Tanzania: Air Tanzania 1st Boeing 767 Cargo Aircraft Inflated By $49 Million

By Agencies

Tanzania's president has called for the resignation of the individuals who were involved in the freighter's invoice price hike.

Air Tanzania's invoice for its freighter was inflated by nearly $50 million. President Samia Suluhu Hassan has asked all individuals involved in the fraud to resign.

Air Tanzania was supposed to receive its first Boeing 767 freighter by the end of 2023, but it is now expected to be delivered this month. According to the 2021/2022 Controller and Auditor General (CAG) report, the last installment for the planes manufacture was $37 million; however, an $86 million invoice was presented to the government.

FREIGHTER PRICE INFLATION

The Citizen reports that President Hassan read the CAG report on March 29th. The audit revealed that an $86 million invoice, over twice the original figure, was submitted to the government in an attempt to defraud the state.

Air Tanzania is wholly owned by the government. The new aircraft was sold to Tanzania Government Flight (TGF), which is expected to boost its cargo operations. President Hassan recognized that the price hike for the aircraft originated within the government, and she lashed out to all those involved. She said;

"Where did this invoice come from? What did the contract say? And when you received the invoice, you still presented it to the government for payment. Stupid, what step did you take after you received the invoice? When you look at it critically, you will notice that the price hike is something that started internally."

The president will not tolerate such conduct, as she added that the nation could not be run that way. Although she did not state the individuals who were involved in the fraud, she ordered all of them to step down from their positions.

AIR TANZANIA LOSSES

The 2021/2022 Controller and Auditor General report also indicates that Air Tanzania Company Limited (ATCL) incurred losses of $1.5 billion. The Citizen reported that about 25% of the losses were attributed to flight delays.

CAG Charles Kichere stated the above while handing over the report to President Hassan. ATCL's strategy was to reach a 92% level, but an analysis shows a quarter of the losses resulted from flight delays.

CAG Kichere recommended stakeholders focus on improving efficiency and revenue collection. Air Tanzania was one of 42 government entities that recorded losses. This reveals that the airline is among the corporations that cannot pay debts quickly.

This article originally appeared on The Observer

Photo: Air Tanzania