Maravi

Financial irregularities rock Nchelenge council

COMMENT - It is interesting that nearly all finacial irregularities have to do with cash payments. Maybe it is time to go digital in all payments. It won't eliminate fraud, but it will make it even easier to spot and there'll be a record of it.

Financial irregularities rock Nchelenge council
By Florence Bupe
Tue 18 May 2010, 03:40 CAT

THE parliamentary committee on local government, housing and chiefs’ affairs was yesterday shocked with the financial anomalies that have rocked Nchelenge District Council.

The committee, chaired by Mfuwe member of parliament Mwimba Malama, heard how Nchelenge District Council secretary Mwilu Lukwesa made significant cash payments for various procurements without authorisation from the Ministry of Local Government and Housing. The committee expressed dismay that Lukwesa ignored the Local Authority Financial Regulations on various occasions.

“It is disappointing that you Lukwesa decided to continually ignore the stipulated financial regulations despite being aware that you are not supposed to issue payments in cash,” Malama said.

“Almost all the queries raised by the Auditor General have to do with cash payments and we cannot help but conclude that you were having cuts in these transactions.”

Malama said Lukwesa, through his failure to observe financial regulations, was exposing himself and the council to fraud and money laundering.

He urged the local government ministry to get to the bottom of the raised irregularities and establish whether the council secretary had an interest in the unusual transactions.

In one case, the council secretary irregularly allowed for the purchase of a vehicle from an individual valued at K85 million when the local authority had only been allocated K65 million to purchase a vehicle for the Make Zambia Clean and Healthy Campaign.

Malama stated that the council could have purchased a brand new vehicle from Top Motors at a cheaper price as opposed to getting a second hand vehicle without following tender procedures.

Lukwesa was also taken to task for failing to explain how K15 million was spent on sinking one water well.

Various committee members urged the local government ministry to investigate the anomalies, with some calling for the replacement of the council secretary.

Malama said the failure by Lukwesa to observe financial regulations was deliberate and shameful.

“It is a shame that you have so many queries all relating to cash. Such operations will put you in big problems and the report shows that you are not fit to be council secretary. It is clear that you deliberately ignore the set rules and regulations and you should be ashamed as the chief executive officer of the local authority,” said Malama.

Lukwesa also disclosed that the council owes its workers salary arrears of up to six months.
And Chienge District Council secretary Stanley Zulu said the local authority had identified sites earmarked for the development of the tourism sector.

Zulu said fish stocks were depleted and there was need for the local people to find other sources of livelihood than fishing, which is currently the central preoccupation.

Labels: CORRUPTION, COUNCILS, MWILA LUKWESA, MWIMBA MALAMA, NCHELENGE DISTRICT

posted by MrK @ 2:50 PM