Maravi

ZICA to audit Zambian Airways

ZICA to audit Zambian Airways
Written by Chansa Kabwela
Tuesday, February 24, 2009 8:44:49 AM

THE Zambia Institute of Chartered Accountants (ZICA) has said it will carry out a forensic audit of Zambian Airways as soon as logistics are in place. According to a letter addressed to Post deputy managing director and legal counsel Sam Mujuda dated February 20, 2009, ZICA secretary and chief executive Hapenga Kabeta stated that the body would carry out an audit of Zambian Airways after which they would reveal their findings.

Kabeta's letter comes in the wake of The Post's invitation to various stakeholders in the country, including ZICA, to probe its dealings with Zambian Airways and the financial institutions.

"Reference is made to your letter dated 20 February 2009...We wish to agree with you and confirm that it is an area that we have been contemplating doing so that all the parties to the perceived conflict are appropriately dealt with by an independent professional body," Kabeta stated.

"We shall proceed in carrying out a forensic audit in this matter as soon as logistics are put in place. We shall accordingly inform you of the findings as soon as the investigations are completed."

ZICA has also requested Zambian Airways to avail its latest financial statements and a list of creditors to enable the institute undertake a forensic audit of the airline.

The institute, which is the country's accountancy regulatory body concerned with the practice and education of accountants in Zambia, believes that matters have been overly politicised and should be reviewed by professionals who have no benefit in the issues surrounding the airline's dealings.

Last week, The Post invited organisations such as Transparency International Zambia (TIZ), Law Association of Zambia (LAZ), Bankers Association of Zambia, ZICA, Federation of Free Trade Unions in Zambia (FFTUZ), Zambia Congress of Trade Unions (ZCTU), Southern Africa Centre for the Constructive Resolution of Disputes (SACCORD), church mother bodies, media bodies and political parties to check if the newspaper did anything wrong by investing in Zambian Airways.

The newspaper also wrote to Investrust Bank, Finance Bank, Intermarket Bank, Development Bank of Zambia (DBZ) and National Airports Corporation (NAC), asking them to disclose all aspects of its dealings with these institutions pertaining to Zambian Airways.

But Chilembo was on Sunday quoted as having said investigations on Zambian Airways, which were currently on-going, should be left to competent investigative agencies.

Chilembo said he noted with concern that there were attempts to open up side-down investigations by The Post using NGOs and civil society organisations, trade unions and LAZ to investigate Zambian Airways' matters.

Chilembo said only legally constituted bodies had the mandate to investigate matters and that no one should pre-empt the outcome of investigations which were serious and involved huge amounts of money.

And the Sunday Times revealed that Bank of Zambia (BoZ) had queried DBZ for giving loans to Zambian Airways when the company was insolvent, contrary to bank regulations on large exposures.

Zambian Airways suspended operations due to high operational costs caused by a rise in fuel prices.

Labels: ZAMBIAN AIRWAYS, ZICA

posted by MrK @ 8:45 AM