TWELVE members of Parliament (MP) who served between December 2001 and July 2006 owe Government over K500 million in unrecovered loans, advances and un-retired imprest, the latest Auditor-General’s Report has revealed.
The report has also revealed that there were irregularities in accounting for funds released to the Mung’omba Constitution Review Commission (CRC).
The report on accounts for the financial year ending December 31, 2006, indicates that eight MPs who served as ministers still owed the Government K331, 930, 970 through unretired imprest and loans obtained from their respective ministries.
“In an effort to recover the money, the Ministry of Finance and Planning requested the National Assembly to recover the money from the members’ gratuity.
However, the members’ gratuity was not adequate to cover the debts and as of March, 2007, the amounts were still outstanding,” the report reads in part.
The report states that in response, a controlling officer at the National Assembly said, whereas the National Assembly simply made efforts to recover the money, the debt was actually owed to the Ministry of Finance and National Planning.
The report reveals that K210, 778, 902 owed by four MPs had not been recovered as of March, 2007.
It also revealed that the National Assembly failed to follow tender procedures when installing a digital security system.
The report says in January, 2006, the National Assembly signed a contract for the installation of the system at a contract price of K2.6 billion, but the figure was K110.5 million over and above the contract price of K2.582 billion agreed with the contractor in June 2004.
“It was also observed that although the contract price was above the National Assembly’s threshold, there was no competitive bidding and no authority was obtained from the Zambia National Tender Board,” the report reads further.
Meanwhile, the report has revealed that the Treasury over-funded the CRC by K652.8 million between April 2003 and July 2006.
An examination of financial and other records maintained at CRC secretariat carried out in October 2006 revealed irregular payment of sitting allowances.
The report said in 2003, the CRC wrote to the Zambia National Tender Board (ZNTB) requesting for a waiver on tender procedures to facilitate procurement of goods and services when the commission was mobile but the waiver was not granted.
It says instead the ZNTB instructed that all procurements of up to K15, 000,000 were to be authorised by the Ministerial Tender Committee of the Ministry of Justice.
“Contrary to this directive, the CRC formed two committees of which one was the tender committee comprising four members for approving procurements for the commission and a planning and preparatory committee to approve procurements when the commission was on provincial hearings,” the report indicates.
“It was observed that in this regard amounts totalling K91, 790,000 were irregularly paid as sitting allowances.”
The report says the CRC bought store items valued at K85.862 million without obtaining quotations, contrary to procurement guidelines.
In addition, the CRC bought fixed assets worth K104, 865,408 without following tender procedures.
The report said there were no receipt and disposal details in respect of stores items costing K348, 561,767.
It added that out of K260, 000,000 imprest given to nine provincial permanent secretaries for distribution of the draft constitution, K97, 640,000 had not been retired as of December 2007, contrary to Financial Regulation number 96(1).
[Zambia Daily Mail]