THE Auditor General’s Report on the audits of accounts of local authorities for the financial year 2018 and 2019 has revealed that Kasama Mayor illegally drew fuel costing K20,270 from the council’s account despite being paid fuel allowance in June and December 2018.

And the Report stated that the Council acquired a loan of K1,950,000 without authority from the Secretary to the Treasury.

The Report also revealed that fuel costing K21,213 was drawn by private motor vehicles between January and December 2018 without authority.

“According to Ministry of Local Government Minute No. MLGH/71/6/93 dated 15th October 2012, officers that are entitled to fuel allowance should not draw fuel from the Council’s fuel account. However, the Mayor who was receiving fuel allowance irregularly drew 1,511.57 litres of fuel costing K20,270 between June and December 2018. In addition, fuel costing K21,213 was drawn by private motor vehicles between January and December 2018 without authority,” the Report stated.

“Local Authorities Financial Regulation No. 12 (h) states, ‘the Treasurer shall collect punctually all revenue and other Council money which become due and payable to the Council’. However, as at 31st December 2019, the Council failed to collect amounts totalling K1,941,829; petroleum levy K73,000 and property rates K1,868,829. Local Authorities Financial Regulation No 69 requires that a receipt should be issued by the receiving officer whenever Council money is received. However, amounts totalling K258,953 deposited during the period under review were not supported by receipts and deposit slips. It was therefore not possible to ascertain the completeness of the funds deposited.”

And the Report stated that the Kasama Council acquired a loan of K1,950,000 without authority from the Secretary to the Treasury.

“Section 26 (2) of the Public Finance Management Act No1 of 2018 states ‘a public body shall not borrow and lend monies except with the written authority of the Secretary to the Treasury’ .On 7th November 2018, Kasama Municipal Council signed an agreement with Zambia National Commercial Bank ZANACO PLC for a loan facility of K2,500,000. The purpose of the loan was to meet the local authority’s capital expenditure requirements. The loan was secured on property Plot No. 2009 currently used as Kapongolo Motel in Kasama town. As at 31st October 2020, the bank had released K1,950,000. Contrary to the Act, Kasama Municipal Council acquired the loan without authority from the Secretary to the Treasury,” the report stated.

The Report stated that 60 payment vouchers in amounts totalling K869,237 made during the period under review were not availed for audit.

“Local Authorities Financial Regulation No. 98 (1) states, ‘all payment vouchers with supporting documents, and any other forms which support a charge entered into the accounts, shall be carefully filed, secured and be readily available for audit’. Contrary to the regulation, 60 payment vouchers in amounts totalling K869,237 made during the period under review were not availed for audit. In addition, eight payments in amounts totalling K175,693 were not supported with documentation such as contracts, receipts and medical schemes,” the Report stated.

“During the period under review, several officers were overpaid lunch allowance in amounts totalling K25,500 in relation to the Sun Funded Project activities. As at 31st October 2019, although the Council had refunded the overpayment to the project, the funds had not been recovered from the officers. Local Authorities Financial Regulation No. 119, (1) states, ‘ special imprest shall be retired immediately after the purpose for which it is issued has been fulfilled’. Contrary to the regulation, accountable imprest in amounts totalling K157,958 (2018 – K77,823 and 2019 – K80,135) issued to several officers during the period under review had not been retired as at 31st October 2020. On 22nd December 2017, the Council paid K175,856 to Palm Soft Computer Application Limited for the supply and installation of a billing software. However, the software had not been delivered as of 31st October 2020.”

The Report further stated that as at 31st December 2019 the Council owed former and existing employees amounts totalling K4,864,610 in respect of various staff obligations.

“As at 31st December 2019, the Council owed the Zambia Revenue Authority (ZRA), Local Authorities Superannuation Fund (LASF) and National Pension Scheme Authority (NAPSA) amounts totalling K21,073,311 in respect of tax and pension contributions some of which had been outstanding from as far back as 2017. As at 31st December 2019, the Council owed former and existing employees amounts totalling K4,864,610 in respect of various staff obligations such as retirement benefits and long service bonuses some of which had been outstanding from as far back as 2015,” stated the Report.