Sata writes Rupiah over ‘abuse of public funds’

Sata writes Rupiah over ‘abuse of public funds’
Written by Ernest Chanda
Wednesday, September 16, 2009 12:14:25 AM

PATRIOTIC Front (PF) leader Michael Sata has written to President Rupiah Banda over the K2 billion which the Ministry of Local Government and Housing has transferred from the Lusaka City Council account to Ministry of Home Affairs. In a letter to President Banda dated September 10, 2009 and copied to the acting Minister of Local Government and Housing, Minister of Home Affairs and local government permanent secretary, Sata contended that the action was an abuse of public funds.

He argued that the local authorities under the provisions of the local government Act, Cap 281 of the Laws of Zambia were established as corporations autonomous of the national government.

"I would like to bring it to your attention that the Ministry of Local Government and Housing about three months ago under the instructions of the late Minister of Local Government and Housing Mr [Benny] Tetamashimba withdrew the sum of K2 billion from the said account without consultation with the council and the money was not used for council purposes but paid to the Ministry of Home Affairs for the removal of street vendors' exercise," the letter read in part.

"This in our view is abuse of the council resources. It is also not a transparent way of managing council affairs on behalf of the residents and all stakeholders. It is a fake way of justifying the plunder of public funds. In view of what I have stated above, we demand that the bank account in question should without any further delay be transferred to the Lusaka City Council by the ministry, failure to which we shall instruct our lawyers to commence legal proceedings over the matter."

Sata maintained that there was no law which allowed the Ministry of Local Government and Housing to manage funds for councils.

"The councils own assets and maintain various bank accounts for their revenue collections. There is therefore no law, which allows the Ministry of Local Government and Housing to maintain and/or manage a bank account on behalf of any council for whatever purpose. However, this principle has been breached by the Ministry of Local Government and Housing which has been managing an account for the Inter-city Bus Terminus on behalf of Lusaka City Council without any resolution or authority of the council," stated Sata.