Tanzania Orders Probe Into $6.7 Million Funds For Railway Plan

(Bloomberg) -- Tanzania President John Magufuli has ordered the Treasury to probe 15.3 billion shillings ($6.65 million) paid by the government over two years to revive operations at a railway linking the commercial capital of Dar es Salaam to neighboring Zambia.

The funds were allocated to buy seven new locomotives to increase cargo capacity by 400,000 tonnes, refurbish tracks and improve aging infrastructure, the Presidency said in an emailed statement Saturday. Instead, the railway is only handling 250,000 tonnes of cargo annually.

The 1,860 kilometre railway known as Tazara needs 19 new locomotives and 700 wagons to ferry passengers to return to profitability, according to the statement.

To contact the reporter on this story: Ken Karuri in Dar es Salaam at kkaruri@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John Bowker, Abigail Moses

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