Ministry of Mines officers approach budgets critically

Ministry of Mines officers approach budgets critically
Written by Chibaula Silwamba and Ernest Chanda
Tuesday, July 28, 2009 5:22:23 PM

SENIOR officials in the Ministry of Mines and Minerals Development have opposed a US $60,000 [about K312 million] expenditure on advertisement for oil and gas explorations bids in foreign media because it was not budgeted for in this year's national budget.

But Ministry of Mines and Minerals Development permanent secretary Dr Goodwin Beene has said the transaction is within this year's national budget.

According to insiders familiar with the pending transaction, the ministry intends to spend US $60,000 on adverts in the international media for companies wanting to bid for oil and gas explorations in Zambia.

"The Ministry of Mines [and Minerals Development] wants to spend US $60,000 [about K312 million at yesterday's exchange rate] on advertisements in foreign media for oil and gas explorations bids. But that money was not budgeted for in the 2009 national budget. Therefore, some senior officials opposed the expenditure on grounds that it was not in line with the procedures because it was not authorised by Parliament as it was not budgeted for under the Ministry of Mines and Minerals Development. The money was supposed to have been budgeted for under Geological Survey Department, a department responsible for oil and gas explorations," the insider revealed.

"Since it was not budgeted for, it's not clear where the ministry will get that money from to publish the adverts. As you know, similar adverts were published in the local media, that was budgeted for but for foreign media that was not done. It is for that reason that some officials in the ministry guided their permanent secretary over the transaction but it seems the PS is not heeding their advice. Some of those officials opposed to the expenditure might even be disciplined for insubordination."

The insider said following the senior officials' opposition to the expenditure, Dr Beene has asked the department of human resource and administration to be the requesting the department for the money in order to finance the advertisements in foreign media.

"The PS wants to justify the expenditure through HRA [human resource and administration department] as the requesting department for the expenditure but it seems even that department is not comfortable with the arrangement because HRA has no powers to request for funding on behalf of another departmental warranty holder," the insider said.

"If this expenditure will be allowed without parliamentary approval, it will be irregular and it might cause problems for the ministry. The Ministry of Mines [and Minerals Development] does not have sufficient funds and as you may be aware, that ministry is the second least funded ministry from the Ministry of Labour [and Social Security]."

When contacted for comment, Dr Beene queried the reporter about the source of his information.

"Who gave you that information? If you are sure that the information you have is accurate, go ahead and publish," dared Dr Beene. "[But] whatever transactions I am doing are within this year's budget."

Zambia is believed to have oil and gas deposits in North Western and Eastern provinces.