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Budget success will depend on corruption fight - Kang'ombe

Budget success will depend on corruption fight - Kang'ombe
By Mwila Chansa in Kitwe and Mwala Kalaluka in Lusaka
Mon 14 Nov. 2011, 14:00 CAT

THE success of the 2012 national budget will be largely dependent on an effective anti-corruption fight, says Riverside ward councillor Christopher Kang'ombe.

And a senior development financier says Zambia must do proper road contracts by sealing loopholes identified in the Auditor General's report to avoid wasting resources on poorly-contracted projects.

Meanwhile, Transparency International Zambia (TIZ) says increased expenditure to the road sector will remain valueless if the government does not tackle transparency challenges by auditing all public road procurements.

But the Engineering Institute of Zambia says investment in the road and transport sector will only bear fruit if implementation is timely.

Commenting on the K27.7 trillion 2012 national budget presented to Parliament on Friday by finance minister Alexander Chikwanda, Kang'ombe observed that huge sums of money had been allocated to key sectors of the economy and that failure to prudently manage these funds would make the budget not achieve socio-economic development.

"I therefore wish to state that the success of the budget depends ultimately on a very effective anti-corruption fight that will ensure that every amount allocated per sector goes to the intended purpose and not diverted by disbursing officers in respective ministries," Kang'ombe stated.

"Top on the major features of the budget is the increment in mineral royalties' tax which has been adjusted to 6 per cent and a potential source of revenue for government to undertake developmental projects. The funds to be realised from this income will definitely be in billions of kwacha and must therefore be accounted for and utilised in the most prudent way."

He stated that the same could be said of funds allocated to support agriculture, health and education sectors that had received respective percentage increments compared to allocations made in the 2011 budget.

Kang'ombe observed that the additional funds might be serious sources of theft and abuse of resources and thereby lead to failure of implementing intended objectives.

He urged the Ministry of Finance to ensure that they devise monitoring mechanisms to ensure that the huge sums of money allocated per sector and for planned projects are utilised on time.

And on the 100 per cent increment in grants to all the 73 district councils, Kang'ombe observed that there was need for corresponding awareness on the prudent use of such funds.

"Normally, there is a tendency by council officers to divert public funds for projects to other pressing council projects like salaries for workers who are normally in arrears," he said.

Kang'ombe also hoped that operations to be undertaken by officers from the Anti Corruption Commission (ACC) would be equally funded more from the 2012 national budget.

He stated that additional support to the ACC and other wings of the government may also go towards awareness programmes to be facilitated by the ACC to all line ministries that would be disbursing the huge public funds set aside in the budget.

"For this appeal I am making to work effectively, there must be real political will from our central government that assists our controlling officers to prudently use these public funds and ensure success of the 2012 budget. It is only prudent use of the allocated funds that will ensure meaningful development for all Zambians," stated Kang'ombe.

And commenting on the K4.4 trillion 2012 budget provision for the road sector, African Development Bank AfDB country representative Freddie Kwesiga said on Friday that loopholes noted in the road sector by the Auditor General should be sealed.

"The minister hinted on all the major roads that need to be done.

Remember, we also had the Auditor General's report on how we should move ahead with the roads where the areas of loopholes are, which the minister says we must seal this area of loopholes," said Kwesiga in an interview at Parliament building shortly after Chikwanda delivered his government's maiden budget. "We must do proper contracting so that the money is not wasted in very poor contracts."

And Transparency International Zambia president Reuben Lifuka said the government's increased expenditure to the road sector should be handled comprehensively so that the country gets value for money.

"We should be able to assess whether we have value for money. Did money that was spent on the road sector really bring value for money?

Are we seeing durable roads? Are we seeing infrastructure that can last beyond the length of time that is required?" Lifuka asked. "Where we are seeing there are shortcomings, I think it is incumbent upon this government to investigate. We have called for audits of all procurements of public roads, but I think we still demand that this be done in order to assess whether we got value for money."

Lifuka said TIZ wants President Michael Sata's administration to improve transparency in public procurements.

"One of the challenges we have seen with infrastructure development over the past is the absence of transparency in the way procurement is done. More information needs to be provided on how contractors are being selected," he said. "We also need to see the government broadening the spectrum of contractors participating in public works, not only foreign-led companies but also the local companies. We need to build capacity in the local companies."

He said it was important that the government did not abandoned projects that were started by the previous administration.

"These projects need to benefit the rural people out there. Money has been spent and it would not be logical to expect the government to abandon the projects that were started," said Lifuka. "Of course, specifications might change, I have in mind the Mongu-Kalabo road. What one needs to look at is whether they will spend the same amount of money that was earlier proposed or in this particular incident government would be able to revise the design and specifications on the Mongu-Kalabo road."

But Engineering Institution of Zambia president Henry Musonda said in an interview on Friday that increased funding to the road sector and opening up of the country through links was welcome.

"But EIZ would like to see the new government develop, as soon as possible, a strategic plan for the transport sector forming the basis for all activities for the new government's infrastructure agenda as part of the priority development programmes and projects, to be achieved in a specified time frame," Musonda said. "In his address to Parliament, the President gave an outline of the plan for some key link roads across the country. However, we would like to see a documented plan to guide the development and increased funding of the sector aimed at accelerating infrastructure development."

He said procurement-related problems had caused long implementation delays in critical economic development projects and thereby obstructing the desired economic benefits to Zambians.

"The GRZ implementing agencies should be implored to put in place an efficient and effective procurement system if the new government is to generate desired results within the next 12 months," said Musonda.

Delivering the 2012 Budget in Parliament on Friday afternoon, Chikwanda announced an increase in expenditure to the road sector, which now stands at K4.4 trillion, the bulk of which will go towards ongoing projects.

Labels: BUDGET, CHRISTOPHER KANG'OMBE, TIZ

posted by MrK @ 7:07 PM