
THE Auditor-General has queried the Road Development Agency (RDA) for delaying in commencement of road works in some parts of the country even when the Government had paid colossal sums of money.
According to the latest Auditor-General’s report, more than K14 billion was paid for some roads in Lusaka Province but the RDA had not commenced work.
The RDA has also been questioned over some various cases where contractors were being overpaid for some work done contrary to the initial agreements.
The report that was obtained by the Times yesterday raises several other concerns on how the road sector funds were being managed in the country.
The report reveals that the RDA over-committed the Government by over K1 trillion on various road contracts.
The approved budget for 2008 was K685 billion but the agency committed the Government to contracts in the sum of K1.643 trillion resulting in an over-commitment of K1,015 trillion.
“Contrary to the Appropriation Act of 2008 and the Public Finance Act of 2004, it was observed that the agency committed Government to expenditures in excess to money appropriated by parliament,” the report says.
The report also observes that five road projects in the sum of more than K182 billion were procured outside the 2008 work-plan and the authority to procure the same projects was not availed to auditors.
It was also discovered that the auditor-general’s clause was omitted on four projects when the Public Audit Act required all contracts to have a provision empowering the auditors to have access to all documents related to public expenditure.
[pullquote]The report also says the RDA paid K2.6 million for INTERNET services at the board chairperson’s private premises while another K17 million and K20 million was paid as a group personal accident policy for members without the authority of the minister.[/pullquote]
The RDA had started the tendering process for 16 contracts totaling K644 billion without designs or drawings which were supposed to identify the scope and cost of the projects in order to eliminate errors and help in preparation of the bill of quantities.
The absence of designs led to preparation of wrong bills of quantities that resulted in variations of contracts and extension of time of completion.
The report also says the RDA paid K2.6 million for INTERNET services at the board chairperson’s private premises while another K17 million and K20 million was paid as a group personal accident policy for members without the authority of the minister.
Although the contract for the manager – corporate services expired in July 2009, the agency did not withdraw his Tom Card and he drew fuel amounting to K6 million although part of it had been recovered while a former director-general drew K86 million worth of fuel when on forced leave.
It was also discovered that the board chairperson was also heading the finance and administration committee while the sitting of the same committee also constituted a quorum of the board.
Despite the requirement that the bidding period should be between four to eight weeks, it was discovered the majority of the bidding period had been 25 days irrespective of the project size.