Maravi

(LUSAKATIMES) Auditor General’s report on parastatals not good

Auditor General’s report on parastatals not good
TIME PUBLISHED - Wednesday, May 23, 2012, 1:30 pm

The 2010 Auditor General’s Report on parastatals has been published and it shows glaring irregularities and abuse of funds amounting to over K1 trillion.

Some of the parastatals mentioned in the report are the Citizens Economic Empowerment Commission (CEEC), Electoral Commission of Zambia (ECZ), National Housing Authority (NHA), National Pension Scheme Authority (NAPSA) and the Road Traffic and Safety Agency (RTSA).

Others are the University of Zambia (UNZA), Zambia Revenue Authority (ZRA), ZESCO Limited, ZAMTEL and the Administrator General and Official Receiver.

This is according to a press statement by public relations officer in the office of the Auditor General Ellen Chikale.

Chikale said the audit which was done on selected parastatal bodies but Auditor General Anna Chifungula is shocked at the amount of abuse in the companies.Chikale said there was unretired imprest amounting to K1, 525,924,347 while irregular payments totaled K 651,716,852,524.The report revealed that K35, 313,333,764 was inadequately supported while there was K603, 187,280 unaccounted for by the institutions.

Chikale said the findings revealed a K5, 607,388,318 from failure to follow tender procedures and a further K190, 505,273,451 of non Payment of Statutory Contribution.

The parastatal companies also misapplied a total of K9, 197,300,000 adding that K159, 598,828,919 was not recovered from the loans.

Ms Chikale noted that there was wasteful expenditure of K21,450,000 while there was K7,628,510,987 Stores Without Receipt and Disposal Details and a further misappropriation of Funds K434,447,517 in the year under review.

“Other findings highlighted in the report include the failure to prepare financial statements as required by the enabling acts and other regulations, circumvention of Tender Procedures, poor projects implementation, failure to adhere to contract terms and poor management of information systems.

Others were non-adherence to good corporate governance, irregular sale of assets, poor infrastructure management and failure to insure assets,” Chikale said.The 2010 Parastatal Report highlights some of the weaknesses that were revealed as a result of the audits that were carried out on selected Parastatal bodies whose findings were discussed with the Controlling and Chief Executive Officers but were not adequately addressed during the audit processes on twenty one (21) institutions.

Ms Chikale invited members of the public to access the report from the AG’s office as it was now in public domain.

Labels: ANNA CHIFUNGULA, AUDITOR GENERAL, PARASTATALS

posted by MrK @ 7:19 AM