BY DIRAMAKINI
THE Controller and Auditor General (CAG) has revealed that although 99 percent of public institutions received clean audit opinions for the 2024/25 financial year, significant challenges remain in public resource management, project implementation, and service delivery across key sectors.
The audit reports were submitted to the President, Dr. Samia Suluhu Hassan, on March 30, 2026, and later tabled in Parliament on April 10, 2026, in accordance with Article 143 of the Constitution of the United Republic of Tanzania of 1977.
According to a statement issued by the National Audit Office of Tanzania (NAOT), a total of 1,554 audits were conducted, including 1,339 financial audits. Of these, 99 percent resulted in clean audit opinions, indicating notable improvements in financial reporting and compliance with accounting standards.
However, the CAG cautioned that a clean audit opinion does not necessarily imply the absence of weaknesses, emphasizing that gaps still exist in internal control systems and public service delivery.
The report notes that one percent of audited entities received qualified, adverse, or disclaimer opinions due to significant financial misstatements or insufficient audit evidence.
These findings highlight serious weaknesses in financial management and operational performance within some public institutions.
The report also raises concern over the implementation of audit recommendations, revealing that only 36.7 percent of 38,181 recommendations issued in previous years have been fully implemented.
Some recommendations have remained unaddressed for as long as 7 to 20 years, pointing to systemic weaknesses in accountability and follow-up mechanisms.
In the health sector, the audit identified inefficiencies in procurement, storage, and distribution of medicines, including expired drugs and underutilized medical equipment.
The education sector continues to face challenges such as inadequate infrastructure, shortages of teaching materials, and delays in project completion.
Meanwhile, the water sector reported high levels of non-revenue water, averaging 35 percent, largely due to aging infrastructure, leakages, illegal connections, and weak monitoring systems.
In the energy sector, key challenges include project delays, cost overruns, rising debts, and weak contract management.
Infrastructure projects, including roads and sports facilities, were also found to suffer from delays, inflated costs, and poor quality work, largely attributed to weak supervision and ineffective contract administration.
The CAG further identified ongoing weaknesses in public financial management, including non-compliance with procurement laws, poor revenue collection, and continued reliance on government subsidies by some state-owned enterprises.
In the area of Information and Communication Technology (ICT), the audit revealed limited system integration, duplication of functions, and instances of operating outside approved government systems, undermining efficiency, data reliability, and accountability.
The report highlights that Tanzania has yet to fully benefit from carbon trading opportunities despite its vast forest and mangrove resources.
Key challenges include weak contractual arrangements, lack of performance benchmarks, inadequate monitoring systems, and absence of significant revenue generation from carbon markets.
Despite these challenges, the report acknowledges several positive trends, including improved financial reporting, a high rate of clean audit opinions, and strong domestic revenue collection performance exceeding 99 percent of targets.
The CAG has called for strengthened project and contract management, enhanced accountability systems, improved revenue collection mechanisms, and better utilization of ICT systems.
Additionally, emphasis was placed on ensuring timely implementation of audit recommendations to improve governance and safeguard public resources.
The reports are now publicly accessible through the National Audit Office of Tanzania’s official website and other government communication platforms.