CAG flags persistent losses at ATCL and TRC in latest audit report

Dar es Salaam. Government corporations, notably Air Tanzania Company Limited (ATCL) and the Tanzania Railways Corporation (TRC), remain under financial strain despite continued State support, the latest audit report has revealed.

The findings were presented on Monday, March 30, 2026, when the Controller and Auditor General (CAG), Charles Kichere, submitted the 2024/25 audit reports to President Samia Suluhu Hassan at State House in Dar es Salaam.

The report paints a concerning picture of the performance of public commercial entities. A total of 22 State-owned enterprises recorded losses over one to two years.

The CAG attributed the trend to operational inefficiencies and structural weaknesses within the entities.

Among the most notable cases is ATCL. The national carrier has accumulated debt estimated at about Sh748 billion since its revival.

This highlights the continued financial burden associated with efforts to sustain the airline’s operations and expansion.

Similarly, TRC remains under pressure. Although the report does not isolate its exact loss figure in the summary, it identifies the corporation among key public entities facing persistent financial challenges.

These difficulties come despite substantial government investment in railway infrastructure, including the standard gauge railway project.

The audit findings underscore a broader pattern across public corporations. Many entities continue to rely heavily on government support while struggling to achieve commercial viability.

The CAG stressed that inefficiencies in operations and management structures remain central to the problem.

The presentation of the report forms part of a wider accountability framework.

The CAG’s office audits the use of public resources and reports annually to the President, providing an independent assessment of financial management across government institutions.

While the report highlights weaknesses in commercial entities, it also notes improvements in other areas.

Overall financial reporting across public institutions has strengthened, with 99 per cent of audited entities receiving unqualified opinions.

President Samia welcomed the progress in financial management.

However, she emphasised the need to address the shortcomings identified in the audit findings.

She called for implementation of recommendations to enhance efficiency and accountability in the use of public resources.

The situation at ATCL and TRC is likely to intensify scrutiny over the management of State-owned enterprises.

The continued losses raise questions about sustainability, governance, and the effectiveness of ongoing reforms aimed at strengthening public corporations.

The CAG’s report is expected to inform parliamentary oversight and policy decisions.

It reinforces the need for structural adjustments within key government entities to improve performance and reduce reliance on public funds.