Tuesday, May 18, 2010

Financial irregularities rock Nchelenge council

COMMENT - It is interesting that nearly all finacial irregularities have to do with cash payments. Maybe it is time to go digital in all payments. It won't eliminate fraud, but it will make it even easier to spot and there'll be a record of it.

Financial irregularities rock Nchelenge council
By Florence Bupe
Tue 18 May 2010, 03:40 CAT

THE parliamentary committee on local government, housing and chiefs’ affairs was yesterday shocked with the financial anomalies that have rocked Nchelenge District Council.

The committee, chaired by Mfuwe member of parliament Mwimba Malama, heard how Nchelenge District Council secretary Mwilu Lukwesa made significant cash payments for various procurements without authorisation from the Ministry of Local Government and Housing. The committee expressed dismay that Lukwesa ignored the Local Authority Financial Regulations on various occasions.

“It is disappointing that you Lukwesa decided to continually ignore the stipulated financial regulations despite being aware that you are not supposed to issue payments in cash,” Malama said.

“Almost all the queries raised by the Auditor General have to do with cash payments and we cannot help but conclude that you were having cuts in these transactions.”

Malama said Lukwesa, through his failure to observe financial regulations, was exposing himself and the council to fraud and money laundering.

He urged the local government ministry to get to the bottom of the raised irregularities and establish whether the council secretary had an interest in the unusual transactions.

In one case, the council secretary irregularly allowed for the purchase of a vehicle from an individual valued at K85 million when the local authority had only been allocated K65 million to purchase a vehicle for the Make Zambia Clean and Healthy Campaign.

Malama stated that the council could have purchased a brand new vehicle from Top Motors at a cheaper price as opposed to getting a second hand vehicle without following tender procedures.

Lukwesa was also taken to task for failing to explain how K15 million was spent on sinking one water well.

Various committee members urged the local government ministry to investigate the anomalies, with some calling for the replacement of the council secretary.

Malama said the failure by Lukwesa to observe financial regulations was deliberate and shameful.

“It is a shame that you have so many queries all relating to cash. Such operations will put you in big problems and the report shows that you are not fit to be council secretary. It is clear that you deliberately ignore the set rules and regulations and you should be ashamed as the chief executive officer of the local authority,” said Malama.

Lukwesa also disclosed that the council owes its workers salary arrears of up to six months.
And Chienge District Council secretary Stanley Zulu said the local authority had identified sites earmarked for the development of the tourism sector.

Zulu said fish stocks were depleted and there was need for the local people to find other sources of livelihood than fishing, which is currently the central preoccupation.

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Thursday, September 11, 2008

(TIMES) Investor to set up oil palm plantation in Nchelenge

Investor to set up oil palm plantation in Nchelenge
By Times Reporter

CHIEF Kambwali of Nchelenge District has given an investor 9,500 hectares of land to establish an oil palm plantation in Mulwe area. Nchelenge District Commissioner, Wilson Kasoloko confirmed the development in an interview yesterday. Mr Kasoloko said the chief had allocated the land to Biomax which has an investment plan of up to US$80 million.

He said out of $80 million, $50 million would be spent on the establishment of the plantation while $30 million would cater for the construction of a refinery in Ndola.

Out of the 9,500 hectares of land, 5,000 will be set aside for the establishment of the plantation while 4,500 hectares will be used to grow other crops such as maize.

Mr Kasoloko said he was informed by one of the shareholders only identified as Markford that it would take nine months to complete the design of the project.

During the period, the investor will be working on the construction of a water scheme and clearing of land for the project.

Mr Kasoloko said it would take 15 months before transplanting, meaning that planting would be done in October 2010, during which the investor would be building a refinery in Ndola.

Mr Kasoloko said that by 2013, an oil mill would be commissioned in Mulwe area and that five hectares of land would be planted during the same period.
The oil palm project will be in full production in the year 2017.

Mr Kasoloko said Biomax would be producing bio-fuels and that at full capacity, 20,000 tonnes of bio-diesel would be produced annually.

The project will be expected to employ between 200 and 300 local people.

He said the Government was happy that the investor had chosen to set up an oil palm plantation in the area as it would create employment for the local people.

He said the coming of Biomax was a blessing to the people of Nchelenge as it would contribute to economic development and had come at a time when oil production was expensive.

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posted by MrK @ 8:47 PM 0 Comments