Tanzanian public procurement is rife with corruption presenting businesses with high risks. Businesses point to government officials often favoring well-connected companies and individuals when awarding contracts, and public funds being often diverted to companies, individuals or groups due to corruption (GCR 2015-2016). Furthermore, almost seven in every ten companies expect to offer gifts to obtain a public contract (ES 2013). Bribes and other irregular payments are also widely exchanged in the tender process (GCR 2015-2016). Companies or investors bidding on government tenders are required to submit a written commitment to comply with anti-bribery policies (ICS 2016). To combat corrupt and counterproductive practices, the Tanzanian government joined the Construction Sector Transparency Initiative (CoST) to enhance accountability and transparency within the sector.
In a 2015 crackdown, the director of Tanzania’s port authority was suspended for violating procurement procedures (Africa Report, Feb. 2015). Additionally, in late-2014, Tanzania’s Public Procurement Regulatory Authority (PPRA) barred 19 firms from competing for government contracts after the firms were found to have engaged in corrupt practices (All Africa, Oct. 2014). Another 2014 corruption case rocked the Tanzanian government following revelations that over USD 180 million in public funds were siphoned off and directed to off-shore accounts held by businesspeople and public officials (The Guardian, Jan. 2015). The case led to the resignation of a quarter of senior politicians from the government, including the energy minister, Sospeter Muhongo, the attorney general, the energy secretary and housing minister who lost her post for transferring USD 1 million to her private bank account (The Guardian, Jan. 2015). The chairs of three parliamentary committees; energy and minerals committee, the budget committee and the legal affairs and governance committee also resigned in connection with the case (The Guardian, Jan.2015). The Prevention and Combating of Corruption Bureau’s (PCCB) investigation has dragged on, reportedly, due to the involvement of high-ranking officials in the case (GI 2016). The case led international donors to withhold funding to Tanzania (BTI 2016). Firms are recommended to use a specialized public procurement due diligence tool to mitigate corruption risks associated with public procurement in Tanzania.