The latest Auditor General’s report on parastatals reveals glaring irregularities and abuse of funds amounting to over K1 trillion. 21 institutions had their 2010 accounts combed, revealing irregularities such as unretired imprest (totalling K 1.5 billion), unsupported payments (K 35.3 billion) and irregular payments (K 651.7 billion). Other irregularities included failure to follow tender procedures and pay statutory contributions. Money was unaccounted for, misapplied, not recovered from loans and misappropriated. Parastatals found wanting included Citizens Economic Empowerment Commission, Electoral Commission of Zambia, National Housing Authority, National Pension Scheme Authority, Road Traffic and Safety Agency, University of Zambia, University Teaching Hospital, Zambia Revenue Authority and ZESCO.
Several examples were highlighted in the media: The Citizens Economic Empowerment Commission spent K9.1 billion on operational activities without seeking authority from the Secretary to the Treasury. Zampost rented a house for its Lusaka area manager – despite that same house being owned by the area manager. The University Teaching Hospital had made payments of K5.7 billion without supporting documents such as receipts or invoices. The National Housing Authority had not paid the Ministry of Finance K3.7 billion collected from the sale of properties seized by the old Taskforce on Corruption. The National Institute of Public Administration procured goods and services worth K2.4 billion without the required three competitive quotations.
And the list goes on. We are hoping to get hold of the report and dig into a little more detail on the website after we complete the constitution review.