(TIMES) Permsec explains wasteful expenditure

Permsec explains wasteful expenditure
By Times Reporter

INFORMATION and Broadcasting Services Permanent Secretary, Emmanuel Nyirenda, yesterday told the Public Accounts Committee (PAC) that the wasteful expenditure in installation of local area network was as a result of the failure by the contractor to fulfill contractual obligations. Luena Member of Parliament, Charles Milupi (independent) is the chairperson of the committee.

Mr Nyirenda appeared before the committee in the company of Zambia National Broadcasting Corporation (ZNBC) director general, Joseph Salasini and acting director of planning at the ministry, Gilbert Maimbo.

He was called before the committee to clarify some financial irregularities highlighted in the Auditor General’s report for the financial year ended December 31 2006.

Mr Nyirenda said the ministry engaged a company known as Evolution to install the local network but it was regrettable that the company failed to complete the works forcing the ministry to seek the services of another company.

The ministry paid K33,570,450 to Evolution but since it could not complete the works, the ministry paid K35,035,705 to the new firm.
As a result, the Auditor General regarded the K 33,570, 450 as wasteful expenditure.

But Siavonga MP Douglas Syakalima (UPND) queried Mr Nyirenda why he did not follow Evolution to the latter to ensure that it completed the works.

“I admit that we did not do a good job to ensure that Evolution finished the works. On unretired imprest quite a number of officers who are involved are now made to pay. I can say that recoveries have started,” Mr Nyirenda said.

He added that the other wasteful expenditure of K 302,264,000 was to a company that was contracted to supply digital cameras and card readers.

The wasteful expenditure was because the cards were not compatible with the cameras but Mr Nyirenda said that despite that, the ministry did not waste the resources per say as the cards were later used on other cameras.

He, however, regretted that most of the companies that bid for tenders in the ministry usually demanded 100 per cent payment.

Mr Nyirenda said this when he responded to a question from Mbabala MP, Emmanuel Hachipuka (UPND), who wanted to know why in most cases 100 per cent payments were made even before the contractor starts work.

And Mr Salasini said ZNBC would no longer give contracts to a company, once it was established that one of the directors was an employee of the corporation.

And Mr Nyirenda told PAC that the ministry did not interfere with editorial contents at public media institution.

He was compelled to say this after Mr Milupi wondered why the ZNBC camera was constantly zooming at the members of the executive each time they appeared before the committee.

Mr Salasini also said that it was an issue which management was also addressing.