Auditor General (AG)
Anna Chifungula has disclosed over K12 billion was misapplied at the Ministry of Works and Supply on the
completion of Chirundu Border Facilities and the rehabilitation of the
According to her report for the financial year
ended 2008, the Ministry received a total of K15,000,000,000 and only
K2,927,701,781 was spent on redesigning of the stadium while K12,072,298,219 was
used for the border facilities.
The report has revealed that as at June 2009, works on the
rehabilitation of the stadium had stalled.
The report has also exposed
that out of a total K7 billion budgeted and released for a project, an amount of
K440,828,830 was incurred leaving a balance of over 2 billion which was not
utilized on the project despite two interim payment certificates totalling
K748,604,966 being issued in favour of the contractor.
contractor was paid K383, 133,650 in March 2009 from the 2009
On the missing payment vouchers the report has revealed that
there were payments amounting to K457,063,500 involving thirteen (13)
transactions in 2007 and K23,188,765 involving four (4) transactions in 2008
which were not vouched and were either missing or lacked supporting documents
such as receipts, local purchase orders and quotations among
Financial irregularities at the same Ministry were also recorded
in the management of fuel, unaccounted-for stores and unretired
Report states that during the year under review there were no
receipts and disposal details about the procurement of fuel costing K1,
387,500,000 involving thirty (30) transactions and a further over K70 billion
involving 6 transaction procurements for stores was not accounted
The report further reveals that over K6 billion was also misapplied
in unretired imprest involving one hundred and thirty seven (137) transactions
paid to various officers in 2007 and 35 transactions in 2008
Local Government and Housing
The Auditor-General's report for the financial year ended
2008 has revealed that about K1,553,928,015 meant for grants to local
authorities were misapplied at the Ministry
of Local Government and Housing headquarters.
According to the
report, the misapplied funds were on unrelated activities such as payment of
members' subscription fees to ACCA and CIMA, and printing of
Christmas cards, among others.
Responding to the misapplication of funds
on September 29, 2009, the then ministry's Controlling Officer stated that most
payments were related to general grants and House of Chiefs
However, it was noted that the House of Chiefs had their own
budget line and therefore the propriety of making payment from the general grant
The AG's report also revealed that the ministry
misapplied a total of K14, 920,000,000 on the procurement of one hundred hearses
out of the total amount of K50 billion provided for recurrent grants to local
Police Service entered into contractual obligations amounting to K6,765,654,320
for the procurement of motor vehicles for the service disregarding a budget
provision of K2,990,000,000.
This has resulted in an over commitment of
K3,775,654,320 as has been revealed in the Auditor General's report for the
financial year ended 2008.
The controlling officer for the service stated
in her response that the over commitment would be taken care of since the
department had a three year budget plan framework called MTEF.
in their minutes of October 27, 2008, the central tender committee advised that
it was a misdirection to commit next year's budget to current
The AG's report also revealed that although a total amount
of K2,990,000,000 was released, the service made payments in amounts totaling
K3,477,902,208, resulting in excess expenditure of K487,902,208.
explaining the excess expenditure, the controlling officer stated that the
additional funds were obtained from Appropriation-In-Aid which was brought
forward from the previous year.
The AG's report however states that, the
explanation was not satisfactory as Appropriation-In-Aid is meant for a
particular financial year and can therefore not be carried forward to another
The report states that all unspent funds are supposed to
be surrendered to the treasury at the end of each financial year.