About K1.7 billion at the Lusaka City Council (LCC) has allegedly been misused and police and the Anti-Corruption Commission have moved in to investigate the matter.
However, a senior LCC official has been suspended pending investigations.
The council is now seeking a comprehensive forensic audit to trace the money and the culprits in a probe that started when Local Government and Housing Minister Eustarckio Kazonga commissioned a special audit.
This followed reports of irregularities in the PF-run councils.
Lusaka mayor Robert Chikwelete confirmed the alleged misuse of the money and said the council decided to verify reports of financial abuse following a ministerial directive in April this year.
“We have just concluded our internal audit and what I can confirm now is that K1.7 billion has been misused. We wrote the Minister of Local Government, Dr Eustarckio Kazonga last week requesting authority to allow the Anti-Corruption Commission (ACC) and the police to move in because we suspect more has been stolen,” Mr Chikwelete said.
The mayor said the council had in the interim transferred most of the workers in the finance department to allow investigations to take place smoothly.
The transfers were necessitated by the report of the establishment and audit committees of the council, which are composed of councillors, co-opted members from strategic institutions and senior management officials.
Another statutory audit report has revealed gross mismanagement, misapplication and theft of resources amounting to more than K2.9 billion.
Mr Chikwelete said he would work closely with the minister to ensure development targets were attained.
The statutory audits for 2008/9 revealed gross irregularities in the PF-ran councils and the minister in April gave them a 60-day ultimatum to explain how they would correct the weaknesses in the management of resources.
Dr Kazonga also wanted an account of how they would recover the misapplied money, set up financial regulations and ensure that they spend more money on service provision and less on personal emoluments.
[ Times of Zambia ]