The latest report of the Auditor General on the Accounts of the Republic for the financial year ended 31st December 2017 has revealed a reduction in the misapplication of Funds from K162 million in 2016 to K61 million in 2017.

The report however revealed glaring irregularities in the various Ministries, Provinces and other Spending Agencies.

It highlighted some reductions in Unaccounted for Revenue from K3 million in 2016 to K873, 000 in 2017, Unvouched Expenditure from K170 million in 2016 to K14 million in 2017 and Undelivered materials from K116 million to K1 million among others.

According to a statement issued by Ellen Chikale, the Auditor General’s Office Head Public Relations, despite, a reduction in the misapplication of Funds, it is still the highest-ranking irregularity for the period under review and continues to be an area of high concern for the Office.

Ms. Chikale said the other irregularity that is of high concern to the Office is Irregular Payments which have increased from K1 million in 2016 to K21 million in 2017.

She said the audit of 2017 covered areas that cut across all the five Developmental Strategic Areas of the 7th National Development Plan and the issues mentioned in the report are those which could not be resolved during the audit process and those which were highlighted in the previous reports, but had not been corrected as of 24th September, 2018.

Below is the full Report

 

PRESS RELEASE

For Immediate Release

The Report of the Auditor General on the Accounts of the Republic for the financial year ended 31st December 2017 is out with glaring irregularities in the various Ministries, Provinces and other Spending Agencies (MPSAs).

The Report which was tabled on floor of the house on 16th October 2018 has highlighted some reductions in Unaccounted for Revenue from 3 million kwacha in 2016 to 873 thousand kwacha in 2017, Unvouched Expenditure from 170 million kwacha in 2016 to 14 million kwacha in 2017 and Undelivered materials from 116 million kwacha to 1 million kwacha among others.

However, these gains have been reversed by the several areas of concern such as Unaccounted for Funds that has increased from 386 thousand kwacha in 2016 to 31 million kwacha in 2017, Misappropriations of Funds from 3 million kwacha in 2016 to 5 million kwacha in 2017 and Overpayments from 1 million kwacha in 2016 to 7 million kwacha in 2017. These irregularities in some instances increased by more than 500 percent.

Although Misapplication of Funds seems to have reduced from 162 million kwacha in 2016 to 61 million kwacha in 2017, it is still the highest ranking irregularity for the period under review and continues to be an area of high concern for the Office as it entails that institutions applied funds budgeted for a specific programme on unrelated programmes without the authority from Secretary to the Treasury thereby depriving the beneficiaries of the much needed benefits from the said programmes.

The nation may wish to know that although Misapplication of Funds on face value may appear to be a lesser evil especially if applied on buying medicines in hospitals, but it may have some criminal undertones especially if paid to officers purporting to be undertaking government programmes when in actual fact they may have no intentions to travel and carry out the work. This irregularity deprives Government of the resources to be applied on developmental issues instead of benefiting a few individuals.

The other irregularity that is of high concern to us is Irregular Payments which have increased from 1 million kwacha in 2016 to 21 million kwacha in 2017.

The audit of 2017 covered areas that cut across all the five (5) Developmental Strategic Areas of the Seventh National Development Plan and the issues mentioned in the report are those issues which could not be resolved during the audit process and those which were highlighted in the previous reports, but had not been corrected as of 24th September, 2018.

It is also worth noting that the Office interacted and communicated with Controlling Officers whose accounts were audited at various levels. The purpose of this interaction was to provide an opportunity for the Controlling Officers to clarify and take corrective action on the findings of the audits by so doing demonstrate the value and benefits of the Supreme Audit Institution (SAI).

The Report contains seventy four (74) paragraphs consisting of sixty one (61) paragraphs on audit matters whilst thirteen (13) paragraphs are on other matters. In addition, the Report contains audit recommendations which are aimed at addressing the issues raised during the audit process.

The nation can further take comfort in the fact that the audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs) which are the standards relevant for the audit of Public Sector entities and are issued by the International Organisation for Supreme Audit Institutions (INTOSAI) to which the Office of the Auditor General is a member.

Also interesting to note is that the Office has for the second time issued an opinion on the Consolidated Financial Statements of Government in line with Article 211 of the Constitution of Zambia (Amendment) No. 2 of 2016.

The table below shows a comparative summary of some of the major issues contained in the report for your scrutiny.

Details

2017

K

2016

K

2015

K

Unaccounted for Revenue

873,649

3,700,509

558,449

Unaccounted for Funds

31,200,930

386,834

193,910

Misapplication of Funds

61,657,450

162,095,699

28,153,997

Unretired Accountable Imprest

4,073,434

17,559,399

12,659,892

Unvouched Expenditure

14,137,189

170,554,478

349,306,160

Unaccounted for Stores

6,370,531

14,428,573

13,460,323

Irregular Payments

21,791,360

1,591,348

115,350,860

Non Recovery of Loans and Advances

901,507

1,689,982

2,352,451

Failure to Follow Procurement Procedures

1,051,686

509,535

35,701,492

Undelivered Materials

1,486,568

116,759,240

251,523,804

Non -Submission of Expenditure Returns

29,409,484

40,705,270

6,308,762

Wasteful Expenditure

7,865,395

3,586,879

39,854,959

Overpayments

7,437,149

1,061,247

26,559,013

Misappropriation of Funds

5,036,051

3,618,127

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

 

Loading...

32 COMMENTS

  1. Reduced levels of abuse of funds is still abuse regardless ,perhaps they’ve redirected it to non quantifiable mukula logs.

    17

    4
    • Its a case of auditor general threatened to limit the damage. The truth is already kkown by donors even before the auditor general tinkers with the recirds. Therefore this muted version is useless.

      Truth is Lungu and thugs are stealing big time.

      The truth will soon come out for lies has short legs.

      Lungu should stop stealing.

      13

      3
    • THE OFFICE OF THE AUDITOR GENERAL HAS ALWAYS NOT SHIED AWAY FROM CALLING A SPADE A SPADE. IT HAS ALWAYS CALLED ON THOSE INSTITUTIONS WHO HAVE MISAPPROPRIATED FUNDS BY NAME AND BY HOW MUCH. ALAS, HIS REPORT MAY BE HIDING SOMETHING. IM YET TO READ THE ONE ON THE WEB.
      =============================
      This office need not be politicised. K61 is still too much money to be missappropriated.
      Misappropriation means embezzlement, expropriation, swindle, stealing, theft, thieving, pilfering, unauthorized removal; rarepeculation, defalcation. Let’s not legitimize the term. It is filthy. Misapplication means the act or an instance of applying something incorrectly or improperly. It is a lesser evil but still evil. Unaccounted for, can be thought as misappropriation. This report doesn’t go deeper.

      4

      1
    • Unaccounted for Revenue
      Unaccounted for Funds
      Misapplication of Funds
      Unretired Accountable Imprest
      Unvouched Expenditure
      Unaccounted for Stores
      Non Recovery of Loans and Advances
      Failure to Follow Procurement Procedures
      Undelivered Materials
      Non -Submission of Expenditure Returns
      Wasteful Expenditure
      Overpayments
      Misappropriation of Funds
      Make no mistake, all these phrases amount to SYMPTOMS of thieving. The need to eliminate unlearned or learned thieving cadres like CK from institutions can not be overemphasized.

      6

      0
    • Really laughable…when i read the headline I thought it was too good to be true until I open…Lazy Lungu govt is too reckless to seriously reduce anything. I wonder if an AG has even been appointed in this department yet.

      7

      2
    • Lazy bum illiterate tribal hooligan bully son of a polygamist father who never gave him toilet training pooping in public HAGAIN! Anyone with a diaper? Laughing gas disease too.

      0

      0
    • They are dragging their feet in appointing one after the one who there acting left…this way they thieves can steal with impunity and no MP in Parliament has been asked a question.

      7

      1
  2. Ba Koboke’ ba P.F remain thieving parasites, as they head into their Bogus Day of National Prayers.
    JONA AYENDE, & P.F KUYABEBELE, IS THE ONLY PANACEA ZAMBIA URGENTLY NEEDS!

    9

    0
    • Surely this report makes sad reading…just look at the levels of increase in unaccounted for and wasteful expenditure for 2017 and previous years? How can someone with a normal functioning brain wake up in the morning; look at themselves in mirror and proudly state they are a President or a Finance Minister?

      6

      2
  3. Reduced misapplication of funds is a myth ,not with the huge misapplication of $42m firetrucks .Ati from K162 million to just K72m-thats a lie.

    11

    1
    • Totally agree this report very questionable, did they leave out the fire wheel barrows, misappropriation K162 Million that is still too much. Too many long fingers with these Kaponya`s

      9

      2
    • There is no AG in that dept ..maybe Kaizer and Munir are acting so expect a lot of irregularities in reporting and processing numbers.

      9

      1
    • You have a drunkard for a Finance minister and a weak coward of a leader for President…i doubt anything can improve.

      5

      2
  4. SMART Zambia measures have quietly effectively dealt with GRZ inefficiencies, procedures & record keeping. That is how smart Chagwa deals with issues. Smart and judicious. Not ranting anti-corruption on molehills or parading hapless individuals in streets to be lynched as corrupt to the detriment of their innocence & families as that infamous Levy. AG report always appeared bad because of poor record keeping. Now the Integrated Financial Management System keeps a proper trail of everything including copies of all vouchers & supporting documents. Hence the drastic fall. Same efficiency now with e-vouchers and cash transfers.

    Those preaching negatives will soon be seen by all as sons of a …….who would rather see the country burn.

    6

    11
    • What drastic fall are you on about? Have you read the article above…good record keeping can not gloss over recklessness

      5

      4
  5. Thank SMART ZAMBIA, the financial figures have reduced to k61m from k162m of last year.
    I know that our opposition political parties,( party from upnd cult) should continue pressing hard work for the next AG report to diminish or to reduce than that. There is a political will of changing corrupt vises in public and private affairs concerning misuse of funds.Reports with slight improvements given hope and signs that corruption and misuse of national resources can change for the better face of national economic development.
    Kudos , SMART ZAMBIA.

    3

    7
    • I dont know what your bosses teach you at PF Blogging school for you to come out without shame and defend reduction in misappropriation from K162 to K62m when irregularities, Unaccounted for Funds, Over-payments, misappropriation are all up by more than 200%…are you numb or just incredibly stupid.Dont you have any idea what K62million can buy you or build….its shocking you even call this smart.

      7

      1
  6. flag Corruption scandals: Social Security Cash Luxury Presidential Jet Ambulances Fire Trucks Mukula Trees Ndola-Lusaka Rd Malawi Maizegate Fuelgate Swaziland landgate Zesco Loans

    You mean that report written by Amos Chanda and edited by Kaiser Zulu and approved by His Excellent The Humble god Most Thieving High Dictator Lungu! Yeah I believe you (not).

    Unbelievable, what a joke!

    9

    0
  7. The FIC report presented earlier this year and the AG report are not matching over the irregularities involved. One of them is doctored. I leave it to you to guess which one.

    5

    0
  8. Very doctored report. We need the auditor general audited. We do the irregualrities not match other audit reports.

    6

    0
  9. An Auditor General is urgently needed in this office. There are lot qualified Zambians. Is it true that the PF government is afraid and scared of educated and qualified people? How does PF explain some of the actions such as arrest of Mbozi, indefinite closure of NRDC, meagre budgetary funding to the education sector, no regard for R&D, and failure to appoint an AG up to now? There is no to afraid of genuine educated citizens. Remember education is a game changer and equalizer. Embrace the educated and more so those in diaspora. Recruit and consult them. Zambia is 54 years old and must be seen to have grown so.

    2

    0
  10. The heading is absolutely wrong imwe be LT, the levels of abuse has increased. Why does LT want to distort facts like tri.bal upend? Even trib.al Hacks brother Lazy Jay Gay has noticed that.

    2

    0
  11. We spoke on this forum and warned that Saudi oil will turn to be a scandal people didn’t believe that.That oil didn’t benefit any poor Zambian , it only benefited Ambassador Mumba in obtaining allowances via fake preparatory meetings and business class movements. Let who ever authorized such travels bring out records of meetings since 2014 to date about this Saudi oil and let both the Ministry of Foreign Affairs account for the money spent in allowances.We also demanded the publication of a list of all transporters who were involved in this oil transportation as oil was fully paid for by the Saudi Government up to Lusaka.

    1

    0
  12. We also demand full Audit of the Ambassador and make available the individual Embassy Report since this Ambassador who opened this Embassy in 2013 has still his contract extended up to 2021.What is so special and reason of his extension ?

    1

    0

Comments are closed.