Economy

Auditor General Reports Huge Waste at Zambia’s State-Owned Companies

The Auditor General Anna Chifungula has released a second 2010 Report on parastatals highlighting glaring irregularities and abuse of funds amounting to over K1 trillion.

Some of the parastatals mentioned in the report are the Citizens Economic Empowerment Commission (CEEC), Electoral Commission of Zambia (ECZ), National Housing Authority (NHA), National Pension Scheme Authority (NAPSA) and the Road Traffic and Safety Agency (RTSA).

Others are the University of Zambia (UNZA), Zambia Revenue Authority (ZRA), ZESCO Limited, ZAMTEL and the Administrator General and Official Receiver.

This is according to a press statement by public relations officer in the office of the Auditor General Ellen Chikale.

Chikale said Chifungula was shocked at the amount of abuse in the companies audited so far.

Chikale said there was unretired imprest amounting to K1, 525,924,347 while irregular payments totaled K 651,716,852,524.

The report revealed that K35, 313,333,764 was inadequately supported while there was K603, 187,280 unaccounted for by the institutions.

Chikale said the findings revealed a K5, 607,388,318 from failure to follow tender procedures and a further K190, 505,273,451 of non Payment of Statutory Contribution.

The parastatal companies also misapplied a total of K9, 197,300,000 adding that K159, 598,828,919 was not recovered from the loans.

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