Out of the amount, Sh8.43 billion was ostensibly
spent on the GEPF’s 12-storey building located in Plot No. 37 Ali Hassan
Mwinyi Rd and the remaining Sh5.05 billion used to put up Rita’s
building on Plot No.727/11 at Makunganya and Simu streets.
The dubitable spending of public funds was
revealed yesterday in Dar es Salaam by PPRA’s board chairman, Matern
Lumbanga at the press conference. “The dubious payment was in the
repeated jobs contrary to the contract, payment to the contactor before
time, misuse of tax exemption, additional activities out of contract,
extra payment as the result of incorrect evaluation and payment for
non-existing activities,” said Dr Lumbanga.
He said the discrepancy was found after the
authority commissioned the professional team to verify the results which
implicated the two institutions in dubious payment, but the reports
were partly opposed.
The team members were from Nation Construction
Council (NCC), Engineers Registration Board (ERB), PPRA professional
consultants and Architects and Quantity Surveyor Registration Board. “We
decided to commission the team because some of the PPRA audit report
and the professional consultancy’s results were partially agreed by the
two institutions,” said Dr Lumbanga.
With regard to GEPF, the team found that there was
Sh8.43 billion, 93.5 per cent of all dubious payment claimed before. It
also found that there was Sh847 million import duty and Value Added Tax
(Vat) on account of importing on exemption materials which were not
used in the project,
There were also weaknesses in floating the tender
to get contactor and consultant, which included advancement payment of
30 per cent from the required 15 per cent and delay in completion of the
project by 127 days. The contractor was supposed to pay Sh1.49 billion
for the delay.
As of Rita, the team found Sh5.05 billion
dubitably paid. It also found extra questionable payment amounting
Sh10.67 million to the contractor and Sh22.9 million spent on
preliminaries. Dr Lumbanga said based on the team’s findings, the two
institutions in the saga were given two months to comply with the
instructions. He said: “GEPF and Rita have been instructed to submit to
PPRA the report on implementation of the board instructions within two
months since receiving the note.”
GEPF has been instructed to pay to the TRA Sh847
million on account of forged exemptions on some imports, deduct Sh1.5
billion from the contractor’s payment.
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