President Samia Suluhu Hassan receives the 2024/2025 Audit Report from Controller and Auditor General (CAG), Mr Charles Edward Kichere (left), at State House in Dar es Salaam, earlier this week. (Photo by State House).
BY THE ARUSHA NEWS REPORTER
The cost of building Arusha’s iconic stadium billed for the 2027 AFCON championships has nearly doubled from Shillings 187bn to Shillings 338.54bn, with the Controller and Auditor General (CAG) raising serious concerns over procurement practices and value for money in one of the city’s flagship projects.
According to the latest audit report (2024/25) presented to President Samia Suluhu Hassan by CAG, Mr Charles Kichere on Monday, March 29 in Dar es Salaam, the stadium’s cost rose by over 80 per cent of initial estimates, highlighting weaknesses in planning, bill of quantities (BOQ) and procurement management.
The report further raises questions over transparency and efficiency in the tendering process, placing the high-profile project under increased scrutiny as implementation progresses.
The Arusha stadium is a key component of Tanzania’s preparations to co-host the upcoming Africa Cup of Nations (AFCON) tournament alongside Kenya and Uganda. Arusha has been designated as one of the host centres in Tanzania, alongside Dar es Salaam and Zanzibar, elevating the strategic importance of the project both regionally and nationally.
However, the sharp escalation in cost has raised concerns over timelines, financial sustainability and overall project governance, particularly given the urgency of delivering up to standards infrastructure ahead of the continental tournament.
Beyond the stadium project, the audit also highlights significant financial strain within state-owned enterprises, particularly the national carrier, Air Tanzania Limited.
The report shows that Air Tanzania recorded a loss of Shillings 191.19bn in the 2024/25 financial year, more than doubling from the previous year. Cumulative losses at the airline have now reached approximately 748 billion shillings, despite continued government support to sustain operations.
Auditors attribute the losses to rising operational costs, underperforming routes and inefficiency in resource utilisation, with several routes operating below optimal passenger capacity. The report also cites underutilisation of aircraft despite ongoing leasing and insurance costs, weak internal controls including gaps in revenue handling and frequent flight delays and cancellations affecting both performance and revenue.
While noting the airline’s long-term potential, the audit underscores the need for urgent reforms in management, route planning and accountability systems.
In a notable rejoinder, former CAG, Mr Ludovick Utouh, expressed concern over both the stadium project and the financial trajectory of Air Tanzania, calling for closer scrutiny and corrective action.
Mr Utouh remarked that the Arusha stadium project “spanks of dubious deal” and urged relevant oversight and investigative bodies to examine the procurement and cost escalation issues to ensure accountability.
On Air Tanzania, he called for the establishment of a dedicated task force to review the airline’s operations, identify structural weaknesses and ensure that losses do not recur and past mistakes are not repeated.
Overall, the audit presents a mixed picture of public financial management, with 99 per cent of government institutions receiving clean audit endorsement, despite persistent accountability challenges in major projects and state-owned enterprises.
Receiving the report, President Samia called for stricter enforcement of audit recommendations and tasked the Chief Secretary with ensuring greater accountability across public institutions. The President urged a “naming and shaming” drive against poorly performing institutions and entities with the view to making them stand up and reverse the trend.
The report, after being received by the President, is expected to be tabled before Parliament for deliberation and further action.
The findings are expected to intensify scrutiny of major public investments and state-owned enterprises, as pressure mounts on authorities to improve efficiency, transparency and value for money in public spending.
The President also received reports detailing efforts by the Prevention and Combatting of Corruption (PCCB) and the Public Procurement Regulatory Authority (PPRA).
