By Adonis Byemelwa
The Prevention and
Combating of Corruption Bureau (PCCB) has recently exposed a significant issue
involving passengers exploiting the electric train service (SGR) by paying
lower fares than required for their intended destinations.
Christopher Mwakajinga,
the Deputy Head of PCCB for Morogoro, reported that some passengers, who should
alight at stations like Pugu, Ruvu, and Ngerengere, are instead traveling to
Morogoro despite having paid less for shorter distances. This misuse undermines
the revenue collection system and operational efficiency of the SGR.
Christopher Mwakajinga's
bold revelation of fare evasion reveals his determination to tackle corruption
and financial mismanagement. His investigation uncovered those passengers from
Dar es Salaam are exploiting the SGR fare system by paying lower fares for
stops like Pugu (Sh. 1,000), Soga (Sh. 4,000), Ruvu (Sh. 5,000), and Ngerengere
(Sh. 9,000) but traveling to Morogoro instead.
This misconduct severely
impacts the revenue and operational efficiency of the SGR, necessitating
immediate reforms and stricter enforcement measures to address the financial
and operational challenges facing the rail service.
This practice is
compromising the financial sustainability of the SGR service, making it a
no-brainer that stricter fare enforcement and system reforms are urgently
needed to curb revenue loss.
Meanwhile, the profound
impact of the SGR on the bus transport sector, evident from the dramatic
decline in passenger numbers since its launch between Dar es Salaam and Dodoma
on July 25, 2024, amplifies the urgency.
As the SGR siphons away
passengers, failing to address fare evasion only exacerbates financial strains
and operational inefficiencies, underlining the critical need for immediate
corrective actions to stabilize both rail and bus services.
The Tanzania Bus Owners
Association (Taboa) has reported that bus operators are struggling to compete
with the SGR's efficiency and have had to reduce the number of buses in
service.
Mustapha Mwalango, the Taboa
Communications Director, revealed that while bus operators initially
underestimated the SGR's impact, it is now clear that the electric train has
drastically shifted passenger preferences.
The SGR's capacity to
carry between 700 and 900 passengers per trip far surpasses the current bus
services. This shift has led to a reduction in the number of buses operating
between Dar es Salaam and Morogoro from around 20 to 22 per day to just six, and
from 10 to four on the Dar es Salaam-Dodoma route. Mwalango advocates for bus
operators to explore new routes to stay viable in this changing transportation
landscape.
Edward Magawa from
Shabiby Buses noted that the decline in passenger numbers affects not only bus
companies but also small-scale vendors and businesses near bus stations. He has
urged the government to establish bus stations near SGR terminals to facilitate
smoother connections for passengers.
Johansen Kahatano,
Director of Road Transport Regulation at Latra, confirmed the downturn in bus
operations, noting a 20% decrease in passenger numbers and a reduction in bus
services between Dar es Salaam and Morogoro. Latra is planning a stakeholder
meeting to address these challenges and improve connectivity.
Adding to this
complexity, the Controller and Auditor General (CAG) Charles Kichere reported
in March 2024 that the Tanzania Airlines Corporation (ATCL) suffered a loss of
Sh. 56.64 billion, a 61% increase from the previous year’s loss of Sh. 35.24
billion.
Conversely, the National Health Insurance Fund
(NHIF) reduced its losses from Sh. 205.95 billion in the 2021/22 fiscal year to
Sh. 156.77 billion in 2022/23, thanks to a 14.6% increase in contributions and
a 10% rise in expenditure.
The report also
highlighted some improvements among state-owned enterprises, including the
Tanzania Communications Corporation (TTCL) and the Tanzania Railways
Corporation (TRC), which have managed to mitigate their losses.
However, entities like
the Tanzania Postal Corporation (TPC) and the Tanzania Petroleum Development
Corporation’s (TPDC) subsidiary TANOIL continue to incur significant losses.
President Samia Suluhu
Hassan's call for state-owned enterprises to embrace commercial practices
highlights the urgent need for systemic reforms across Tanzania's public
sector.
With 248 institutions
under the Treasury Registrar’s oversight, overcoming operational inefficiencies
is critical to maintaining competitiveness and financial sustainability.
This necessity is
underlined by the recent revelations from Christopher Mwakajinga, Deputy Head
of the Prevention and Combating of Corruption Bureau (PCCB) in Morogoro.
Mwakajinga exposed how
some passengers, who should disembark at stations like Pugu, Ruvu, and
Ngerengere, are exploiting the fare system by traveling to Morogoro despite
paying for shorter distances. This abuse threatens the SGR's revenue integrity
and operational efficiency.
To address these
challenges effectively, Tanzania can draw lessons from other African countries
with successful SGR systems. For instance, Kenya’s SGR project has implemented
stringent fare enforcement measures and sophisticated ticketing systems to prevent
fare evasion and ensure accurate revenue collection.
Additionally, Ethiopia’s
SGR has integrated its rail services with other modes of transport, such as
buses, through well-coordinated transport hubs to facilitate smoother passenger
transitions and maximize revenue potential.
By adopting similar
strategies—enhancing fare enforcement, upgrading ticketing technologies, and
creating integrated transport solutions—Tanzania can mitigate revenue losses
and bolster the SGR's long-term success. Such reforms will not only secure the
financial sustainability of the SGR but also ensure it serves as a robust
component of the nation's transportation infrastructure.