Maravi

'CEEC spent K9.1bn without authority'

'CEEC spent K9.1bn without authority'
By Moses Kuwema
Thu 24 May 2012, 12:57 CAT

THE Citizens Economic Empowerment Commission (CEEC) spent a total of K9.1 billion on operational activities without seeking authority from the secretary to the treasury in 2010.

According to the Auditor General's report for 2010 on the accounts of parastatal bodies, the Commission received amounts totalling K21 billion for the empowerment fund.

"A scrutiny of the Commission's accounts receivable age analysis revealed that during the period under review, the Commission had outstanding loan repayments in amounts totalling K159,598,828,919.

However, it was observed that out of the total outstanding loan repayments, K144,085,055,180 which represented 81 per cent of the total receivables had been outstanding for a period exceeding 180 days," read the report.

The report also highlights a number of loans that the CEEC issued without valid collateral.

"On 19 November 2009, the Commission approved a loan of K2 billion to Lukwinu Investment, whose directors were Chikumbi Godfrey, Kapesa James and Kunda Sundie, for the purpose of infrastructure development to put a crushing plant and purchase of capital items including working capital support. However, contrary to CEEC guidelines, it was observed that the loan was issued without valid collateral," reads the report.

The report further adds that a review of the repayment documents revealed that Lukwinu had never made any repayments and this resulted into accumulated arrears in amounts totaling K440 million as of October 2011.

Other organisations that had outstanding loan arrears and repayments with the CEEC include Emmaloy Investment limited K421,564,688, Mwame Coach Services Limited, K428,905,759, Nellas Lodge K612,642,857 and Mutanda Leisure Resort K118,111,111.

Others are Hanshel Girls Secondary School, which accumulated arrears amounting to K164,592,302, Adonai Trading in Chililabombwe K216,250,000, Vengeance Hospitality K376,690,362 and Kechas General Dealers which as of October 2011 had accumulated arrears of K1,114,745,588.

The report further reveals that contrary to financial regulations No. 45 and 52, there were 35 payments in amounts totalling K183,288,963 that were inadequately supported in that they lacked supporting documents such as acquittal sheets, receipts, invoices and goods received notes.

During the period under review, the CEEC also procured goods and services in amounts totalling K102 million involving 17 transactions without obtaining the three competitive quotations.

The CEEC, without seeking authority from board, paid amounts totalling K104.6 million as talk time allowances to various members of staff who were not entitled.

The Commission also owed amounts totalling K10.3 in respect of statutory contributions.

Labels: AUDITOR GENERAL, CEEC

posted by MrK @ 2:42 PM