CAG censors Treasury and BoT for mismanagement of unclaimed money

Comptroller and Auditor Basic Charles Kichere stated in his newest audit report that regardless of the regulation requiring digital cash issuers which can be non-bank and non-financial establishments to submit e-money account balances to the BoT who’ve been inactive consecutively for a interval of 5 years, MNOs largely ignore this want.

The CAG report stated that following issues of regulatory non-compliance, the BoT by letter / round with reference No. LB.422 / 535/02/11 dated September 25, 2019 ordered MNOs to remit all unclaimed balances held in belief / e-money accounts. .

“Examination of the account assertion for unclaimed balances of approved digital cash issuers revealed that as of June 2020, a complete of 9.7 billion / – had been remitted to the BoT by approved MNOs,” the report states. , including that in October 2020, all MNOs had remitted a complete of 11.1 billion / -.

Unclaimed monetary property remitted by MNOs, together with greater than 9 billion / – from the M-Pesa platform of Vodacom Tanzania Plc; greater than 1.35 billion / – from the Tigo-Pesa platform of Tigo Tanzania; over 726.18 m / – from Airtel Cash platform of Airtel Tanzania and over 38.56 m / – from EzyPesa platform from Zantel.

The ACG famous, nonetheless, that BoT officers didn’t confirm unclaimed monetary property handed over by MNOs as required by regulation, thereby exposing the monetary property. He stated the regulatory weaknesses which can be evident in each the central financial institution and the Treasury are the results of poor laws and obscure working preparations.

“Although the 4 MNOs remitted unclaimed balances to the BoT, till the date of this audit, the financial institution didn’t confirm the quantity remitted to make sure that it was the quantity actual pending at MNOs. BoT officers interviewed revealed that BoT solely sampled high-risk ORMs utilizing the RBS handbook because it was not attainable to confirm each ORM, ”the CAG report added.

“As well as, it was revealed that MNOs usually connect with the remittance letter a listing of people towards their balances for verification. Nonetheless, among the many 4 e-money issuers, we famous the listing of EzyPesa solely, ”CAG stated.

“Because of this, the BoT couldn’t decide whether or not the quantity remitted matched the precise balances of unclaimed clients over the age of 5 at 75% of e-money issuers,” the report stated, indicating, for instance, that officers of the BoT reported that among the many weaknesses recognized throughout their on-site evaluation was a upkeep price of 600 / – for dormant buyer balances in e-money accounts lower than 5 years outdated with out approval. of the central financial institution.

The ACG carried out the audit resulting from issues in regards to the administration and disposal of deserted property, with estimates indicating that as of June 2016, monetary property totaled 89.9 billion / – held by MNOs, banks and different monetary establishments.

“Efficient administration of unclaimed property would additionally help the achievement of Imaginative and prescient 2025, which goals to make sure high-quality livelihoods for all Tanzanians by 2025. It should equally assist promote the achievement of” Objective quantity 17 of the United Nations 2030 Agenda for Sustainable Growth, which emphasizes and calls for creating international locations. to strengthen home useful resource mobilization and the identification of further monetary sources from a number of sources, ”the report notes.

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