BoT governor defends cost of new residences

Bank of Tanzania Governor Benno Ndulu has defended the expenditure of more than 2.5bn/- on the construction of official residences for two of the central bank’s top executives, including himself.
He made the defence at a meeting in Dar es Salaam yesterday between senior officials of the bank and members of the Parliamentary Parastatal Organisations Accounts Committee.
The governor’s remarks came after the committee, which had called the routine meeting, had directed the Controller and Auditor General (CAG) to detail an independent valuer to review the expenditure and submit a report by the end of next month.
Kigoma legislator Zitto Kabwe, who chairs the House committee, issued the order. He said they were interested in seeing an experts’ (CAG) report on the expenditure before giving their opinion.
Prof Ndulu explained that earlier estimates showed that construction of the governor’s own residence would cost 1.7bn/- “but only 1.4bn/- had been spent by last month”.
He said the new residences would be of immense value to the central bank because they were expected to last 100 years, which would be a huge saving in the long run because the bank would no longer have to pay hefty amounts of money in rent as is hitherto the case.
“I have no doubts or suspicions whatsoever about the authenticity of the costs involved in the (construction) work, and I have all the documents. I am ready to show them to anyone wishing to confirm what I am saying,” he added.
According to Prof Ndulu, the decision to build the two residences was prompted by the rise in the number of deputy governors at the central bank from one to the current three.
He said it was only fair for public officials of his status to be accommodated in suitable official residences, “given the weight of their duties and responsibilities”.
“That should include the possibility of the officials in question to operate comfortably and effectively from their residences without always finding it necessary to go to their offices,” he added, stressing that it was not a matter of prestige but only of convenience for enhanced efficiency.
BoT issued a statement on December 4 last year saying it had built two new official residences for its top two executives at a cost of more than 2.5bn/-, adding that a residential house for one of its deputy governors was being refurbished.
The statement said that Governor Ndulu and one of his deputies, Lila Mkila, were living in rented houses pending their shifting to the new official residences.
The governor moved to House No. 12 Tumbawe Road on December 17, 2009 and Mkila to House No. 57 Mtwara Crescent on December 4, 2009.
BoT insists that its top executives are entitled to official residences provided by the employer and it decided to build the two residences before the appointment of the current top brass in 2006.
The bank previously had only two executive officers, the governor and a deputy governor. They used to live in BoT houses along Mahando Street and Msese Road, respectively.
However, following amendments to the Bank of Tanzania Act in 2006, two more executive posts (of deputy governor) were introduced.