KR2.4m FRA cash uncollected – audit report

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s=”f”>Times of Zambia by mitia on 6/20/13

THE latest Auditor General’s report has revealed that the Food Reserve Agency (FRA) had 30 cases ruled in its favour by the courts of law but failed to collect more than KR2.4 million from successful litigation.
Auditor General Anna Chifungula said in the report reviewing accounts of parastatal companies for the financial year December 2011 that FRA incurred legal costs amounting to KR1.2 million.
Another anomaly noted was the Agency’s failure to produce audited financial statements and annual reports for the financial years ending March 2009, December 2010 and 2011.
Ms Chifungula said this was contrary to the Act which required FRA to produce audited financial statements and annual reports.
The report said Chimsoro Polymers Limited was paid KR100, 000 in respect of a contract awarded in July 2007 for the supply and delivery of 1,720,000 empty grain bags worth KR2.3 million.
“It was observed that at the time of awarding this contract, the Agency’s Board chairperson was also director of Chimsoro Polymers Limited.
“However, there was no documentary evidence of the chairperson’s declaration of interest,” Ms Chifungula said.
She questioned the payment of KR145, 000 as sitting allowances for seven meetings, where minutes were not availed for audit.
She said the board held 21 other meetings for which KR451, 000 was paid as sitting allowances.
On irregular awarding of waivers, it was observed that in a submission to the Public Accounts Committee (PAC), the controlling officer stated that the policy document on the waiver was available for verification.
The Auditor General’s report for 2010 on the accounts of parastatal bodies questioned waivers of storage charges without authority from the Board.
Ms Chifungula said PAC, in its report to the first session of the 11th National Assembly, recommended that the approved policy be availed to her office for verification and that disciplinary action be taken against any officer who authorised the waivers without approval from the Board.
“A review of the situation revealed that, as of November 2012, the status had not changed in that MOFED did not have an approved policy on waivers and granting of discounts to customers,” she said.
It was further observed that the situation had continued during the period under review as 14 customers were given 100 per cent storage charge waivers while one was given 50 per cent in a