the booming construction industry
President John Magufuli and Minister for Works, Transport and Communication Makame Mbarawa (second right) inspect construction machinery cite in Dar es Salaam yesterday.
In Summary
He said corruption in the industry has reached unprecedented levels and expressed his determination to step up the war on the vice.
Dar es Salaam. President John Magufuli yesterday said his government won’t tolerate shoddy deals in the booming construction industry
He said corruption in the industry has reached unprecedented levels and expressed his determination to step up the war on the vice.
He said this during the opening of Annual Contractors Registration Board (CRB) consultative meetings and exhibitions, stressing that contractors should take the lead in bringing about social change by conducting themselves ethically.
The President revealed that local contractors are forced to quote high figures when bidding for government tenders so that they can afford to pay 10per cent kickbacks to government officials and retain profit.
The President cited the Judiciary, which was putting up a new court building. According to budget estimates, said Dr Magufuli, the Judiciary has put allocated Sh200 million to construct each building, but bids from local contractors ranged from Sh670 million to Sh1.4 billion for one building. “You no longer have to quote large sums of money to mitigate corruption. Just report to us the officials who ask for a bribe and we will act on them. If you help us send, say, 50 of these corrupt leaders to prison, then no one will dare to demand a bribe. Then you will not have to have intimate connections to win a tender,” he said.
The President explained that corruption cuts across many sectors, noting that some highplaced corrupt officials supported him in last October polls so that he could be part of their dirty system once in power.
“That will never happen, I cannot, and will not allow anyone to use me or my name to secure shoddy deals. This is a permanent war, and if need be, I will sack corrupt leaders every day,” he said. He also challenged the CRB meeting, which ends today, to come up with workable resolutions, including one to the effect that contractors will no longer give bribes.
The construction industry has to a considerable extent been growing in the country, but it involves huge amounts of money prone to misappropriation.
According to the World Bank, currently, one of the main drivers of the economy in the country is the “fast growing construction industry”.
Data from the National Bureau of Statistics (NBS) indicates that construction in Tanzania contributed 12.5 per cent of GDP in 2014 with $6 billion, while in 2008 the sector accounted for 8.8 per cent of the country’s GDP ($1.9 billion). According to NBS, the growth was attributed to construction of roads, residential and nonresidential buildings. For the 2016/17 FY, the government has set aside Sh11 trillion for developmen
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