The Auditor General has revealed that the Kabwe Municipal Council shared 66 plots at give away prices, without authority from the Ministry of Local Government, which resulted in a loss of K850,500.

And the Auditor General has revealed that the Kabwe Council owes K20,022,827 in respect of various staff obligations.

In the latest report on councils, the Auditor General revealed that the Kabwe council employees bought 66 plots at only K94,500.

“66 plots were issued to officers at the council at a total offer price of K94,500. The amount offered was only 10 per cent of K945,000 that could be realized if the plots were offered under the terms used to offer to the general public resulting in reduction of the revenue from land charges by a sum K850,500. However, there was no approval from the Ministry of Local Government for the council to offer the plots to its employees at the discounted price,” read the report.

And the Auditor General revealed that the council owed K20,022,827 in various staff obligations, whilst it spent K72,117 on various activities which were not undertaken.

“A review of accounting and other records revealed that amounts totaling K20,022,827 in respect of various staff obligations such as retirement benefits and long term bonuses among others were owed to former and existing employees as at 31st December 2017,” read the report.

“During the period under review, amounts totaling K72,117 were paid out to various officers for them to undertake various activities such as inspections and monitoring among others. However, there were no activity reports produced to confirm that the activities were undertaken.”

Meanwhile, the Kabwe Council paid a supplier K78,400 for a work station when he quoted K58,800 without supporting documents to show at which point the price was hiked.

“During the period under review, the council procured office work stations costing K78,400 from Daviba General Dealers. A review of documentation availed for audit scrutiny revealed the following observations: contrary to public procurement guideline No 1 of 2012, the amount approved by the Town Clerk was above the Town Clerk’s authorized threshold of K50,000. Daviba General Dealers quoted K58,800 to supply the work stations but the council paid the supplier K78,400 resulting in an over payment of K19,600. Although the work stations were delivered, there was no documentation to show how the price was adjusted upwards by K19,600,” read the report.

The Auditor General also revealed that the Kabwe Council owed ZRA K4,160,760 whilst it owed NAPSA K3,912,651 in statutory contributions and PAYE.