Thursday, July 10, 2008

CBU owes K49bn in unremitted employees' contributions

CBU owes K49bn in unremitted employees' contributions
By Maluba Jere and Chiwoyu Sinyangwe
Thursday July 10, 2008 [04:00]

COPPERBELT University (CBU) owes three statutory institutions about K49 billion in unremitted employees’ contributions, the 2006 Auditor General’s report has revealed. According to the Accounts of Parastatal Bodies which is yet to be submitted to Parliament, CBU management failed to remit the deducted amounts as of November 2007. The report indicates that CBU owed Zambia Revenue Authority (ZRA) in unremitted Pay As You Earn contributions amounting to K44,505,642,000.

The other institutions are National Pension Scheme Authority (NAPSA) and Zambia State Insurance Corporation (ZSIC) which are owed K2,372,360,000 and K2,368,701,000 respectively.

The report also states that despite having increased funding, CBU continued operating with a deficit during the period 2003 to 2005.

“Despite income having increased from K25,304,335,000 in 2003 to K43,793,193,000 in 2005, the university operated with a deficit during the period under review,” it stated. “The deficit reduced from K29, 453,465,000 in 2003 to K12,982,017,000 in 2004 before increasing to K18,017,316,000 in 2005.”

The report further states that personal emoluments remained the major expenditure of the university, representing 102 per cent, 82 per cent and 91 per cent of the total income in the years 2003, 2004 and 2005 respectively.

And the report states that 14 payment vouchers relating to cash payments to non-employees made between 2004 and 2005 in amounts totalling K979,920,392 were not made available for audit as of April 2008.

It also states that amounts totalling K97,733,698 meant for salaries were misappropriated in that they were irregularly paid to a non-employee of the university between November 2004 and August 2006.
And the report also reveals that University of Zambia (UNZA) paid over K1.2 billion between 2004 and 2005 as salaries without claim forms and pay slips.

And the report reveals that Sylva Professional Catering Services has not paid K295 million in rentals for the period 2000 to 2007 to UNZA.

According to the report, the rentals had not been revised from the year 2000.
“A review of the records pertaining to the lease agreement between UNZA Council with Sylva Professional Catering revealed that there was no evidence of tender procedures having being adhered to in the award of the contract in that the procurement of the catering services was single sourced,” stated the report. “The University extended the initial contract to June 30, 2003. However, there was no agreement in place for the period from July 2003 to March 2008 though the tenant continued to run the dining hall. Between October 2000 and October 2007, the tenant had not paid for rent, water and electricity in the sum of K294,950,000.

The lease agreement for a period of one year for the main dining hall indicate that Sylva Professional Catering had to pay rentals of K2,900,000 per month payable six months in advance.

Among other terms, Sylva Catering was to pay monthly charges for electricity and water at K170,000 and K400,000 respectively.



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