WHAT DOES THE CAG’s REPORT ACTUALLY SIGNIFY?

 

The heading of this article is ‘adopted’ from the frontline heading of the DAILY NEWS of Tuesday, April 11^th, 2023; which reads thus: “What CAG report signifies”; and, which reports the opinions of “a cross-section of commentators, who attributed the situation to increased transparency in auditing and reporting the results”. These were dons from the Universities of Dodoma and Dar es Salaam; who volunteered the following opinions: - “It was not that the acts of that misusing public funds have increased during the sixth phase government; but rather, the freedom of reporting the audit findings has been promoted” said Dr. Loisulie, a lecturer at the University of Dodoma.  According to the said DAILY NEWS, “His views were echoed by another academician from the University of Da es Salaam, Dr. Elinami Minja, who argued that the CAG is now freer to process information, unlike previously”. 
        The question “what does the report actually signify”, which is posed in the heading above, reminds me of the following lines in Shakespeare’s Macbeth :“Life’s but a walking shadow, a poor player. That struts and frets his hour upon the stage.  And then is heard no more. It is a tale told by an idiot, full of sound and fury, signifying nothing”. 
        The revelations in the CAG’s 2021/22 audit report are, of course, not “the tale of an idiot full of sound and fury, but signifying nothing”; for  they present the true picture of the burden facing the small farmers and peasants of Tanzania; who are often reported to suffer what are known as “post-harvest” losses; meaning the loss of produce after it has been harvested. The annual Reports of the Controller and Auditor General (CAG) have always revealed huge losses that are consistently incurred by the government, of the money that was granted to it by Parliament; which are losses resulting from either mismanagement or misappropriation of such funds, or even from outright “thieving” by the government officials who are entrusted with the responsibility for managing these funds.       

        Thus, just like the poor farmer or peasant  who  loses  a significant proportion of his produce, known as “post-harvest’ loss;  the government  suffers similar “post-budget” losses”; in the sense that  after Parliament has  granted large sums of money (amounting to tens of trillion of shillings)  to the government for expenditure during the following financial year;  large chunks  of that money are ‘lost’,  through either mismanagement, or misappropriation, or theft .  Oh, what a cruel world!                                                             

          Under the provision of article 143(4) of the Constitution of the United Republic, the CAG is required to submit his Audit Report first to the President, and thereafter, to Parliament.  Thus, very soon after receiving the 2021/22 audit report, and after listening carefully to the detailed presentation made by CAG Charles Kichere, President Samia Suluhu Hassan expressed her disappointment and disgust, by lamenting bitterly thus: “we are killing our country”!

        Presumably because of the nature of the President’s reaction, this matter has attracted much greater public interest and attention from keen observers and stakeholders, than was the case in previous years.   And, indeed, the amount of ‘thieving’ revealed in the report, makes very sad reading. Consequently, demands have been made for the perpetrators of these crimes to be punished, in accordance with the normal dictates of the laws of the land.
What then, does the CAG report actually signify?
In my humble opinion, it signifies President Samia’s unique leadership endowments. In the preceding paragraphs above, we quoted the lines in Shakespeare’s Macbeth  relating to “the tale told by an idiot,  full of sound and fury, but signifying nothing”.   The opinions of the University dons which were reported in THE DAILY NEWS quoted above, are essentially valid. However, I have something to add; namely that, based on my own personal experience; this situation has arisen basically because of President Samia’s personal intervention.                                           

           By God’s grace, I have had  the privileged opportunity of being at the ‘center stage’ watching these happenings right from the time of the country’s  independence; and I have witnessed the procedures prescribed in article 143 (4) of the constitution  being always followed;  but this is the first time  I have seen the President personally coming out publicly to make comments on the CAGs report, in the way President Samia Suluhu Hassan  did this time.    

        For example, her action of formally involving the Central Committee of the Ruling party (CCM) in the decision-making process over this matter, was totally unprecedented.   But this gave her the opening she needed, to secure the open support of the Ruling party, which thus gives her ‘added strength’ to enable her to take such corrective action as she may deem necessary.  

         Thus, in my considered opinion, it is President Samia’s unprecedented public intervention, that actually made this material difference. To the best of my knowledge and recollection, the previous CAG reports were regarded as a matter for the “people’s representatives” to handle in the National Assembly, with very little practical public involvement. But the President’s action of making a public appearance to address national leaders, and issue appropriate directives, is what is refreshingly new, and must have been the ‘catalyst’ that produced the changed situation that we are witnessing. In respect of this matter, President Samia has visibly demonstrated a different style of leadership; which should be properly acknowledged, and appreciated.
Back to our topic for this week.
The main topic for discussion in today’s presentation was the 2023/24 Budget, which is currently under active consideration inside Parliament. We will now return to that topic; starting with an elaboration of the vital, crucial importance, of the government budget in the life of our nation. It may be remembered that our discussions in last week’s article were focused primarily on “aspects of the government budget which require clarification”, in which we briefly referred to the ‘logic’ of the provisions in article 90 (2) (b) of the constitution of the United Republic; which stipulates that ‘failure by the National Assembly to approve the government budget will lead to the dissolution of Parliament” with all its ‘harsh’ consequences.    

        We will now draw attention to the fact that this constitutional provision, also signifies the great and vital importance of the government budget, which similarly requires special attention, mainly because of its ‘harsh’ consequences.  It should be specifically noted, that in the most unlikely event of the operation of this provision becoming necessary, it will bring the operations of the country’s government to a virtual standstill. This is because the President will be compelled to dissolve Parliament, which will necessitate the holding of another general election for the President and the Members of Parliament.  But this fact is only for noting; because in reality, there is just no possibility of Parliament failing to approve the government budget, due to the system’s in-built safeguards.
        We will now take a ‘microscopic’ look at the salient features of the ‘budget process’  through Parliament, according to the Parliamentary rules of procedure.  This process takes place in three consecutive stages. The first is the debate on each Ministry’s ‘mini- budget’; the second stage is the debate on the government budget as a whole; and the third stage is the consideration of the two ‘traditional’ budgetary Bills.

The process for the first stage.

The debate on each Ministry’s budget is normally allocated one or two days (depending on the size of its portfolio); except the Prime Minister’s Office(PMO) which is allocated five days; and TAMISEMI, which is allocated three days.  On the ‘appointed day’ for dealing with the mini-budget of the relevant Ministry, the process begins with the ceremonial “laying on the Table” by the Minister responsible, of a detailed Statement regarding the estimates of expenditure of his Ministry for the relevant financial year.                          The Minister is followed by the Chairperson of the relevant portfolio committee, who also lays on the Table the committee’s Report.  The Chairperson is followed (where applicable) by the Opposition spokesperson, who “lays on the Table” a statement of the Official Opposition’s views. 

        Then, immediately after the regular “question hour”,  the Minister responsible will rise to move a motion, asking the House to approve the Estimates of Expenditure of his Ministry. He is again followed by speeches from the portfolio committee Chairperson; and, where applicable, the Opposition spokesperson.  (The current 2000 – 2025 Parliament has no official Opposition inside Parliament, thus this part of the procedure is omitted.).                                

           These formal presentations are then followed by a general debate, in which members who wish to participate will compete to “catch the Speaker’s eye” i.e. to be given the opportunity to participate, at the end of which,  the motion will be put to the vote, and decided.                                                                        

          At that stage, Parliament dissolves itself into a “Committee of the whole House”, in order to enable it to examine each of the Ministry’s individual votes and sub-votes more closely.   And is when any Member can move a motion ‘to withhold a shilling from the Minister’s salary”; an interesting matter which we discussed in greater detail last week.
Debating the Finance Minister’s budget speech.
This is the second stage of the budget process through Parliament.  The Budget speech is delivered by the Minister for Finance, and must be done on the “appointed day”; which, by common consent and agreement, must be a Thursday, and not later than 15^th t June of the relevant financial year.                     
        Since the East African Treaty requires the Budget speeches of all the East African Community members to be delivered on the same day, and at the same time; this necessitates the programming of ‘Budget Day’ to be the Thursday which falls nearest to the 15^th of June; or, at the latest, on that date itself. The debate on the Budget speech is allocated not less than five sitting days. This debate is on a motion moved by the Minister of Finance, asking the National Assembly “to approve the government budget” for the relevant financial year. 

         Similarly, the Minister’s speech is followed by a statement from the Chairperson of the ‘Budget Standing ommittee’ of the National Assembly; in which he provides the observations and findings of his/her Committee regarding that budget. And this is followed by a presentation by the Opposition ‘shadow’ Minister for Finance (where applicable), giving the views of the official Opposition camp regarding that year’s government budget.                                                           

            The debate is then open for participation by the Members of Parliament, under the watchful control, and general direction, by the Speaker. The third stage of the budget process inside Parliament, is the adoption of the Budgetary Bills, namely Finance Bill, and the Appropriation Bill. This takes place after the House has completed consideration of the estimates of expenditure of all the Ministries. That is when the Minister for Finance introduces the Finance Bill; whose function is to authorize the imposition of new taxes, or alterations to existing taxes, and any other measures intended to raise revenue. Such measures include the borrowing of any such money as may be required; whose authorization is normally included in the provisions of the Appropriation Bill.    

              Thereafter, the Minister introduces the Appropriation Bill; whose sole function is “to appropriate the money granted” to the various government funded institutions; whose passage through the National Assembly is slightly different from all other Bills, for it does not go through any of the ‘Committee stages’.

piomsekwa@gmail.com /0754767576.

Source: Cde Pius Msekwa.