TAZARA fails to account for K1.3bn worth of gas oil
TAZARA fails to account for K1.3bn worth of gas oilBy Masuzyo Chakwe
Wednesday July 16, 2008 [04:00]
THE Auditor General's report on accounts of parastatals has revealed that Tanzania Zambia Railways Authority dispatched 770,000 litres of gas oil worth over K1.3 billion to various depots but the commodity was never received. According to Auditor General Anna Chifungula's report of 2006, the gas oil worth K1,344,722,400 was not accounted for in that the intended depots did not receive the fuel as of February 2007.
The report also stated that a total of 11,997,229 litres of gas oil valued at K21,694,286,119 bought by head office from Engen Oil Company in 2005/2006 and dispatched to Yombo, Mbeya, Chozi and Kapiri Mposhi depots was under delivered by 507,714 litres worth K918,086,400.
It stated that as of January 2007, the shortfall had not been delivered.
The report stated that wagon tanker number FT CF 034 dispatched to Yombo depot with 47,634 litres of gas oil on February 3, 2006 never reached its destination and was not offloaded at any other depot as of January 2007.
It stated that at Chozi station, 21,456 litres of gas oil was stolen by supplies clerks but no disciplinary action had been taken against the culprits as of February 2007.
"In August and December 2005, a consignment of 95,678 litres of gas oil was dispatched from Dar-es-Salaam to New Kapiri Mposhi. It was however observed that only 48,000 litres of fuel were received at New Kapiri Mposhi leaving a balance of 47,678 litres of fuel unaccounted for," it stated.
The report also stated that during the period from April 2004 to May 2006, the authority paid amounts totalling K797,328,000 for the supply of 500 metric tonnes of fuel.
However, the report stated that only 187 metric tonnes of fuel costing K297,456,000 was delivered living a balance of 313 metric tonnes costing K499,871,400 outstanding as of February 2007.
The report also stated that there were weaknesses in controls over the custody of gas oil at New Kapiri Mposhi depot in that no fuel registers were maintained, no reconciliations were done and access to the fuel storage tanks was not adequately restricted and consequently, as of February 2007, 37,874 litres of gas oil could not be accounted for.
The report stated that the Kurasini material depot was initially a property of TAZARA before it was sold to Tanzania Road Haulage (TRH) in 2005.
It stated that before the sale was concluded and title of ownership transferred to TRH, that company charged TAZARA K824,187,000 as storage charges for steel rails that were at the depot.
However, the report stated that despite advice to the contrary from the director of finance and the corporate secretary, the managing director ordered that the payment of K824,187,000 for storage charged be effected and in this regard, TRH was paid in March 2005.
The report also stated that in 2005, the authority introduced demurrage assessment sheets to avoid clients disputing charges.
"The demurrage apply when one fails to offload or load a wagon within 48 hours as stipulated by TAZARA regulations. The authority to waive the charge is vested in the managing director. However, it was observed that 73 transactions in amounts totalling K886,661,600 were not billed even though the assessment sheets had been sent to head office," it stated.
It stated that 12 transactions in amounts totalling K167,292,762 were waived without the authority of the managing director contrary to laid down procedures.
The report stated that between December 2005 and February 2006, head office transferred amounts totalling K45,957,880 to Zambia Cost Profit Centre (ZCPC) in Mpika, for repairs works at the senior management guesthouse in Lusaka.
However, it was observed that the funds had been misapplied on operational activities and as of January 2007, the guesthouse had not been repaired.
posted by MrK @ 3:51 AM
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