THE Prevention and Combating of Corruption Bureau (PCCB) has warned project managers in public and private institutions against signing contracts with contractors or suppliers before securing full project financing, saying the practice creates opportunities for financial losses and corruption.
The anti-corruption agency said premature contract signing often results in cost overruns, including additional interest claims and compensation demands from contractors when payments are delayed due to unavailable funds.
PCCB issued the warning after conducting audits of more than 400 development projects implemented in Dodoma Region between 2023 and 2025, where 60 projects were found to have indicators of corruption-related risks.
Following the findings, the bureau urged project managers to strengthen due diligence during project preparation stages and ensure that all financial requirements are confirmed before entering into contractual agreements.
Speaking during a capacity-building workshop for project managers from government and non-governmental institutions, PCCB Engineer Francisco Magoha said some institutions make the mistake of committing themselves to contracts before confirming the availability of funds.
He explained that such practices expose institutions to unnecessary financial obligations because contractors begin counting the contractual period immediately after signing, even when project financing has not yet been released.
“You find an institution entering into a contract with a contractor before funds are secured. As time progresses, the contractor counts the contract period and later claims additional costs. That is where loopholes for loss of public funds emerge,” Magoha said.
He emphasized that project managers must ensure financing is fully secured before signing agreements to protect public resources and guarantee that funds are used for their intended purposes.
Magoha added that following the proper sequence of project planning, funding approval, and contract signing would help prevent disputes between institutions and contractors, reduce delays, and minimize unnecessary increases in project costs.
“It is essential to initiate a project, secure the funds, and only then sign contracts with contractors or suppliers. By doing so, we will safeguard government resources,” he said.
PCCB Dodoma Regional Commander Christopher Myava said the bureau would continue conducting audits, inspections, and monitoring of development projects to promote transparency and accountability in the management of public funds.
Myava explained that the inspections are aimed at identifying challenges at an early stage, preventing corruption risks, and ensuring that development projects deliver meaningful benefits to citizens.
“We want to ensure that every shilling allocated for development delivers true value for money to citizens. This is achievable when project managers adhere strictly to established laws and procedures,” he said.
Meanwhile, Chemba District Administrative Secretary Sarah Ngalingasi commended PCCB for organizing the training, saying it had provided project managers with important knowledge on legal procedures and proper engagement with contractors and suppliers.
She noted that the training would strengthen the capacity of leaders and administrative officers to manage development projects effectively and ensure public funds are utilized responsibly for the benefit of communities.
