Auditor General's report notes rise in State Lotteries' losses
Auditor General's report notes rise in State Lotteries' lossesBy Bright Mukwasa
Mon 19 Dec. 2011, 13:54 CAT
THE latest Auditor General's report has revealed increasing losses at the State Lotteries Board. According to the report for 2009 on accounts of parastatal bodies, the board's losses had increased from K1.2 billion in 2004 to K3 billion in 2009.
It said although the turnover increased from K1,929,683,000 in 2004 to K4,519,880,000, losses increased from K1,247,549,000 in 2004 to K3,092,819,000 in 2009. The report stated that operating expenses were more than turnover except during the financial year ended December 31, 2007.
It also revealed that an analysis of liquidity found that the working capital had worsened from negative K1,104 , 194,000 in 2004 to negative K3,176,969,000 in 2009.
It said current liabilities increased from K2,145,734,000 in 2004 to K4,710,417,000 in 2009.
The report revealed that during the period from January 2005 to December 2009, the board generated amounts of K15,526,749,000 from scratch card sales, pick-a-lot sales and rentals against a total budget estimate of K50,440,000,000, resulting in under collections of K34,913,251,000.
It said in addition, the board received K7,898,056,000 grants from the government.
The report revealed that according to interviews and written confirmations from selected tenants at Lotti House, the estates manager and estates officer collected cash in amounts totalling K83,347,403 from 12 tenants during the period from October 2005 to January 2010 without issuing receipts.
It stated that the cash collected was not handed to the State Lotteries Board for banking.
The report further revealed that in August 2007, the board received funding from the Ministry of Finance amounting to K2 billion for the purpose of facilitating the implementation of the proposed new lottery game of scratch cards and the board was required to account for the funds by making returns to the ministry, but it was observed that as of December 2010, the board had not submitted returns to the ministry.
It also revealed that contrary to financial regulations No.96, imprests totalling K267,815,050 issued to various officers during the years 2007 and 2008 had not been retired as of December 2010.
Labels: ANNA CHIFUNGULA, AUDITOR GENERAL, CORRUPTION, PARASTATALS
posted by MrK @ 2:24 PM
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