17 councils in K8.1m statutory debt – Auditor General’s report

Auditor General Anna Chifungula
Auditor General Anna Chifungula

ABOUT K8.1 million deducted from employees in 17 local authorities was not remitted to pay statutory obligations, the latest Auditor General report has revealed.
Auditor General Anna Chifungula’s report showed that the local authorities owed K7.6 million in Pay As You Earn (PAYE), K220,642 was owed to the Local Authorities Superannuation Fund (LASF) while K217,440 was owed to the National Pension Scheme Authority (NAPSA).
The affected local authorities were, Mansa, Milenge, Kawambwa, Samfya, Nchelenge, Ndola, Mufulira, Kitwe, Luwingu, Kaputa, Mporokoso, Mongu, Senanga, Livingstone, Sinazongwe, Mazabuka and Siavonga.
The report on the management of CDF and grants to local authorities also stated that the Livingstone City Council inflated retirement packages and fraudulently paid, Oscar Nyaywa, who was not a former council employee but an acquaintance of accountants in charge of processing payments.
A review of cheque counterfoils, cash books,ledgers and payment vouchers revealed that three payments amounting to K6,840 were made to three retirees from June to September 2012.
She said a scrutiny of the paid out cheques with the same cheque numbers revealed that instead of the approved amounts of K6,849 being processed, the figure was inflated to K16, 340 and paid to a Mr Nyaywa.
“Inquires with the Town Clerk revealed that a Mr Oscar Nyaywa was actually an acquaintance of the accountants who were in charge of processing the payments,” she said.
In Nalikwanda Constituency, the council irregularly paid K13,840 from the CDF to cater for rentals of Nalwei police post and accommodation for three police officers.
In Senanga District, the council irregularly transferred K83,390 involving 14 transactions, from the CDF account to the district fund account and applied on the daily operations of the council, contrary to the guidelines.
In Monze District, the council neglected CDF guidelines by purchasing furniture for the chamber and new offices, using K54, 588 CDF.
In Lusaka Province, the Lusaka City Council and their Chilanga counterparts spent K13, 889 from the CDF to insure an ambulance and a grader, contrary to guidelines.
She said 42 payment vouchers amounting to K479, 951 processed at five local authorities, were not availed for audit.
On unsupported payments, 324 payments involving K3 million processed at 33 local authorities, were not supported with relevant documents such as quotations, cash sale receipts and local purchase orders among others.

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