of activities compared with the
        intended impact.’’


1.1.5 Aims of Performance Auditing
Performance Auditing has the following main aims:

    a) Drawing attention to obstacles to effective and efficient
       use of resources in the Government sector.

    b) Providing Parliament, MDAs, LGAs and Public Authorities
       with the basis for policy decisions concerning improved
       effectiveness.

    c) Giving Parliament, MDAs, LGAs and Public Authorities
       information to enable them to implement proposal for
       increased effectiveness.

    d) Encouraging the public sector management to introduce
       processes for reporting on performance to contribute to
       more accountability.


1.1.6 Introduction to 5 PA studies
This consolidated general performance audit report summarises
five (5) performance audit reports which have been tabled before
our august Parliament. These reports are:
    • School Inspection Programme for Secondary Schools
    • Management of Primary Health Care
    • Management of Solid Waste in big cities and municipalities
    • Processing of Terminal Benefits for retirees
    • Management of Prevention and Mitigation of Floods



Office of the Controller and Auditor General   Performance Audits General Report   4
1.1.7 Purpose of this general report
Presentation of this general report on five (5) performance audit
reports is aiming at assisting Members of Parliament, Government,
Mass Media, the Public and other stakeholders to take informed
decisions in order to implement proposal for increased economy,
efficiency and effectiveness. To this end, the summary of each
report is concluded by a message to the standing committees of
Parliament regarding issues to be raised in hearings with
Accounting Officers.

It should be emphasised that, this general report is not intending
to substitute the five individual reports summarized in subsequent
chapters. For in-depth understanding of the matters at stake and
for questioning responsible Accounting Officers on the concerned
subject areas, the reader is advised to rely on the full reports.

The presentation of the report on Floods, which was tabled in
Parliament in 2007, contains not only a summary of the report but
also notes on reactions from stakeholders and lessons learned
since tabling. We advise the oversight committees and other
standing committees of Parliament to further deliberate on how
to effectively make use of the Performance Audit Reports from
NAOT.


1.2      Data validation process/scrutiny of facts
The results of the five performance audits were discussed with
the concerned Ministries, Departments, Local Government
Authorities and Pension Funds audited in separate exit
conferences conducted or through written comments from
concerned auditees.

Their comments have been incorporated in the reports where
appropriate.

1.3      Challenges of the audits
There were some challenges that had to be addressed during the
course of the audit work which we wish to summarise as follows:


Office of the Controller and Auditor General   Performance Audits General Report   5
    (i)       Concerning the availability and adequacy of data from
              the Auditees: It has not been easy for the audit teams
              to get readily available data. However, the office kept
              on collecting information data throughout the audits
              until we obtained enough information to form
              conclusions.

    (ii)      About availability of valid and reliable data: the teams
              got conflicting information from different Auditees,
              which illustrates that the systematic, result-orientated
              record-keeping (information infrastructure) is often a
              weak area for several auditees. However, through cross-
              checking and persistent analysis, we believe that the
              data presented in our reports reflects with reasonable
              accuracy the true state of affairs.

    (iii)     Reliance on verbal information: The inadequate record-
              keeping in terms of written documents for Solid Waste
              Management (SWM), Processing of Terminal Benefits,
              Management of Primary Health Care (PHC) and School
              Inspections made it necessary for the Performance Audit
              teams to rely to a certain extent on verbal information.
              Also here, cross-checking was used to validate
              information given.

    (iv)      Authenticity of gathered information: The audit team
              consulted/contacted practicing scientists and other
              experts on the audited fields (areas) in order to make
              sure that the information collected were checked and
              validated.


1.4        Structure of the general report
This report has been structured in such a way that, Chapter one
covers an introduction to the general report, including the
meaning of Performance audit, NAOT’s mandate to conduct PA,
difference between PA, Financial Audit and Physical Verification
as well as data validation process.


Office of the Controller and Auditor General   Performance Audits General Report   6
Chapter two presents the summary of PA report on Management
of Primary Health Care. The summarized version of School
Inspection Programme for Secondary Schools report is presented
in Chapter three.

Chapter four discusses a summarized PA report on Management of
Solid Waste in big cities and municipalities, whilst, Chapter five
presents the PA report on Processing of Terminal Benefits.

Chapter six contains a summary of the report on the Management
of Prevention and Mitigation of Floods.




Office of the Controller and Auditor General   Performance Audits General Report   7
Office of the Controller and Auditor General   Performance Audits General Report   8
                                  CHAPTER TWO

           MANAGEMENT OF PRIMARY HEALTH CARE
                    PERFORMANCE




Photo 2.1: Visitors waiting for medical service at one of the
           Health Centers audited




Office of the Controller and Auditor General   Performance Audits General Report   9
2.1      Introduction
2.1.1 Background to the audit

The Primary Health Care (PHC) is regarded as the cornerstone of
the country’s National Health Policy. PHC is often the first and in
many cases the only place of contact regarding prevention and
treatment in the community.

The Health Centers (HCs) are managed by Local Government
Authorities (LGAs). The Regional secretariat is the linkage
between the policy makers and the operating levels. They are
responsible for interpreting Government policies and decisions
and safeguarding that the available resources in this sector are
being effectively distributed and efficiently utilized. Beyond
policy and regulation, the Central Government’s authorities are
also responsible for the way the PHC system is set up and works.

Indication of the problem
Our pre-study indicated that there are problems in the Health
Centers performance. There is a lack of knowledge on how well
they perform, and there are reasons to believe that available
resources are not always effectively distributed and efficiently
utilized. There are also indications of problem in the
administrative structure. Preliminary findings indicate significant
shortcomings in the management and monitoring of the Health
Centers at several administrative levels. The problems manifest
themselves also in the existing system for funding health care
services.

Based on the independent technical review of health service
delivery at district level, the review team highlighted client
perception regarding long waiting time in the health facility.
There were also minimal evidences that performance measuring
criteria like workload was taken into account for staff
deployment.




Office of the Controller and Auditor General   Performance Audits General Report   10
2.1.2 Audit Objective and Scope

Audit Objective
The purpose of this performance audit was to review whether the
Health Centers are managed efficiently and whether their
performance is appropriately considered in allocating the
available resources. The aim was also to study if adequate actions
are taken to improve the situations.

Audit Scope
The audit has focused on Health Centers owned and managed by
the Government of Tanzania Mainland. Focus was on performance
of the Health Centers managed by Local Government Authorities
which are responsible for all matters pertaining to PHC.

Seven regions of various sizes and population and with reasonable
accessibility were chosen. The aim was to include regions with
different conditions. The regions selected were Dodoma, Iringa,
Morogoro, Lindi, Coast, Tanga and Mtwara. In short, the selection
covers one third of the regions in Tanzania mainland. According to
experts, this selection was deemed representative enough for the
audit purpose. All these regions were visited by the audit team.

20 councils out of Tanzania’s mainland 133 Councils were
selected. Councils were chosen to represent various external
conditions, like geographical, statuary, economic and population
size.

Data was collected through interviewing concerned actors,
reviewing documents and direct observation for measuring waiting
processing time and daily workload.


2.2      System description

There are a number of key players who facilitate the whole
process of providing health services to the citizens of this country.
The roles of the health sector are executed at the national,
regional and council levels, which also is the operating level.

Office of the Controller and Auditor General   Performance Audits General Report   11
Central government authorities – regulators and supervisors
The actors at the national level have influence on the Health
Center’s performance both as actors from national level and as
system supervisors. Their roles among other things are policy
making, developing standards and guidelines, coordination and
supervision.

The Ministry of Health and Social Welfare (MoHSW) is responsible
for developing policies and standards for PHC. The ministry also
allocates drugs (pharmaceuticals and medical supplies) and
distributes them through the Medical Stores Department (MSD)
which is under the MoHSW.

The Prime Minister’s Office – Regional Administration and Local
Government (PMO-RALG) – deals with the implementation of the
health policies. This task includes monitoring of the use of funds
and also administration of human resources at the regional and
council levels. The PMO-RALG also has a coordinating role by
linking all Regional Administrative Secretaries (RAS) and Local
Government (Councils) in Tanzania Mainland.

Regional authorities – evaluators and supervisors
At the Regional level, the Regional Administrative Secretariats
(RAS) is an extended arm of the MoHSW and the PMO-RALG at the
central level. Among other things the RAS plays the role of
Supporting the health service delivery through the Regional
Health Management Teams (RHMT), assessing Council Health Plans
as well as its implementation reports (technical and financial
reports), Monitoring and supervising the Council Health
Management Teams i.e. CHMT and advice them accordingly and
provides the central level with information for decision making.

Local authorities – operational managers and service providers
PHC services operate under Local Government Authorities whose
mandates are derived under the Local Government Urban
Authorities Act No. 8 of 1982 and the Local Government District
Authorities Act of 1982. The Councils’ are responsible for
managing all government owned Health Centers in their
respective areas.


Office of the Controller and Auditor General   Performance Audits General Report   12
The Health system is as shown in the Figure 2.1 below.


           MoHSW                                                              PMORALG



                                      RAS/RHMT                                     Mobilising
                                                                                   and
 Plays role of                                                                     allocation
 inspection                                                                        of
 and other                                     Supervision and                     resources,
 technical                                                                         coordinatio
                                               advisory role
                                                                                   n and
 matters in
                                                                                   monitoring
 implementin
                                                                                   role
 g the                                 COUNCIL




                                                                                                 Reporting
 National
 Health Policy                          CHMT


                                               Daily management of health
                                               delivery services and supervision

                                   HEALTH CENTERS


                      Source: Interviews and document review

                   Figure 2.1: The Health System in Tanzania



2.3        Audit Findings and conclusions
The major findings of the audit are as follows:

We noted that, the Health Centers are not efficiently managed
and are funded without proper consideration of service
demands and performance

The Ministry of Health and Social Welfare (MoHSW) has set up
standards for the staffing of each Health Center. Considerations
of performance, like workload and customers/clients waiting-
processing time, are not specifically stated in the Government
documents addressing the Councils’ allocation of resources to the
Health Centers.

Resources not allocated according to workload
Workload and waiting time in the Health Centres vary a lot. The
Health Centres performance is not being measured and

Office of the Controller and Auditor General         Performance Audits General Report                  13
appropriately considered in allocating the available resources.
Drugs are not delivered timely and as requested. Both human and
financial resources vary without considering certain variations of
demand and performance as shown in the table below.

This is as shown on Table 2.1 below, which is showing the
comparison between allocated resources to various Health
Centres and present workload.

    Table 2.1: Comparison of Allocation of resources against
                             workload
Name of HC        Average         Workload      Funds for Drugs
                number of         (Average       allocation per
                visitors per     visitors per        Quarter
               day at the HC day per staff)           (TSH)
Ngome                 40               1            2,000,000
Kilimarondo           18               3            2,000,000
Makorora             380               8            1,755,000
Chalinze             231              23            2,000,000
                 Source: Primary Health Centers

Councils do not fully guarantee that available resources are
directed and distributed effectively and thereafter utilized
efficiently.

For health care services, funds for Health Centers are allocated
from the National to Council level mostly based on demographic
criteria. The Councils then may reallocate these resources
between their Health Centers. But this is rarely done. The Council
distribute funds to the Health Centers for running expenses and
medical supplies without proper or specific consideration on
service demand and performance.

Few actions have been taken to improve the efficiency and
shorten the customers’ (patients) waiting and processing time
in the Health Centers.

Many HCs can not say how much the council is contributing to the
health care because they are not aware of their budget since they

Office of the Controller and Auditor General   Performance Audits General Report   14
get no feedback from the Councils on the approval of their
budgets. Furthermore, Health Centers lack a comprehensive
system for monitoring of their own spending. In addition, the
current system of supervision has not been able to detect the
Health Centers that have problems with their performance and
suggest remedial action. Also, the conducted supervision by the
Council Health Management Team (CHMT) and Regional Health
Management Team (RHMT) has not provided the HCs with
adequate support to mitigate those problems. Moreover, it is not
possible to confirm any certain correlation between the Health
Centers’ performance and the conducted supervision.

In spite of certain differences in performance and great
potentials for improvements, few actions have been taken by
the Government

Even though the workload of Health Centers in many cases is not
that high and the waiting time is likewise seldom extremely long
variations in the Health Centers’ performance do exist. For
example Health Centers with the same workload show extended
variations in waiting time. Health Centers with lower workload
may even have longer waiting time than Health Centers with
higher workload. The opposite also occurs. These differences in
performance can be explained mainly by internal factors within
the Health Centers’ influence.

The relationship between performance and funding for
operating cost at the Health Centers is weak.

Drugs are funded without closer examination of needs. Neither
does the number of visitors (users of the Health Centers services)
correspond with allocated staff.

The existing system for regular monitoring does not provide the
MoHSW and PMORALG with an adequate overview of up dated and
comprehensive information about the problems with performance
of the Health Centers. On the other hand, this kind of qualified
information has not been requested by the MoHSW. In addition,


Office of the Controller and Auditor General   Performance Audits General Report   15
few evaluations regarding the link between performance and
allocation of resources have been initiated and conducted by the
ministry and few actions have been taken by the government
authorities to improve this situation.

Limited Capacity and Impact of Health Facility governing
committee
 Each HC has governing committee which is required to sit at least
four times in a year. The committee is composed of members
from the community and the incharge of the HC as a secretary.
The purpose is to safeguard the resource and smooth operation of
the health facility. These committees were not found to be
sufficiently effective in carrying out their task. Few meetings
were conducted per year. Matters discussed in some of the
conducted meetings did not reflect the performance issues such
as discussing Health Center’s HMIS monthly statistics and
quarterly reports. Most of the committee members in the visited
Health Centers had limited capacity in discharging their
responsibilities.

Ineffective assessment of progress reports
The MOHSW in collaboration with PMORALG have formulated
guidelines on management of resources concerning health
activities at the council level. The aim is to make effective use of
these resources. One major issue is evaluation on the use of these
resources. The result is reported in so called progress reports.
The progress reports are assessed at the regional level and
reassessed at the central level. However, the criteria – set by the
MoHSW – for assessing the progress report for the purpose of
further funding gave little weight to issues like performance and
service delivery. The criteria used were rather focusing on
compliance on format of the report.

Poor communication between the Councils and the HCs
The Councils do not adequately manage the Health Centers’
performance. This is because of a poor communication between
the in charge of Health Centers and the DMO which has influence
on the conditions and the priorities for the Health Centers’

Office of the Controller and Auditor General   Performance Audits General Report   16
activities. One of the factors that cause councils to inadequately
manage the Health Centers performance is poor communication
for disseminating important information such as Guidelines to
Health Centers. As a result, staff at the Health Centers are
unaware of the guidelines for setting their priorities during the
planning session. For example, the MoHSW has set up a package
with priorities for the burden of diseases in Tanzania, but the
staff at the Health Centers were not aware of this guide for
setting their priorities.

Late approval and delivery of funds
Funds decided and allocated by the government to local
authorities in PHC are delayed when it comes to both the
Government’s Block Grants and the donors’ Health Basket Fund1.
During the financial years 2005/06 to 2006/7, the delays of Basket
Fund resources varied from 33-123 days. This hampers the quality
and the quantity of the Health Centers’ performance as these
resources are disbursed to allow the achievement of the national
minimum standards of service for PHC. The release of these
resources are also linked to pre-defined outputs/outcomes. (See
Table 2.2 below)

                    Table 2.2: Receipts of Basket Fund
     Year      Period of          Date amount       Delays (In           Impact
                activity            received          days)
    2005/06   Quarter 1            21/09/2005          81          Activities not
                                                                   done timely
              Quarter 2           21/09/2005              -                 -
              Quarter 3           31/03/2006             89        Activities not
                                                                   done timely
              Quarter 4           31/03/2006              -                 -
    2006/07   Quarter 1           27/09/2006             87        Activities not
                                                                   done timely
              Quarter 2           27/09/2006             -                  -
              Quarter 3           04/05/2007            123        Activities not
                                                                   done timely
              Quarter 4           04/05/2007             33        Activities not
                                                                   done timely
                           Source: Documents reviews

1
  Government and Basket Funds are released separately – on quarterly basis, as far as
the Basket Fund is concerned.

Office of the Controller and Auditor General    Performance Audits General Report   17
2.4      Recommendations
The audit findings and conclusion point out many problems with
resource allocation and communication that hampers the
possibilities for a more efficient Primary Health Care system in
the country. Changed actions at both the operative and the
administrative levels in the area are important in order to
improve the services provided at the Health Centers. In order for
key actors at District, Regional and National Levels to further
address problems of efficiency and effectiveness in PHC, we
recommend the following for improved conditions for the health
center:

The Ministry of Health and Social Welfare (MoHSW) should:
   • allocate essential medical drugs, equipment, supplies and
      funds by taking into consideration performance indicators
      like Health Centers’ workload and visitors’ waiting and
      processing time.
   • ensure that Health Centers are provided with adequate
      drugs and medical supplies by the Medical Stores
      Department according to their requests.
   • ensure that the Health Management Information System is
      updated to address critical gaps in terms of performance.
   • strengthen the Regional Health Management Team to fully
      perform their mandate of supporting CHMT and evaluating
      CCHPs and progress report before forwarding them to
      PMORALG/MoHSW.
   • Ensure that the Medical Stores Department prepares and
      issues accountability statements quarterly in regard to each
      LGA. The same report has to be incorporated in council’s
      implementation report prepared quarterly.

This would result into fairer distribution of resources and hence
promote better performance at different levels as per the existing
health system.

The PMORALG is responsible for the overall coordination and
implementation of the health sector in the Regions and Local
Government Authorities and ensuring that health basket funds is


Office of the Controller and Auditor General   Performance Audits General Report   18
disbursed to them on time. For effective discharging of her roles,
PMORALG should:
   • Ensure that assessment of financial and technical reports
       give more weight to performance issues so as to help
       facilitate positive changes by enabling Health Centers to
       take full advantage of both technical and financial
       assistance.
   • Contribute to a more decentralized decision making
       regarding basket funds in accordance with the requirement
       of the Ministry of Health and Social Welfare CCHP
       Guidelines.
   • Ensure that a more efficient procedure for the
       disbursements of funds is followed including a benchmark
       for time. The ministry needs to develop more direct and
       transparent links between the funds allocated to Health
       Centers and expected activities, service levels and targets.
       This will promote timely implementation of activities at
       regional, council and Health Center levels.

To the Regional Secretariat

At the regional level, the Regional Medical Officer with his team,
RHMT has an important role to play between the operating and
the policy making levels by ensuring that:

    •    CHMT supervision visits at the Health Centers are properly
         planned, conducted, reported on and followed up
    •    The RS/RHMT should provide the MoHSW and PMORALG
         with reliable, problem oriented and analyzed information
         regarding health issues for their decision making.

Effective supervision will promote better performance. Provision
of suitable and timely information to the PMORALG and MoHSW
will assist in ensuring that political decisions and funding systems
of PHC will have a patient perspective and be based on efficiency
criteria e.g. waiting time. This will result into a more fair and
appropriate distribution of resources.



Office of the Controller and Auditor General   Performance Audits General Report   19
To Municipal/District Council

For an improved efficiency in Primary Health Care, the Council
Director (CD) has an important role to play. The CD should ensure
that resources allocation to the Health Centers is related with the
workload at the centre and its performance. To provide this, the
Councils through the health management team need to establish
performance based criteria related to the performance at the
specific Health Centers. This will promote fair distribution of
available resources to citizens.


The Health Center’s budget control system also needs to be
strengthened. In order to achieve this, it is important that the
Councils provide the Health Centers with:
    • National priorities on essential health package to guide
       them during preparation of their yearly budget proposals.
    • estimated ceilings of the annual budgets
    • Information on the approved annual budgets.

Strengthening the budgeting system will create awareness to
Health Centers’ staff and other stakeholders on the resources
available. This will assist the ability of Health Centers to promote
transparency, accountability and good performance.

The District Medical Officer (DMO) with his team, CHMT, needs to
contribute to improved activities at the Health Centers. In order
to achieve this, the team needs to safeguard and ensure the
following:
    • proper delivery of the essential medical drugs and supplies
       to the Health Centers
    • proper collection, analysis of the Health Center data and
       reporting system according to the Health Management
       Information System
    • reallocation of staff, drugs, funds and other resources
       between different Health Centers according to
       performance indicators like work load and waiting and
       processing time.


Office of the Controller and Auditor General   Performance Audits General Report   20
    •    Decentralisation of Health Centers’ funds by ensuring that
         each facility has its own account and petty cash with a
         certain ceiling.
    •    building capacities to the Incharges of Health Centers
         regarding keeping proper records and control of funds and
         other resources at their health facilities.
    •    effective health governing committees is in place for each
         Health Center together with building the capacity of its
         members.

If the above recommendations are implemented, it will bring out
improvement in performance and ensure that suitable information
are reported timely. Furthermore, for the DMO to detect and
correct shortcomings at the Health Centers, he/she needs to
properly plan, conduct and follow up supportive supervision visits
regularly which will result into improvement of quality and
standards and also being able to identify and address gaps in
performance.

2.5      Message to Standing Committees of Parliament
This audit summary and the full performance audit report can be
used by the Standing Committee of Parliament responsible for
health to question accounting officers as follows:

    •    whether allocation of available resources such as drugs,
         funds and human resources do take into consideration
         performance and workload issues
    •    how do the Regional Secretariats efficiently monitor and
         evaluate health centers’ performance at Council level;
    •    how do the MoHSW and PMORALG use reports issued from
         the councils and whether appropriate feedback is provided
         to them
    •    How does MoHSW intend to design a system for
         implementing allocation of resources that is sensitive to
         Health Center’s workload, visitors’ waiting and processing
         time; and




Office of the Controller and Auditor General   Performance Audits General Report   21
    •    How does the PMORALG ensure that the Health Centres
         under them are creating value for money for the services
         being rendered.

Improvements in the delivery of Primary Health Services and the
operations of the Health Centres concern a complex system with
many actors at various levels of government. Changes for better
service delivery will by necessity be gradual and take time. The
concerned parliamentary committees are therefore advised,
under the coordination of PAC, to annually call the concerned
Accounting Officers to hearings about the activities implemented
and monitored in addressing the shortcomings identified in our
report.




Office of the Controller and Auditor General   Performance Audits General Report   22
                                 CHAPTER THREE

INSPECTION PROGRAMME FOR SECONDARY SCHOOLS IN
                  TANZANIA




 Photo 3.1: “There is shortage of teachers in Mathematics and
              Science Subjects in the country”




Office of the Controller and Auditor General   Performance Audits General Report   23
3.1        Introduction
3.1.1 Background to the audit

Poor performance of students in Secondary Schools in subjects
such as Mathematics and Sciences2 is an issue that has been well
known and discussed by many people for so long in Tanzania.
School inspection is an important instrument for the Government
to ensure that there is good performance in secondary schools.
This makes it important that the School Inspectorate conducts its
duties in an efficient and effective way.

The purpose of the school inspection is to monitor the delivery of
education and the adherence to the stipulated curriculum and the
standards set, in order to safeguard good quality in education.
The purpose is also to oversee the efficient and effective delivery
of education and to supervise the schools. In addition, it is also
aimed to provide feedback to education agencies, managers and
administrators3.

The general function of school inspectors is to ensure adherence
to set policies, laws, regulations and standards of education in the
school system of Tanzania. In order to achieve this, school
inspectors are required to carry out the following specific
functions:
    • To inspect all schools and write reports with a purpose of
       advising the Chief Education Officer on matters which
       require decision making for improvement.
    • To inspect, educate and advise owners, managers, school
       boards/committees and teachers on good implementation
       of schools development
    • To act as a link between the school, other institutions and
       the ministry
    • To conduct in-service training for teachers


2
    Physics, Chemistry and Biology
3
    Education Act No 25 of 1978 and Education and Training Policy (1995)



Office of the Controller and Auditor General     Performance Audits General Report   24
    •    Carry out supervisory visits to improve the quality of the
         teaching in schools.

Indication of the problem
Good performance of students in science subjects is essential for
social and economic development. The aims among others in the
Government’s Education Policy for secondary schools are to
achieve equity in education and also, to prepare all students for
higher education. Despite these ambitions, there are massive
failures in mathematics and science subjects in secondary schools.

For example, the percentage of failures in mathematics in
National Form Four Examination results for three consecutive
years were as follows:
               Year              Percentage of failures
                                         (%)
               2004                       70
               2005                       77
               2006                       76
                       Source: MoEVT

Furthermore, the percentages of failures in science subjects for
the year 2003 were as follows:

                  Subjects                       Percentage of failures
                                               Year 2003        Year 2004
        Physics                                   43%               45%
        Chemistry                                 35%               35%
        Biology                                   45%               43%
                                    Source: MoEVT


3.1.2 Audit Objective and Scope

Audit objective
The purpose of this audit was to examine whether the School
Inspectorate appropriately fulfils its mission to safeguard good
quality of training in secondary schools. Inspection is the main
instrument through which the School Inspectorate fulfils its

Office of the Controller and Auditor General    Performance Audits General Report   25
mission. Or in other words, inspection is the core business.
Consequently, the audit is mainly focused on how these
inspections operate. In the light of the described failures in
Mathematics and Science subjects, the audit has chosen to
examine whether the School inspection addresses the problem of
poor performing students in secondary schools, given the
resources available.

Audit Scope and Methodology
This audit is focused on how and to what extent the School
Inspectorate genuinely addresses the issue of poor performing
students in mathematics and science subjects in secondary
schools, and how it operates in terms of planning, conducting
school inspections in order to achieve the intended objectives.
The National Audit Office has examined a sample of inspection
reports, other school inspection documents and relevant
literature. The office has also, conducted a large number of
interviews with various stakeholders who are concerned with the
audit objective.

3.2. System description
The general function of school inspection is to ensure adherence
to set policies, laws, regulations and standards of education in the
school system of Tanzania. In order to ensure that high quality of
education is being delivered and good performance is sustained,
the following key actors are involved.
Within the Ministry of Education and Vocational Training, the
Permanent Secretary is responsible for preparing education
policies and for the running of the various executive departments.
The Chief Education Officer is responsible for implementing
decisions taken by the Minister of Education and Vocational
Training and the Permanent Secretary and for coordinating the
activities within the line departments of the Ministry.

The School Inspectorate is headed by the Chief Inspector of
Schools, who reports to the Chief Education Officer. The Chief
Inspector of Schools is supported by four sections, namely
management, basic education, secondary education as well as
teacher education.

Office of the Controller and Auditor General   Performance Audits General Report   26
3.3      Audit findings and conclusions

Audit findings
We noted that there are no clear priorities on poor performing
students in mathematics and science subjects in the School
Inspectorate’s own annual and operational planning for
inspection. The issue of poor performing students is not addressed
in issued guidelines to the school inspectors.

According to these guidelines the school inspectors are supposed
to go through 148 items at each inspection. But only sixteen of
these items are referring to the issue of poor performing students.

The guidelines contribute to a more or less standardized pattern
in the inspections, which hampers the possibility of the school
inspectors to provide the Government with adequate information,
like advice on targeted and cost-effective measures, and
suggestions on how to improve the education system in the
country.

From the randomly selected 110 inspection reports the audit dealt
with, it was revealed that the issue of poor performing students is
not efficiently addressed in the conducted school inspections.
Failure to capture the issue of poor performing students in the
School Inspectorate’s planning and conducting of activities
seriously hampers the efficiency and effectiveness of conducted
inspections.

The National Audit Office has found out that the wide mandate
for communication on the school inspection results is not always
used in a suitable way to address the issue of poor performing
students. Moreover, the majority of the recommendations in the
school inspection reports can only be implemented by the
Government and are thus aimed for the Ministry even if this is not
clearly stated. And in many cases they are of general character,
unrealistic and costly as they include a lot of additional resources
(long term).



Office of the Controller and Auditor General   Performance Audits General Report   27
The National Audit Office has also found out that there is room for
improvement when it comes to the communication of the results
of the school inspections. Although the Education Act directs that
the school inspection reports are to be sent to the Chief
Education Officer of the Ministry of Education and Vocational
Training, their distribution could be broadened. Other concerned
stakeholders like the District Administrative Secretaries could also
make use of these reports. Other relevant concerned stakeholders
that could benefit from the school inspection reports are
Headmasters/Mistresses and District Administrative Secretaries,

We noted that there is no routine for monitoring and evaluation of
the conducted inspections which are an important part of a
learning system about implementation and impact of provided
recommendations on schools’ performance.

Main conclusion
   (i)   The issue of the poor performance of students in
         mathematics and science subjects in secondary schools
         is not sufficiently reflected and prioritized in the
         guidelines and the operational planning of school
         inspection

    (ii)      The failure to capture the issue of poor performing
              students in the school inspectorate’s planning and
              conducting of activities hampers in general the
              relevance, efficiency and effectiveness of the school
              inspection programme

    (iii)     School     Inspection    results  are    insufficiently
              communicated to stakeholders and monitoring and
              evaluation     of    impact    of school    inspection
              recommendations is not done regularly to achieve
              learning for the future.




Office of the Controller and Auditor General   Performance Audits General Report   28
3.4        Recommendations

We recommend the following as the way forward

    (i)       The Ministry should provide more clear priorities in their
              guidance for the School Inspections on how to address
              poor performance in Mathermatics and Science Subjects
              in secondary schools.

    (ii)      The Ministry should request for compiled, problem
              oriented and analyzed information and conducted
              evaluations about poor performing students from the
              School Inspectorate.

    (iii)     The School Inspectorate should be more problem
              oriented, develop a learning system with increasing
              elements of follow up and evaluation of poorly
              performing schools. Priority should be given to
              improving school leadership regarding them focusing on
              poor performing students.

    (iv)      The School Inspectorate should efficiently communicate
              with concerned stakeholders about the results of the
              conducted inspections both in single cases and in
              general for follow up of schools progress with a desire
              to improve.

    (v)       The recommendations in the inspection reports to
              teachers, Headmasters/Mistresses and other local
              stakeholders need to provide more of practical
              guidance, adjusted to observed and discussed situations
              in the schools during the conducted school inspections.

    (vi)      Poorly performing schools need an assessment of their
              potential to improve and a plan that minimizes the
              number of students who fail particularly in Mathematics
              and Science subjects.



Office of the Controller and Auditor General   Performance Audits General Report   29
    (vii)     The School Inspectorate should make more efforts to
              identify the barriers that may cause students to fail in
              Mathematics and Science subjects.

3.5 Message to Standing Committee of Parliament
This audit summary and the full performance audit report can be
used by the Standing Committee of Parliament responsible for
education to question Accounting Officers as follows:

    (i)       Whether the planning by the school inspection
              genuinely addresses the problem of poor performing
              students (specifically in mathematics and science
              subjects) in secondary schools?

    (ii)      Whether the school inspections conducted addresses
              the major performance problems among students in
              secondary schools?

    (iii)     Whether there is a system in place for communicating
              inspections      findings,      conclusions     and
              recommendations to various stakeholders?

    (iv)      How is the school inspectorate assured that the
              recommendations given to the headmasters are
              influential and effective?

Due to the complex issues related to school inspections and poor
performance in Mathematics and Science subjects in secondary
schools and the long-terrm actions required for improvements,
the relevant parliamentary committees are advised, under the
coordination of the PAC, to annually call the concerned
Accounting Officers to hearings about their addressing the
shortcomings identified in our report.




Office of the Controller and Auditor General   Performance Audits General Report   30
                                 CHAPTER FOUR

                       SOLID WASTE MANAGEMENT




Photo 4.1:     The picture is showing a stinking pile of SW at
Buguruni near Rozana Bus stand. This pile is just next to
residential houses and shops and has remained uncollected for a
long time.




Office of the Controller and Auditor General   Performance Audits General Report   31
4.1      Introduction
4.1.1 Background to the audit
One result of the significant population growth in big cities and
regions of Tanzania has been an increase in the amount of solid
waste generated. The cities and Municipal councils are
responsible for managing this solid waste, however large amounts
of uncollected solid waste in the streets of commercial and
residential areas has been the subject of increasing public
concern and outcry.

Solid waste management (SWM) is important to safeguard human
health and to protect the environment. Most countries, both
developing and developed, recognize the importance of waste
management. Improper solid waste management can lead to
illegal dumping and to the contamination of soil, surface water,
groundwater and air.

Furthermore, insufficient waste handling               and emissions can have
negative impacts on public health. The                 health aspects of SWM
forms part and parcel of our audit, which              primarily focuses on the
contractual and operational relationship               between the LGAs and
private sector (SW collectors).

Indication of the problem
This problem of inadequate management of solid waste in
Tanzania has been debated and discussed by most of the
stakeholders including, the inhabitants who asks for the SWM
service delivery to be improved, Local government authorities
which need high involvement of private sector in managing SW,
private service delivery (contractors) who want LGAs to be
involved more clearly on SWM and ensure that SW fees are
properly collected, and SWM experts who indeed see that the SW
management is not done in an appropriate manner.




Office of the Controller and Auditor General   Performance Audits General Report   32
4.1.2 Audit objective and Scope

Objective of the audit
The objective of the audit was to determine whether the solid
waste management functions of selected local government
authorities in Tanzania was undertaken in the most efficient and
effective manner giving consideration to services rendered by
service providers, monitoring of solid waste activities, Solid waste
(SW) fees administration, contracts management between
franchisee contractors and Municipality/city councils and
appropriateness of the central governments’ monitoring system.

Audit Scope
This audit covered six councils namely, Municipalities of Arusha
(AMC), Ilala (IMC), Temeke (TMC) and Kinondoni (KMC) and; Cities
of Mwanza (MwCC) and Mbeya (MCC) within Tanzania for the years
2005/2006 and 2006/2007; all of the councils selected are highly
urbanized places with diverse economies and people from all
walks of life.

Similarly, Central government organs through the Ministry of
Health and Social Welfare, Directorate of Environment, National
Environmental Management Council and Tanzania Bureau of
Standards were also covered.

4.2      Solid Waste management System description
4.2.1 Key Players in Solid Waste management
To facilitate the whole action of dealing with Solid Waste, there is
a number of key players, who are responsible for the management
of Solid Waste and who are supposed to perform the main
activities as mentioned in the system graph below:




Office of the Controller and Auditor General   Performance Audits General Report   33
                                        PARLIAMENT OF THE UNITED REPUBLIC OF TANZANIA
                                   Passes legislations and Acts to manage the waste and environment



      VPO – DEPARTMENT OF ENVIRONMENT                            MINISTRY OF HEALTH AND SOCIAL
  Department that oversees implementation of the              WELFARE DEPARTMENT OF PREVENTIVE
     National legislation regarding environment                              SERVICES
                                                              Formulates and Oversees implementation
                                                               of Environmental Health, Hygiene and
                                                                    Sanitation Policy guidelines
                     NEMC
        -Carry out environmental audits                               PMO – RALG
      - Enforces & ensures compliance to             - monitor all the activities of LGAs & Regions
         national environmental quality                 - Issue directives to LGAs and Regions
                   standards
                                                                  REGIONAL SECRETARIAT
                                                 Co-ordination of all advice on environmental management



           TBS                    LOCAL GOVERNMENT AUTHORITIES (CITIES/MUNICIPALITIES)
  Responsible for setting                 - Provide SWM services and operate disposal sites
   standards for waste                       - Contracts out services to the private sector
      management

                                                                PRIVATE SECTOR
                                           - Does the collection and transportation of the solid waste
                                                               - Operate recycling


Figure 4.1: System Graph– Solid Waste Management in Tanzania

4.2.2 Responsibility for Solid Waste Management in
      Tanzania

Central Government
The Central Government through the Prime Minister’s Office -
Regional Administration and Local Government Authorities is
responsible for instituting a system of SWM which can be used by
the LGAs to deal with SW in their local authorities.

Also, the Central government through the Ministry of Health and
Social    Welfare,   Directorate    of  Environment,   National
Environmental Management Council and Tanzania Bureau of
Standards are responsible for setting standards, Environmental
policies and regulations related to SW management in Tanzania.
Likewise, the same organs are also responsible for monitoring
those standards, policies and regulations which are supposed to
be adhered to by the Local Authorities. The powers and

Office of the Controller and Auditor General            Performance Audits General Report                34
responsibilities of the above mentioned central level organs are
vested by the Environmental Management Act No. 20 of 2004.

Local Government Authorities
Local Government Authorities (LGAs) are empowered by the Local
Government Act (Urban Authorities) No. 8 of 1982 to conduct SWM
services in their local authorities and allowed to charge SW fees.
These councils are responsible for both collection of SW and SW
fee. The same act has given these councils a mandate to
outsource these services of collection of SW and SW fees.

Private Sector
The private sector (private collectors) is also involved in the
collection and transportation of the Solid Waste to the dumping
sites. The contractors are required to abide to the schedule of
solid waste collection and transportation as per contracts with
LGAs. In some LGAs, the private collectors are also required to
collect SW fees.

Community (public)
The Community or inhabitants are the ones who generate solid
waste daily due to various activities which are taking place.
Similarly, inhabitants are supposed to pay the SW fees in order to
cover for the cost of SWM.

4.3      Findings of the Audit
In this section, major findings of the audit have been presented to
address the audit objectives shown above on section 4.1.2.
Based on the scope of the audit, the following issues have been
addressed: generated and collected solid waste on a particular
council, goals and objectives for the solid waste collection,
procurement of private service providers, effectiveness and cost
efficiency among service providers, monitoring, inspection and
quality assurance, sanctions and enforcement of contracts, the
system of SW fee and how it operates and finally performance
comparison of different service providers.
The major findings of the audit were as follows:



Office of the Controller and Auditor General   Performance Audits General Report   35
4.3.1 There is an increasing problem of SWM in Tanzania
LGAs are supposed to collect all Solid Waste generated in its
vicinity and ensure that SW are disposed off appropriately.

According to Table 4.1 below, the amounts of SW not taken away
from LGAs are increasing very rapidly. In all six LGAs audited, the
amount of solid waste not collected by LGAs is more that 50% of
the total SW generated.

 Table 4.1: Performance of service providers on the collection
                            of SW
 Parameter          AMC     MwCC MCC       KMC         TMC                    IMC
 SW Generated        137     110     59      740 -      176                     286
 (tonnes/year)                                865
 SW collection         -       -      -        50         -                        -
 target (%)
 Goal fulfilment       -       -      -         -         -                        -
 (%)
 Actual collection    28      88     70        45        43                        66
 of SW generated
 (%)
             Source: Local Government Authorities (2008)

This is an indication of an increasing problem, since population
continues to grow while SW services are dwindling. The
uncollected wastes pose a potential health hazard to the people.
In many occasions they handle the waste inappropriately.

4.3.2 There is poor and varying performance among
      service providers

The audit has found out that, service providers (franchisee
contractors and CBOs) in different councils are varying regarding
efficiency in the provision of SWM service.

Performance of these service providers has been measured based
on solid waste collected per truck (tonnes/truck/year) and solid
waste collected per staff (tonnes/staff/year).



Office of the Controller and Auditor General   Performance Audits General Report        36
Performance of Local Government Authorities
Table 4.2 below shows the efficiency in the performance of the
equipment used in SW collection versus the staff in different
LGAs. The performance difference in Solid Waste collected per
truck between the highest performer (MCC) and lowest performer
(IMC) is high. The highest performer collects 9,855
tonnes/truck/year while the lowest performer collects 1,460
tonnes/truck/year. Similarly, on the solid waste collected per
staff, KMC collects 548 tonnes/staff/year while TMC collects 183
tonnes/staff/year.


  Table 4.2: Performance of LGAs in terms of SW collected per
                       truck and SW collected per staff

 Parameter            AMC     MwCC MCC       KMC      TMC                     IMC
 Solid waste          3,909     -    9,855 2,774 1,825                         1,460
 collected per truck
 (tonnes/truck/year)
 Solid waste          193       -    329     548      183                          241
 collected per staff
 (tonnes/staff/year)
             Source: Local Government Authorities (2008)

Performance of Franchisee Contractors

Table 4.3 below shows the efficiency in the performance of the
equipment used in SW collection versus the staff among
Franchisee contractors in different LGAs.

The performance difference in Solid Waste collected per truck
between the highest performer (MwCC) and lowest performer
(TMC) is high. The highest performer collects 3,650
tonnes/truck/year while the lowest performer collects 1,169
tonnes/truck/year. Similarly, on the solid waste collected per
staff, KMC collects 415 tonnes/staff/year while TMC collects 95
tonnes/staff/year.




Office of the Controller and Auditor General   Performance Audits General Report         37
 Table 4.3: Performance of Franchisee Contractors in terms of
  average SW collected per truck and SW collected per staff

 Parameter            AMC     MwCC MCC       KMC      TMC    IMC
 Solid         waste 1,315 3,650       N/A    2,961 1,169 1,360
 collected per truck
 (tonnes/truck/year)
 Solid         waste     95     112    N/A      415      128   146
 collected per staff
 (tonnes/staff/year)
             Source: Local Government Authorities (2008)

According to Tables 4.2 and 4.3, the present Solid Waste
Collectors have proven to be very fragile business entities in
terms of finance and equipment. The LGAs seems to let the
franchisee contractors to work alone as much as they can. It
seems also LGAs are worried to take stern action against
underperforming contractors simply because these contractors are
weak and there are no others available for the job.




Photo 4.2: Transportation of SW is done by a Tractor and
trailer which are old and worn out as depicted in this photo in
Kinondoni Municipality.




Office of the Controller and Auditor General   Performance Audits General Report   38
4.3.3 The present system of SWM is irrational
Audit has found out that, there is no division between service
provision and monitoring within the municipal/city councils. In
that regard staff in SWM section are responsible for service
provision and at the same time monitoring the SWM activities
discharged by the same officials within the section or franchisee
contractors.

However, audit has further noted that service providers
(franchisee contractors or CBOs) are not acting as service
providers and councils are not really acting as the procurer of the
SWM services. This is due to:
    (i)    Service providers are collecting both SW and SW fees
    (ii)   There is no critical evaluation of the SW fees to review
           its system and to see why councils are not collecting
           fees properly.
    (iii) There are no critical studies carried out to establish the
           actual cost of managing SW per ton and make it a basis
           for contracting with franchisee contractors.
    (iv) It seems that councils are not choosing service providers
           who provide the best offer
    (v)    In the present contracts between Councils and
           franchisee contractors, there is no clear and open
           target set between them.
    (vi) Councils lack proper inventory per ward or street to
           capture the most important information i.e. number of
           households, businesses, industries served, those who
           paid or not paid etc. and calculation of expected
           amount of SW needed to be collected from a certain
           area.
    (vii) There is no franchisee contractor or CBO who revealed
           its financial gains and it is very difficult for the council
           to know exactly whether these franchisees are really
           making profit or not. Also, councils are supposed to
           monitor their books of account but they were not doing
           so.
    (viii) It is almost impossible to have an effective value for
           money system unless councils (LGAs) get all necessary


Office of the Controller and Auditor General   Performance Audits General Report   39
              SW fees and put the fees under their control and then
              institute standardized monitoring criteria.

4.3.4 A peculiar and ill functioning financial system in
      SWM
Audit has noted that five out of six LGAs audited have privatised
the SWM services to franchisee contractors or CBOs for them to
collect SW and SW fees in the ward(s) they are servicing.

Table 4.4 below shows fees supposed to be collected, fees
collected and actual costs.

  Table 4.4: Performance of LGAs on the collection of SW fees

 Parameter            AMC   MwCC    MCC     KMC      TMC                       IMC
 Fees supposed to      350   1,490     98    1312     916                      2,582
 be        collected
 (Million TShs.)
 Fees     collection      -      -   14%          -      -                           -
 target (%)
 Fees      collected   128     276      8      681    100                          987
 (TShs.)
 Goal     fulfilment      -      -     47         -      -                           -
 (%)
 Target         costs     -      -       -               -                           -
 (Million TShs.)
 Actual         costs  115     230    104      878    603                      1,082
 (Million TShs.)
Source: Local Government Authorities - Financial Records and                  reports
            (2008)

According to Table 4.4 above, most of the franchisee contractors
do not have enough capability to collect SW fees and do not have
the legal rights to force the residents to pay. This has occurred
because:
      • Most of the residents are not paying their fees.
      ● There is a serious problem of data management at LGA
          level.




Office of the Controller and Auditor General   Performance Audits General Report     40
Consequently, the above reasons have resulted into the following
effects:
   ● More than half of the generated solid waste is left
       uncollected.
   • Most of the contractors are not able to meet their contract
       obligations due to financial difficulties and several of them
       have been forced to abandon their work.


The above table also shows that contractors are:
   • Very weak, which means that the capability of franchisee
      contractors is very small in terms of collection of SW fees
      and SW
   • Neither profitable nor efficient

4.3.5 Inefficient procurement of SWM Contractors/CBOs
During the audit it has been noted that, most of the franchisee
contractors or CBOs which are procured abandon their work after
a short time or for those who keep on working are
underperforming. This is manifested by the fact that:
   • Franchisee contractors who have been procured have not
      been able to make profit. Most of them, small or newly
      established companies have limited financial resources, or
      they consist of small groups of people with no or little
      experience in the field and with poor capacity for the
      work. This is an indication of poor procurement procedures
      and poor performance of service providers.
   • The criteria used for evaluation of potential contractors are
      not suitable for SWM services. The LGAs have not
      sufficiently examined whether the potential contractors or
      CBOs have appropriate experience and capacity to fulfil
      their tasks or not.
   • Private operators in SWM lack required expertise in
      management and business administration. LGAs have
      limited competence as procurers and monitors of works.




Office of the Controller and Auditor General   Performance Audits General Report   41
4.3.6 Targets for collection of solid waste are poorly
      developed

The audited LGAs have not set target for solid wastes to be
collected in each ward. The only target set is for the entire
council, but at the same time the service providers (councils and
franchisee contractors) are providing SWM services in individual
wards.

This has resulted to the fact that the service providers are
operating without having a strong benchmark which can be used
to measure their performance. It is therefore, very difficult to
assess in quantitative terms whether the service provider is doing
well based on the target set.

Also, the audit has noted that the solid waste generation rate
(factor) used for estimation of produced waste ranges between
0.5 – 1.2kg per person and day. The Audit Office has not been
able to assess whether this is a realistic factor or not. The factor
is built on studies several years ago (1998 and 2004) and has not
been updated since then.



4.3.7 Inspection and monitoring activities are poorly
      planned, documented and evaluated

Audit found out that, all councils audited are conducting sporadic
inspections but there is none with inspection plans with set
priorities and clear objectives. Some of the councils say that they
conduct daily inspections, but there is no information to support
that.

Table 4.5 below shows the performance of LGAs on the monitoring
and supervision of SW activities in six audited councils.




Office of the Controller and Auditor General   Performance Audits General Report   42
      Table 4.5: Performance of LGAs on the monitoring and
                   supervision of SW activities
 Parameter                AMC           MwCC   MCC       KMC        TMC      IMC
 Performance                Yes          No     N/A       Yes        Yes       Yes
 indicators
 Documentation of             No          No     N/A      Partial     No      Partial
 performance
 (information
 system)
 Quantity and               Partial       No     N/A        No        No           No
 quality assurance
 system
 Separation of                No          No     N/A        No        No           No
 monitoring and
 service provision
 Targets (desired           Partial       No     N/A      Partial     No      Partial
 level of
 performance
 franchisee
 contractors)
 Defined reporting          Partial       No     N/A        Yes       No      Partial
 mechanisms
 (format /
 frequency etc)
 The performance              No          No     N/A        No        No           No
 of franchisee
 contractors
 is measured on
 following the
 principles of
 Quality and
 Timeliness
                 Source: Local Government Authorities (2008)

The table above shows that Inspection and monitoring activities
are poorly planned, documented and evaluated.

Also, the audit noted that:
   • The SWM inspectors are supposed to prepare inspection
       reports and take necessary corrective measures with all the
       deficiencies or weaknesses noted during the inspection. But
       there are no evidence showing that such actions have been
       taken.

Office of the Controller and Auditor General   Performance Audits General Report        43
    •    These officials normally conduct inspection without having
         clearly stated items to inspect and report verbally to
         council SWM officials. Neither in these cases there are any
         kinds of reports provided.
    •    Monitoring of SWM activities is regulated by law and also
         stated in the contracts between the LGAs and the
         contractors. Some LGAs have also set monitoring criteria.
         The Audit Office has however not been able to find
         documentation from any LGA showing that monitoring
         activities has taken place.
    •    The Audit Office has not been able to come across any
         evaluation of the efficiency and effectiveness of the
         inspection and monitoring systems in regard to SW
         activities.

4.3.8 Sanctions are rarely applied
Sanctions are seldom applied (as depicted on Table 4.6 below)
although they are part of contracts entered between LGAs and
the franchisee contractors (for those councils which have
outsourced part of SWM activities to private service providers)
and in the municipal or city by-laws. This is despite the fact that:
    • LGAs have a lot of defaulters who failed to pay SW fees on
       time.
    • The franchisee contractors are not performing their duties
       as expected but measures have not been taken against
       them despite the poor performance.

            Table 4.6: Applied sanctions according to LGAs
        Type of action                 Frequent    Every         Every        Very
                                                   month         year        seldom
Verbal criticism                V
Written warnings                                     V
Request of damage                                          V
Appealed to court to get                                   V
rid of the service
provider
Termination of contract                                    V
  Source: LGAs – studies of documents and assessments by Audit
          team in collaboration with LGAs officials (2008)

Office of the Controller and Auditor General   Performance Audits General Report   44
4.3.9 Lack of National standards and policies on SWM
National standards and policies have not been developed. The
SWM activities in Tanzania have a number of regulators who are
responsible for providing standards, policies and regulations to be
followed:-

    •    Currently, LGAs are operating without having these SWM
         standards. TBS has not yet developed them, in spite of the
         fact that the Environmental Management Act stipulates
         that these standards need to be developed.
    •    The lack of standards implies that, it is to a large extent up
         to each LGA to decide how to operate.
    •    The Vice President’s Office - Department of Environment
         (DoE – VPO) and National Environmental Management
         Council (NEMC) are responsible for ensuring that all
         environmental laws, regulations and policies are followed.
         They have not yet done much on the area of SWM.
    •    There is currently no national SW strategic plan
    •    Consequently, the operational system for SW is working
         without having clear policy and regulations.

4.3.10 Inadequate monitoring and evaluation of SW
       activities by Central government
    •    The Central government is not adequately engaged in
         monitoring and evaluation of SW activities.
    •    The PMO-RALG is not aware at the moment how much SW
         are generated and collected in each council in Tanzania
         daily. Also, the PMO –RALG does not know how these
         councils are measuring or estimating the amount of SW
         generated and collected since there is no uniform way of
         estimating and recording SWM data.
    •    The PMO-RALG officials have not done monitoring focusing
         on the SWM activities in Tanzania and take necessary
         action to improve some of the areas which need the
         attention of the central government.
    •    In spite of legal obligations, the PMO-RALG has not
         organised itself to develop policies and design monitoring
         system for SW at LGA level


Office of the Controller and Auditor General   Performance Audits General Report   45
4.4      Main conclusions
The audit concluded that PMO-RALG, MoHSW and VPO as leading
central government ministries regarding SWM in Tanzania have
inadequately addressed the problem of SW. This is due to the fact
that:
   • This is not an isolated problem; as observed all over the
      country. This means that, SW is not an issue concerning six
      LGAs audited alone, it is an issue which is related to
      inadequate system for management of SW country wide.
      The central government has a responsibility but has not
      intervened adequately and left this work to the LGAs,
      knowing the fact that there is no proper guidance provided
      to them.
   • The proper guidance and setting of standards are issues
      which can only be dealt with by the Central Government
   • There is currently no national SW strategic plan
   • The central governments’ monitoring system is
      inappropriate.

The Central government through the PMO-RALG has not taken
adequate actions to address this problem of ever increasing SW
and those not collected. Also there is inadequate guidance or
monitoring action done by PMO-RALG to deal with this increasing
problem.

Moreover, the audit concluded that generally, the selected LGAs
have not efficiently and effectively carried out their SWM function
through the services rendered by service providers, monitoring of
solid waste activities, Solid waste fees administration, contracts
management between franchisee contractors and councils. This
was due to failure of the service providers to render their services
as expected, inadequate monitoring of the performance of service
providers in the collection, cleaning and disposal of SW,
inappropriate management of contracts between franchisee
contractors and councils and failure to collect SW fees as
stipulated in LGAs by-laws which made the SWM services financing
unstable.



Office of the Controller and Auditor General   Performance Audits General Report   46
The insufficient performance of LGAs on SWM operations can also
be attributed to the failure to have adequate central
government’s monitoring and evaluation and lack of clear
guidelines, plans and policies on SWM in Tanzania.

As SWM is a continuing activity of the LGAs, mishandling of this
function would have a great impact on the environment and
health of the people.

4.5      Recommendations
The problem of Solid Waste Mismanagement in all Councils
audited is evident. This is a problem where the Central
government has to intervene in order to solve it adequately. The
audit team therefore issues recommendations to both the Central
and Local Government levels.

Recommendations to Central Government

(i) To PMO-RALG

(a) Development of the adequate SW fees

The Prime Minister’s Office - Regional Administration and Local
Government Authorities should guide the LGAs to develop systems
for SWM, where the collection of realistic SW fees is a key issue.
It should direct these LGAs on the best practices on how to collect
the SW fees, keep the data for those who are supposed to pay.
The SW fees developed should meet the following criteria:
           • Reasonable amount to pay
           • Based on reasonable SWM expenditures

(b) Separation of role of collecting SW fees and service
    delivery performed by SW contractors

The Prime Minister’s Office - Regional Administration and Local
Government Authorities should ensure that there is a distinct
separation of the role of collecting SW fees and service delivery
(solid waste collection) of contractors. The LGAs should be


Office of the Controller and Auditor General   Performance Audits General Report   47
responsible for collection of SW fees and pay the contractors and
let the contractors collect SW only.

(c) Separation of functions which involve procurement, service
      delivery and monitoring
The Prime Minister’s Office - Regional Administration and Local
Governments Authorities should ensure that there is a distinct
separation of the role of procurement of contractors; service
delivery and monitoring functions within the LGA. These functions
should be carried out by different staff in order to promote
efficiency and accountability in SWM activities.

(d) Procurement should be based on cost estimate and select
     one who is reliable
The Prime Minister’s Office - Regional Administration and Local
Government Authorities should ensure that, LGAs procure SW
contractors based on the cost estimate of managing solid waste on
a particular ward(s) and select the one who is reliable based on
the criteria which fits in the actual situation on the ground.
Lowest cost bidder is not always the best but lowest should be in
the sense of lowest evaluated cost.

(e) Prepare a checklist for self assessment
To PMO-RALG
The Prime Minister’s Office - Regional Administration and Local
Government Authorities should use this report to prepare a
checklist or questionnaire which can go out to each of the
councils, so that they can do self assessment in order for the
Ministry to get a better picture of what is going on regarding SWM
around the country.

(f) Devise mechanism for people to pay SW fees
To PMO-RALG
The Prime Minister’s Office - Regional Administration and Local
Government Authorities should devise a mechanism, for paying SW
fees. The LGAs should make use of by-laws in effecting the
collection of SW fees. The ten cell leaders should be given the
mandate to remind people about their responsibilities of paying.
However the service should be good and forthcoming.


Office of the Controller and Auditor General   Performance Audits General Report   48
(g) Each council should know or estimate how much revenue
    can be collected in wards

The Prime Minister’s Office - Regional Administration and Local
Government Authorities should ensure that, each council knows or
estimates how much SW revenue the council will be able to
collect; and come up with a realistic picture of how much solid
waste are generated and supposed to be collected and paid for.

(h) Monitoring and evaluation of SWM activities

The Prime Minister’s Office - Regional Administration and Local
Government Authorities should engage itself in monitoring and
evaluation of SWM activities throughout the country. Nonetheless,
a workable monitoring and evaluation plan should be upfront in
place.


(ii) To TBS
Standards for SWM

The Tanzania Bureau of Standards should as per the
Environmental Management Act No. 20 of 2004 and TBS Act of
1975, set standards for solid waste management which have to be
adhered to by all LGAs when they discharge their duties to ensure
consistency in the services rendered.

(iii) To MoHSW, DoE – VPO and NEMC

Policy and regulations on SW

The Ministry of Health and Social Welfare (MoHSW), the Vice
President’s Office - Department of Environment (VPO – DoE) and
the National Environmental Management Council (NEMC) should
develop clear policies and regulations to be used for the
operational system for SW in Tanzania.




Office of the Controller and Auditor General   Performance Audits General Report   49
Recommendations to Local Government Authorities (LGAs)

(i) To SWM SECTION

(a) Estimating the Amount of Solid Waste generated
The SWM section, should establish a system of solid waste data
management that could be reliable when estimating the amount
of solid waste generated and collected each year.

(b) Set clearly stated performance requirements and targets
     for SW collection
The SWM Department of Local Government Authorities should set
performance requirements to its SW contractors and also for the
municipal SW collections. Also SWM Section should ensure that
the target for SW to be collected in each ward is set and service
providers comply with it.

(c) Differences in the performance among service providers
The SWM section should collect enough information from SW
contractors to be able to determine the causes of differences in
performance among service providers in terms of quantity, quality
and profitability.

(d) Periodic Evaluation of service providers’ performance
The Local Government Authorities should form a team to carry
out an assessment of the capabilities of its service providers and
the obstacles they face in achieving an acceptable level of
performance. The team should collect the views of stakeholders
about the suitability of the SWM services offered by the service
providers.

(e) Improve the System for Monitoring Performance
The SWM section should review the type, amount and frequency
of information it needs to monitor the performance of its service
providers. In doing this, the SWM section should balance its
information needs against the burden placed on the service
providers to prepare the information.




Office of the Controller and Auditor General   Performance Audits General Report   50
(f) Performance requirements for the service providers
The SWM section should set indicators to be used to assess the
contractual compliance of the SW contractors. These indicators
should be clearly stated in the contract and closely monitored to
ensure delivery of satisfactory services. The monitoring will allow
the SWM section to properly effect accountability measures in
cases of unsatisfactory performance.

(g) Inspections of service providers
The SWM section should conduct an appropriate level of
inspections and follow up on those inspections. The findings and
actions recommended as a result of the inspections should be
documented. Recommendations resulting from the inspections
should be used to improve the service providers’ performance.
The inspection program should focus on risk areas. The frequency
of inspections conducted should be determined by the
improvements resulting from the inspections.

(h) System for SW fees
The Local Government Authorities should establish a system of SW
fees which will cover all operational costs of solid waste
activities. This will be facilitated by doing analysis of their budget
and costs of SWM, thereafter identifying all sources of solid waste
revenues so that they can estimate the actual SW fee revenue
they can earn. Moreover, the council should conduct a study on
the citizens’ attitudes towards participatory fees system.

(i) Establish an inventory system or database
The Local Government Authorities should have a proper inventory
system which can capture all the details regarding number of
household, businesses, industries in a particular ward so as to
establish a list of potential revenue and to avoid unnecessary loss
incurred by the service providers.

(j) Collection of SW fees
The Local Government Authorities and SWM Section should
establish new methodology/techniques of collecting SW fees. The
LGAs should conduct analysis of all sources of revenue and



Office of the Controller and Auditor General   Performance Audits General Report   51
identify the appropriate source to incorporate the percentage of
running solid waste activities.

(k) Analysis of non collection of SW fees
The Local Government Authorities and SWM Section should
establish reasons for not collecting SW fees as stated in the LGAs
by-laws so as not to repeat the same mistakes during the
implementation of the new methodology of collecting the SW
fees.


(l) Responsibility of collecting the SW fees
The Local Government Authorities should be responsible for
collecting the SW fee and pay to the SW contractors. The
responsibility of SW contractors will be the collection of the solid
waste only.

(ii) To legal and SWM sections

(a) Set properly regulated sanctions
The sanctions should be properly regulated as stated in the
contracts. The legal office in collaboration with SWM Section
should set the sanctions which are implementable for the sake of
improving the efficiency of the SWM activities. They should
however be enforced.

(b) Enforcement of contract
SWM section should develop the system for monitoring deviations
from the contracts with service providers. The SWM section
should have a copy of each contract; the section should clearly
understand the terms and conditions of the contract. The legal
office should enforce the contracts. If the contracts contain
requirements that SWM believes should not be enforced, the
contracts should be changed.




Office of the Controller and Auditor General   Performance Audits General Report   52
(iii) To PMU

Improve Procedures for Procurement of Private Service
Providers
The procurement management unit should improve the evaluation
criteria and procedures for procuring SW contractors to ensure
that only qualified contractors are awarded contracts. An in-
depth evaluation of the financial capability, bidder’s equipment,
staffing and other resources should be well evaluated before
awarding any contract for SW collection.

(iv) To Department of health

Separation of operating and monitoring functions
The health department should make sure there is separation of
duties between monitoring functions and service delivery
activities within a SWM Section.

The supervisory, monitoring and service delivery role should
clearly be separated in order to enhance accountability and also
to improve the services rendered. This should be well outlined in
the organization structure and job descriptions.

(v) To SWM section and accounting department

(a) Planning SW fee
The Solid Waste Management section along with the accounting
department should undertake a zero-based budget exercise to
determine the cost of collecting solid waste in the municipality.
This should include cost estimates for various percentages of solid
waste collected.

(b) Separation of SW fees collection and service delivery
     function
SW fee collection should be the responsibility of the LGAs, not of
the SW contractors. The accounting department should be
responsible to collect all SW fees. The contractors should be paid
a fee by LGAs for providing solid waste management services. The
fee could be based on various factors such as collection area and


Office of the Controller and Auditor General   Performance Audits General Report   53
amount of solid waste collected. The contractors should only be
responsible for collecting SW, not SW fees.


4.6       Message to Standing Committees of Parliament
This audit summary and the full performance audit report can be
used by the Standing Committees of Parliament responsible for
health and environment to question Accounting Officers at central
and local level on the following areas:

    (i)    Actions taken to critically evaluate and review the
           system for SWM fees and to see why councils are not
           collecting fees properly.
    (ii)   Actions taken to carry out critical study in order to
           establish the actual cost of managing SW per ton and
           make it a basis for contracting with franchisee
           contractors.
    (iii) Ensuring that in the present contracts between Councils
           and franchisee contractors, there is clear and open
           target set between them.
    (iv) Ensuring that Councils develop proper inventory per
           ward or street to capture the most important
           information for the management of SW i.e. number of
           households, businesses, industries served, those who
           paid or not paid, SW generated, SW collected etc.
    (v)    Actions taken by central government agencies to ensure
           that there is proper guidance and standards set on SWM
           issues are implemented.
    (vi) Actions taken to improve central government’s
           monitoring system of SWM activities as performed by
           LGAs.
    (vii) Actions taken to ensure that National standards and
           policies on SWM are developed and LGAs are operating
           according to these SWM standards and policies.
    (viii) Actions taken to ensure that LGAs apply sanctions
           against defaulters as set into municipal or city by-laws
           and contracts entered between LGAs and the franchisee
           contractors.


Office of the Controller and Auditor General   Performance Audits General Report   54
    (ix)      Actions taken to ensure that LGAs set targets for
              collection of solid wastes in each ward and use these
              targets as a strong benchmark for measuring the
              performance of service providers.

Improvements in the solid waste management concern a complex
system with several actors at various levels of government and in
the private sector. The task involves changes in policies and the
design and development of new operational systems. Changes for
better service delivery will by necessity be gradual and take time.
The concerned parliamentary committees are therefore advised,
under the coordination of PAC, to annually call the concerned
Accounting Officers to hearings about implementing the
recommendations in our report.




Office of the Controller and Auditor General   Performance Audits General Report   55
Office of the Controller and Auditor General   Performance Audits General Report   56
                                  CHAPTER FIVE

PROCESSING OF TERMINAL BENEFITS OF RETIRED CIVIL
                   SERVANTS




Photo 5.1: A retired civil servant is providing his details to a
Pension staff with the Ministry of Finance and Economic Affairs.
The retired civil servant is in the process of following his terminal
benefits.




Office of the Controller and Auditor General   Performance Audits General Report   57
5.1      Introduction

Pension payments to retirees have been and continue to be a big
problem in Tanzania, which requires immediate attention. There
has been an outcry of many retirees about the bureaucracy and
waiting time for receiving pension. The criticism has among other
things concerned the poor recording and insufficient
communication by the Pension Funds. Most of old age people who
served in the public sector are dependent on the terminal
benefits as their major source of income after retiring from public
service.

The terminal benefits for the retirees in Tanzania are managed by
five different Pension and Provident Funds which are Public
Service Pension Funds (PSPF), Local Authorities Pension Fund
(LAPF), Government Employees Provident Fund (GEPF), National
Social Security Fund (NSSF) and Parastatal Pension Fund (PPF).
These Pension Funds are responsible for the payment of pensions,
gratuities, and other benefits in respect of the service of retirees.

Beyond policy formulation and regulation, Central Government
Authorities and the Prime Minister’s Office – Regional and Local
Government Authorities as the main employers and custodians of
Pension Funds and are therefore responsible for the way terminal
benefits are being processed in the country.

The purpose of this audit was to assess the efficiency of the
Government, Pension Funds and selected Employers on processing
terminal benefits of retired public servants in Tanzania. The aim
was also, to evaluate the adequacy of the systems and procedures
in place for managing terminal benefits.


5.1.1 Audit Scope
The audit covered three fiscal years i.e. 2006/2007, 2007/2008
and 2008/2009; and focused on two Public Pension Funds namely
the Public Service Pension Fund and the Local Authorities Pension
Fund administered by the Ministry of Finance and Economic Affairs
and the Prime Minister’s Office – Regional and Local Government

Office of the Controller and Auditor General   Performance Audits General Report   58
Authorities respectively. Similarly, this audit was carried out in
three selected Ministries out of 29 and 17 LGAs out of 133 of
various sizes, population and with reasonable accessibility. These
are samples of the main employers of the public servants and in
which case all of them have a role to play in processing terminal
benefits in Tanzania.

The above Ministries and LGAs have been selected due to the fact
that they have a large number of public servants and the rate of
retirement is considered to be high compared to other Ministries
and LGAs in Tanzania.


5.1.3 Methods of Implementation
The audit methodology used was designed to answer six audit
questions which were based on the time taken to wait for the
terminal benefits to be effected, supervision, training and
effective communication between different pension stakeholders,
workflow of processing terminal benefits, actions taken by
responsible authorities to reduce average waiting time; and
Impact of late payment of terminal benefits to retirees.

Information was gathered in the following ways:
    • Interviews with various officers and stakeholders dealing
      with terminal benefits processing;
    • Review of various documents including laws governing
      pensions;
    • Third parties and experts in the field were consulted on
      their views of the performance of Pension Funds, Ministries
      and LGAs.


5.2      Systems Description

The following is the chronological flow of events in the processing
of terminal benefits:




Office of the Controller and Auditor General   Performance Audits General Report   59
    (i)            Notification to employer on intention to retire4
    (ii)           Filling Retirement Claim forms (data sheet)
    (iii)          Submission of the Retirement Claim forms to the
                   Pension Fund
    (iv)           Assessment of the information/documents submitted
    (v)            Preparation of payments
    (vi)           Sending cheque to employer/retiree5
    (vii)          Retiree collects cheque from the employer/Fund

The above narrated process can be visualized as shown in Figure
5.1 below

    Notification                                                              Assessment of
    to employer                         Submission of                        the information
     and filling                     retirement forms to                          by the
     retirement                       Fund by employer                         PSPF/LAPF
        forms
                                                                                               Referral
                                                                                               time
                                     Referral time


                                         Re-                                Preparation of
                                      submission                           terminal benefits
                                        missing                                payment
               Total time to          documents
               get terminal
               benefit                                     Referral time


     Retiree receives
      cheque from                                                             Sending cheque
          her/his                                                              to employer/
     employer/Fund                                                                retiree


                               Key

                    Employer
                    Employee
                    Funds officers


            Figure 5.1: Flow chart for Processing Terminal Benefit




4
  According to standing orders, an authority to cease working on the grounds laid down
in the standing order is issued to allow terminal benefits processing take place.
5
  For LAPF the cheques were handed over directly to the retirees and the employer
coordinated the handing over process whereas for PSPF cheques were sent to the
employers for collection by the retirees.

Office of the Controller and Auditor General               Performance Audits General Report              60
5.3      Findings and Conclusions
Information gathered during the audit has led to the following
findings and conclusions.


5.3.1 General
The main employers i.e. Ministry of Finance and Economic Affairs
(MoFEA) and President’s Office – Public Service Management (PO-
PSM) being the overall overseers of Pension Funds on behalf of the
Government have not to a large extent fulfilled their
responsibilities of ensuring that the processing of terminal
benefits of retirees is done on time and without recourse to
duress.


5.3.2 PSPF and LAPF

Clear written policy guidelines for processing and reviewing
applications and appeals not provided during audit

Virtually no written policy guidelines for        processing and
reviewing pensions applications, entitlements and appeals for
establishing boundaries within which decisions for the payment of
terminal benefits were provided during the audit despite several
requests. Very little information about the procedure or directives
was being disseminated to the public, particularly the public
servants. The administration and personnel offices, usually the
initial contact point for retiring applicants, were having
considerable difficulty in informing individuals of the status of
their applications. There were no really appropriate procedures
for measuring and reporting on productivity and level of service.

Due to the weaknesses mentioned above, the audit team noted
that:
   (i)   It was taking an average of 8 months to process the
         retirement applications;




Office of the Controller and Auditor General   Performance Audits General Report   61
    (ii)      Only 40 percent of the retirees were paid their terminal
              benefits within the first three months after retirement
              and;
    (iii)     36 percent of the retirees were paid after one year;
    (iv)      More than 45 per cent of the rejected initial
              applications were being taken back to employers for
              further processing due to a number of reasons such as :
              • Missing information
              • Non or under-submission of employees and
                  employers contributions
              • Inaccurate filling of retirement forms
    (v)       It was taking an average of 3 months up to two years to
              process incomplete files of a retiree.

Ever increasing number of retirees waiting processing of
payments

The two audited Pension Funds have continually not exerted
sufficient efforts to provide quality retirement service to their
members. This could be evidenced by ever increasing number of
retirees awaiting payments for terminal benefits.

The Pension Funds have allowed both processing time and the
number of retirees awaiting finalization of terminal benefits to
increase significantly. For example, it was found that the average
processing time has increased by 7 times from 1 month in 2006/07
to about 7 months in 2008/09.

The Pension Funds take up to 24 months to process retiree’s final
terminal benefits. The period of 24 months is considered to be too
long and not acceptable.

The number of retirees awaiting for final pension calculation
increased by 8 percent from 178 in June 30, 2007 to 192 in June
30, 2009.

Such delays become even more acute in view of the fact that no
interest is paid on any underpayment or delay of a retirees’
estimated pension.

Office of the Controller and Auditor General   Performance Audits General Report   62
Poor Record Keeping by Pension Funds

Pension Fund’s system of keeping records appears appallingly
inefficient and ineffective, hindering the retirement system’s
ability to fulfil its mission. Pension Funds failed to properly
manage and control the necessary documents for the processing
of retirement benefits of their respective members resulting in
reciprocal delays and trading of blames between the Funds and
employers.      In    addition,    the     kind     of     missing
documents/information was found to be the same all years long
and there is no action taken by the Funds to address this endemic
and ever increasing problem.

The missing documents were identified to be:
          • Letter of first appointment
          • Letter of confirmation
          • Letter of transfer from Central Government to LGAs
             and vice versa
          • Bank details
          • Birth Certificate

Inordinate delays in processing retirees’ benefits.

The processes to finalize terminal benefits of retirees continued
to be problematic. The process takes too long both in terms of
time effluxion before benefits are received and bureaucracy in
place which ostensibly was meant to reduce backlogs but to the
contrary add up and even unnecessarily complicates the approval
of the pension benefits.

Pension Funds are by all reasonable expectations responsible in
providing identified retirees with timely and accurate pension
payments. Initially, the employer is supposed to fill the data
sheet and submit relevant documents to the Fund. Then, the Fund
reviews them and then calculations are performed and payments
are remitted to retirees based on an estimated pension
calculation.




Office of the Controller and Auditor General   Performance Audits General Report   63
Generally, even before the calculations are done, lots of files are
returned back to employers due to a number of queries mainly,
missing information which makes it very problematic for the
helpless retirees to make unpredictably numerous follow ups to
obtain meagre pension benefits.

Total waiting time for the processing of terminal benefits
To get an actual picture of the total time taken to wait for the
retiree to receive their terminal benefits, the audit team made
calculations on the whole processing of terminal benefits for the
central and local government staff.

Figure 5.2 below shows the comparison of time taken by LAPF and
PSPF to process terminal benefits.

                      Waiting Time for Retirees to Get Terminal Benefits
                 10
                        8                                       8
                  8
  Waiting Time




                            6.4
   [months]




                  6                       5                                              PSPF
                                               4.6
                  4                                                                      LAPF

                  2                                                  1.2

                  0
                       2006/07           2007/08               2008/09
                                      Financial Year


                                  Source: LAPF and PSPF

Figure 5.2: Total waiting time for the processing of terminal benefits

According to Figure 5.2, the average waiting time has always been
longer with PSPF compared to LAPF during the three years.

Delays in Processing Terminal Benefits meant an unwarranted
burden to the retirees

Significant delays in finalizing retirement benefits do pose an
unnecessary burden on the retirees. The interviews with different

Office of the Controller and Auditor General         Performance Audits General Report     64
employers revealed that failure to finalize terminal benefits on
time place a notable burden to retirees in terms of time and costs
to make follow ups of retirement benefits. These costs are
incurred particularly when a retiree is looking for the missing
data/document at a delicate moment in life when he/she no
longer has access to official documents by virtue of the
retirement and also, during which the retiree doesn’t have any
kind of income thus making life very difficult and miserable.

It becomes quite expensive for a retiree to follow his/her
terminal benefits in the Head office or even at regional/zonal
offices of the Pension Funds let alone to travel to his /her station
of first appointment just to look for some information.

5.3.3 MoFEA and PO-PSM (Main Employers)
Lack of clearly defined public awareness programs
There is lack of clearly defined awareness programs by the two
main employers. Also, the MoFEA and PO-PSM have not given
consideration on public education programs.

On average, terminal benefits, represent almost 100 per cent of
the retirees’ income. Given this and the fact that not all programs
are targeted against specific levels of income, individuals who are
planning for their retirement must know the extent to which
public pensions will supplement their income from private savings
and employer sponsored plans.

The present public awareness programmes of the Pension Funds
do not cover educational programs and levels of benefits
available, eligibility requirements, advice on tax, retirement
income planning and available services such as direct deposit and
tax deducted at source.

Poor record keeping by employers

Employer’s system of keeping records is appallingly inefficient
and ineffective, hindering the retirement system’s ability to fulfill
its mission. The Employers have failed to properly manage and
control the necessary documents for the processing of retirement

Office of the Controller and Auditor General   Performance Audits General Report   65
benefits of their respective employees resulting in reciprocal
delays and trading of blames between the Funds and employers.
In addition, the kind of missing documents/information was found
to be the same all years round and there is no action taken by the
employers to address this endemic and ever increasing problem.

The missing documents were identified to be:
          a. Letter of first appointment
          b. Letter of confirmation
          c. Letter of transfer from Central Government to LGAs
          d. Bank details
          e. Recent salary slip
          f. Letter of last promotion
          g. Retirement acceptance letter

Inaction by the main employers

MoFEA and PO-PSM as main Employers have not taken any tangible
action to ensure efficient processing of terminal benefits is
instituted despite the fact this is a known and repetitive problem
throughout the period of the audit i.e. 2006/07 to 2008/09.

The audit team noted that, the same weaknesses identified on
the first financial year happened again in the following year, but
no corrective actions were ever taken to address them let alone
reduce the problem. It has been business as usual!

With this trend, it is evident that, the concerned authorities will
not be able to improve the services rendered to retirees and in
that sense keeping them in difficult situations for no cause of the
concerned victims something that could be resolved just by
applying ordinary diligence and accountability.


The audit team noted that, the above mentioned authorities
failed to even:
     • address the ways to reduce average waiting time;




Office of the Controller and Auditor General   Performance Audits General Report   66
     •    identify areas where idle time observed more frequently in
          different steps of terminal benefits processing and try to
          reduce that time and if possible remove it; and
     •    Causes of delay in processing terminal benefits and varying
          performance among Pension Funds and Employers in
          dealing with matters related to terminal benefits of
          retirees.

Lack of a proper Office set up to deal with or investigate
complaints

There is no proper office which is responsible or has been set up
to deal with complaints arising from pension issues. This includes
complaints and investigations about the way Pension Funds and
employers are dealing with peoples’ terminal benefit issues as
they are raised by the desperate retirees with a view of resolving
them satisfactorily. The complaints are supposed to be compiled
with a view to address recurring and systemic issues.

Un-harmonised Pension Schemes in the country

Since public servants whether they are in Central Government or
in Local Government in Tanzania are the employees of the same
government of the United Republic of Tanzania and their salaries
are paid from the center, there is no apparent justification of
having different Pension Schemes (PSPF and LAPF) dealing with
virtually the same group of retirees i.e. public servants.

Merging of the Funds (PSPF and LAPF) could lead to substantial
reduction of operational overhead costs and lead to efficiency and
effectiveness in managing pension matters of the country’s civil
servants.

5.4      Recommendations

Serious and increasing problems in the processing of terminal
benefits with Pension Funds, Ministries and Councils visited have
been pertinently noted.


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This performance audit has been able to identify problems which
can be addressed by individual employers and Pension Funds
themselves and problems which are supposed to be addressed
through joint efforts of all key stakeholders.

The following are recommendations of the problems that need to
be addressed in order to bring out improvement in the
management of Pension Funds in the country:

PSPF and LAPF

(a)      Review of the processing of terminal benefits of retirees’
         workflow

         •    The Pension Funds should ensure that the processing of
              terminal benefits of retirees’ workflow is reviewed in
              order to reduce the bureaucracy.

         •    The Pension Funds should prepare a flow chart to
              identify areas of unnecessary requirements that can be
              discarded in order to avoid unnecessary bureaucracy.

(b)      Improve communication among the key stakeholders
         The Pension Funds should improve communication between
         Employers, Retirees and Pension Funds (PSPF and LAPF)
         respectively.

(c)      Enhance training on pension matters
         The Pension Funds should ensure that regular training of
         officials dealing with pension matters is conducted to ease
         the process of computing terminal benefit payments
         without unnecessary delays.

(d)      Manage staff resources appropriately and reduce the
         waiting time
         The Pension Funds should better manage staff resources
         with a view of reducing time taken to process retiree’s
         terminal benefits;



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(e)      Carry out data purification process
         The Pension Funds should improve the data purification
         process by preparing a checklist for systematic scrutiny of
         data in order to verify that active membership service
         credit information is accurate to allow for the expeditious
         processing of terminal benefit applications;

(f)      Monitoring of resources
         The Pension Funds should professionally plan, assess and
         monitor their resources by way of regular actuarial
         valuation to ensure that members receive adequate
         retirement benefits and counseling services sustainably

(g)      Development of Client Service Charter on processing
         terminal benefits of retirees
         The Pension Funds should prepare Client Service Charters
         which will incorporate all core activities and the whole
         process of terminal benefits indicating exactly the time a
         certain activity is going to be initiated and completed and
         who will be accountable.

         MoFEA and PO-PSM (Main Employers)

(h)      Proper record keeping of employees
         Employers should ensure that proper records of employees
         is accurately kept and submitted to Pension Funds for
         processing terminal benefit payments.

(i)      Improve coordination among the key stakeholders
         Employers should ensure that a clear coordination exists to
         allow either continuity or transferability of membership of
         those who contribute to LAPF and PSPF by virtual of being
         public servants who served both Local Government
         Authorities and Central Government

(j)      Training of employees on pensions related matters
         Employers should come up with training programs solely
         aimed at ensuring that employees are extensively trained



Office of the Controller and Auditor General   Performance Audits General Report   69
         on record keeping and understand the importance of
         retirement procedures.

(k)      Development of schedule of staff who are about to retire
         Employers should prepare schedules of employees who are
         about to retire in the near future at least a three years
         schedule. This schedule should be used as the basis for
         reminding employers on the date of retirement of staff,
         when to notify and also the right time to look for the
         necessary documents. This will ensure timely access to
         information for efficient decision making on terminal
         benefit matters which should be concluded before the
         employee actually retires.

(l)      Carry out monitoring and evaluations of training
         conducted
         Employers should ensure that monitoring, evaluation and
         feedback mechanism for the training conducted on staff
         awareness on pension matters is done. Through this
         monitoring and evaluation, it will be easy for the
         employers to identify areas that need to be addressed for
         future improvement.

(m)      Establishment of a complaint mechanism
         As noted in the report, there is a lack of a complaint
         mechanism through which aggrieved retirees can seek
         redress; we strongly recommend that such a complaint
         mechanism be established as a way of enhancing efficiency
         and accountability in the management of pension matters.

(n)      Harmonization of Pension Schemes in the country
         MoFEA and PO-PSM should ensure that the two Pension
         Funds (PSPF and LAPF) are merged together and come up
         with only one Pension Fund serving all public servants in
         both Central and Local Governments. This will lead to
         substantial reduction of operational overhead costs and
         lead to efficiency and effectiveness in managing pension
         matters in Tanzania.



Office of the Controller and Auditor General   Performance Audits General Report   70
5.5      Message to Standing Committees of Parliament

The aim of this section is to facilitate the respective
parliamentary committees, their secretariats and other
stakeholders on the use of our performance audit reports. This
report is not supposed to substitute the full report on the audit of
preparations of terminal benefits.

This audit report summary and the full report on pension
payments can be used by parliamentary standing committees
responsible for finance and manpower to question accounting
officers on the following matters/areas:

(i)      Workflow in processing of terminal benefits of retirees’ by
         PSPF and LAPF with a view to minimize processing time;

(ii)     Preparation of a Client Service Charter which will
         incorporate all core activities in the preparation of
         terminal benefits indicating exact time a certain activity is
         going to be initiated and completed and identify who will
         be accountable for what;

(iii)    Communication among stakeholders to ensure timely
         delivery of information between the funds and employers.

(iv)     Pension Funds awareness creation to the members
         including conducting training on pension matters;

(v)      The roles of MoFEA and PO-PSM as main employers in
         accurate keeping of employees’ records and timely
         submission to Pension Funds for processing terminal benefit
         payments;

(vi)     Clear    coordination    among      stakeholders  including
         transferability of benefits in favour of those who are paid
         by retirees who have contributed to LAPF and PSPF and
         have served both the Local Government Authorities and the
         Central Government;


Office of the Controller and Auditor General   Performance Audits General Report   71
(vii)    Schedule of employees who are about to retire in the near
         future with a view of reminding employers on the dates of
         retirement of staff, when to notify staff on their
         retirement dates, and also the right time to look for the
         necessary documents to ensure timely access to
         information for efficient decision making on terminal
         benefit matters;

(viii) Monitoring, evaluation and feedback mechanism for the
       training conducted on staff awareness on pension matters
       to help employers in identifying areas that need to be
       addressed for future improvements.

Due to the complexity of payments of terminal benefits and the
long-term actions required for improvements, the relevant
parliamentary committees are advised, under the coordination of
PAC, to annually call the concerned Accounting Officers to
hearings about the activities implemented in addressing the
serious shortcomings noted in providing the retired staff with
their pension benefits.




Office of the Controller and Auditor General   Performance Audits General Report   72
                                    CHAPTER SIX

   MANAGEMENT OF PREVENTION AND MITIGATION OF
                    FLOODS




Photo 6.1: Lake Babati flooding through the main street of
           Babati town, April 1990.




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6.1      Introduction

6.1.1 Background to the audit

Babati District in Manyara Region has experienced devastating
floods many times. The floods caused homes to be washed away,
people drowning and displaced, impassable roads, water supply
cut off, and many economic and social activities disrupted.

The floods that are covered in this report occurred in 1990 and
1997/98. In 2006/7 there was another flood. For the 1990 flood
alone, the estimated losses at the time in Babati Town amounted
to TSh 65.3 million, without counting the unquantifiable social
problems associated with the catastrophe. Not only did the
District suffer, but also the region, the whole nation and even
some neighbouring countries since Babati is a junction and crucial
centre through which roads to Burundi, Rwanda, Democratic
Republic of Congo (former Zaire) and even Uganda pass.

Forecast changes in climate and rainfall patterns are expected to
lead to an increased risk of flooding. The challenge to the
concerned authorities is to prepare flood defences to protect life,
property and economic and social activities. This performance
audit report aims at contributing to solutions for such a challenge.


6.1.2 Audit objective and Scope

Objective of the audit
The purpose of this audit was to examine how the PMO-DMD, MRS
and Babati Town, District Councils and TANROADS-Manyara have
implemented laws, regulations, policies and national strategic
guidelines on floods management.

During the audit, we aimed at forming a conclusion regarding the
current performance of the DMD, the MRS and the mentioned
councils in dealing with disasters particularly regarding
prevention/mitigation of floods.

Office of the Controller and Auditor General   Performance Audits General Report   74
Audit Scope
When conducting the audit, we visited the Prime Minister’s Office
– Disasters Management Department, the Manyara Regional
Secretariat, the Arusha Regional Secretariat, Babati District and
Town      Councils,   TANROADS-Manyara,       TANROADS-Arusha,
TANROADS-HQ, and Babati Water and Sewerage Authority
(BAWASA).


These offices were chosen because of their roles in the
management of disasters, in this case, floods. The Audit focused
on the flood events from January, 1990 to December, 2005 in
Babati. In brief, the scope of the audit covers the responsibilities
to be carried out by the head of the PMO-DMD down to and
including the focal officers at Manyara regional and Babati district
levels in terms of flood prevention and mitigation/rehabilitation.
The scope focused on physical structures to prevent and mitigate
floods.

6.2      Disaster Management System description

6.2.1 Key Players in Disaster Management
To facilitate the whole action of dealing with floods, there is a
number of key players, who are accountable according to the
National Disaster Management Policy and who are supposed to
perform the main activities as mentioned in the system graph
below:




Office of the Controller and Auditor General   Performance Audits General Report   75
           Inter-Ministerial Committee




         Disaster Management Department
                       PMO




                   Manyara Regional Secretariat
              Manyara Regional Disaster Management
                           Committee
               - Regional Focal Officer for Disaster
                          Management                                       Ministry of    Ministry of
                                                                            Water &        Natural
                                                              TANROADS     Livestock      Resources
                                                               Manyara
              Babati District Council                                                     & Tourism
             District Focal Officer for    Babati Town                     Developme
                      Disaster                                                 nt
                                             Council
                    Management                                              BAWASA




 CBOs
  &
 NGOs
                      Activities aimed at reducing floods
                        damage and flood occurrence




   Figure 6.1: System Graph – Floods Management in Tanzania

6.2.2 Responsibility for Disaster Management
The mission of the Prime Minister’s Office-Disaster Management
Department (PMO – DMD) and Manyara Regional Secretariat (MRS)
through Manyara Regional Disaster Management Committee is to
promote good preparedness and management of disasters in
Tanzania. The essence of this is to perform competent planning in
order to protect citizens of Tanzania against any kind of disaster
which is looming in the country.




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In 1990, Parliament passed an act known as the Disaster Relief
Coordination Act No. 9 of 1990, which addresses all four elements
of    disaster    management;      these    are      preparedness
mitigation/prevention, responses and recovery/rehabilitation.

The elements of disaster management are as depicted on the
      diagram below:

                                  DISASTER MANAGEMENT




 PREPAREDNESS           PREVENTATION/          RESPONSES            RECOVERY/
                          MITIGATION                              REHABILITATION




             Figure 6.2: Elements of Disaster Management

In 2003, a National Operational Guidelines for disaster
management was formulated. The guideline addresses all four
mentioned elements of the disaster cycle as shown on Figure 6.2
above.

The Inter – Ministerial Committee
The main activity of the Inter-ministerial committee is to be the
national coordinating body for the implementation of cross-sector
disaster management programs as well as to oversee the
implementation of the policy and strategies at all levels are
working properly

The Disaster Management Department
As    a    secretariat to    the    TANDREC,     the     DMD     is
accountable/responsible for the coordinating of all disaster relief
operations and preparedness measures subject to the directions of
the committee and carry out all research relevant to its functions
for the purposes of advising the committee on measures for
disaster preventions.


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Manyara Regional Secretariat (MRS)
The MRS is the pivotal point for the allocation of disaster
management resources in the region. As a link between national
objectives and district priorities, the MRS has the role of
continuously monitoring the hazards of risk, and disaster threats
and the conditions of vulnerable populations within the region and
conduct vulnerability analysis on emerging disaster prone areas
and prepare recommendations on reducing their vulnerability.

Regional Disaster Management Committee (REDMAC)
This committee is the pivotal point for allocation of disaster
management resources in the region. REDMAC is the committee
responsible for the prevention and mitigation of disasters in the
region in which case, therefore, it is the committee which was
supposed to have acted during the Manyara floods.

Regional Focal Officer/ Coordinator
The regional focal officer is the desk officer appointed by the
regional authority to be responsible for coordination of disaster
management activities in the region and implementing the
decisions made by the Regional Disaster Management Committee.

Babati Town and District Councils
The Babati district and town councils have the responsibility of
mainstreaming disaster management issues in the district/councils
plans and continuously monitor the hazards, risks, and disaster
threats and the conditions of vulnerable population within the
district council.

District Focal Officer/ Coordinator
The district focal officer is the desk officer appointed by the
district authority to be responsible for coordination of disaster
management activities at the district level.


6.3      Findings of the Audit
The major findings of the audit have been presented as answers
to the audit objectives shown above on section 6.1.2.


Office of the Controller and Auditor General   Performance Audits General Report   78
Continued risks for further preventable damage from floods in
Babati
We found that, the risk is very high for possible future floods to
cause further damage. This is due to the overall absence of
strategic disaster management planning and actions. This is inter
alia manifested by:
    • lack of preventive and maintenance actions to address
       deteriorating flood prevention and mitigating structures
    • inappropriate location of residential areas




    Photo 6.2: The remains of the Mrara Bridge after the floods
    in 1990 washed away the bridge which connected Babati
    town with its hospital. To the right is the foot bridge, which
    was constructed for pedestrians and to support the
    emergency pipe for water supply to Babati town.


Regional and Local Authorities without Fundamental
Preparedness
The Manyara Regional Secretariat, Babati Town and District
Councils do not have fundamental preparedness in handling
disasters:




Office of the Controller and Auditor General   Performance Audits General Report   79
      •    There was no Regional Disaster Committee6 and strategic
           plan on how they can mobilize or solicit funds necessary for
           flood prevention or disasters management in general.
      •    There was insufficient coordination by focal officers. The
           focal officers have not produced the required pre-disaster
           plan.

Insufficient support from the PMO-DMD
The insufficient activities of the local government did not receive
the attention of the PMO – DMD, which is by law supposed to
perform an oversight function.

      •    The Manyara Regional Secretariat and Babati Councils did
           not form disaster management committees in accordance
           with the guidelines of the PMO-DMD.
      •    A necessary budget for DMD monitoring flood related
           activities has never been put into place.

Inadequate town planning
   • The Town Planning has not been forward looking with
      regards to floods. Some of the residence and business
      activities have been located at low lying areas.
   • Building plots have been located in areas, which were
      supposed to be reserved for water passage

Inadequate maintenance of existing road structures and
possible room for improvement
   • The Ministry of Works (MoW) now Ministry of Infrastructure
      Development and TANROADS have for 15 years not taken
      actions to increase the capacity of water discharge by
      building bigger culverts at the Kigongoni river
      embankment, hence there is a risk that the embankment
      acts like a dam and the Babati Lake water floods through
      the town.

      •    TANROADS has not attended sufficiently to the preventive
           structures at Kiongozi Bridge along the Minjingu – Dodoma

6
    The Regional Disaster Committee was established in early 2007.

Office of the Controller and Auditor General     Performance Audits General Report   80
         trunk road. The trunk road was cut off during the floods of
         1998 and the gabions were severely damaged. The
         rehabilitation of the gabions was not undertaken until
         2005. Seven years lapsed before TANROADS and the
         Ministry of Infrastructure Development took any action.
         That is a long time considering the (inter)national
         importance of the trunk road.

Lack of flood register
In spite of serious floods reccurring in Babati and other parts of
the nation, we find it un-explainable that the PMO-DMD, after
more than ten years of existence, has not developed such a flood
register. Such a register would be the basis for developing a
strategic preventive approach regarding floods in the country. The
PMO-DMD and regional, local authorities rather react after floods
have occurred without making continuous risk assessments in the
light of experiences from previous floods.

For example, records of previous experiences, fact finding and
analysis of flood risks along trunk roads in Tanzania could give a
basis for preventive actions to avoid or mitigate damage. To
exemplify our point, we refer to the washing away of the bridge
in Lugoba along the Chalinze – Moshi trunk road in March, 2006.
The risk of the Lugoba bridge disaster in March 2006 could
possibly have been foreseen with a forward looking, systematic,
and imaginative assessment of flood risks and mud slides along
the Chalinze – Moshi road and assessment by the PMO-DMD


6.4      Main Conclusions
According to the government policy on disaster management, the
regional secretariat should be a link between national and district
levels. One main conclusion in this study is that this has not been
effective. The regional secretariat and the district and town
councils in Babati have not taken sufficient proactive actions
regarding the physical structures of flood prevention and
mitigation.



Office of the Controller and Auditor General   Performance Audits General Report   81
Disaster Management Department of the PMO lacks proactive
approach regarding floods.

In spite of experiences from previous floods, the Disaster
Management Department in the PMO, regional and local
authorities seem not prepared for another flood but rather react
after floods have occurred. There are no continuous risk
assessments and plans to mitigate such floods.

In the light of the requirements/expectations expressed in the
laws, regulations and policies, there is ample room for
improvements, as regards preventive investments and
maintenance of existing structures, which would give high value
for money, reduce human suffering, and be of great importance
for the economy of the Babati and Manyara region and, in respect
of transport, to neighbouring countries.

Our general conclusion on the role of PMO-DMD is that this
department should improve on executing a proactive national role
in follow-up, record-keeping and facilitation as regards flood
prevention in relation to regional and local authorities as
prescribed in the country’s laws and policies.

Performance Audit aims at establishing economy, efficiency and
effectiveness of government operations in reaching objectives set
by Parliament. Our general conclusion is that the actions, and
lack of action, of the concerned authorities at local, regional, and
national level regarding flood preparedness do not score well in
terms of these classic indicators of good governance. The lack of
actions for many years in prevention and mitigation of the Babati
floods portrays negligence by the accountable authorities. Our
conclusion should be seen against the fact that the desired
preventive actions do not require any heavy investments. Lack of
resources cannot in this case be used as an excuse or reason for
not taking appropriate action to maintain, rehabilitate and
improve flood defences. The changes in rainfall pattern in this
country call for urgent improvements in flood preparedness by
concerned MDAs.



Office of the Controller and Auditor General   Performance Audits General Report   82
6.5      Recommendations

The grass barrier

To Babati District and Town Council
Babati Town and District Councils should monitor and control
growth of the grass barrier without allowing cattle grazing in the
prohibited area around the Lake Babati in order to avoid a grass
barrier preventing flow of water into the Kigongoni outlet.


The Kigongoni embankment

To TANROADS HQ
TANROADS should ensure that the on-going engineering design will
result into a discharge capacity of culverts at the Kigongoni
embankment that will adequately accommodate enough water
flow to avoid Babati Lake water flooding through Babati town.
The estimated discharge capacity should take into account the
fact that the flood risk may increase with time due to siltation of
the Lake.

To TANROADS Manyara
To decrease the risk of floods through Babati town, TANROADS
Manyara should as a short term measure replace the small
culverts in the Kigongoni embankment with bigger ones. Such
action would significantly reduce the risk of the embankment
acting as a dam.

The Earth Embankment and the Artificial Waterfalls

To the Manyara Region and Babati Councils
Considering the investments made, the huge gully formed, the
lowering of the channel bed at the embankment, and the need to
avoid further excavation of easily erodible soil, we would like to
recommend the concerned authorities to consult soil conservation
experts on alternative ways forward. We can see the following as
possible further actions:


Office of the Controller and Auditor General   Performance Audits General Report   83
•   Establish a canal with strong embankment from the place of
    the former earth embankment to the new huge gully and
    construct a waterfall at the gully’s head to prevent further
    increase of the gully as well as structures to promote siltation
    of the gully.
•   Declare the area from the Kigongoni embankment to the end
    of the gullies with waterfalls a prohibited area from
    cultivation, grazing, brick making etc and plant a large number
    of trees and other forms of soil retaining vegetation to prevent
    further erosion.


Kiongozi Bridge

To TANROADS Manyara
TANROADS should ensure that rehabilitation works on flood
mitigation structures is done much earlier to prevent roads from
probable closure due to further potential damage by future
floods.

TANROADS Manyara should consult experienced Bridge
Engineers/Soil Engineers when considering the further designing
of the retaining wall to give it optimum structure and the
necessary dimensions for preventing the road bank from damage
in the most favourable way.

Design of the rehabilitation of the Arusha – Dodoma trunk road

To TANROADS HQs
The experiences from previous floods should be communicated
sufficiently to the consultancy firm that is doing the design for
the rehabilitation of the Dodoma – Babati road and the Singida –
Babati – Minjingu road. The aim should be to ascertain that
hydrological calculations regarding the run-off from the
watershed areas surrounding the sensitive discharge points of
Kigongoni Outlet and Kiongozi Bridge take past flood events into
account. In this context, realignment of the bridge to a less
erosion-prone future site should be considered.



Office of the Controller and Auditor General   Performance Audits General Report   84
Residential and Business Location of Babati Town

To Babati Town Council
Town planners in Babati Town Council should take into account
the flood risks when allocating land. In addition, efforts should be
made to ensure that preventive structures/measures are installed
in flood prone areas which have been allocated for various
purposes.

Pre-disaster planning and funds for flood management

To Manyara Region and Babati Councils
The regional and district authorities should include disaster/flood
management expenditure projections in their annual budgets.

The regional and district authorities should ensure that civil
society and focal officers at respective levels play their roles in
anti-flood programmes.

To PMO-DMD
PMO-DMD should execute its oversight role to ensure that the
regional and district authorities play their roles in pre-disaster
planning.

Training, action plans                  and    the    role     of    PMO-Disaster
Management Department

To PMO-DMD
   • The PMO-DMD should play its monitoring role to ensure that
     training given to Local Authorities give a relevant impact
     on flood prevention and mitigation activities.

    •    PMO-DMD should carry out or coordinate research relevant
         to floods, formulate flood prevention plans, review
         regularly and coordinate flood prevention measures.

    •    The PMO-DMD should soonest develop a register of floods in
         Tanzania, where floods are systematically recorded and
         conduct proactive analysis of flood risks for flood prone and

Office of the Controller and Auditor General   Performance Audits General Report   85
         economically important areas. Such a register would be the
         basis for developing a strategic preventive approach
         regarding floods. Disaster Management Department should
         get its preparedness priorities for floods for the nation as a
         whole in place.


6.6      Post-tabling reactions and events and lessons
         learned

The NAOT Performance Audit Report on prevention and mitigation
of floods was tabled in the National Assembly in July, 2007 and
became thereby public. NAOT finds it prudent to put on record
some observations and lessons learned regarding the processing
and use of this first performance audit report since 2007.

Immediately after tabling, the PMO-DMD Management asked
several times for meetings with the NAOT Management to discuss
the report. NAOT prepared for these meetings. For reasons
unknown to NAOT, the PMO-DMD Management cancelled these
meetings just before the time of commencement. In 2008 NAOT
sent a formal letter to PMO-DMD asking PMO-DMD to report on
activities, if any, that the department had undertaken as a
response to the recommendations of the flood report. NAOT did
not receive any reply.

Mass media reflected at the time of tabling extensively and
accurately in feature articles and editorials on the flood report. In
the light of the recent floods in Tanzania, both TV and several
newspapers have again referred to our three year old report and
have particularly highlighted the crucial coordinating role of PMO-
DMD in times of disaster. We may conclude that performance
audit reports concern issues which are of relevance for several
years and there is a need to annually follow-up with the
concerned, accountable government organs on progress made in
addressing weaknesses identified.

The post-tabling interaction with the National Assembly was
constructive. LAAC visited together with NAOT the flood prone

Office of the Controller and Auditor General   Performance Audits General Report   86
areas of Babati in January, 2008. Briefings were given to the LAAC
members and the Regional and Local Authorities and suitable
actions on the basis of our report were discussed. NAOT found
that the regional and local organs had started to implement flood
preventive measures.

However, it is not clear to NAOT as to what extent the Flood
Report was subject to a hearing by the oversight committees with
the concerned Accounting Officers. Admittedly, the processing of,
often multisectoral, performance audit reports, may concern
several parliamentary committees. Drawing on the experiences
from processing this first performance audit report, NAOT
ventures to suggest that PAC would perform a coordinating role
for convening a meeting with the relevant committees for calling
the concerned Executive Officers for hearing about the possible
implementation of NAOT recommendations. Due to the long-term
relevance of issues raised in performance audit reports, such
hearings to hold the concerned Officers accountable could be
repeated for several years. Subject areas for such recurrent
hearings are mentioned in section 6.7.


6.7        Message to the Standing Committees of
           Parliament

This summary of the audit report and the audit report itself can
be used by the Standing Committees of Parliament responsible for
the environment, infrastructure and disaster management to
question Accounting Officers at central, regional, and local levels
on the following areas:

    (i)       Actions taken by DMD to reduce the continued risks of
              floods occurrence in other parts of Tanzania which are
              flood prone
    (ii)      The practical interpretation by DMD of the present
              Disaster Relief Coordination Act, 1990, as regards its
              analytical and proactive role in preventing and
              mitigating disasters in Tanzania


Office of the Controller and Auditor General   Performance Audits General Report   87
    (iii)  Action taken by DMD to ensure that DMD itself, Regional
           Secretariats and District Authorities have fundamental
           preparedness plans in handling disasters
    (iv) Actions taken by DMD to ensure that Regional Disaster
           Committees are formed in all regions and strategic
           plans on how they can mobilize or solicit funds
           necessary for flood prevention or disasters management
           in general are developed.
    (v)    Efforts done to make a follow up of whether the focal
           officers (Regional and District) have produced the
           required pre-disaster plan
    (vi) Actions taken by PMO-DMD to ensure that Regional
           Secretariats and Local Governments receive sufficient
           support from them regarding Disaster management in
           Tanzania
    (vii) Actions taken by DMD in collaboration with Ministries
           and LGAs to ensure that residential houses are located
           in areas which can not be affected by floods.
    (viii) Actions taken by TANROADS to ensure that alignment of
           (trunk) roads and bridges and establishment of anti-
           erosion structures take into account potential high-risk
           areas regarding floods and mudslides.


Due to the complexity of disaster coordination and the urgency of
both short, medium, and long-term actions required for
improvements, the relevant parliamentary committees are
advised, under the coordination of PAC, to annually call the
concerned Accounting Officers to hearings about the systematic
implementation of activities required in effectively addressing the
issues raised in our report. The complexity of preventing and
mitigating floods for the benefit of wananchi is illustrated by the
below relational graph.




Office of the Controller and Auditor General   Performance Audits General Report   88
Relational graph

The below graph summarizes in a nutshell the findings and shows
the relationship between clusters of findings.
                               Continued risks for further preventable
                               damage from floods in Babati

                                    -    inadequate and deteriorating
                                         preventive structure
                                    -    inappropriate location of
                                         residential areas
                                    -    inadequate maintenance and
                                         design of Minjingu – Dodoma trunk
                                         road



   Regional (Manyara Regional Disaster
   Management Committee) and Local                        Inadequate Town
   Governments have not adequately
                                                          Planning
   performed their role as regards
   prevention/mitigation of floods.




 Local    Government    don’t    get               Inadequate maintenance and lack
 sufficient support, monitoring, and               of proactive inputs for a flood
 proactive analyses from PMO-DMD,                  orientated design of the Minjingu –
 which does not have a national                    Dodoma trunk road
 flood register.



                          Figure 6.3: Relational Graph




Office of the Controller and Auditor General     Performance Audits General Report       89

				
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