Country losing revenue, as state firms fail to remit K3.4bn

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Parastatal and statutory institutions failed to remit statutory obligations amounting to 3.4 billion Kwacha.

This is according to the Report of the Auditor General on the accounts of Parastatal Bodies and other statutory institutions for the financial year ended December 31, 2018.

The notable institutions cited in the report include the University of Zambia which accounted for 81-percent or 2-point 7 billion Kwacha of the total amount the institutions failed to remit.

The other is the Nitrogen Chemicals of Zambia which accounted for 14 percent or 465 million Kwacha.

The office of the Auditor General says four out of 16 institutions audited made irregular payments in amounts totalling over four million Kwacha.

The report reveals that the implication of the irregularity is loss of revenue to government in the case of non-remittances to ZRA and risk of failing to pay employees when they retire in case of National Pensions Scheme Authority and Workers Compensation Fund Control Board.

The report also revealed that four out of the sixteen institutions made questionable payments in amounts totaling 4.6 million Kwacha.

The Report further says that at the Nitrogen Chemical of Zambia, commissions were paid to agents without evidence of facilitated sales.

Office of the Auditor General head Public Relations, Ellen Chikale told the public broadcaster in a statement that circumstances included continued payments based on expired contracts, insurance claims paid to officers instead of the institution which insured the assets

She said the other irregularities highlighted were failure to produce financial statements, poor financial and operational performance and Weaknesses in contract management among others.


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Start: 2019-07-01 End: 2019-07-31