Government Owes Contractors $14.2 Billion, Says Committee

The issue of unpaid debts to contractors remains a persistent problem, highlighted by the Chair of the Local Authorities Accounts Committee (LAAC), Hon. Halima Mdee, during parliamentary discussions.

Speaking passionately in Parliament, Hon. Mdee criticized the government’s response to this issue, suggesting that insufficient action is being taken to address it.

“This problem of debts owed to contractors is ongoing and troubling. However, the government has not taken adequate steps to show it is committed to resolving this issue,” Hon. Mdee remarked.

The committee’s analysis of 55 councils revealed that the central government owes contractors and suppliers a significant amount—roughly 14.2 billion Tanzanian shillings.

This financial burden on contractors continues to impact local development and service delivery as contractors and suppliers face prolonged delays in payment. Hon. Mdee emphasized that these mounting debts create financial strain on contractors, who often rely on prompt payments to sustain their businesses.

This call for action brings attention to broader financial concerns impacting development projects, with delays risking stalled progress in essential infrastructure and public services. LAAC has urged the government to prioritize the payment of outstanding contractor debts to ensure that both national and local projects proceed as planned.