The impact of financial resources management practices in performances of railways corporations operating in Tanzania: a case study of Tanzania Railways Limited

The study investigated the impact of financial resources management practices on performances of railways corporations operating in Tanzania, using TRL as the case study. To achieve this, specific objectives were formulated including determining the effect of Public Finance Act 2004 public finance resource management process in TRL; to Investigating the causes of poor financial resources management practices at TRL; to investigate the extent to which GAAP, IFRS, as well as IAS are used in managing TRL funds; and to Investigate the extent of transparency and accountability in management of funds in the TRL; also to find out the efforts made by the government in addressing those constraints. Samples of 50 respondents were selected and data collected through questionnaires, interview and FGDs. Data were analyzed both qualitatively and quantitatively and found out that weak economy was detrimental to the effectiveness of the public organizations. The study found out that weak adoption of GAAP, IFRS and IAS was detrimental to the effectiveness of financial management practices on performance of Tanzanian Railways corporations, effective salary administration in these corporations proved to be among the economic related challenges affecting the TRL. Other findings include excessive corruption, huge salary gap and other incentives, training and development of personnel, working experiences, CPA, NBMM qualifications to be a serious challenge in financial management practices on performance of Tanzanian Railways corporations to be an economic challenge to the financial resource management practices on performance of Tanzanian Railways corporations. On the other hand, the study found public finance act 2004 issues that affected financial resources management practices on performance of Tanzanian public corporations to play a key role and once was lacking the organizations could not sustainably achieve their goals. Lastly, the study recommends that government should make sure that its public organizations leaders are responsible and accountable in order to make sure that national economy grow which in the long run will enable financing public co-operations, improve working conditions in public organizations and be adherence to the national financial management policy and employment code of conduct.