Secretary to the Treasury, Evans Chibiliti, has revealed that K700 billion State cash meant for development is lying idle in commercial banks because controlling officers have failed to apply the funds for development purposes.
“We shall hear a perverse situation where commercial banks are lending Government’s own money back to Government and the immediate impact of this is to complicate the conduct of monetary policy by the central bank and increase the cost of contractual works due to late payments,†Mr Chibiliti said.
Speaking at a two-day controlling officers’ review workshop on strengthening treasury and financial management at Mulungushi International Conference Centre in Lusaka yesterday, Mr Chibiliti said it was disheartening to note that implementation of measures aimed at controlling such situations had not been sustained.
“The central bank governor has informed the Ministry of Finance and National Planning that once more, the Government was holding close to K700 billion in the commercial banks. We must devise and agree sustainable solutions to this problem,†he said.
He said Government was unable to pay salaries and meet contractual obligations on time because of cash shortage yet its billions were lying idle in banks.
Regrettably, the Government was not earning any interest on the idle cash in commercial banks because the money was held in “clearing accounts in balance and mirror accounts.â€
He called for remedial measures to control the situation.
He also invited the Director-General of the Zambia National Tender Board to speak to controlling officers at the workshop following observations that one of the major reasons permanent secretaries were carrying such large balances of idle funds was the stringent tender procedures they had to satisfy to authorise large payments.
He also called for prudent management of public resources in order to reduce the increasing audit queries from the Auditor-General.
“I want us to embrace the view that the Auditor-General is our ally and her work is intended to complement ours by bringing to our attention areas of our financial management which need strengthening,†he said.
He appealed to controlling officers not to be defensive on audit queries but reflect on the concerns raised and respond with operational measures that could constructively address weaknesses.
Meanwhile, Secretary to the Cabinet, Joshua Kanganja, directed permanent secretaries to put in place measures aimed at reducing audit queries and mismanagement of public resources.
Dr Kanganja observed that there had been frequent concerns by oversight institutions regarding the abuse, misapplication, mismanagement and outright misappropriation of public resources.
“In all these instances there is a controlling officer who authorised a payment to be made for such shoddy work…in all such cases, there is a controlling officer who has allowed a situation where work has been certified as complete and having met the stipulated standard for payment to be effected,†he said.
He directed the Secretary to the Treasury to ensure that disciplinary provisions under Part Four of the Public Finance Act Number 15 of 2004 were enforced.
Controlling officers were custodians of public resources who should spearhead the development of the country and safeguard the interests of all citizens.
He appealed to them to cooperate with the Office of the Auditor-General, saying its efforts helped to strengthen treasury and financial management and implementation of programmes outlined in the Fifth National Development Plan.
Auditor-General, Anna Chifungula, and three parliamentary committee chairpersons: Charles Milupi (public accounts), Godfrey Beene (estimates) and Request Muntanga (Government assurances) attended the workshop.
Drug Enforcement Commission commissioner, Ryan Chitoba, and Zambia Revenue Authority Commissioner-General, Chriticles Mwansa, also attended the meeting.
Mr Ng’uni urged the Oasis Forum to stop playing to the gallery and ensure that the process moved forward.
And Mr Ng’uni clarified that youth organisations would be allowed to send a representative to the constitutional conference.
He dismissed earlier reports that the youths would be represented by political parties.
There would also be students from University of Zambia, Copperbelt University and Cavendish University, among others.
The controlling officer should be fired. It is a simple case of non perfomance. Why are they being paid if they cant do their jobs?
Typical, all they are taught is to song the government has no money. And we keep saying money is not a problem in Zambia, but rather management of it and this case proves the point. Am sure if this money stays idle for years it will be diverted elsewhere but these politicians for campaign events and 4X4 GXs. All one has to say is “How about that money Lying Idle, can’t it be used on my new Car and office?”. This is really serious. Shows lack of planning and dual diligence in executing plans.
Please hire qualified controlling officers and not these cadres ready to release this money to the party of the day
this is the benefit of employing non experienced and non exposed planners.Inovation and developmnt is nothing to their vocabulary.They are ROBO0-ENGINEERED,DO THIS DO THAT-hence the fear for the auditor general.These are outcomes of nepotism.
I think the Controlling Officers are doing a great job.It’s about time people knew that exhausting budgets is a sign of inefficiency. It’s always best to save for the rainy day.
#5 Kayata iwe popi are going hungry and you are saying its good. I think you are an agent of M15.
Fake! Easy, CITIZEN, Kuku. Prepare for 2011.
#6 Easy, do you have any savings in your bank account? If you do,then why are you letting your relations suffer and go hungry without food?
Bambo Chanda Phiri (3),
Like I have said it time and again here, critically look at the whole bureaucracy and operations systems in Zambia to understand the confusion. The Zambian challenges are not about hiring qualified controlling officers and their auxiliary staff, but a dangerous culture of “self rational interestâ€- what is in it for me that I should deliver it all. The current regime I beat you has and is hiring top notch citizens. Many of who are returning from successful Diaspora schools some with vast work experience from multinational corporations. Among them are the long time public service workers sent to further up their studies overseas and returning for more responsibilities. There are many I could point at serving and those still rapping up their studies with time frames. They are of very strong and established backgrounds. There ethical issues we should help reinforce and safeguards impossible to flout. Unless you are telling of qualifications from the moon, otherwise they are plenty than you seem to believe. I encourage you to make yourself an audit of who is who and where. Look at Dr. Nselemuka and his energy shortages; Nkunika at works and supply with his GRZ contracts payments, General Tembo at Transport & Communications with his information technology inertia, Dr. Austin Sichinga in the VP office and his Disaster Management. Look at Peter Mumba at HA, MOF and their treasury management. These are just a few of the many of the best qualified controlling offices yet enumerate their flaws. The issue at hand is not education or qualifications but non ethical practices based on self rational interestâ€- what is in it for me that I should deliver it all.
#5 Kayata the President was busy presenting school bags to pupils at the weekend.I sometimes wonder whether our president has things to do, of all the things presenting school bags? Were these bags from the idle cash(K700m) in commercial banks?This is really cheap for the Head of state, Education Secretary could have done that.Kalanda Kasikola, vyakulola vye.
#10 Kuku Kayata is M15 just look at his contributions. Prepare for 2011 we need to take over leadership. Did you see what prof.Lungwangwa said yesterday in Parliament. A retired person is on govt salary when employed workers are not getting their paye. I m not trying to be selective but our institutions are out of use. Another one saying millions are lying idle in Banks. Is this the twist that fear of corruption has taken shape
#10 Kuku, Our politician and leaders and mostly the people of africa know 3 things.
1.Beer
2.Sex
3.Food
I think that presentation would have even been done by the DEO(District Education Officer) or even the Headmaster.Instead of presenting computers to enhance the standard of education for pupils,they are presenting school bags!!!.
Cant their parents afford school bags or is this a misinterpretation of “father of the nation”? Politicians have no interest in the standard of education hence even the performance of these pupils when they grow up is totally barbaric.
No wonder our leaders are still “children” and they need guidance and advice from western leaders.
No wonder the only news on bbc,cnn,reuters,allafrica websites is just war,corruption and poverty from africa,then tommorrow its complaining the media always paint a wrong picture.
“Evans Chibiliti, has revealed that K700 billion State cash meant for development is lying idle in commercial banks because controlling officers have failed to apply the funds for development purposes.” This is a blue lie. There is no controlling officer in Zambia who has failed to apply the money where it should be applied. Ministries work within the confines of the budgets that they submit to the cabinet. Normally, half of what is budgeted by a particular ministry is approved forcing controlling officers to attend to very pressing issues leaving out others. The money from MFNP is deliberately sent to respective ministries towards the end of the financial year. Within a month or so, there will be a directive from MFNP that the money that has never been spent will be declared null and void because all the government accounts will be closed preparing for the next financial calendar. This is the money that is found marooned at the commercial banks. It belongs to no any other controlling officer but of course MFNP. It appears they have failed to find a way of letting this money grow legs that is why it has come out in the press like a hot cake. Don’t blame controlling officers. Blame MFNP with their double standards. It is from these same monies that you find officers from MFNP being privileged to have one loan after the other as if they are not civil servants. Other civil servants from other ministries have gone on retirement without realizing a loan in the civil service. But talk of MFNP as well as cabinet office. These are the owners of government money including the K700 billion.
We can look at this at different angles, one we could say the officers are not doing there work which is true.The other is the New deal government can be commended for a job well done for the fight against corruption.These officers are scared to get the money to use it for developmet becuase if mismanaged the would get arrested.If there was still lots of corruption this money would have already “grown legs”,in other words disappeared.Personally i never like mwanawasa to be president but he has proved to me that his working and doing his best.in latin there is a saying which goes like, a container can not hold more that what it can.So his working things are changing,even chiluba’s time some things changed, we appreciate the good things.
Now what can we do so that this money can be used?is there anything we can do?Our nation has to develop.And our Debts have to be paid.
Is it prudent government accounting to have K700billion, an equivalent of $181million lying idle in commercia; banks and borrow $110.21million so as to increase the National Debt? And why have all that money in commercial banks when we have the Bank of Zambia. I know that Government departments do have accounts at commercial banks but the Central Bank, through the Ministry of Finance, should and must monitor and control funds usage by government. I work for a Government department here – in Accounting (ATL- Ga), and strict oversight is key to Government Accounting. All ‘confused’ accounting provided a loop hole for fraud and misappropriation. Anna Chifungula please put in place a proper Charts of Accounts and good audit controls. Zambia cannot afford to revert back to those huge national debts again. We all know how much suffering this can cause on the contry. Some of us were ‘retired’ in national interest from Zambia’s education institutions and had no reasons to stay in Zambia.
Kuku na Nkhataboy, ala vyakulola vye, ntamanya nene. Kalanda kasikola. This is unheard of and very unprofessional. Does MOF and other government ministries reconcile their monthly accounting books? If they do, definitely controlling officers should have known that there’s money somewhere lying idle. I have heard complaints from many Controlling Officers about non-fundings from MOF for months. How dare can a controlling officer let money idle in the banks which they desperately need. Neglegence, unprofessional, and selfishness by some officers in the Budget Office at MOF is the main cause of all these. How about BOZ? Don’t they reconcile MOF books? I don’t understand this when millions of Zambians are going without a meal, no medicines in medical centers. Chuchu, investigate this because it amounts to criminal activities when people die because there’s no medicine when money is lying idle in the banks.
#15 &16 Baice bandi Zambia needs professional cleansing, come and sort out the mess,you are the only pride Zambia can look forward to.The whole system is just redundant, not that people are ill qualified the laisez faire has just gone beyond imagination.PS cant control their ministries, clerks are busy stealing and building in Chalala,Ministers want to steal $7m, Presidents are on pending list with $57m, chalo camusango shani where resources are being wasted like this?
Kalembe and Chanda come back its an order from me, future politician 2011 aspirant.