Secretary to the Treasury Fredson Yamba yesterday failed to present before the Parliamentary Committee on Parastal bodies documents to prove that the $50 million Eurobond acquired to recapitalize NCZ was used for the intended purpose.
Appearing before the committee which was chaired by Msanzala PF member of parliament Peter Daka, Yamba said government did not receive a report from NCZ but assured the committee that his office would in future present proof of usage.
Late last year, NCZ denied having received the $50 million Eurobond saying that the money never reached the institution.
And the Auditor General’s report for the year ended 31st December 2013, 2014, 2015, and 2016 revealed that from 2006 to date, there were no audit accounts for NCZ.
But speaking when Yamba and his team appeared before the committee yesterday, Namwala member of parliament Moono Lubezhi observed that due to the lack of audited accounts for NCZ, it was difficult for one to believe that the $50 million Eurobond was invested in NCZ.
“On Nitrogen chemicals of Zambia, 2006 to date, no audited accounts. In 2013, you gave them a share from Eurobond, since they don’t have audited accounts, from the auditor general’s point of view, there is nowhere in the books where we trace this from NCZ side. On your side, are you able to prove to us that this 50 million euros reached NCZ?” Lubezhi asked.
In response, Yamba said government would in the near future produce the evidence of the Eurobond usage.
“With regard to the usage of the Eurobond, we did get a report when they were doing the rehabilitations at the time we disbursed the funds. So in future, we can present a report with regard to the way the Eurobond was used by NCZ. I think that is something that we have in our custody,” responded Yamba.
“With regard to the issues raised by Honorable Lubezhi on NCZ receiving 50 million Euros, when we were releasing the Eurobond, it was in dollars and the monies that were released to NCZ honorable chairperson and Honorable members of the committee was for the rehabilitation of the plant. If you do recall at that particular time, NCZ was not producing any compound-D. Actually Kafue was more less like a ghost town. It was after the infusion of the Eurobond that NCZ now started producing compound-D [fertilizer]. So apart from that, we did not put in any extra money.”