Maravi

Govt fails to dispose of assets seized by Task Force

Govt fails to dispose of assets seized by Task Force
By Chibaula Silwamba
Thu 19 Aug. 2010, 04:01 CAT

THE Auditor General’s report has revealed that the government has failed to dispose of assets valued at over K61 billion that were seized by the now defunct Task Force on Corruption.

According to the report of the Auditor General for 2008 on the accounts of parastatal bodies, in December 2008 assets valued at K61,757,412,030 were handed over to Cabinet Office by the Task Force on Corruption for disposal. However, as of June 2009, the assets had not been disposed of.

“In August 2006, property number S/D52/2898 in Livingstone was sold to Connie Dodia at a sum of K150,000,000 through National Housing Authority (NHA). Cabinet Office had mandated NHA to dispose of the property on their behalf,” the report stated.

“It was however observed that, contrary to the sale agreement which required the buyer to make one lump sum by certified bank cheque within 30 days from the date of offer, only K84 million had been paid in May 2009, leaving a balance of K66 million outstanding. It was also observed that although the buyer had paid K84 million in 2006, as of May 2009, the money had not been remitted into the recoveries account by NHA.”

The report stated that the Task Force on Corruption had failed to comply with donor conditions in the use of funds.

“In November 2007, the Royal Danish Embassy disbursed a sum of K7,104,096,881 (US$1,862,651.83) to the TFC on condition that it was to be used solely for payment of local and foreign legal fees. However, it was observed that a sum of K48,672,319 (US$9,969.75) was paid as consultancy fees to the Project Coordinator responsible for preparing financial statements of the Task Force on Corruption,” the report revealed.

“The government procured legal services by engaging various legal firms in order to assist TFC in prosecuting in the courts of law. However, the following were observed: i. Irregular Engaging of Law Firms for Services - The law firms contracted were not engaged competitively but merely single sourced and appointed by the Attorney General. The terms of reference for the engaged law firms spelling out reporting lines and the basis of payment of fees were not availed for audit scrutiny.”

Labels: TASK FORCE

posted by MrK @ 4:34 PM