THE preliminary financial reports on the Patriotic Front-run councils have revealed massive misdirection of funds with Lusaka City Council using K42 billion on personal emoluments and administrative costs leaving only about K17.7 billion on service delivery in the financial year ending 2009.
In the two-year period between 2008 and December 2009, the council raised a total of K124 billion but only K27 billion was used in providing services while the rest was used for personal emoluments and administrative expenses.
This represents 15 per cent on service provision of the total amount while 85 per cent was used for personal emoluments and administrative costs in the two-year period.
The council collected K14,278,819,000 from rates in 2008 and K14,055,171,000 in 2009 but the total income, including other services amounted to K64,400,503,000 in 2008 and K59,647,502,000 in 2009.
The transition into percentages for the two years shows that 44 per cent of the funds were spent on personal emoluments while administrative costs gobbled 34 per cent, leaving only 22 per cent for service provision.
Local Government and Housing Deputy Minister Moses Muteteka said a process had been started by a special team of experts to identify specific individuals who might have abused resources for onward reporting to the security wings.
The report says the council faced the challenge of irregular payments from levies, and Government grants as well as unaccounted for grants.
There was also reduced expenditure on service delivery instead of the 40 per cent of the total budget as directed by the Ministry of Local Government and Housing.
Ndola City Council had a total income of K21,652,772,000 in 2008 in grants from the Government, land rates and levies while the figure went up to K29,725,246,177 in 2009.
Of this amount, only 21 per cent was spent on service provision while a total of 77 per cent went to recurrent expenditure and only two per cent was used for infrastructure development.
The report states that the council overspent by about K5,495,015,960 without preparing a supplementary expenditure. There was also non-availability of title deeds for council properties and non maintenance of ledgers.
There was no preparation of certificate of completion for projects while the format for the receipts did not meet standards.
Other irregularities included under-banking, irregular payments, failure to update stock ledgers and poor management of imprest apart from failure to remit withholding tax to the Zambia Revenue Authority.
Kitwe City Council only spent K4,488 billion representing 13 per cent on service provision and infrastructure of the total K35.5 billion in 2009 while only 29 per cent of K62,630,000,000 which was income for the two years was spent on service provision.
The council generally failed to maintain ledgers and also failed to manage imprest effectively.
Chingola Municipal Council only spent two per cent on service provision in 2008 while 45 per cent of the total revenue was utilised as employee-related costs and also failed to prepare final books of accounts. About 53 per cent went to admin-istrative costs.
[Times of Zambia]