The Controller and Auditor General (CAG) has reported that 99 percent of public institutions received clean audit opinions in the 2024/25 financial year, reflecting continued improvement in financial reporting, even as challenges persist in key sectors affecting service delivery and accountability.
The audit reports were submitted to President Samia Suluhu Hassan on March 30, 2026, and later tabled in Parliament on April 10, 2026, in line with Article 143 of the Constitution of the United Republic of Tanzania, 1977.
According to the National Audit Office of Tanzania (NAOT), a total of 1,554 audits were conducted during the period, including 1,339 financial audits.
Of these, 99 percent resulted in clean audit opinions, signalling improved adherence to accounting standards and better financial disclosures among public entities.
Despite this progress, the CAG cautioned that clean audit opinions should not be interpreted as an absence of weaknesses, noting that gaps remain in internal control systems and public service delivery.
About one percent of audited entities received qualified, adverse, or disclaimer opinions due to material financial misstatements or insufficient audit evidence, highlighting continued weaknesses in financial management in some institutions.
The report also raises concern over the slow implementation of audit recommendations. Out of 38,181 recommendations issued in previous years, only 36.7 percent have been fully implemented, with some remaining outstanding for between seven and 20 years, pointing to systemic weaknesses in follow-up and accountability.
Sectoral audits reveal persistent operational challenges. In the health sector, inefficiencies were identified in procurement, storage, and distribution of medicines, including cases of expired drugs and underutilised medical equipment.
The education sector continues to face shortages of infrastructure and teaching materials, alongside delays in project implementation.
In the water sector, non-revenue water remains high at an average of 35 percent, largely due to aging infrastructure, leakages, illegal connections, and weak monitoring systems.
The energy sector recorded delays in project implementation, cost overruns, rising debts, and weak contract management, while infrastructure projects, including roads and sports facilities, were affected by delays, inflated costs, and poor quality work attributed to weak supervision.
The CAG further identified gaps in public financial management, including non-compliance with procurement laws, weak revenue collection systems, and continued reliance on government subsidies by some state-owned enterprises.
In the Information and Communication Technology (ICT) sector, the audit revealed limited system integration, duplication of functions, and cases of operating outside approved government systems, undermining efficiency and accountability.
The report also noted that Tanzania is yet to fully benefit from carbon trading opportunities despite its vast forest and mangrove resources, citing weak contractual arrangements, lack of performance benchmarks, and limited monitoring systems.
However, the CAG acknowledged positive trends, including improved financial reporting, a high rate of clean audit opinions, and strong domestic revenue collection performance exceeding 99 percent of targets.
The audit office has called for strengthened project and contract management, improved accountability systems, enhanced revenue collection mechanisms, and better utilisation of ICT systems.
It also emphasised the need for timely implementation of audit recommendations as a key step toward improving governance and safeguarding public resources.
The reports are now publicly accessible through NAOT’s official platforms and other government communication channels.
