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The Tanzanian government has declared three days of national mourning from Saturday following the ferry disaster in Lake Victoria on Thursday.
MV Nyerere capsized with hundreds of people and many are still missing.
The vessel was preparing to dock at Ukara Island from Bugolora Island in northern Mwanza when it toppled over.
The head of civil service, Mr John Kijazi, called for the immediate arrest of ferry supervisors and interrogation of officials of the Surface and Marine Transport Regulatory Authority (Sumatra).
He said the ferry, with a capacity of 100 passengers and 25 tonnes of cargo, overturned due to overload.
He confirmed that the 40 people were rescued alive on Thursday.
President John Magufuli in a televised address to the nation said 131 bodies have been recovered, adding that more people could still trapped in the capsized vessel.
He said some officials had been arrested.
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