Air Tanzania’s invoice for its freighter was inflated by nearly $50 million. Tanzania’s president Samia Suluhu Hassan has called for the resignation of all individuals involved in the fraud.

Air Tanzania was supposed to receive its first Boeing 767 freighter by the end of Q1 2023, but it is now expected to be delivered this month. According to the 2021/2022 Controller and Auditor General (CAG) report, the last installment for the plane’s manufacture was $37 million; however, an $86 million invoice was presented to the government.

Freighter price inflation

The Citizen reports that President Hassan read the CAG report on March 29th. The audit revealed that an $86 million invoice, over twice the original figure, was submitted to the government in an attempt to defraud the state.

Photo: Air Tanzania

Air Tanzania is wholly owned by the government. The new aircraft was sold to Tanzania Government Flight (TGF), which is expected to boost its cargo operations. President Hassan recognized that the price hike for the aircraft originated within the government, and she lashed out to all those involved. She said;

“Where did this invoice come from? What did the contract say? And when you received the invoice, you still presented it to the government for payment. Stupid, what step did you take after you received the invoice? When you look at it critically, you will notice that the price hike is something that started internally.”

The president will not tolerate such conduct, as she added that the nation could not be run that way. Although she did not state the individuals who were involved in the fraud, she ordered all of them to step down from their positions.

Air Tanzania losses

The 2021/2022 Controller and Auditor General report also indicates that Air Tanzania Company Limited (ATCL) incurred losses of $1.5 billion. The Citizen reported that about 25% of the losses were attributed to flight delays.

CAG Charles Kichere stated the above while handing over the report to President Hassan. ATCL’s strategy was to reach a 92% level, but an analysis shows a quarter of the losses resulted from flight delays.

Photo:  Kelvin Mwanasoko via Wikimedia Commons

CAG Kichere recommended stakeholders focus on improving efficiency and revenue collection. Air Tanzania was one of 42 government entities that recorded losses. This reveals that the airline is among the corporations that cannot pay debts quickly.

The delivery of the freighter

Air Tanzania is ready to take delivery of its first freighter, which will become Africa’s first production B767-300F. Last month, plane spotters were excited when they saw the aircraft conducting test flights at the Boeing Factory at Paine Field.

The cargo aircraft was expected to be delivered by March 31st, but the flag carrier might have to wait until later this month. According to Airspace Africa, the delivery of the aircraft was delayed because of supplier issues. Boeing acknowledged that “quality issues” had forced the company to rework the 767Fs before delivery.

Photo: Boeing

The new freighter will be based at Kilimanjaro Airport, which will become a strategic hub for cargo operations. This will allow Air Tanzania to increase its cargo operations and boost trade with other states.