AUDITOR GENERAL REVEALS WASTEFUL EXPENDITURE
… from K3.7m in 2019 to K1.4bn in 2020
By FLAVIOR KANUNGO
WASTEFUL expenditure was the largest irregularity revealed in the Auditor General’s report, with a rise from K3.7 million in 2019 to K1.4 billion in 2020 representing an increase of 378 percent.
According to the Auditor General account of the republic for the financial year ended December 31, 2020, the second largest irregularity was failure to follow procurement procedures in amounts totalling to K234 million in 2020 from K504, 500 in 2019 representing 463 percent increment. Speaking at a press briefing yesterday, Auditor General Dick Sichembe explained that the irregularities involves the Ministry of Finance, Food Reserve Agency.
Other ministries cited were Housing and Infrastructure, Transport and Communication, General Education and Fisheries and Livestock among others.
Dr Sichembe also disclosed that other irregularities that have seen an upward trend include unvouched expenditure, unaccounted for revenue, irregular payments, failure to recover loans and unaccounted for funds among others.
He said his office through its forensic and investigation unit will actively follow the matter to understand the motive behind such expenditure.
Meanwhile, the Auditor General’s report on parastatal bodies and other statutory institutions for the financial year ended December 31, 2019 has revealed poor financial performance such as failure to collect funds in amounts totalling K16. 6 billion followed by failure to remit and settle statutory obligations of K1 billion during the period under review.
Dr Sichembe also disclosed that entities such as National Pensions Scheme Authority, Energy Regulation Board, Zambia Postal Services and Local Authority Superannuation Fund failed to collect and remit employees’ contributions from several employers amounting to K3.5 billion and rentals.