Wednesday, February 17, 2010

An exercise in futility

An exercise in futility
By The Post
Wed 17 Feb. 2010, 04:00 CAT

The work of the Auditor General risks becoming useless, a worst of public funds, an exercise in futility if nothing is done to ensure that those found wanting are brought to book.

We say this because the Auditor General has been producing and making public reports of her audits every year. And in her reports, glaring irregularities are highlighted in the various government ministries, provincial administrations and foreign missions, among other public institutions.

What is surprising is that the irregularities are the same and at times even the controlling officers behind them are the same.

The latest Auditor General’s report – for 2008 – is out and it has indicated a revenue deficit of over K1.3 trillion [$270 million - MrK], unreconciled balances of over K53.6 billion, excess expenditure of over K549.9 billion and unretired imprest of over K445.2 billion.

According to the report, there were generally weaknesses in internal control systems, wastages in the use of resources, poor management of contracts, failure to follow tender procedures and the abuse of imprest.

Others are poor implementation of the Poverty Reduction Programme and delays in completion of projects, poor workmanship, and non-adherence to contract terms.

The report also highlighted unvouched expenditure – missing payment vouchers, unsupported or inadequately supported payments and unacquitted payments, as some of the most common irregularities.

This trend of irregularities is not new and one cannot help but wonder why these reports are never taken seriously, why there is no corrective action by those in power and those in our politics.

For instance, the issue of unretired imprest always comes up in the Auditor General’s reports. For 2008 we are told unretired imprest stands at over K445.2 billion, indicating a seven per cent increase from K417.8 billion in 2007. Surely somebody should be made to account for this money.

We agree with Mission Press director Fr Miha Drevensek that the trend had been set where people could steal public money with impunity, knowing too well that no one would question them.

But we cannot, as a nation, continue to sit with our laurels while public money is abused with impunity, while the nation is being robbed in broad day-light by public servants and unscrupulous politicians.

There is need for serious follow-ups on these irregularities to ensure that the culprits are brought to book, are made to account for their thefts and abuses.

In that way a precedent will be set and would-be offenders will think twice about misappropriating, misusing or misapplying public funds.

From our understanding, the Auditor General is appointed under the laws of our country to examine the management of resources within the public sector. And our Auditor General Anna Chifungula and her team have done just that year in and year out.

However, nothing seems to be done about her reports. There have been complaints from various stakeholders on the need for the law enforcement agencies to act on irregularities highlighted in the audit reports to protect public funds but those appeals have fallen on deaf ears.

There is a lot of empty talk about fighting corruption. However, when it comes to doing, there’s very little, if not nothing, to show.

And it is very clear that the situation is not improving. How else do we expect to fight corruption if we cannot follow up on what the Auditor General’s work has revealed and stop the rot?

We have always emphasised the need for the government to account to the taxpayers over its management of public funds.

Public funds should at all times be properly raised, protected from loss and spent with maximum efficiency, effectiveness and orderliness. Political leaders need to understand that the role and value of audits in the public sector go beyond merely expressing an opinion on financial statements.

We believe that when Chifungula and her team compile their reports, they comment and give feedback on the effectiveness of the management processes and compliance with laws and regulations.

This qualitative approach, we believe, is meant to enable controlling officers and others in the public sector to understand the financial impact of the identified irregularities and help to come up with corrective actions.

That way the Auditor General will be adding value and helping to improve financial management and service delivery in the public sector.

There is need for Rupiah Banda and his government to stop this misappropriation, misuse and misapplication of public funds. It is meaningless to have the reports presented and queries raised by the Parliamentary Public Accounts Committee (PAC) every year about the irregularities if no corrective action is taken.

It will not help to have controlling officers appear before PAC and fail to give satisfactory answers on the spending patterns in their ministries, on unretired imprest, or unvouched expenditure and holding them accountable for not taking any corrective action.

Presentation of audit reports should not be a mere academic exercise or ritual that is performed annually; it should serve a specific useful purpose. We should, as a nation, be able to say we have made progress looking at the number of audits that have been done over the years.

A lot of development could have been recorded in the past years with the money that has just been squandered, gone into people’s pocket. Imagine how many schools, hospitals or roads could have been put up using the trillions of kwacha that are misappropriated, misused, misapplied every year in the public sector?

How much safe drinking water could have been supplied to our people with this money that people are getting illegally? Imagine how many displaced people, the hungry or the poor could have benefited from that money if the government just prioritised where it matters most?

Imagine how our infrastructure would be if the government spent some of that money to put up good structures? Imagine how many people die from curable diseases in our country simply because some selfish individuals have abused public funds which could have gone to the procurement of drugs?

Imagine how many drainages could have been constructed in the many compounds of Lusaka that have been badly affected by the floods this rainy season? If some of that money was spent in areas such as creating good drainages in the compounds, would we have politicians pointing to parliamentarians for the floods when they know that Constituency Development Fund is pegged at K600 million?

Would we have the big potholes on our roads right in the capital city if money was being spent prudently and in the worthwhile areas?

We have had enough assurances from the people in the government, we have been told over and over about how they are putting in place oversight measures to improve the utilisation of funds and that steps will be taken to deal with the culprits.

Interestingly, even some ministers are culprits when it comes to these misappropriations, misuse and misapplying of public funds. But what we see is a repeat of the same irregularities whenever a new report is presented.

We need to be very serious in our dealings because we are sure that even the cooperating partners do sometimes wonder as to how we cry for aid packages when we have so much money to spend, money which we cannot even account for.

How do we expect to get aid to fight poverty when we cannot control corruption in our midst, corruption among the implementers of the country’s development policies?

How do the political leaders expect our people to trust them when they are stealing their money in broad daylight and without any restraint?

How do they expect our people to believe that they are serious with the fight against corruption when they are not taking any measures to stop the corrupt practices in government ministries under their control?

These are some of the questions that need serious reflection by the leadership of this country. We will not develop as a country and lift many people from the current quagmire of poverty if we do not check the way we are spending public funds which are meant to improve people’s lives.

The political leadership of this country needs to understand that no one will develop Zambia for us. We have a duty and responsibility to develop this country and only us can do so. We will get all the aid we need but as long as we do not have integrity, a sense of honesty and justice, we will not achieve much, we will be going backwards in very long strides.

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