The latest Auditor General’s report for 2014 has revealed gross misapplication of funds amounting to K73.6 million.

This represented an increased compared to the figure of K65 million recorded in 2013.

The report of the Auditor General on the Accounts of the Republic for the financial year ended 31st December 2014 is out with an unvouched expenditure of K390 million compared to K67 million in 2013.

According to Lusaka Times online publication, issues related to the failure to undertake activities that were funded totaling K55 million under the Constituency Development Fund.

It further highlights the failure to remit statutory contributions by various institutions amounting totaling K54 million.

Unvouched expenditure is where payment vouchers are either missing, unsupported or inadequately supported by relevant documents such as receipts and purchase orders.

The report has also highlighted misapplication of funds as the second highest irregularity.

Misapplication arises when controlling officers applied resources on activities other than those for which the funds were appropriated by Parliament and for which no authority was sought from the Secretary to the Treasury to vary funds.

The failure to remit statutory contributions mainly comprise the non-remittance of taxes to ZRA and non-remittance of NAPSA contributions both of which attracted penalties.

The report also highlights infrastructure projects that were either delayed in being completed or whose executions were not done in line with the contract terms. In some cases contractors abandoned projects after being paid advance payments and had not returned to construction sites as of December 2015.

Meanwhile, the Auditor General’s Office has issued six performance audit reports of which two have since been tabled.

The two reports that were tabled are on the Management and Control of Livestock Diseases and Sustainable Management of Fish Resources in Natural Waters.  These reports interrogate the economy, efficiency and effectiveness of government programs and activities.-LT

Categorized | Business

Comments are closed.

Our Sponsor

Jevic Japanese Auto Inspections

Social Widgets powered by