Maravi

Transport ministry bought vehicles without authority - Auditor General

Transport ministry bought vehicles without authority - Auditor General
By Mwala Kalaluka
Mon 08 Mar. 2010, 10:00 CAT

THE 2008 Auditor General's report has revealed that the Ministry of Communications and Transport procured eight vehicles from CFAO Zambia Limited and Top Motors Limited at a cost of about K1.2 billion without treasury authority.

And the report has highlighted some financial abuses in the management of the Forestry Development Credit Facility.

The report of the Auditor General on the accounts for the financial year ended December 31, 2008, highlighted that the funds used to procure three vehicles from CFAO and five from Top Motors was diverted from a project to rehabilitate the Kasama Airport.

“In 2008, an amount of K1,291,500,669 was used to procure eight (8) motor vehicles without obtaining treasury authority from Ministry of Finance and National Planning,” the report stated.

“The money was used to procure three (3) vehicles from CFAO Zambia Ltd at a total cost of K596,141,669 and five (5) from Top Motors Ltd at a cost of K695,359,000. The three (3) vehicles procured from CFAO Zambia Ltd were delivered in 2008 while the five (5) vehicles procured from Top Motors Ltd had not been delivered as of July 2009.”

The report indicated that a check with the ministry's transport section revealed that the three vehicles that were procured without treasury authority from CFAO had been allocated to the minister, deputy minister and the permanent secretary.

In the Ministry of Education, the report highlighted that a scrutiny of records at the ministry headquarters and Bursaries Committee revealed that out of a funding of K7,253,437,838 received in respect of students abroad, only K1,747,829,165 had expenditure returns while K5,505,608,673 was not supported by returns from missions abroad.

And the report stated that the Forestry Development Credit Facility (FDCF) was a countrywide revolving fund that was started by the government in 2004 targeting rural communities that wanted to obtain credit for projects such as bee keeping, saw milling and carpentry.

“During the financial years 2004, 2005, 2006 and 2007 amounts totaling K17,350,000,000 were provided for in the Estimates of Revenue and Expenditure for the Forestry Development Credit Facility in the nine (9) provinces of Zambia out of which K6, 013, 603, 829 was released,” the report stated.

“There were weaknesses in internal controls involving the administration of the Forestry Development Credit Facility.”

The report stated that in Eastern Province, for example, as of March 31, 2009 only K37, 300, 000 out of a total K557, 777, 313 were paid back by loanees leaving a balance of K520, 477, 313.

The report further highlighted that although K553,680,000 was indicated as having been paid to beneficiaries in Kabwe, Serenje and Kapiri Mposhi, the projects for which the payments were made were non-existent.

Labels: AUDITOR GENERAL, MINISTRY OF COMMUNICATIONS AND TRANSPORT, PROCUREMENT SYSTEMS

posted by MrK @ 10:29 AM