Auditor-General’s report cites parastatals


THE Auditor-General’s report on accounts of parastatal bodies and other statutory institutions for the financial year ended December 2014 has revealed an overall tone of poor financial and operational performance.
The report, which was released yesterday by Office of the Auditor General public relations officer Ellen Chikale, has also highlighted “wasteful expenditure” of K396 million in the period under review.
Wasteful expenditure is defined as expenditure incurred where there is no benefit derived.
Ms Chikale said the report also reveals non-remittance of statutory contributions totaling K876 million while inadequately supported payments were at K15.5 million.
She said the report also highlights irregular payments and unretired imprest amounting to K2.4 million and K1.8 million, respectively.
And Ms Chikale said the Auditor-General’s report further highlights missing payment vouchers of K874,000 and unaccounted for stores items worth K358,000.
“Other issues raised in the report involve weaknesses in corporate governance, weaknesses in implementation of information communication technology systems and weaknesses in contract management.
“Others are failure to produce financial statements, poor financial and operational performance and lack of title deeds for properties that should be owned by various institutions,” said Ms Chikale.
She said the report has cited 18 institutions among them Copperbelt University (CBU), Energy Regulation Board (ERB), Food Reserve Agency (FRA) and the judiciary.
Other institutions are Road Development Agency, Zesco, Zambia National Broadcasting Corporation, Water Resource Management Authority (WRMA) and Citizens Economic Empowerment Commission.
Ms Chikale said there were 26 statutory and parastatal bodies that did not submit audited financial statements for periods 1-14 years, contrary to good governance practices and various legislations governing organisations.

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