17 ghost workers paid in Judiciary paid K275,291,163

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Auditor General Anna Chifungula
Auditor General Anna Chifungula

THE latest Auditor General’s report on parastatal bodies has revealed that 17 ghost workers in the judiciary were irregularly paid salaries amounting to K275,291,163 from January to December 2012.

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The report has exposed irregular payment of salaries and allowances in the judiciary and that management maintained 17 employees on the payroll in Western, North- Western, Copperbelt and Lusaka Provinces, who had either resigned, died, retired or were unknown to supervisors.
According to the report, an analysis of the Payroll Management Established Control (PMEC) records for  January to December 2012,  revealed that gross payments  amounting to K275, 291, 163 were irregularly paid to 17 employees that were not supposed to be on the payroll.
In addition, 12 employees that were accommodated in Government quarters at various stations on the Copperbelt were also receiving housing allowance.
The report shows that K30, 210, 951 was irregularly paid to the officers as housing allowance.
The report also shows that the Zambia Development Agency (ZDA) director general received US$60, 000 without deducting and remitting Pay As You Earn (PAYE) to the Zambia Revenue Authority (ZRA).
The report shows that the director general received an additional US$2,000 from ZDA funding from government and no taxes were deducted and remitted to ZRA.
According to the report, a scrutiny of the contract for the director general revealed that he was to be receiving donor funded monthly income amounting to US$2,000 in addition to his salary.
It also reveals that clause 5.2 of the director general’s contract exempted the additional monthly income from PAYE tax.
“The exclusion of that portion of his income from emoluments from being taxed is a contravention of Cap 323 of the Laws of Zambia, Income Tax Act Schedule 11 which does not include such incomes among tax exempt incomes,” the report reads in part
According to the report, amounts totalling US$60,000 were paid from May 2011 to October 2013 without deducting and remitting PAYE to ZRA.
The report indicates that although the contract stated that the ZDA director general was to be paid additional monthly income of US$2,000 from donor funds, there were no donor funds received during the stated period.

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