Auditor General conducted a forensic audit on CEP – Kapoor

Thursday, June 03, 2010

Auditor General conducted a forensic audit on CEP – Kapoor

Auditor General conducted a forensic audit on CEP – Kapoor
By Chibaula Silwamba
Thu 03 June 2010, 03:30 CAT

WORLD Bank country manager Kapil Kapoor has said the bank’s audit of the Copperbelt Environment Project (CEP)’s financial management procedures and transactions indicates that the majority of “issues” raised initially by the Office of the Auditor General have been satisfactorily addressed.

And Kapoor said the closing date for the CEP has been extended to March 31, 2011 to allow for completion of ongoing work. Responding to a press query on the revelations of the Auditor General’s report on the financial mismanagement at CEP, Kapoor stated that the World Bank last month received its own audit report on the project.

“To respond to the alleged misappropriation of public funds under the Copperbelt Environment Project, the Office of the Auditor General conducted a forensic audit, following which the OAG asked the relevant government agencies to respond to several issues that resulted from the audit,” Dr Kapoor stated.

“In addition to the audit, the World Bank also recently conducted its own review of the project's financial management procedures and transactions.

The World Bank has received, in May 2010, the final audit report, which indicates that based on the government's response to the audit observations, the majority of issues raised initially by the Office of the Auditor General OAG have been satisfactorily addressed.”

He stated that to address the remaining issues resulting from the OAG audit and the World Bank's review of the project's financial management procedures, an action plan was being agreed with the Zambian government that would focus on the reinstallation of computerised accounting software that had been dysfunctional, updating of the financial procedures manual to enhance internal approval processes and contract management, the maintenance of a register documenting the project’s fixed assets and improvements in the filing of supporting documents.

“Following a request received from government, the closing date for the Copperbelt Environment Project has been extended to March 31, 2011, to allow for completion of ongoing work,” Dr Kapoor stated.

“The World Bank is very pleased to be supporting the implementation of the Copperbelt Environment Project which is reducing the negative environmental and social consequences of decades of mining in the Copperbelt in Zambia.”

He stated that the project was strengthening regulations and institutions responsible for the environmental performance of the mining sector and helping to protect the health and safety of people living near mining sites.

“By cleaning up highly lead-contaminated areas and setting up new water infrastructure in contaminated hot spots, this project has helped reduce exposure to lead for about 50,000 people - particularly children who are most vulnerable to it,” stated Dr Kapoor.

According to an audit report, OAG/101/48/87, submitted to the Secretary to the Treasury on February 1, 2010, there was misappropriation of public funds, distortion of financial administration and failure to follow laid down approval procedures among other irregularities at CEP.

Labels: AUDITOR GENERAL, COPPERBELT ENVIRONMENTAL PROJECT, KAPIL KAPOOR