REVENUE losses in local authorities due to mismanagement and fraud are unacceptable, President Samia Suluhu Hassan has declared.

Addressing the opening session of the 39th annual general meeting of the Association of Local Authorities of Tanzania (ALAT) in the capital, the president emphasized the need to address corruption and improve financial management.

Urging ALAT to strengthen revenue collection and tackle corruption in local governments, she said that local governments have the ability to collect more revenue, “and it is crucial that we tap into these capabilities to enhance public services for the people.”

Local government authorities need to explore innovative ways to generate new revenue sources and improve service delivery, she stated, citing the mismanagement of land designated for investment in local government areas.

ALAT needs to oversee land management to ensure it aligns with the interests of potential investors, she said, explaining that many investors have expressed concerns about land allocation. Local government authorities must consult with the Tanzania Investment Centre (TIC) and the Attorney General (AG) before engaging with investors on land issues, she stressed.

Noting that land mismanagement had led to financial losses with some investors seeking redress through international courts after facing poor treatment from local authorities, she pointed at the potential for using digital technologies to improve efficiency in local government operations.

ALAT needs to strengthen the use of technology to enhance the delivery of public services, she said, tasking the Regional Administration and Local Governments minister, Mohamed Mchengerwa, to ensure the proper collection of revenues.

Mismanagement will not be tolerated, she said, underlining that if that situation persists the president will have to take action, starting with the minister “and those you have allowed to slip through the cracks.”

Acknowledging the progress made in healthcare and water supply, particularly in rural areas, she said that 83 percent of rural areas now have access to clean water, close to the 85 percent target. In urban areas, the target was 95 percent and the current achievement stands at 90 percent, she said, also pointing at the decentralization of revenue collection, including billboard and real estate revenues, restored to local governments.

The reasons behind the move to centralise these revenues should not be repeated, she said, stressing the importance of local governments in driving the national economy. She commended ALAT for its efforts in coordinating development at the grassroots level, working with regional bodies to foster growth.

Affirming that local government authorities are the backbone of development, she said it is their role to ensure that growth initiatives trickle down to the people.

The minister assured the president that all directives would be fully implemented to improve service delivery, appealing for a revision of salary structures for local government officials and department heads to boost morale and efficiency.

Murshid Ngeze, ALAT national chairman, said the meeting would discuss revenue and expenditure, approve the budget for financial year 2025/26, and examine reports of the Controller and Auditor General (CAG).

He also urged the reinstating of the Local Governments Week celebrations to showcase achievements made in various parts of the country.