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Sunday, 31 October 2010

A Parastatal Horror Show (National Airports Corporation Ltd)

We continue with our on-going series highlighting the horrors from the Report of the Auditor General for 2008 on Parastatal Bodies. The 2005 report had some very shocking things to say about National Airports Corporation Limited (NACL) :
In paragraphs 52 to 61 of the report of the Auditor General for 2005 on the accounts of Parastatal bodies, mention was made of the non declaration of dividends and non payment of taxes by the Corporation due to its poor financial performance. Mention was also made of the poor liquidity position, increased cost of borrowing, irregular payment of Christmas bonuses, outstanding pensions and failure to follow tender procedures among others.
Have things improved? No. It appears NACL continues to be a poorly run organisation whose position regresses with every AG report.

Losses :
"It was observed that although the Corporation recorded profits in the financial year ending 31st March 2006 and 2008, losses of K3.77 billion and K16.05 billion were incurred in 2007 and 2009 respectively".
Irregular payments:
Forty nine (49) payment vouchers in amounts totalling K241,442,834 and four (4) payment vouchers in amounts totalling US$16,308.28 were inadequately supported in that they lacked receipts, acquittal sheets or other supporting documents.
Poor procurement:
On 3rd April 2008 NACL awarded a tender for the supply, delivery, installation, testing and commissioning of 800 KVA Three Phase 50Hz 1500 RPM Standby Generator Set at Lusaka International Airport to Sulmach Limited at a contract price of K1,410,000,000 with a delivery period of twenty (20) weeks. Works commenced on 14th May 2008 and were scheduled to be completed by 15th October 2008. A total of K1,142,003,600 (inclusive of an advance payment of K846,000,000) representing 80% of the contract price had been paid to the contractor as of August 2009 leaving a balance of K267,996,400 outstanding.....

A physical verification of the civil works carried out in August 2009, revealed that construction works had stalled as shown in the picture below and the contractor was not on site.
And we can continue....

Next Stop : National Heritage Conservation Commission 

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