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Auditor General Report Reveals $49M Fraud in Air Tanzania 767 Purchase

An Air Tanzania Airbus A320. Air Tanzania [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)]

Air Tanzania’s highly anticipated Boeing 767F has been found to have an inflated invoice of nearly $50 million. The last installment for the manufacture of the plane was supposed to be $37 million, but instead, an $86 million invoice was submitted for payment, according to the latest Controller and Auditor General (CAG) report.

The report, which was read by President Samia Suluhu Hassan, calls for the resignation of all individuals involved in the fraud. “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,” said the President this week.

The cargo plane, with registration number 5H-TCO, was spotted at the Boeing Everett factory in Washington, D.C. It is among four Boeing planes that were ordered by the Tanzanian government in 2021 at a reported total cost of $726 million, including a Boeing 787-8 Dreamliner and two Boeing 737 MAX jets.

Air Tanzania’s first dedicated cargo plane will be based at Kilimanjaro International Airport, which will become a strategic hub for cargo operations in Tanzania. The nation’s carrier has reported losses of 35.2 billion shillings ($150 million), and the arrival of the new cargo plane is expected to boost the airline’s fortunes.

However, this revelation has caused concern among stakeholders, who fear that the airline may not be able to recover from such a loss. The fraud also raises questions about the government’s procurement processes and the possibility of similar incidents occurring in other areas. In addition, Air Tanzania was one of 42 government entities that recorded losses meaning that the airline is among the corporations that cannot pay debts quickly.

The President’s call for the resignation of those involved in the fraudulent activity is a step in the right direction, as it shows a commitment to stamping out corruption and holding those responsible accountable for their actions. It is essential for the Tanzanian government to take swift action to address this issue and prevent similar occurrences in the future.

It remains to be seen what action the government will take to address the issue and whether those responsible for inflating the invoice will face any legal repercussions. In the meantime, the delivery of the new cargo plane is likely to be delayed, as the government looks to investigate the matter and ensure that such fraud does not happen again in the future.

Victor Shalton

Author

  • Victor Shalton

    Born and raised in Nairobi, Kenya, Victor’s love for aviation goes way back to when he was 11-years-old. Living close to Jomo Kenyatta International Airport, he developed a love for planes and he even recalls aspiring to be a future airline executive for Kenya Airways. He also has a passion in the arts and loves writing and had his own aviation blog prior to joining AirlineGeeks. He is currently pursuing a bachelor’s degree in business administration at DeKUT and aspiring to make a career in a more aviation-related course.

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