KARATU: TANZANIA’S Prime Minister Mwigulu Nchemba has directed that contractors executing government development projects must receive payments through local bank accounts, a move aimed at preventing the diversion of public funds abroad.
Nchemba said the requirement would be included in all future government contracts to ensure funds allocated for development projects remain within the country and can be more effectively monitored.
“From now on, contracts must clearly state that project funds will be deposited in banks here in Tanzania,” the prime minister said during a working visit to Karatu District in Arusha Region.
“How can funds for a project being implemented in Karatu be transferred abroad? What are they going to do there?” he asked.
Nchemba said some contractors have used various tactics to have payments deposited into accounts in their home countries.
“There are tricks used by some contractors, especially those who want to be paid into accounts in their own countries. I have already issued instructions that from now on, payments must be made into their accounts in banks here in Tanzania,” he said.
The directive, he said, is intended to safeguard taxpayers’ money and strengthen oversight of government-funded development projects.
Contract terminated over stalled project
Nchemba cited a case involving a contractor from Tunnel Sadd Company who had been awarded a contract to construct a dam under the Lake Eyasi irrigation project valued at about 21 billion Tanzanian shillings.
According to the prime minister, the contractor received an advance payment of about 3 billion shillings but failed to make meaningful progress on the project despite several deadline extensions.
He said the government has since terminated the contract, but the contractor has threatened legal action against the state.
Nchemba said he had instructed the Commissioner General of the Tanzania Immigration Department to locate the contractor, identified as Ariana, and ensure he does not leave the country.
“We gave him taxpayers’ money to implement the project, yet he failed to do the work or return the funds, and now he wants to sue the country. This is unacceptable and a sign of disrespect,” he said.
He added that authorities, including the Office of the Director of Public Prosecutions (Tanzania), should ensure the contractor is held accountable and that the government recovers the funds.
The prime minister also directed relevant ministries to blacklist the contractor from participating in future government tenders.
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Oversight of development projects tightened
Nchemba raised concerns about another contractor who had been paid to implement a water project but had not started the work, forcing residents to continue purchasing water despite funds having already been allocated.
He said strict measures would be taken against contractors who misuse public funds.
“Tanzanians make sacrifices to pay taxes so that schools, irrigation schemes and roads can be built. They tighten their belts to contribute to national development, and that money must not be misused,” he said.
The prime minister said his office would intensify oversight of development projects to ensure they are implemented as planned and deliver tangible results.
“As the leader responsible for supervising government operations, I am following up in every sector to ensure that what has been planned and funded is implemented and visible,” he said.
Irrigation project launched in Eyasi Basin
During the visit, Nchemba also laid the foundation stone for irrigation schemes in the Eyasi Basin, about 50 kilometres from Karatu town.
He said the initiative is among about 780 irrigation projects currently being implemented nationwide through the National Irrigation Commission (Tanzania).
The project, valued at about 38.4 billion shillings, is currently about 30 percent complete and is expected to be finished by November.
Once completed, it is expected to benefit more than 2,500 farmers from irrigation schemes in Mang’ola Barazani, Maleckchand, Laghangareri, Mbuga Nyekundu, Jobaji and Dumbechand, covering more than 5,000 hectares.
Officials say the project will reduce water losses in natural canals and improve water-use efficiency for agricultural production in the area.