THE Auditor General has revealed that the Ministry of Finance has failed to service loans amounting to US$123,446,502 which Government borrowed from Brazil, Iraq and China.
According to the report on the accounts of the republic for the financial year ended December 31, 2012, loans from Brazil and Iraq were last serviced in 2001 and 1984, respectively.
The report reveals that loans from China have never been serviced and interest has since accumulated to US$44,906,325.
The report has also revealed that the Ministry of Finance has failed to monitor and manage bonds and treasury bills.
According to the World Bank and the International Monetary Fund (IMF), the Ministry of Finance is required to sign an agency agreement with the Bank of Zambia (BoZ) aimed at putting in place tools and responsibilities that the two parties are to undertake.
The report reveals that it is difficult to ascertain whether there is effective monitoring and management of bonds by the ministry of Finance as it does not maintain such records.
Additionally, the report revealed that the ministry of Finance did provide reports showing the debt stock for the pre and post Highly Indebted Poor Countries (HIPC) position of the country.
The report revealed however that the current public debt of the country has increased from K21,482,311,336,003 in December 2011 to K30,788,792,769,758 as at December 2012.
The increase represents 43 percent and the increase has been attributed to new borrowing made in 2012.