The Auditor General’s Report on public accounts for the financial year ended December 31, 2018, has revealed some irregularities in the awarding of Frequent Road User Discounts (FUDs) by the National Road Fund Agency (NRFA).
The Report has further disclosed that the NRFA still has no tittle deeds for the seven pieces of land costing K2,410,000 acquired for the construction Shimabala, Katuba, Mike Munakombwe, Kafulafuta, Manyumbi and Chongwe Toll Plazas.
In the report released last week, the Auditor General disclosed that government lost amounts totaling K33,085 as a result of allowing 94 named vehicles to pay frequent road user discounts at Kafulafuta and Manyumbi toll stations when they did not meet the minimum of passing at least 10 times on a toll gate within a month.
“In paragraph 13b (iii) of the Report of the Auditor General on Accounts for the Republic for the financial year ended 31st December, 2017, mention was made on 11,348 vehicles, which irregularly paid FUDs, which resulted in the revenue loss of K1,091,814. A review of the records carried out in January, 2019, relating to FUDs at four toll stations revealed that the situation had continued. It was observed that 94 vehicles paid at FUDs without passing at least 10 times within a month on a toll station. As a result, revenue in amounts totalling K33,085 was lost,” the Report disclosed.
And the Report further revealed that government, through the NRFA, did not possess tittle deeds for the seven pieces of land acquired for the construction Shimabala, Katuba, Mike Munakombwe, Kafulafuta, Manyumbi and Chongwe Toll Plazas.
“The Land Act No. 29 of 1995 requires that institutions or individuals owning land should have or possess title deeds as proof of ownership. It was, however, observed that the NRFA did not have title deeds for the seven pieces of land costing K2,410,000 acquired for the construction of Toll Plazas in the areas listed below: Shimabala, Katuba, Mike Munakombwe, Kafulafuta, Manyumbi and Chongwe,” it stated.
Meanwhile, the Report revealed that unaccounted for revenue for inland tolling amounted to K3,340 involved four transactions at Kapiri Mposhi weighbridge in Central Province.
“Financial Regulation No. 129 (1) stipulates that collectors of revenue are required to bring to account daily the whole amount of their collections. However, it was observed that revenue in amounts totaling K3,340 (US $320) collected in 2018, involving four transactions at Kapiri Mposhi weighbridge could not be verified as having been banked in that there were no deposit slips and bank statements to support the banking and no cash was found on hand,” stated the Report.