Air Tanzania lease reports reveal irregularities

(eTN) – The Tanzanian Auditor General unearthed in annual reports a number of irregularities over the lease of an Airbus A320 by Air Tanzania (ATCL) in 2007.

(eTN) – The Tanzanian Auditor General unearthed in annual reports a number of irregularities over the lease of an Airbus A320 by Air Tanzania (ATCL) in 2007. As a result of government guarantees, this ended up costing the taxpayers over US$40 million. The matter raised a storm in parliament at the time the report was published, resulting in the 3 named officials eventually leaving the airline and in the process taking the then Minister of Transport down with them.

The latest audit report, according to an aviation source in Dar es Salaam, talks of additional multi-million US dollar debts the government is apparently still liable for from other deals the same management struck with suppliers.

Former ATCL Managing Director, David Mattaka, whose abuse of office case was adjourned mid-last year, is standing trial with two of his former staff, who were also named in the Auditor Generalโ€™s report. The latest reports are likely to strengthen the prosecution case against the 3 accused.

Tanzania government continues to pour tax-payer funds into the carrier, which is presently operating a B737 and a Bombardier Q300. Air Tanzania faces an uncertain future as it is not only faced with competition from arch rival Precision Air โ€“ now covering Tanzania more extensively than Air Tanzania even during its heydays ever did โ€“ but also upstart FastJet on the Dar es Salaam to Kilimanjaro and Mwanza routes.

After the partnership between Air Tanzania and South African Airways was dissolved, undisclosed and still obscured liabilities, in addition to the prospect of the country leaning towards the trade unions when it comes to disputes, has kept financial suitors and potential strategic investors away from Air Tanzania, leaving the government to step in with rescue packages time and again.

Precision Air uses a mixed fleet of B737-300, ATR 42 and ATR 72 aircraft, while smaller Tanzanian airlines like Auric Air use a fleet of Cessna Caravans or Coastal Aviation a mix of single- and twin-engine aircraft to fly both scheduled as well as charter services between key centers as well as national parks and tourist islands off the mainland.

Aviation in Tanzania is presently being boosted through a major investment by government in expanding and modernizing the 3 primary airports of Dar es Salaam, Kilimanjaro, and Zanzibar with other airports and aerodromes/airfields also being upgraded to receive larger aircraft.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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