Prosecute Rupiah, urges ZRA inquiry
By Kabanda Chulu
Fri 27 Jan. 2012, 14:00 CAT
THE ZRA Comm-ission of Inquiry has recommended that appropriate action be taken against Rupiah Banda and 12 former government officials for the fraudulent procurements regarding border scanners and concession-related contracts.
But home affairs minister Kennedy Sakeni yesterday said the 12 of those referred to in the report would have to face the law but there was a predicament in terms of making Banda answerable because of issues of his immunity from prosecution.
And the government has with immediate effect terminated the contracts given to Bradwell International and Cargo Scan to manage border scanners. The government has also cancelled the concession given to one company to develop border infrastructure across the country.
Meanwhile finance minister Alexander Chikwanda has said the government has no scores to settle but will provide no sanctuary to people who have committed crimes against society.
According to the report of the findings of the Commission of Inquiry released yesterday, senior MMD government officials, among them former president Banda must be investigated regarding the role they played in the fraudulent manner in awarding Zambia Revenue Authority (ZRA) related contracts.
Banda, then vice-president, played a key role in the procurement of four extra scanners and the increase in the loan from US$ 100 million to US$ 125 million while former finance minister Situmbeko Musokotwane was involved in awarding contract to Bradwell International and giving an illegal tax deferment on consumption taxes to Varun Beverages (Pepsi).
Dr Musokotwane has since been questioned by security wings investigating various offence committed by the previous government.
It stated that former ministers Mike Mulongoti, Prof Geoffrey Lungwangwa and Dr Musokotwane must be investigated for irregularities surrounding the awarding of the Kasumbalesa border concession.
But Mulongoti responded that the council of ministers had authority to approve the border projects.
"It was a project initiated by the developers and they sponsored it because they had money and ideas so what is the loss to government? The questions to ask is, was it public money or private money and would it be normal that an investor comes to Zambia with an idea and money be subjected to public tender, for what?" asked Mulongoti.
"Ask yourself, if you were to build a hospital in Kalingalinga and you have money and it is your idea, would you accept that they do a public tender for your money an idea for the other people to come on board is that possible?"
The report also stated that appropriate action must be taken against former ministers Mulongoti, Eustackio Kazonga, Prof Lungwangwa and Chileshe Kapwepwe for awarding the five border post concessions to a single entity.
The report further recommended that former secretary to the treasury Likolo Ndalamei must be investigated for the role played in the cancellation of the Nakonde border construction project, while former finance permanent secretary Emmanuel Ngulube should also be investigated in the role played in awarding of the Bradwell contract.
When asked for a comment, Kapwepwe said she would only comment when the report is availed to her with Prof Lungwangwa saying: ‘I can't comment on something that I have not read."
Ndalamei said: ‘I don't think I did anything wrong but I need to read the context of the findings before I can comment.'
But Sakeni said all those mentioned would have to provide answers to investigators.
He said the only predicament was on Banda because of the immunity clause.
Sakeni said the immunity issue had been left to people to debate first.
He said security officials were on the ground and there would not be any sacred cows.
The report stated that appropriate action be taken against ZRA board secretary Nana Mudenda and director of administration Tenthani Banda for their involvement in payments to Cargo Scan with no regard to service delivery and contract terms.
The report also recommended that former ZRA commissioner generals Wisdom Nhekairo (who has since been warned and cautioned by police) and Chriticles Mwansa should be investigated for their involvement in the Bradwell contract, justification of direct bidding (single sourcing) based on flimsy grounds, payments to Cargo Scan with no regard to service delivery and contract terms and justifying the procurement of four additional scanners that were not needed and reduction of floatation period.
It further recommended that former ZPPA director general David Kapitolo and his predecessor Samuel Chibuye be investigated for failing to verify information availed to ZPPA by ZRA in relation to direct bidding.
And the government has further revoked the tax deferment for Varum Beverages and ordered that the company pays the tax arrears and people involved in the transaction face criminal prosecutions.
Chikwanda said Cabinet had deemed it desirable and expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts with Bradwell International and Cargo Scan as well as the concessions to operate border posts.
He said ZRA must assume ownership of the scanners and work out appropriate measures for loan repayment for the scanners.
"We have terminated with immediate effect, the Cargo Scan contract on the operations and maintenance of Smith Detection scanners and the Bradwell contract on the operation and maintenance of Nuchtech scanners, and Nuchtech be compelled to perform their contractual obligations of installation, operation and maintenance of eight scanners," Chikwanda said, during a media briefing.
"We have also taken over the Kasumbalesa border project and the concession has been reversed and also the five border concessions of Jimbe, Nakonde, Chanida, Kipushi and Mwami be cancelled because they were given to one company and government will take up the responsibility of development of infrastructure at those borders."
He said the government has immediately taken over the Nakonde border infrastructure project which was concessioned under a PPP arrangement when it has reached 75 per cent completion worth K23 billion of certified works using government money.
"We shall revise all policies and pieces of legislation that deal with awarding of public contracts in particular the PPP policy and its Act is defective and at variance with the public procurement Act," Chikwanda said.
"The role of ministers under the PPP Act should be reviewed and reduced to policy guidance while awarding of contracts should be retained by ZPPA in consultation with the Attorney General's office."
He said the tax deferment for Varun Beverages had been revoked and the company should pay outstanding arrears amounting to K13 billion per annum.
"Concessions or incentives must be given within the confines of the law and not exclusively to individuals or friends because there is procedure to follow when doing things and investors who acquired incentives or concessions should not worry so long the deals were done within the law. We are not prosecutors or judges but it is up to law enforcement agencies to take up these matters especially where there was unlawful," said Chikwanda.
"Government has no scores to settle but there will be no sanctuary given to those who have committed crimes against society through abuse of office and trust which the people of Zambia reposed in them."
And Secretary to the Treasury Fredson Yamba said the government will soon write the affected parties about the development.
"For tax deferment, I would have loved the money to be refunded immediately but we shall write to Varun so that they give us a position and when they can pay. But the incentive was illegal because it was exclusive but they will continue enjoying other incentives and for border concessions, it is something that needs negotiations so that there is proper transfer of operations," said Yamba.
Labels: CORRUPTION, EMMANUEL NGULUBE, KENNEDY SAKENI, LEGAL IMMUNITY, LIKOLO NDALAMEI, MIKE MULONGOTI, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, ZRA
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Police warn and caution Ndalamei over gold scam
By Chibaula Silwamba
Wed 19 Oct. 2011, 14:00 CAT
INVESTIGATORS have recorded a warn and caution statement from former secretary to the treasury Likolo Ndalamei in the continuing probe into the gold scam. And police have seized 24 containers suspected to contain MMD bicycles which were to have been used for campaigns in the recently-held elections.
In an interview, police spokesperson Ndandula Siamana said a team of investigators drawn from the Police, Drug Enforcement Commission (DEC) and Anti Corruption Commission (ACC) summoned Ndalamei yesterday and recorded a warn-and-caution statement from him.
She also said Dickson Jere, the former press aide of former president Rupiah Banda, would appear before investigators again after a three-hour interview on Monday at the premises formerly used by the disbanded Task Force on Corruption during the Levy Mwanawasa Presidency.
"Mr Dickson Jere and Mr Ndalamei appeared yesterday Monday for interviews then today yesterday a warn-and-caution statement was recorded from Ndalamei. Mr Jere has to appear again but we have not yet come up with a day," Siamana said. "Both of them were summoned in connection with the gold scam. For Mr Ndalamei, he was summoned being the Secretary to the Treasury then."
Siamana said the police were investigating a matter where they seized some containers belonging to the former ruling party, MMD.
"We have recovered about 24 containers at a place for Mr Saidi Patel where Major Richard Kachingwe had requested that these containers containing bicycles should be kept. We suspect that these containers have bicycles. Our investigations are still ongoing," said Siamana.
Pande, former minister of foreign affairs, who was also summoned and arrived with Jere and Ndalamei, said he was never quizzed over the gold scam but over MMD assets.
"I was quizzed about MMD vehicles as party vice-national chairman. It interrogation went well. They did it professionally. I have no complaints. They were asking me about the procurement of MMD vehicles and bicycles."
Asked if he accounted for the vehicles before the investigators, Pande responded: "those are the details which my lawyer should go into details."
Pande, however, expressed ignorance about the seizure of MMD containers by the police.
And Sikota, the lawyer for the trio, said he would not be dealing with the prosecution and trial of his clients through newspapers.
"It couldn't be right for me as an officer of the court to be conducting the trial through newspapers. I don't want to become part of the media circus surrounding my clients. The whole thing should not denigrate into a media circus," said Sikota, who was the key campaigner for Banda ahead of the September 20 elections that saw the defeat of the incumbent president and end of the MMD's 20-year rule.
President Michael Sata last week revealed that a Swiss businessman, Nichola Bogdan Buzaianu, was linked to the purchase of gold seized by DEC.
The President stated that Buzaianu secretly flew into the country on a private jet and met Banda, his son James and Jere.
Banda, in a press statement on Sunday, confirmed meeting Buzaianu but denied his guest was a fugitive as alleged by President Sata.
He said he welcomed DEC's investigations into the gold scam.
"All the relevant people involved in this transaction are available and will provide necessary answers to the investigating team but suffice to say that no gold went missing mysteriously as has been portrayed," said Banda through his administrative secretary Mikatazo Wakumelo.
In the ongoing investigations into the funding of the extravagant MMD campaign, police have seized about 42 vehicles from the party and over 1,000 bicycles from the MMD that were used for campaigning. The police are investigating the source of funds used to purchase the vehicles, bicycle and other campaign materials and how they were brought into the country.
Labels: CORRUPTION, DEC, DICKSON JERE, LIKOLO NDALAMEI, NDANDULA SIAMANA, RUPIAH BANDA
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COMMENT - Finance Minister Musokotwane is a nominated MP with no constituency to represent? I did not know that. Maybe that is why he is so dismissive of the electorate.
Musokotwane has started campaigning, Ndalamei reveals
By Chiwoyu Sinyangwe
Sat 28 May 2011, 04:01 CAT
FINANCE minister Dr Situmbeko Musokotwane is busy campaigning in his ‘constituency’ for this year’s polls, says secretary to the Treasury Likolo Ndalamei. Officiating at the official launch of Zambia Revenue Authority (ZRA) call centre yesterday, Ndalamei said ministers were currently in the field campaigning.
“I am here to read the speech on behalf of the Minister of Finance and National Planning because as you know most politicians are busy campaigning in their constituencies, so, we civil servants have to stand in for them,” Ndalamei said.
Dr Musokotwane is a nominated member of parliament with no constituency to represent.
Recently, the government dispatched ministers to all provinces to explain developmental programmes being implemented by MMD government.
Sources in Western Province indicated that Dr Musokotwane is campaigning in Liuwa Constituency.
And Ndalamei said the launch of ZRA call centre, which could be accessed on all networks by dialing 5972, would help to ease the cost of doing business in the country.
ZRA call centre facility and customer service line provides an effective tool for bridging communication gap between ZRA and the taxpayers and for assessing feedback from customers on various tax matters.
And board chairman Christopher Mundia said modernising operations of ZRA would help to widen the tax base.
Mundia, in a speech read for him by board member Mwangala Zaloumis, said the new system being introduced at ZRA included facilities for electronic commerce by providing interfaces for electronic filling and electronic payments.
“It is envisaged that such a platform will greatly improve ZRA’s service delivery to taxpayers,” said Mundia.
“While the majority of our potential taxpayers fall outside the formal sector, the new changes currently going on at ZRA through modernisation programme are meant to bring the informal sector on board.”
Labels: 2011 ELECTIONS, CHRISTOPHER MUNDIA, LIKOLO NDALAMEI, MWANGALA ZALOUMIS, SITUMBEKO MUSOKOTWANE, ZRA
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Ndalamei bemoans reduced funding
By Joseph Mwenda
Thu 11 Nov. 2010, 04:01 CAT
REDUCED donor funding to the national budget has negatively impacted the housing infrastructure development, Secretary to the Treasury Likolo Ndalamei has observed.
Speaking when he launched the affordable housing and development conference at Lusaka’s Southern Sun Hotel yesterday, Ndalamei said the national budget was overstretched, making it difficult to adequately cover the development of housing infrastructure.
“The budget is overstretched because of the reduction in the external support from cooperating partners, owing to the economic downturn as well as non adherence to some donor conditions by the government,” he said.
Ndalamei said in order to bridge the financing gap, government tried to rationalise
its operational expenditures to free resources for development projects.
“Some of the measures included cutting down on purchase of consumables, limiting capacity building to essential staff and rationalising the use of transport,” Ndalamei said.
He urged financial institutions to pursue the financing of housing infrastructure through the Public Private Partnership (PPP) projects.
“There has been a huge housing deficit in Zambia. Effectively no new formal accommodation has been built for over a decade, and the rapidly urbanising population further adds to the housing need in the country,” he said.
Ndalamei further observed that poor land administration at the Ministry of Lands was also affecting the housing infrastructure development.
“The constraints include, inadequate funding, poor land management and very poor engineering service reticulation. It is hoped that through this conference, government can find a solution to the housing and associated infrastructure deficit,” said Ndalamei.
And finance deputy minister Chileshe Kapwepwe urged financial institutions to reduce lending rates and provide innovative funding products that could be accessed by people of all incomes.
Labels: 2011 BUDGET, CHILESHE KAW, LIKOLO NDALAMEI
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COMMENT - How dare they? Their expenditures have gone up $1bn compared to 2004, and what do they have to show for it? Where is the universal healthcare and education, that can EASILY be funded with $1bn, many times over? They should
resign in shame.
Govt proposes K17 trillion budget
By Post Online
Thu 16 Sep. 2010, 07:50 CAT
THE government has proposed a K17 trillion budget for the year 2011, Secretary to the Treasury, Likolo Ndalamei has disclosed. In a statement on fiscal trends, strategy and forecast for the 2011 budget and the Medium Term Expenditure Framework for 2011 to 2013, Ndalamei said the K17 trillion budget represented 20 per cent of the country’s Gross Domestic Product (GDP).
He said the total expenditure is projected to be K 21 trillion Kwacha representing 21 per cent of GDP. He said the medium term budget spending is proposed to increase to K20 trillion in 2012 and then K22 trillion in 2013.
Ndalamei further explained that government projects to incur a deficit of 3.5 per cent of GDP between 2011 and 2013, to finance ambitious infrastructure expansion programmes in roads and the energy sector.
He however noted that domestic borrowing would reduce from 1.4 per cent in 2011 to 1.2 per cent by the year 2013.
Ndalamei said net external financing was also expected to decline from two per cent to 1.8 per cent in the same period.
He said in the period 2011 to 2013, government will emphasise efficient use of resources and re-align expenditure to create room for development and investment spending.
This will be done by avoiding spreading resources too thinly across many developmental projects and implementing cost cutting measures.
Labels: 2011 BUDGET, CORRUPTION, LIKOLO NDALAMEI
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Zambia can achieve growth forecast, observes Sichinga
By Chiwoyu Sinyangwe
Tue 20 July 2010, 12:10 CAT
ZAMBIA can this year achieve its economic growth forecast of seven per cent despite finance minister Dr Situmbeko Musokotwane having lowered it to 5.8 per cent, Lusaka independent consultant Bob Sichinga has observed.
Dr Musokotwane, in his recent Letter of Intent to International Monetary Fund (IMF) managing director Dominique Strauss-Kahn, said the country’s economic growth rate had been cut due to the possibility of a sluggish global economic recovery.
He said growth in the country’s economy would be driven mainly by new investments in mining and power generation.
“As agricultural output reverts to trend levels, real GDP growth is expected to fall marginally to 5.8 per cent in 2010 before rising to 6 per cent thereafter,” stated Dr Musokotwane.
But in an interview last week, Sichinga said the current economic dynamics in the country favoured a higher economic growth rate.
“If we are to go by things that have taken place within the economy, seven per cent can be achieved,” Sichinga said.
“After all you had 6.2 per cent last year, but this year, copper production is going to be higher, and since the prices have gone up, you expect the proceeds to show the GDP that is higher than last year. We have had good crop this year and which we will export.
These two factors alone – mining and agriculture – will influence very positively the GDP growth...So, I do not share that pessimism with him. The only area is ‘how do you account for the proceeds that are coming from those areas of export for example?’”
He said although the Euro zone’s economic problems, fuelled by the Greek sovereign debt crisis, might pose a challenge to the country’s economic performance, Zambia’s real threat lay in the price of oil rising.
“The other thing that we should worry about is the cost of oil which are major inputs in our economy,” he said. “If that price of oil goes up, that is going to create problems for us. But at the moment, at 74 per barrel, it is certainly higher than last year but not significantly higher.”
Sichinga regretted that Zambia’s economic growth does not match with development as most key industries are not contributing to the country’s development.
“So, if what you earn from copper is not being recycled in Zambia but elsewhere, where do you expect development to come from? Where the money is being recycled?” Sichinga asked.
“We must examine where the growth is coming from, and so far in the policies the Minister of Finance talks about, he never discloses. There is a dysfunctional…there is no matching between what you are showing in GDP with what is happening. The fact that there is GDP growth does not mean there is development because the money is not coming back here to develop the roads.”
Sichinga said there was need to review the methodology used to evaluate key economic statistics to achieve maximum accuracy.
“Even the figure they gave us of 6.2 per cent in the year where there was these challenges was not an accurate accounting of those activities,” said Sichinga.
“We need to review the way we account for GDP growth including inflation. We need to review all factors that are taken into account. The statistics are not accurate and even the minister knows that as well.”
And Secretary to the treasury Likolo Ndalamei said despite the lower economic growth forecast outlined in the June-dated letter to the IMF, growth was likely to come in above the new forecast.
“We revised the target downwards because of the global economic crisis but agriculture and mining have performed very well and we expect to grow the economy beyond 5.8 per cent,” said Ndalamei.
Labels: GDP, LIKOLO NDALAMEI, ROBERT SICHINGA, SITUMBEKO MUSOKOTWANE
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Ndalamei questions RDA’s failure to scrutinize, approve road contracts
By Ernest Chanda
Thu 24 June 2010, 04:01 CAT
SECRETARY to the treasury Likolo Ndalamei yesterday expressed surprise that the Road Development Agency (RDA) board did not have a hand in scrutinising and approving road contracts when the law empowered them to do so.
And Auditor General Anna Chifungula has called for an investigation to establish
how many contracts were signed during the time late president Levy Mwanawasa fell ill, through the time he died and when the country held the presidential election.
Appearing before the parliamentary public accounts committee (PAC), Ndalamei wondered what RDA board’s role was if they could not participate in awarding of contracts.
Ndalamei was responding to PAC chairperson Emmanuel Hachipuka who wanted to know if it was in order for the RDA board not to participate in the awarding of road contracts when the law empowered them to do so.
"It is strange that the RDA board does not participate in approving contracts. The law provides that they also participate and if they don't do that where is corporate governance? In fact according to the Act everything RDA does should be cleared by the board,” Ndalamei said.
“The board should make the agency accountable in whatever it does and the board should subsequently be made accountable for everything that RDA does. Otherwise what's the essence of their existence as a board if they can't participate in such a serious undertaking?"
On over-commitments, Ndalamei said his office could not be blamed for late or non-release of funds as alleged by RDA management because all the funds were released in 2009 as budgeted.
"I will not comment about other years because there are people who were there. But in 2009 all monies budgeted for on roads were released with supplementaries."
He said in 2008 the budget was K501 billion and K648 billion was released while in 2009 the budget provided for K715 billion and K822 billion was disbursed, with a supplementary of K116 billon.
“And I can also say that for 2010 all the monies will be released with supplementaries. And for this year we have even gone out mobilising additional resources for roads so that there is no excuse on why some of our budgeted roads cannot be worked on. And when I talk about meeting the budget allocation in terms of resources I'm talking about government resources, not donor money," he said.
When asked by Chifungula whether his office makes institutions such as RDA understand the meaning of the mid-term expenditure framework (MTEF) which they used as part of their excuse for over commitment, Ndalamei urged RDA to rely on the national budget provisions rather than MTEF.
"As for MTEF and the issue of multi year contracts, an institution is not supposed to commit based on MTEF figures on the green paper. Those are just indicative numbers for planning purposes. Institutions should follow the budget so that they do not overcommit," Ndalamei said.
And Chifungula called for an investigation into the number of contracts awarded in 2008.
She said a lot of very big contracts were signed when the President was ill and he subsequently died.
“ I remember that earlier in the same year 2008 42 companies were blacklisted by government. And let me take this opportunity to make it clear that my office did not recommend for the blacklisting of these companies, we only recommended for 10 companies. Of course government had their own inquiry system and they brought in more companies,” Chifungula said.
“…The number of contracts signed during that period is just too much. Since you are in control of the treasury maybe you should find someone to investigate financial crimes because to me this seems to be a serious matter of investigation.”
In response, Ndalamei said the government could investigate the matter.
"Normally we the civil servants don't comment about matters of a political nature, that is for you politicians. In any case I will comment in this way, that we can investigate how many contracts were signed that year and find out if the money was available for those contracts," said Ndalamei.
This prompted Hachipuka to say that he too had authority under Parliament to call for such an investigation.
Labels: ANNA CHIFUNGULA, AUDITOR GENERAL, CORRUPTION, EMMANUEL HACHIPUKA, LIKOLO NDALAMEI, MTEF, PAC, RDA, ROADS
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Masebo slams govt’s move to scrap crop levies
By Fridah Zinyama
Sat 08 May 2010, 04:20 CAT
CHONGWE member of parliament Sylvia Masebo has said the councils will collapse due to the government’s decision to scrap the crop levies which had the potential of generating about K16.6 billion for the local authorities.
But Secretary to the Treasury Likolo Ndalamei, who was appearing before the Parliamentary Committee on Estimates, said the government would start releasing the money to the councils in this quarter being the start of the crop marketing season.
Meanwhile, Ndalamei said the total revenue and grants for the first quarter amounted to K2.9 trillion and the collection was below the target of K3.6 trillion by K653.9 billion or 18 per cent.
In September 2009, the government abolished the collection of crop levies by the councils due to escalating levels of inefficiency associated with the levy and it was estimated that the councils would lose about K16.6 billion as revenue.
Yesterday, the estimates committee chaired by Bweengwa UPND parliamentarian Highvie Hamududu questioned whether or not the government widely consulted all the stakeholders involved before scrapping the crop levies because the councils which were in farming communities had been negatively affected by the decision.
Masebo, a former local government and housing minister, said 70 per cent of revenue from local authorities in farming communities like Mpongwe, Chongwe and Mkushi came from crop levies and the suspension seriously crippled their operations.
“Some councils raised as much as K325 million from the crop levies but can only raise about K75 million which is inadequate to fully manage this particular council,” she said.
Masebo said councils would collapse and the government should therefore sit down with the necessary stakeholders to look at the effects of the decision.
“Secretary to the Treasury, you have created problems for yourselves as you have done away with a good source of revenues which would have gone a long way in helping government meet its social obligations like garbage collection, road maintenance for the communities,” Masebo said. “Where are you going to get the resources from to meet these obligation? Already you have stated that you had a deficit for the first quarter.”
Masebo said different councils should have been profiled in order to determine how much each local authority could lose in the event that the crop levies were scrapped.
“This is because councils in farming communities would have lost out more than those in mining areas who do not necessarily grow a lot of crops,” Masebo said.
Hamududu said traders were actually paying the crop levies and not the farmers.
“In actual fact these traders buy crops from the farmers cheaply and the excuse given for scrapping the crop levies was that this would make mealie-meal prices more affordable, a situation which has not yet occurred,” he said.
Hamududu said the Zambia National Farmers Union (ZNFU) had undue influence on the government as if they represented all the stakeholders in the agricultural sector.
“With this budget deficit which government is currently experiencing, where are you going to get the money to ensure that councils are given grants to operate efficiently,” he asked.
Hamududu wondered why civil servants had not yet received their salaries.
“Is the delay in salary payment because of lack of funds?” Hamududu asked.
Kawambwa parliamentarian Elizabeth Chitika-Mulobeka said the government was failing to make good on its promise to disburse enough funds to the councils to cover for what they could have generated had the levies not been cancelled.
But Ndalamei said the councils would receive their funds from the government this quarter as they had not received their allocations between January and March.
“We have profiled the councils and each would get how much they would have raised from the crop levies,” he said.
On late payments, Ndalamei said the delay in paying civil servants was not due to lack of money but a payment system failure.
“The Ministry of Finance was undertaking an upgrade to the payment system but underestimated the time it would take to complete the exercise,” said Ndalamei. “All those workers who are under the deduct system would have already gotten their payments on Thursday and the others would have theirs by Friday.”
Labels: COUNCILS, LIKOLO NDALAMEI, SYLVIA MASEBO
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Ndalamei urges efficiency in contract management
By Chiwoyu Sinyangwe
Wed 05 May 2010, 00:30 CAT
SECRETARY to the Treasury Likolo Ndalamei has observed that there is need to achieve efficiency in contract management of public works.
In a speech read for him by Ministry of Finance permanent secretary for Financial Management and Administration Berlin Msiska during the official opening of a training workshop on contracts management organised by Zambia Public Procurement Authority (ZPPA) in Siavonga on Monday Ndalamei said the Authority under the new Act had the mandate to coordinate and promote capacity building and professional development in public procurement system.
Ndalamei said there was need to equip procurement staff with relevant knowledge and skills in managing contracts for works, goods and services.
“I am confident that by the end of this training, you will acquire the necessary knowledge and skill required to perform your work effectively and efficiently. Moreover, I expect that your knowledge will move us closer to achieving the objectives for which the public procurement Act was established.”
Earlier, ZPPA director general Samuel Chibuye said there was need to create capacity of procurement officers in government ministries and other spending agencies in line with the 2008 ZPPA Act.
Chibuye said giving capacity to procurement officers would help to bring efficiency in procurement in government ministries and other spending agencies.
Labels: BERLIN MSISKA, CONSTRUCTION, LIKOLO NDALAMEI, ZPPA
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COMMENT - Why on earth do the mining companies get the right to sit down with the government and discuss how much taxes they are going to pay? Who else gets that right? Do marketeers get the right to sit down and discussion how much taxes would be acceptable to them? This stinks of corruption.
Mining firms still owe govt K1 trillion in windfall tax
By Mwala Kalaluka
Sun 11 Apr. 2010, 04:00 CAT
MINISTRY of finance chief budget analyst Felix Nkulukusa on Friday told the public accounts committee that all the mining companies that were assessed for the windfall tax payment still owed the government about K1 trillion in outstanding taxes.
“There are some mining companies that have made part payments,” Nkulukusa said. “The other issue that will come out in the amount owed is the issue of interest.” He said that the law allowed for the waiver of payment of interests and penalties on the money owed.
Submitting before the committee, Secretary to the Treasury Likolo Ndalamei said the issue of the mining taxes was a very difficult question for a civil servant to respond to.
“I will start with the issue of mining taxes,” Ndalamei said.
“It is true that we collected very little compared to what was estimated in the budget. The problem with mining taxes...is that we had the DAs (development agreements) then.”
Ndalamei said some mining companies had threatened legal action on the matter and that they were wondering why the government had unilaterally changed the tax regime.
He explained that this was the reason the government had engaged the mining companies so that the standoff over the changes in the mining regime are addressed amicably.
“The discussions are positive. That issue will be resolved,” said Ndalamei.
Labels: FELIX NKULUKUSA, LIKOLO NDALAMEI, MINING, PAC, WINDFALL TAX
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IFMIS will curb pilferage of public funds, says Ndalamei
By Chiwoyu Sinyangwe
Wed 20 Jan. 2010, 04:00 CAT
Secretary to the Treasury Likolo Ndalamei says the reforms being implemented by the government such as the creation of the single Treasury Account and the Integrated Financial Management Information System (IFMIS) would help to curb rampant pilferage of public funds by civil servants and other persons in government spending agencies.
Ndalamei (below) told internal auditors for government ministries and other spending agency that weak internal auditing mechanisms allowed civil servants to siphon about K30 billion from the ministry of health, a scum that was exposed last year.
Ndalamei said it was important for government internal auditors to improve their qualifications and also align themselves with professional accounting bodies so as to ensure that their practice could also be regulated professionally through bodies like Zambia Institute of Chartered Certified Accountants.
Ndalamei said 2009 would go down as the year with a large-scale scam that brought the integrity of the civil service in disrepute.
Ndalamei, however, refused to comment further on some of the weak links the government had discovered, saying the move would prejudice the cases where some suspects were currently before the courts of law.
“2009 will go down as the year when there was large-scale scam which brought the integrity of the civil service in disrepute,” Ndalamei said. “…But now, because this is just the official opening and there are journalists, I won't say much but I will come on Thursday and that is when I will go into the details as to what happened at the Ministry of Health.”
And controller of government internal audit department, Joyce Sundano regretted that some internal audit units had not been submitting audit reports, a sign that work was not taking place.
“Since I took over office at the end of November last year, I have learnt with sadness that some internal audit units have not been submitting audits reports, a sign that work is not taking place,” Sundano said. “I want to assure you that this will not be condoned and as such, a mechanism has been designed of tracking and monitoring the work that everyone is doing.”
Sundano said the report would be ending with the office of the Secretary to the Treasury.
Labels: CORRUPTION, IFMIS, LIKOLO NDALAMEI
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COMMENT - I have said it before, but there is a need to separate the civil service (state) from the political class (government). If that happens, all of a sudden a lot of things become possible - like paying civil servants in full and on time. Like distributing money directly from the state to local councils, without politicalisation or victimisation of opposition councils.
Dr Kanganja, Ndalamei deserve support
Written by Editor
‘In a nutshell, our performance in managing the resources entrusted to us by the public is poor and needs to be improved with a sense of seriousness and urgency.” These were the words of Secretary to the Cabinet Dr Joshua Kanganja. This is the spirit of criticism and self-criticism that is needed in our country. This seriousness, honesty and courage gives us a feeling of confidence that things can be improved. It reminds us of a saying by Lenin that attitude – that is to say,
the seriousness of purpose – of any organisation is measured, basically, by the attitude it takes toward its own errors, its own weaknesses.
And in the same way, the seriousness of our public service should be measured by the attitude those who lead it take towards their own deficiencies. We say this because when weaknesses or errors are acknowledged or admitted, they stand a better chance of being corrected. It is very difficult to solve a problem which one is denying.
For this reason, we feel the positions taken by Dr Kanganja and Secretary to the Treasury Likolo Ndalamei are dignified and honest ones. This is the way things should be. There is no need to deny things that exist and pretend all is well when things are not well. It’s rare in this country that those in public service admit to weaknesses. Often, they only do so when it is to blame others and not themselves.
There are many questions that will need to be answered. For instance, Dr Kanganja says controlling officers who did not abide by provisions of the legal instruments such as the public finance Act and regulations were liable to specified punishment. If this is so, why haven’t we seen such officers punished? There are so many reports by the Auditor General showing officers not abiding by the provisions of the public finance Act but we don’t see them being punished. Why? Why should controlling officers fail to adhere to set guidelines and still be in employment? Is it because they are political appointees who can only be fired by the appointing authority – the President?
Dr Kanganja says the rampant abuse of public resources has been worsened by controlling officers ignoring internal audit reports. Why should controlling officers ignore internal audit reports and still be in employment? Is it because they are political appointees of the President? What action has Dr Kanganja taken to bring such controlling officers to book? Failing to punish controlling officers who ignore internal audit reports is a failure on the part of those whose job is to supervise such controlling officers. It is a failure on the part of the Secretary to the Treasury, Secretary to the Cabinet and indeed the President himself as the appointing authority.
Internal audits are part of our public service’s controls. Ignoring internal audit reports is not different from simply overriding the controls so that one can steal with impunity. Who doesn’t know that some of our controlling officers have been at the forefront of abusing, misapplying and the stealing of public funds? Today we have controlling officers who have served jail sentences or are still in jail and if they are not in jail, they are in court defending themselves for abusing or stealing public funds. But none of these cases arose as a result of the internal checks being carried out by internal auditors, or by the Auditor General or indeed as a result of the work of the Public Accounts Committee. It is usually as a result of work triggered by the activities of ordinary citizens. It seems our public service system is incapable of self-correction because all the internal controls don’t seem to work. These are the questions Dr Kanganja and the leadership of the public service need to address and address with a very high sense of seriousness and urgency to safeguard public resources.
It would not be a lie to say that the office of the Secretary to the Cabinet has not served the public well in its management of the public service. Why? Is it because of failure on the part of the individuals who have occupied the office of Secretary to the Cabinet? Or is it because of inherent problems in the way the public service functions? Is it because although managed and supervised by the Secretary to the Cabinet, these controlling officers owe their loyalty and allegiance to the appointing authorities? And there seems to be nothing a Secretary to the Cabinet can do when such controlling officers fail to live up to the expected standards. We have also seen that some of these controlling officers do a lot of wrong things on behalf of the appointing authorities. Is this what keeps them in office even when they fail to meet the standards?
It will be very difficult to have a professional and honest public service if these questions are not addressed in an honest manner. Our public service is not as professional as we would like it to be. It is a highly politicised civil service. We have people who have moved from being ruling party cadres, officials to civil servants – to controlling officers, permanent secretaries. Is this the way things should be? Can such a practice produce a professional and honest public service? Campaign managers of the President are the ones who become controlling officers. Is it possible in this way to have a public service that is controlled and guided by the Secretary to the Cabinet? How can the Secretary to the Cabinet supervise or control controlling officers who are much closer to the President and politically more powerful and better connected than himself?
The same applies to our diplomatic staff and the abuse and stealing of public funds at our embassies run by political appointees of the President who are usually his relatives, friends and ruling party cadres. Is it possible to have a disciplined, professional and honest public service in this way?
Ours is a poor country. And this being the case, it means that to make this country prosperous, we will need a lot of effort, which will include among other things, the effort to practice strict economy and combat waste, that is, the policy of building up our country through diligence and frugality. Diligence and frugality should be practised in running all our public institutions. The principle of diligence and frugality should be observed in everything. We must particularly advocate diligence and frugality and pay special attention to economy. We should not indulge in wastefulness.
Thrift should be the guiding principle in our government expenditure. It should be made clear to all who work for the government or the state that corruption and waste are very great crimes. We say this because today, those who work for the government are stealing with impunity.
We have even a president who as custodian of the interests of the Zambian people was stealing from the people. Clearly, there is no one to trust. If a president can steal or abuse public resources, what more an ordinary government worker? If a president can engage in wastage, in misuse and misapplication of public funds, what more an ordinary government worker? If a president can manipulate things to benefit his friends, his relatives, what more an ordinary government worker?
The only solution to this, in these circumstances, is to strengthen the system of accountability, of internal controls and internal checks and of public oversight.
We should at no time allow anyone in government to place his personal interests first; they should always be made to subordinate themselves to the interests of the nation and of the masses. Hence, selfishness and corruption should be most contemptible, while selflessness and whole-hearted devotion to public duty should command respect.
Those in public service must always be ready at all times to stand for the truth, because truth is in the interest of the people; public servants must be ready at all times to correct their mistakes, because mistakes are against the interest of the people. They must always go into the whys and wherefores of anything, use their own heads and carefully think over whether or not it corresponds to reality and is really well-founded; on no account should they follow blindly and encourage wastage of public resources. Every statement and action of theirs must proceed from the interests of the people; it must be absolutely impermissible to violate these principles.
For these reasons, we feel Dr Kanganja and Ndalamei are on the right path and deserve support and encouragement. It is also clear that there is need to transform the relationship between State House and the public service. The appointment of controlling officers needs to move away from State House so that they can be more accountable to the leadership of the public service. Therefore, they should be appointed by the public service itself and serve on its terms, and not appointed by the President and serve on his terms.
Labels: JOSHUA KANGANJA, LIKOLO NDALAMEI
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Kanganja bemoans poor management of public resources
Written by Chiwoyu Sinyangwe
Tuesday, June 16, 2009 3:07:41 PM
THE performance of controlling officers entrusted with managing public resources is poor and needs to be improved with a sense of seriousness and urgency to safeguard public resources, Secretary to the Cabinet Dr Joshua Kanganja said yesterday.
And Secretary to the Treasury Likolo Ndalamei has observed that there has been no significant improvement in the management of public funds despite repeated meetings by Treasury to improve accountability and efficient use of public resources among controlling officers.
Dr Kanganja said the media reports as well as revelations from the Parliamentary Public Accounts Committee indicated the failure by government controlling officers to adhere to set guidelines.
Dr Kanganja warned that controlling officers who did not abide by provisions of the legal instruments such as the public finance Act and regulations were liable to specified punishment.
"In a nutshell, our performance in managing the resources entrusted to us by the public is poor and needs to be improved with a sense of seriousness and urgency," Dr Kanganja said in his official address which was read by Ndalamei.
"Government has the mandate and responsibility to the Zambian people to govern in an accountable and transparent manner and deliver quality and cost-effective service, as controlling officers, you have the responsibility of spearheading the country's development and this can only be effectively done if public resources are safeguarded and utilised in a frugal manner."
Dr Kanganja said it was important that controlling officers took personal charge of monitoring the usage of all public resources entrusted to them.
He also said the widespread cases on abuse of public resources was an indication that most permanent secretaries were not implementing firmly what they were oriented and inducted to when they joined the civil service.
Dr Kanganja said the rampant abuse of public resources had been worsened by controlling officers ignoring internal audit reports.
"Please ensure that internal audit reports are studied and weaknesses disclosed dealt with expeditiously," he said.
"My recent investigations have revealed that if all controlling officers were paying particular attention to the work of internal auditors, the misuse and thefts or loss of public monies and stores would be minimised. Quite often, the paragraphs that appear in the Auditor General's report are compiled on the basis of the contents of your internal auditors' reports. Eternal vigilance on the part of all civil servants, oversight institutions and the general public is the key to ensuring that the public service is run in an accountable, transparent and efficient manner."
Dr Kanganja announced that he had directed Ndalamei to ensure that controlling officers discharged their mandate in the manner specified in their letters of appointment
"It is not wise to delegate the management of resources to procurement and accounting cadre staff and expect that they will supervise themselves," he said.
"Take a keen personal interest on issues of procurement, the work of ministerial or institutional tender committees and ensure that bank reconciliations are done at a regular basis, if they [controlling officers] were abiding by the guidance they are given, we would not have been experiencing the loss of public monies, resources and poor workmanship being exhibited by contractors and providers of other services...controlling officers who are found wanting should have their appointments as such revoked. I believe that if this is done, it would serve as a serious deterrent to others who do not take seriously their role of controlling officers."
Dr Kanganja urged the Ministry of Finance to embark on sensitisation of civil servants on prudent financial management saying the Treasury should also improve on monitoring and evaluations of programmes so that the government could be on target to implement the Fifth National Development Plan.
And Ndalamei regretted that every year the Auditor General's report continued to reveal that huge sums of money misappropriated and misapplied by public institutions.
Ndalamei said the revelations by the Auditor General's report revealed a serious weakness in the country's public finance management systems, the weakness he said needed to be urgently addressed.
He urged the controlling officers to provide leadership in efficient, transparent and accountable use of public resources.
"Some of you feel that some of the issues being brought up have been discussed in previous meetings, but you may wish to know that there are in our presence, newly appointed controlling officers who need to be brought abreast with the issues at hand," Ndalamei said.
"Moreover, there has not been significant change or improvements with regard to the management of public funds. Therefore, the main goal in discussing these issues at controlling officers meetings is to improve on cash and treasury management in public institutions, as well as to inform and deliberate on policy issues pertaining to effective management of public resources."
Meanwhile, Ndalamei was irked as most permanent secretaries and controlling officers reported late for the Financial Management Meeting for controlling officers at Mulungushi International Conference Centre.
The meeting which was scheduled to start at 08:30 hours only started at about 09:16 hours with a skeleton audience present.
Among the controlling officers who were present during the opening of the workshop included: Dr Eustern Mambwe [North Western Province], Mwalimu Simfukwe [Northern Province], Dr Godfrey Beene [Ministry of Mines], Jazzman Chikwakwa [Luapula Province], Davison Menda Menda [Ministry of Lands], Coillard Chibbonta [Ministry of Local Government and Housing] and Tens Kapoma [Ministry of Foreign Affairs].
Others were Gertrude Imbwae [Ministry of Justice], Dr Velepi Mtonga [Ministry of Health], Lilian Kapulu [Ministry of Education], Eularia Syamujaye [Eastern Province], Nicholas Kwendakwema [Ministry of Defence], Villie Lombanya [Copperbelt Province], Denny Lumbama [Central Province], Professor Isaac Phiri [Ministry of Agriculture in charge of livestock] and Lieutenant Colonel Bizwayo Nkunika [Ministry of Works and Supply].
Labels: CORRUPTION, JOSHUA KANGANJA, LIKOLO NDALAMEI
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COMMENT - Better yet, completely separate the hierarchy of the civil service from that of politicians. Make it impossible for any politician to fire any civil servant, by making hiring and promotion strictly a civil service affair. The same for creating a legal framework for parastatals that protects them from political interference and appointments.
Some ministers have been threatening PSs over imprest, says Auditor General
Written by Katwishi Bwalya
Tuesday, May 19, 2009 5:38:21 PM
THE Parliamentary Public Accounts Committee (PAC) yesterday heard that some ministers are threatening permanent secretaries with dismissals whenever they fail to give them imprest for use when they visit their constituencies. And the committee heard that K24 billion imprest was not accounted for in 2007.
This came to light when Secretary to the Treasury Likolo Ndalamei appeared before the committee in Lusaka. Auditor General Anna Chifungula, who is a permanent witness on the PAC, told the committee that several permanent secretaries had complained to her over threats by some ministers who demand for imprest when visiting their constituencies.
Chifungula said some ministers and deputy ministers threatened the controlling officers even when they explained that it was against the financial regulation for a minister to get imprest from government for constituency work, which falls under Parliament.
"For example, there was a permanent secretary who complained to me that a deputy minister was in the habit of asking for imprest every week that he was going to visit his constituency and in some cases that he was putting pressure on this controlling officer that he was going to attend a funeral. But when this PS said it was against the financial regulation for a minister to get imprest from the ministry because that is not government duty but Parliament. This permanent secretary was threatened with dismisals," Chifungula explained.
"And two years from now this money will be outstanding so we should also educate ministers because this will put them in problems in future."
In response to Chifungula's remarks, Ndalamei said controlling officers should write to him whenever they were pressured by ministers to make irregular payments.
"When there is pressure to make payments, the controlling officers should inform me when they find it difficult to manage their superiors so that I can also take up the matter and report to the Secretary to the Cabinet," Ndalamei said.
PAC chairperson Charles Milupi said there was a high number of unretired imprest because people obtained money in excess.
"People who are getting [imprest] in excess and that is why you find people failing to retire the money," said Milupi who is also Luena independent member of parliament.
And Chifungula informed the committee that a total of K24 billion imprest had not been retired to government.
The committee observed that controlling officers were not following the financial regulations and that consequently led to huge sums of money not being retired.
Bweengwa UPND member of parliament Highvie Hamududu wondered why controlling officers were disregarding the law.
Ndalamei said the government was worried with the increase in the number of audit queries that were being brought out in the Auditor General's report.
However, Ndalamei said the government had put up measures, among them, to retrain controlling officers who had not come out clean in the audit reports.
"In July we are meeting all the controlling officers and we are going to invite the Auditor General so that we can go through the financial regulations together," Ndalamei said.
"We are also liaising with NIPA [National Institute of Public Administration] so that they can provide training and orientation to newly appointed controlling officers so that they know what they are expected to do."
He said the government planned to introduce a single treasury account where all payments would be processed from to ensure the prudent use of public resources.
Ndalamei told the committee that government was also in the process of revamping the functions of internal auditor as a way of identifying the anomalies and reducing irregularities.
Labels: ANNA CHIFUNGULA, AUDITOR GENERAL, CHARLES MILUPI, HIGHVIE HAMUDUDU, LIKOLO NDALAMEI, MINISTERS, PAC, PERMANENT SECRETARIES
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Resource allocation should reflect govt priorities, says Ndalamei
Written by Florence Bupe
Tuesday, January 13, 2009 9:45:27 AM
SECRETARY to the Treasury Likolo Ndalamei has said the allocation Zambia’s resources in the medium to long term should reflect government priorities and augment economic diversification efforts.
Officiating at the second Poverty Reduction Budget Support (PRBS) review workshop at Pamodzi Hotel yesterday, Dr Ndalamei said in view of the global economic crisis, there was need for the government and cooperating partners to double their efforts in ensuring that economic strengths were redefined.
“I urge our cooperating partners to re-double their efforts in augmenting Zambia’s resources by enhancing development assistance in light of the negative impact of the global economic crisis on the Zambian economy,” Dr Ndalamei said.
“In the medium to long term, government is committed to diversifying the economy from copper mining to other sectors of the economy… the allocation of resources should therefore, reflect the government priorities.”
He said through the PRBS process, the government would be able to effectively enhance transparency and ownership.
“Through the PRBS process, the government is able to use its own systems of accounting and resource allocation through direct budget support. In addition to enhancing ownership, the process ensures transparency and accountability in the utilisation of tax payer resources,” he said.
Dr Ndalamei disclosed that the Ministry of Finance had already commenced preparations for the Sixth National Development Plan that would cover the period 2011 to 2015, and called on cooperating partners and other stakeholders to support the process.
Labels: LIKOLO NDALAMEI, PRBS, SIXTH NATIONAL DEVELOPMENT PLAN
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Ndalamei appointed as deputy secretary to the Cabinet
By Kelvin Chambwa
Tuesday April 24, 2007 [16:54]
PRESIDENT Mwanawasa has appointed former Zambia National Commercial Bank (ZNCB) managing director Likolo Ndalamei as deputy secretary to the Cabinet with immediate effect. In statement released this afternoon, special assistant to the President for press and public relations John Musukuma announced that Ndalamei would serve under Finance and Economic Development at Cabinet Office.
Ndalamei previously worked for the Bank of Zambia in the period 1992 -1996 as assistant director in charge of economics.
He later was seconded to the Ministry of Finance and National Planning where he served as director of budget and Permanent Secretary in charge of budget and economic affairs respectively until June, 2002 when he became managing director for ZNCB.
Labels: CABINET, JOHN MUSUKUMA, LIKOLO NDALAMEI
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