THE Auditor General’s Report on the audits of accounts of local authorities for the financial year 2018 and 2019 has revealed that Kabwe Town Council failed to collect a balance K719,850 from the sale of residential and stall plots.
The Report stated the Council did not collect rent in amounts totalling K331,032 from 100 properties as at 31st October 2020.
“Local Authorities Financial Regulation No 12 (h) requires the treasurer to collect punctually all revenue and other Council moneys which become due and payable to the Council. Contrary to the regulation, the following were observed: during the period under review, the council offered 208 residential and 685 stall plots from which revenue in amounts totalling K4,066,800 was expected to be collected,” read the Report.
“However, out of the expected revenue of K4,066,800 from the sale of plots, the Council collected amounts totalling K3,346,950 leaving a balance of K719,850 as at 31st October 2020. Contrary to the regulation, the Council did not collect rent in amounts totalling K331,032 from 100 properties as at 31st October 2020. A review of the tipping reports in respect of various transporters of waste revealed that three transporters had not paid fees in amounts totalling K19,982 during the period under review.”
The Report stated that as at 31st December 2019, the Council owed former and existing employees amounts totalling K21,149,453 in respect of accrued leave days.
“As at 31st December 2019, the Council owed the Zambia Revenue Authority (ZRA), National Pension Scheme Authority (NAPSA) and Local Authority Superannuation Fund (LASF) amounts totalling K64,685,561 in respect of tax and pension contributions. As at 31st December 2019, the Council owed former and existing employees amounts totalling K21,149,453 in respect of accrued leave days, long service bonus and terminal benefits,” the Report read.
The Report further stated that capital projects which were being constructed from Constituency Development Fund that was released in 2018 were not yet complete as at 2020 October 2020.
” In the Estimates of Revenue and Expenditure for the financial years ended 31st December 2018 and 2019, a total provision of K6,000,000 was made as Constituency Development Fund (CDF) to cater for two constituencies and an amount of K3,200,000 was released in 2018 resulting in an underfunding of K2,800,000. The Ministry approved 11 projects to be implemented in Bwacha Constituency. A physical inspection of selected projects carried out in October 2020 revealed that there were delays in the completion of projects,” read the Report.