The Auditor General’s office has highlighted glaring poor financial and operational performance in the audited entities in the report on accounts of Parastatal Bodies and other Statutory Institutions in the year ended 2015.

In a statement released by Ellen Chikale the public relations manager at the Auditor General office,
The report indicates that over 1.2 billion was not remitted as statutory contributions to NAPSA and ZRA.

Ms Chikale said non remittance which is a statutory contribution does not only deprive government of revenue but that it also disadvantages employees at the time of termination.

“The report of the auditor General on Accounts of Parastatal Bodies and other Statutory Institutions for the financial year ended 31st December 2015 is out with an overall tone of poor financial and operational performance in the audited entities.

“The report has highlighted non remittances of statutory contributions to napsa and zra of 1.2billion as the highest irregularity in the period under review.

“Non remittance which is a statutory contributions deprives government of the revenues and consequent may disadvantage the employee of their benefits at the of termination,” reads the statement in part.

She further said that the report highlighted questionable payments as the second highest irregularity at over K24 million followed by unaccountable stores at slightly over K20 million

“The report also reviewed questionable payments of 24 million as second highest irregularity followed by unaccountable stores of 20 million. Unsupported payment also features at 6 million while failure to recover loans at 4million.

“The report has also listed 27 institutions that had not produced audited financial statements for the financial years up to 31st December 2016 contrary to their enabling acts and the tenets of good corporate governance,” she said.

Since time immemorial the preceding auditor generals’ reports have been marred with grand financial irregularities. A cross cutting analysis of reports in the past have revealed an upward trend of gross financial irregularities and embezzlement since the inception of multi party democracy in Zambia.

Below is the full statement

12 th January 2017
To: The News Editor
PRESS RELEASE
For Immediate Release

The Report of the Auditor General on the Accounts of Parastatal Bodies and other Statutory Institutions for the financial year ended 31 st December 2015 is out with an overall tone of poor financial and operational performance in the audited entities.

The report has highlighted Non-remittance of Statutory contributions to NAPSA and ZRA of K1, 219, 671, 599 as the highest irregularity in the period under review.

Non-remittance of statutory contributions deprives government of the revenues and consequently may disadvantage the employee of his benefits at the time of termination of their service.

The report also revealed questionable payments of K23, 733, 573 as second highest irregularity followed by unaccounted for stores of K20, 245, 512. Unsupported payment also featured at K5, 557, 547 while failure to recover loans was at K4, 394, 978.

The Report has also listed twenty seven (27) institutions that had not produced audited financial statements for the financial years up to 31 st December 2016 contrary to their enabling Acts and the tenets of good corporate governance.

Among other issues raised in the report include:

i. Board of Directors – Institutions such as the Chambeshi and Southern Water and Sewerage Companies and ZAWA had no boards during the time of audit. In addition, water utility companies (Chambeshi, Lukanga, and Southern Water Companies) had performed poorly on most of the indictors of their service delivery.
ii. National Housing Authority (NHA) – There were weaknesses in the recruitment and removal of the CEO and consequently the irregularly paid salaries in advance. The institution had poor financial performance, poor management of properties and a questionable going concern status.

iii. Mulungushi Village Complex – The institution questionably declared dividends based on the profit that arose as a result of revaluation gain on investment properties and income tax recovery. It had been failing to collect rentals from Government Institutions, had questionably appointed its Operations Manager as well as failed to settle its internal frozen benefits, and also failed to rehabilitate and maintain its investment properties.

iv. Lack of Title Deeds – The properties for the water utility companies, properties for Kwame Nkrumah University (the main and east compasses), properties for ZRA in various towns valued at K15,170,900 properties for ZAFFICO (48,800 hectares of plantation and 109 other properties) properties for TAZARA valued at K343,003,964 all did not have tittle deeds.

The report was tabled in Parliament and is now a public document which can be accessed from Office of the Auditor General in Long acres and the office website: www.ago.gov.zm in due course.

Attached is a summary of findings for your further scrutiny.

Summary of Findings Amount K
Non Remittance of Statutory Contributions 1,219,671,599
Unsupported Payments 5,557,547
Unaccounted for Stores 20,245,512
Unretired Imprest 1,135,994
Missing Payment Vouchers 1,614,675
Wasteful Expenditure 258,640
Questionable Board Expenses 183,075
Failure to submit expenditure returns 436,923
Unacquitted Payments 72,178
Irregular Issuance of Fuel 93,314
Questionable Procurement of motor vehicle 4,377,066
Unexplained Bank Debits 226,075
Irregular Procurements 2,292,133
Undelivered Stores 1,243,692
Questionable Payment of Leave Comutation 145,233
Questionable Payments 23,733,573
Delayed banking 2,379,597
Unaccounted for Revenue 676,506
Failure to recover loans 4,394,978

Issued by: Ellen Chikale (Ms.)
Head Public Relations
FOR/AUDITOR GENERAL

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33 COMMENTS

  1. It is not that bad. Have they said they won’t remit their obligations? Relax ba LT, what has PF done to you?

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    • A zambian has a DNA chip borne of them, that makes them steal

      The only reason any of them appear not to steal on first contact, is meely because they know they will be caught.

      Zambians MEN are thieves

      Thanks

      BB2014,16

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    • This is a reckless statement to suggest that Zambian men are thieves. Think (with your brains and not with your…)before you utter such a statement.
      Maybe correct it to refer to people in Government, but even then it is strong a statement.

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    • @ECL, Clearly this report is beyond your comprehension. This is not a conversation for cadres.
      Had it been Fred Membe or any other non-PF slogan chanting business, you would have been calling for jail time and liquidation.
      What we want is integrity from our government.

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    • SAD READING FROM THE FACES OF BELEAGUERED PARASTATALS
      Parastatal (pær??ste?t?l) ” used to describe a company or organization which is owned by a country’s government and often has some political power”, dictionary.cambridge.org.
      Prudent management of Parastatals here depends on the 1) seriousness government attaches to the accountability for those charged to run these entities’ affairs 2) the patriotism government attaches to parastatals and vis versa 3) discipline on the part of Government and those charged to run the entities.
      The PF has failed to inspire hope and to discipline itself and parastatal company heads against abuse and gross mismanagement in companies like NDOLA LIME, ZANACO, ZESCO, ZAMTEL, ZSIC, ZRL, NAPSA, NCZ, ZAMPOST, ZNBC e.t.c. I don’t need to go to school…

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    • Cont’d..
      …to realise that these enties have lamentably failed to live up to Zambia’s expectation. In the end entities like ZAMPOST live under the shadows of themselves amidist competitive market forces. If you go to ZAMPOST to receive the money someone sent to you, the story is sorrowful; you will receive that money after one week. ZAMPOST is dead, its existence is under serious threat from Courier and Money transfer SMEs. You wonder if the firm has strategic managers who can exploit the potential the firm has to diversify, strategise and become competitive. ZRL died the day SATA died. Zamtel can not realize its potential and lacks capacity (human resources) to overhaul the telecommunication industry. ZSIC like ZAMPOST is threatened by competitions from SME insurance companies…

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    • Cont’d..
      . ZANACO though partially privatised; its processes are horrible. NAPSA is worse. ZESCO is trying, though, they need to diversify on generation methods. NCZ is just striving. Ndola lime management is also being accused of lacking capacity to run the parastatal.
      Its obvious that some political influence from the PF (being the party in Government) is messing and hampering growth in these entities. The influence can only be concluded from the bottomline on the finacial statements of these incompetent firms. Zambians are suffering because of the Parastatals, Directors in these entities and their master (Government) . I am basically tring to imagine the progress and growth Zambia could achieve and register amidst hard working fellaz in parastatals and Government. I leave it up to…

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    • Cont’d..
      ECL and Mutati to look in the limelight of the woos in these incompetent but important entities and figure out the most obvious solutions to save some of these entities from total collapse. Well, if they can’t grow, privatise them.

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    • Lungu and his minions do not really care about what happens to Zambia or it’s economy. Maybe it’s because they know pretty well that they stole the election victory and are not in office by the mandate of the people. Because how else would you explain Lungu’s indifference to such immense corruption in Zambia? Why have we never heard Lungu announcing that he’s mad about what’s happening to the country and that he’ll deal severely with anyone in his cabinet who’s engaging in corruption? A few weeks ago, he announced that his ministers were already engaging in corruption. But nothing happened after that. No one was arrested or fired. Maybe they have some dirty stuff on him too, and he’s scared that if he pushes them in any way, they’ll spill the beans. With this corrupt and mediocre…

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    • (Continued)… leadership in power, forget about Zambia going anywhere in the next 5 years. Because if you think that these guys are passionate about developing Zambia, then I have 5 acres on the moon to sell you.

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    • @ECL Chabe – it would be good of you understood what you were saying and its implications. My contributions toward my retirement pension are computed based on the date of that they are remitted. The funds gain interest each day month and year. If your fvcking thieves in BOMA don’t remit my money they are fvcking stealing from me. When the computation is done years from now, I will come up short, you mutherfvcker!
      If someone shagged your infant daughter, would you call them a rapist or say that “its ok, when she’s older she will lose her virginity anyway”?
      Now you get it, genius!!!!?

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    • More proof that Zambia is a failed state, a total kleptocracy. This country should just be shut down.

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  2. Leadership in Zambia cannot be questioned, interrogated and brought to just because we are scared of one person called “PRESIDENT CHAKOLWA VODKA RUNGU”. For God’s how shall we allow the PF to plunder our economy.
    1.) Road construction per Kilometre is the most expensive in the world? why? because Kaizer, Amos Chanda and Lungu are eating from these contracts.
    2.) There is excessive expenditure in all circles of the government.
    MR. Lungu go and learn from Magulufuli of Tanzania and NOT and I mean NOT MUGABE!!!

    SAD

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  3. Government institutions are leading in failure to remit statutory obligations to NAPSA and ZRA. When it comes to private companies, ZRA cries the loudest and threaten private companies with all sorts of penalties under the sun. PF is the worst government that this country has ever had. Any sane Zambian must stand up against this misrule and maladministration of epic proportions. Imagine, no government institution among the listed in the report has performed at least better, why should we have these companies in government hands when they can be run professionally if they are privatized. This vision less puppet will kill all of us before we even know it. He is such a clue less cannon and cantankerous mongrel.

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  4. It is worse now due to rampant corruption under lungu. Cabinet ministers and permanent secretaries, DCs and other government officials all are busy stealing. Foolish! Useless!

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  5. When it was post news papers most of the pf guys were saying just pay so that government can have money to use ,look now what has been hapening the same parastatals under government contral failing to remit taxes, it is such a shame Just return what you have so far taken from Fred and open his post newspaper.

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  6. What do you expect when you have cadres as CEOs and Executives?? This is madness when you expect mango from a banana tree. Fire all parastatals CEOs and their minions and replace them with professionals!

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    • You’d have to deal with the Bemba cartel that controls Zambia. They are very deeply entrenched in all wings of government at all levels.
      They decide your next president.
      They have complicit token people in certain positions to keep you misguided.
      It’s not at the Kambwili level but higher.
      We all know it but ignore it because its hidden in plain sight

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  7. As usual mediocrity reportage – without definitive presentation, who, how, what action has been taken.

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  8. Among the chief reasons for the extreme levels of misapplication, misappropriation and plain theft is found in the lack of a controls around controlling officers and their legal ability to run businesses and own property as they work.
    It is counterintuitive and unethical to have a director that owns a private company that supplies government.
    When was the last time that the owners of Kapoko township (chalala) were audited individually in the private capacity.
    People with 15 houses and flats will not give a rats arse about national development. Yet we allow and encourage it.
    Does a Minister really need 5 vehicles to get to the office?
    If Lungu wants to fight graft (not lip service fighting and hounding of a few bad eggs) let him institute investigations into all land, motor…

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  9. Passive ,Old record it sounds.
    Only Anna Chifungula could make impact.
    Whose new Ag mwebantu ?
    He/she is docile,never heard of,maybe a political cadre.

    Must Wake_up & make presence.

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    • The AG’s office is like a sticky fart. It makes funny sounds and lets of smells that stink up a room.
      All that politicians and senior civil servants do is open the window and air out the room, then start again with the creation of more sh!t.
      EVERY year, AG reports to parliamentary committee’s. Same committees are made of mps that have to tow the party line.
      Till the investigative wings are placed out of the jurisdiction of the executive (president and party) and encouraged and rewarded for successful prosecutions and fired for prosecution failures with practicing licences revoked, we will continue smelling farts

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  10. This country needs a real overhaul not just a “thokozo”, change on window dressing.
    The rot in Zambia is institutional and systemic.
    Our system is badly flawed. MPs are beholden to a party and not the people they claim to represent.
    The presidency is really a regency (emperor status). The executive and legislature are so in the pockets of the ruling group of tyrants (ruling party) that the country is at the mercy of thugs, wearing different party colours depending on the year.
    Agencies that are meant to serve the public and national interest are but tools of revenge and oppression.
    So we changed from UNIP thugs to MMD thugs and thieves and now have PF thugs and thieves
    Institutionalised corruption includes a civil service that has had staff in “vulture” mode for 25 odd years…

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  11. We are miles away from correcting the wrong things happening in Zambia. We are yet to see the wrong, wrong! This matter is not partisan. I have been hearing the same stories from AG’s report and nothing being done to correct the situation. The stories continues. This matter has very little to do with the PF but it has everything to do with us. There are many involved in such cases and the moment we start bringing in politics and political parties we are impairing our ability to call a thief, thief.

    This a matter which must be taken serious by Government and not PF. We have ACC, DEC, AG and the Police. They must account for public funds to the later. People must start to respect Zambian laws and not to give any leverage because they belong to X and or Y. The moment we start…

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