The Auditor General has revealed that the Ndola City Council (NCC) sold 62 plots to 133 different buyers resulting into one plot being owned by two or three people.
And the Auditor General has revealed that NCC employed 11 unqualified people to key positions like Chief Accountant and Senior Procurement Officer.
Meanwhile, the Auditor General revealed that eight out of 12 NCC accounts had been overdrawn by K5,885,827.
In the reports on operations of local authorities for the years ended 31st December 2014, 2015 and 2016, the Auditor General revealed that the council had sold one plot to more than 2 people.
“During the period under review, the Council sold 62 plots in Dolla Hill from which amounts totaling K1,311,874 were realized. However, it was observed that the plots were sold to 133 applicants resulting in each plot being allocated to two or three applicants. As at 31st December, 2017, the anomaly had not been rectified,” read the report.
“A review of land allocation records from the Revenue Department revealed that amounts totaling K2,533,600 were collected from 325 members of the public as service charges upon which offer letters were generated during the period from 2014 to 2016. Inquiries made revealed that the applicants had not yet been allocated with plots as at 31st December 2017. Furthermore, contrary to procedures regarding land allocation, there was no evidence that the council had advertised plots for issuance to members of the public.”
The Auditor General observed that there was a lack of separation of duties at NCC, whereas the chief internal auditor was also found allocating plots.
“According to the job descriptions and records pertaining to land management, land allocation matters were to be administered by the legal department headed by the Director Legal Services. However, apart from being in charge of internal audits, the Chief Internal Auditor was also in charge of land allocation,” the report read.
And the Auditor General revealed that the council had employed unqualified staff to key positions.
“A review of job descriptions revealed that there were 11 positions that were held by employees who did not meet the minimum requirements for the positions of chief accountant, senior procurement officer and senior legal assistant, Manager IT and building inspector,” the report read.
“Contrary to the Employment Act No 15 of 2015, which states that a body corporate that engages a casual employee for a job that is permanent in nature commits an offense and is liable upon conviction, during the period January to December 2016, Ndola City Council engaged 353 casual workers in the categories of refuse crewmen, market cleaners, street cleaners, land leveling, gardening workers, car park attendants and paid them wages in amounts totaling K3,813,046. As at 31st August 2017, Ndola City Council owed amounts totaling K1,928,234 to the 353 to the casual workers in unpaid wages for a period of 11 months.”
Meanwhile, the Auditor General revealed that eight NCC accounts were overdrawn by K5,885,827.
“Examination of financial statements and bank reconciliations revealed that eight of 12 bank accounts had been overdrawn by amounts totaling K5,885,827 as at 31 December, 2016. However, due to non-availability of records, it was not possible to ascertain the interest or charges to the council in respect of servicing the overdrafts,” read the report.
The Auditor General revealed that the council was owing K66,754,892 as at December 31, 2016 in respect of various staff obligations such as salary arrears and terminal benefits.
Further, according to the Auditor General, NCC owes statutory contributions and PAYE in amounts totaling K122,015,975 that were deducted from employees’ salaries during the period under review; K56,871,206 to ZRA and K65,144,769 to NAPSA.