Maravi

RDA hasn’t retired K19.1bn imprest since 2004 – report

RDA hasn’t retired K19.1bn imprest since 2004 – report
By Ernest Chanda
Wed 19 May 2010, 04:01 CAT

THE Auditor General’s report on Road Development Agency (RDA) has revealed that about K19.1 billion. From front page imprest has not been retired since 2004.

According to the report for the period January 2006 to September 2009, imprest for various activities had not been retired between 2004 and 2009.

“Contrary to Financial Regulation No. 96, imprests in amounts totalling K19,118,705,403 issued to the Agency by NRFA National Roads Fund Agency for various road activities during the period 2004 to 31st December 2009 had not been retired,” the report stated.

It further revealed wasteful expenditure on the Mongu-Kalabo road involving the purchase of unbudgeted for property.

“In paragraph 14 of the Auditor General’s Report for 2005 on the administration of selected contracts in the Ministry of Works and Supply, mention was made of the construction of the Mongu-Kalabo road and in particular of payments to Messrs Consolidated Contractors Company (CCC) of amounts totalling K81,492,915,065 which were considered as a waste of public funds.

A review of the project in September 2009 revealed the following: In June 2007, RDA entered into an agreement with CCC to purchase the contractor’s campsite which included land, buildings and equipment at a cost of K1,698,300,000,” the report read.

“However, when the claim was forwarded to NRFA for payment in November 2007, NRFA declined to pay for the transaction as it involved the purchase of land, buildings and equipment of which NRFA had no mandate to finance. Consequently, CCC claimed and was paid K2,606,609,432 as costs for maintaining the camp in Mongu.

On 7th May 2008, RDA awarded a contract to Messrs Pacific Parts Zambia Limited for the hire of folk lifts and tractors at contract sum of K398,240,000. The equipment was for the offloading of bailey bridges. The Road Development Agency procured three (3) folk lifts and a tractor for the offloading of bailey bridges meant for the Mongu-Kalabo road.

There were no records available for audit to indicate the cost and date of purchase and delivery. However, despite the purchase of the offloading equipment, the Agency hired offloading equipment at a total cost of K1,293,740,000. Inquiries made with the regional office in Western Province revealed that the RDA offloading equipment was only delivered after the bailey bridges had been delivered.”

Labels: AUDITOR GENERAL, CORRUPTION, RDA

posted by MrK @ 5:06 AM