Vice-President Deogratius Ndejembi has ordered a probe into the use of funds allocated to a TZS19.06 billion infrastructure project in Lindi Municipality after the contractor received TZS4.22 billion but completed only 24 per cent of the work.
The investigation, to be conducted by the Prevention and Combating of Corruption Bureau (PCCB) and the Police Force, will establish how the payments were made, how the money was spent and why construction has fallen significantly behind schedule.
The project has recorded only 24 per cent progress despite 80 per cent of the contract period having elapsed, raising questions about contract management, supervision and accountability for public funds.
Speaking during his visit to Lindi Region, Mr Ndejembi directed the investigative agencies to submit their findings directly to him for onward presentation to President Samia Suluhu Hassan.
He questioned why the contractor continued receiving payments despite the municipal council's earlier concerns over his management of the advance payment.
The Vice-President also challenged the council's response to the delays, saying writing letters to the contractor was not enough when substantial public funds had already been disbursed.
He was particularly dissatisfied with the council's explanation that it had written 16 letters to the contractor over the slow pace of construction.
According to the project implementation report presented during the inspection, the works are being undertaken by Hamerkop International Limited in a joint venture with KIKIM Contractor's Limited.
The contractor has received TZS4.22 billion, comprising an advance payment of TZS2.86 billion and a further TZS1.36 billion through two payment certificates.
The contract was signed in Dodoma on June 25, 2025, while construction officially started on November 7, 2025. The project is scheduled for completion on February 5, 2027.
At the current stage, implementation was expected to have reached 80 per cent. However, the actual progress of 24 per cent leaves the project 56 percentage points behind schedule.
The project, implemented under the Tanzania Cities Transforming Infrastructure and Competitiveness (TACTIC) programme, covers the construction of Matopeni Main Market, 5.3 kilometres of roads, Mitwero Bus Terminal and a project coordination office.
It is financed by the World Bank through the government under the President's Office – Regional Administration and Local Government (PO-RALG). Technical supervision is being provided by Inter-Consult Limited in collaboration with Tanzo Vision Engineering Limited.
The slow progress had earlier prompted the minister responsible for PO-RALG, Prof Riziki Shemdoe, to inspect the project on September 14, 2026.
During the inspection, he directed the contractor to engage capable subcontractors and ordered the formation of a special monitoring team to assess the implementation challenges.
The team subsequently established that the main contractor lacked the capacity to complete the project within the agreed timeframe.
It recommended that the contractor retain responsibility for the market construction, while the remaining three components should be assigned to subcontractors.
The implementation report indicates that a subcontractor has been identified for the road works, but contractors for the bus terminal and project coordination office are yet to be secured.
The investigation ordered by Mr Ndejembi is expected to establish how the TZS4.22 billion was utilised and whether there were financial or administrative irregularities contributing to the delays.
The findings could also determine the accountability of those involved in managing and supervising the project, as the government seeks answers over the gap between payments made and work completed.