Report Exposes Mismanagement of Hotel Revenue in Magufuli Bus Terminal

During his audit, the Controller and Auditor General (CAG), Charles Kichere, uncovered a discrepancy concerning TSh. 45.64 million in revenue collected from hotel services at the Magufuli Bus Terminal for December 2022 (TSh. 27.32 million) and January 2023 (TSh. 18.32 million). The revenue, collected by Rahabu Logistics Co. Ltd as the collecting agent, was not deposited into the council's bank accounts as required by Directive 50 (5) of the Local Government Finance Memorandum of 2009.

In his Annual Local Government Audit Report for the Fiscal Year 2022/2023, CAG stated, "I requested revenue collection reports for hotel services from February to June 2023, but they were not provided for audit, and there was no evidence to confirm whether the revenue collected during that period had been deposited into the council's accounts."

"Furthermore, from February to June 2023, the revenue collection agent operated without a signed contract with the council, raising concerns about the terms and conditions of hotel operations during this period. The failure to submit requested revenue collection reports for audit purposes reduces the scope of the audit in assessing transparency and financial management comprehensively."

"I recommend that management ensure that the TSh. 45.64 million collected from hotel operations in December 2022 and January 2023 is properly accounted for. Additionally, they should ensure that revenue collection reports requested from February to June 2023, along with bank statements, are submitted promptly for audit, and investigate and take action against officials who withheld information about revenue collected from the hotel business during this time."