The Controller and Auditor General (CAG) report for the financial year 2022/2023 has highlighted a concerning trend, revealing that public institutions involved in commercial ventures have faced significant financial losses and challenges.

This was disclosed today at the Chamwino State House in Dodoma, as CAG Charles Kichere presented the audited report to President Samia Suluhu Hassan.

Kichere acknowledged the government's efforts to enhance the performance of its revenue-generating entities but emphasized the importance of observing good governance principles in this endeavor.

As per Kichere, in the fiscal year 2022/2023, Air Tanzania Company Limited (ATCL), the national flag carrier airline, incurred a loss amounting to 56.64bn/- which was an increase from the 35.25bn/- reported in the previous year.

He also highlighted that the Tanzania Telecommunications Corporation (TTCL), another state-owned company, reported a loss of 894m/- during the same period.

However, Kichere acknowledged that there were some improvements, noting that the performance had improved as the loss decreased by 94 percent from the 19.32bn/- recorded in the previous period.

On the other hand, the CAG pointed a finger at the Tanzania Railways Corporation (TRC), stating that the parastatal had reported a loss amounting to 100.70bn/-.

Furthermore, Kichere's report also revealed that Tanzania National Oil (TANOIL) suffered a loss amounting to 76.56bn/- in the 2022/23 fiscal year, a 68.72 percent increase compared to the corresponding period.

SAC Kichere also noted that the Tanzania Posts Corporation (TPC) was also impacted, as the company incurred a loss of 1.34 billion/- in the fiscal year 2022/23.

Meanwhile, government-owned banks also recorded significant losses during the financial year 2021/2022, with TIB Development Bank reporting a loss of 131.07 billion/- in 2022, which was attributed to an increase in Non-Performing Loans (NPLs).

“The non-performing loan (NPL) rate ranged from 5.8 percent to 20.3 percent, exceeding the 5 percent threshold established by the Bank of Tanzania (BoT),” Kichere expounded.

The Controller Auditor General also observed that numerous public institutions continue to benefit from government subsidies, despite consistently incurring significant losses year after year.

“Without government subsidies, these companies would be facing even greater losses. The continual losses incurred by government entities impact their share capital, hindering their ability to distribute dividends to shareholders,” he affirmed.

Kichere highlighted that several Government entities have struggled to meet their predetermined performance targets aligned with their strategic objectives, ultimately compromising their competitiveness against private sector counterparts.