The dismissed Director-General of Tanzania Ports Authority (TPA), Deusdedit Kakoko has been arrested by authorities.
He is accused of embezzling 3.6bn Tanzanian shillings ($1.5m).
Deusdedit Kakoko was this week suspended by the new President, Samia Suluhu Hassan after an audit report showed embezzlement of government funds at the state corporation.
This was the new president’s first key decision since assuming office after the death of John Magafuli.
She has expressed concern that the ports authority had not accounted for about four billion Tanzanian shillings ($1.8m).
President Samia warned that action would be taken against other state corporations, including Air Tanzania, which reportedly made a loss of 60 billion shillings ($26 million).
The auditor general’s report indicated that the revived national carrier had been making losses for the past five years.
The President said she had “received reports for the financial year 2019/2020 from the Controller and Auditor General (CAG) and the Institute for the Prevention and Combating of Corruption (PCCB).
I have directed that action be taken and immediate action taken against all the advice and shortcomings identified in the reports.”