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AG report exposes financial snags in parastatals

ALVIN CHIINGA, Lusaka
THE Auditor-General (AG)’s latest report on parastatal and other statutory bodies has revealed poor financial performance by several parastatal and other statutory bodies in 2013.
And the AG’s report on the accounts of the Republic for the year ended December 31, 2013 has revealed an excess expenditure of over K500 million.
According to a press release issued yesterday by the AG’s public relations officer Ellen Chikale, the report on parastatal and other statutory bodies revealed an overall tone of poor financial and operational performance in most of the audited entities.
Ms Chikale said some of the parastatal and statutory bodies that were audited and remained with unresolved matters are the Development Bank of Zambia, Judiciary, Zamtel, Patents and Companies Registration Agency, Public Service Pension Fund Board, Mofed Tanzania, Lusaka Water and Sewerage Company and Mukuba Hotel.
Others included ZCCM-IH, Zambia Postal Services Corporation, Zambia National Building Society, Local Authorities Superannuation Fund, Kitwe City Council, Nkana Water and Sewerage Company, Kafubu Water and Sewerage Company and Luapula Water and Sewerage Company.
The report also highlights some financial and other irregularities with the highest being non-remittance of statutory contributions at K142,500,901 followed by inadequately supported payments at K6,479,256.
Unretired imprest stood at K3,892,884 while unaccounted for funds were at K997,261, adding that irregular payments and wasteful expenditure ranked the lowest at K156,611 and K26,100, respectively.
She mentioned institutions that had not produced audited financial statements for the year ended December 31, 2013 saying that failure to produce financial statements is contrary to the law and implies stakeholders are not able to know the actual performance of the institutions in question.
Ms Chikale said other issues contained in the report include weaknesses in corporate governance issues, weaknesses in contract management and implementation of ICT systems.
And the AG’s report on the accounts of the Republic for the year ended December 31, 2013 has revealed an excess expenditure of over K500 million.
Ms Chikale said an excess expenditure of K501,234,551 was revealed by the AG’s report for the last financial year.
The report also highlights unaccounted for stores with the highest irregularity amounting to K72 million followed by unvouched expenditure standing at K67 million.
On revenue, the report highlights amounts totalling K7,172,536,611 as revenue that should have been collected by revenue collecting institutions but was not collected due to various weaknesses in the collection of revenue.






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