Financial accountability in local government authorities in Tanzania: a case of Karatu and Mwanga District Councils

This work examined effectiveness of accountability mechanisms in fostering financial accountability in Local Government Authorities. It was designed to establish reasons as to why financial irregularities are more prevalent in some Tanzania’s district councils than others. Two cases of Karatu and Mwanga District Councils were used for this study. Analysis of the findings employed the principal agency theory and some aspects of institutional theory. Moreover, the study employed qualitative research approach for data collection and analysis. From the findings, it was established that effectiveness of internal financial accountability mechanisms was influenced by level of commitment by management and staff, political leaders at local level and personal values like cooperation, openness and spirit of team work, capacity and incentive system. This was mainly found in Karatu District Council case. In terms of internal mechanisms, factors such as human, material and financial resources problems, equally inflicted effectiveness of the ministry and parliament. However, incentive system and commitment to work by management and staff fostered financial accountability in Karatu District Council rather than Mwanga District Council which was characterised by self-interest among staff and councillors. Also lack of harmonization within formal rules militated effectiveness of councillors. Based on the findings the study recommends that councils should provide: employment to qualified people, capacity hulding to increase commitment among councillors and staff, incentive system and ensure answerability to both, management and staff as well as harmonisation of formal rules to remove contradictions which inhibit councillors from effective performance of their oversight roles.