12:07
A GRANT worth over 6.9bn/- aimed at conserving Kazimzumbwi and Pugu forests on the outskirts of Dar es Salaam allocated to the Wildlife Conservation Society of Tanzania (WCST) has been suspended due to financial irregularities.
Royal Norwegian Embassy Programme Officer for Environment and Climate Change, Yassin Mkwizu said on Friday that WCST has officially terminated the funding after disbursing over 1.135 million US dollars (over 1.8bn/-).
"The embassy has terminated the contract with Wildlife Conservation Society of Tanzania which was implementing a REDD pilot project at Pugu and Kazimzumbwi forest reserves. The termination made after WCST failed to meet contractual obligations," Mr Mkwizu said.
Mkwizu said disbursement of funds to another conservation group implementing the Reduced Emissions Deforestation and Degradation (REDD) pilot project has been suspended while an audit of its finances is being undertaken.
"WCST failed to provide satisfactory financial and audit reports in accordance with the contract and the results on the ground did not meet expectations," he said.
The Norwegian embassy has since hired an external auditor to establish how the funds were used at WCST and a draft report from the auditor has demonstrated that funds were not properly accounted for.
"According to procedure, WCST was given the opportunity to respond to this report. The embassy received formal comments on the forensic audit report by external auditor from WCST on 31st July 2013," Mkwizu noted.
Norwegian newspaper, Afriposten published a story last month detailing the loss of money at WCST describing the conservation institution as bankrupt. "The money is gone, the employees have resigned or been dismissed, and WCST is technically bankrupt.
The money for the business came from the Norwegian, Finnish, Danish, British and American aid budgets," the paper said. It further said the Norwegian embassy ordered an investigation by the audit firm Baker Tilly & Co DPG last May whose report confirmed the embezzlement.
WCST officials confirmed the grant suspension but refused to give details and simply said, "We have issues with the donor." The paper said most of the top officials at WCST are former employees at the Ministry of Natural Resources and Tourism.
