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PARASTATALS FAIL TO SETTLE k1.7 BILLION

ACCORDING to the Auditor General’s report on accounts of 16 parastatal bodies and other statutory institutions for the 2017 financial year, it has revealed that the entities failed to settle statutory obligations amounting to K1.7 billion.

Auditor General’s Head of Public Relations Ellen Chikale said the implication of the irregularities is that government has been deprived of revenue in non-remittance to the National Pension Scheme Authority and contributions to the Local Government Superannuation Fund.

She said workers will disadvantage workers in terms of benefits at the end of their employment.

Other irregularities highlighted in the report are weaknesses in corporate governance and contract management failure to produce financial statements, as well as poor financial and operational performance.

“In the report, failure to settle statutory obligations ranks highest at K1.7 million followed by wasteful expenditures at K439 million,” she said.

“The other shortcomings are failure to recover loans of K54 million, unsupported payments of K13 million, missing payment vouchers for K5 million and an accounted for stores at K4 million.”

Other anomalies cited in the report are unretired imprest of K781,004, undelivered stores at K821,700, while irregular payments are at K293,037.

 

 

 


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