REPUBLIC OF

APPENDIX 2

OUTSTANDING ISSUES REPORT

ON THE

PREVIOUS REPORTS OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS

AND PUBLIC ACCOUNTS COMMITTEE

ON THE

REPORTS OF THE AUDITOR GENERAL

FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER, 2011 to 2017

TABLE OF CONTENTS

INTRODUCTION 1

PART I

CONSIDERATION OF THE TREASURY MINUTE ON THE REPORT OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS ON THE REPORT OF THE AUDITOR GENERAL ON THE REVIEW OF OPERATIONS OF LOCAL AUTHORITIES FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER, 2015, 2016 AND 2017, FOR THE FOURTH SESSION OF THE TWELFTH NATIONAL ASSEMBLY, APPOINTED ON 21ST SEPTEMBER, 2017

Chadiza District Council. 1 Council 2 Chililabombwe Municipal Council 15 Chinsali Municipal Council 17 Chipata City Council 20 Council 26 Choma Municipal Council 30 Chongwe Municipal Counci 34 Ikelengi Municipal Coucil 37 Council 42 Kabwe Municipal Council 48 Council 56 Kaputa District Council 60 Kasama Municipal Council 62 Council 69 Livingstone City Council 71 Luano District Council 83 Lufwanyama Municipal Council 85 Council 86 City Council 91 Mansa Municipal Council 91 Mbala Municipal Council 92 Mongu Municipal Council 93 Council 97 Ndola City Council 99 District Council 106 Council 108 Council 110 Council 117 Council 122 Solwezi Municipal Council 125 Council 128

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PART II

OUTSTANDING ISSUES ON THE PREVIOUS REPORTS OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS AND THE PUBLIC ACCOUNTS COMMITTEE FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER 2011 TO 2016

Chingola Municipal Council 133 Chinsali Municipal Council 139 Chipata City Council 146 Chipili District Council 150 District Council 152 Choma Municipal Council 157 Chongwe Municipal Council 160 Kabwe Municipal Council 164 Council 174 Council 176 Council 184 Kasama Municipal Council 190 District Council 197 Council 202 Kitwe City Council 206 Livingstone City Council 211 Council 213 Luanshya Municipal Council 217 Lusaka City Council 223 Council 226 Mansa Municipal Council 228 Council 231 Mongu Municipal Council 234 Council 239 Mufulira Municipal Council 242 Council 245 Mwense District Council 248 Council 249 Nchelenga District Council 257 Ndola City Council 261 Council 278 Council 281 Serenje District Council 286 Siavonga District Council 291 Solwezi Muncipal Council 295

PART III 301 APENDIX 1 307

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Introduction Part I of this report contains the Treasury Minute on the Committee on Local Government Accounts on the Report of the Auditor General on the Review of Operations of Local Authorities for the Financial Years Ended 31st December, 2015, 2016 and 2017, for the Fourth Session of the Twelfth National Assembly and the respective responses by the Secretary to the Treasury. Part II of this report is a summary of all outstanding issues on the previous reports of the Committee on Local Government Accounts and the Public Accounts Committee for the Financial Years Ended 31st December 2011 to 2016. In following up on the matters, the Committee on Local Government Accounts has given new recommendations and awaits new responses from the Secretary to the Treasury. The entire report contains matters that have not yet been closed and hence the numbering follow the original order in the Auditor General’s Report for easy traceability.

The Committee of Officials comprising of National Assembly, Auditor General, and the Ministry of Finance held 60 sittings from June 2020 to April 2021 to review matters that were either partially resolved or totally unresolved from the recommendations of the Public Accounts Committee and the Committee on Local Government Accounts reports for the Financial Years Ended 31st December, 2011 to 2017 in the Treasury Minutes (Action- Taken Reports) submitted by the Executive through the Secretary to the Treasury’s Office and tabled before Parliament by the Honourable Minister of Finance. These formed the working documents on Outstanding Issues after the review of the Treasury Minutes for the respective financial years. The Committee resolved to close some matters after consideration of the follow ups made.

The Secretary to the Treasury is strongly urged to ensure that a committee of officials and officers from the Department of Local Government Services at the Ministry of Local Government undertake follow up actions to reduce the volumes.

PART 1

OUTSTANDING ISSUES ON THE REPORT OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS ON THE REPORT OF THE AUDITOR GENERAL ON THE ACCOUNTS OF LOCAL AUTHORITIES FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER, 2015, 2016 AND 2017, FOR THE FOURTH SESSION OF THE TWELFTH NATIONAL ASSEMBLY, APPOINTED ON 21ST SEPTEMBER, 2017

CHADIZA DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 7 d) Misapplication of Funds - Equalisation Funds K3, 242,883 The Committee previously expressed concern over the failure by the Council management to ensure that other revenue mobilisation strategies, including updating its valuation roll, are employed to improve the liquidity of the local authority. It saddened the Committee that management willfully chose to misapply the 20% portion of the Local government Equalisation Fund (LGEF), contrary to the Local Government (Amendment) Act, No. 12 of 2014 and the Ministry of Local Government and Housing Circular No. MLGH/71/1/87 dated 30th March, 2015. The Committee found this situation unacceptable and the Council Secretary was strongly cautioned to desist from this practice. The Council Secretary was

1 further urged to ensure that the Council’s revenue base is improved so as to avoid this and similar irregularities. The Committee also directed the Council Secretary to expedite the reimbursement and submit all relevant documents to the Auditor General for verification. The Committee would await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the outstanding amount totaling K1, 963,172 was reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendations As reimbursement details have not yet been availed to the Office of the Auditor General, the Committee resolves to leave the matter open. The Secretary to the Treasury is directed to ensure that all available options are employed to ensure that the matter is resolved without further delay. A progress report will be awaited by the Committee. f) Failure to Obtain Title Deeds - thirty-six (36) properties The Committee previously expressed concern at the failure by the Council to secure its properties with title deeds. The Council Secretary was reminded that it would be difficult to defend themselves in case of disputes that may arise in relation to ownership of any of its properties. The Committee urged the Council Secretary to ensure that all its properties were secured with title deeds without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the remaining title deeds were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendations As title deeds have not yet been obtained and availed to the Office of the Auditor General, the Committee resolves to leave the matter open. The Secretary to the Treasury is directed to ensure that all available options are employed to ensure that the matter is resolved without further delay. A progress report will be awaited by the Committee.

CHAMA DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 8 a) Failure to Provide Receipt Books - K891, 498 The Committee previously found the reasons given for this irregularity unacceptable and observes that this practice could be used to conceal fraudulent activities happening at the Council. The Committee previously urged the Council Secretary to ensure that stern disciplinary action is taken against officers who failed to avail the receipt books to the auditors at the time of audit. The Committee directed that more concerted efforts be made to trace these documents and avail them for audit verification not later than 31st December 2019. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until receipt books supporting deposits amounting to K657, 330.05 was availed for audit scrutiny.

Committee’s Observations and Recommendations As supporting deposits have not yet been availed to the Office of the Auditor General, the Committee resolves to leave the matter open. The Secretary to the Treasury is directed to ensure that all available options are employed to ensure that the matter is resolved without further delay. A progress report will be awaited by the Committee. e) Failure to Update Valuation Roll The Committee previously found the lack of seriousness and laxity on the part of officers tasked with the responsibility of following up the preparation of the valuation roll unacceptable and calls for disciplinary action to be meted out against them for failure to perform their duties. The Committee previously noted with concern, in this regard, that failure to have an updated valuation roll will compromise the Council’s revenue base and present difficulties in the preparation of financial statements. The Committee previously urged the Controlling Officer, Ministry of Local Government, to support all local authorities to update their valuation rolls by providing the necessary expertise needed by the Councils to undertake this exercise. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Valuation Roll was updated and availed for audit scrutiny. i) Unsupported Payments K284, 698 The Committee previously found the explanation by the Council and observed that there is laxity on the part of officers tasked with the responsibility of ensuring safe custody of accountable documents at this Council. The Committee directed the Council Secretary to ensure that stern disciplinary action was taken against erring officers who failed to avail the receipt books to Auditor General at the time of audit and also that all the outstanding supporting documents were found and availed for audit verification without undue delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until 16 payments vouchers amounting to K97, 249.50 were availed for audit scrutiny.

Committee’s Observations and Recommendations As supporting documents have not yet been availed to the Office of the Auditor General, the Committee resolves to leave the matter open. The Secretary to the Treasury is directed to ensure that all available options are employed to ensure that the matter is resolved without further delay. A progress report will be awaited by the Committee. j) Irregular Payment of Subsistence Allowances K3, 070 While noting the submission, the Committee previously expressed concern at the failure by management to seek authority for these payments prior to undertaking the activities. The Committee was extremely displeased as it found that there was no urgency in the activities

3 that were undertaken which would warrant the payment of the allowances without obtaining the necessary authority. The Council Secretary was reminded that retrospective authority is itself an irregularity, and that he should, therefore, desist from even applying for it. The Committee, further, urged him to ensure that the amount is recovered from the concerned officers without further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Treasury reviews the application of payment of Daily Subsistence Allowance to districts with a large coverage area.

Committee’s Observations and Recommendations As the Treasury has not done reviews on the application of payment of Daily Subsistence Allowance to districts with a large coverage area and the same has not yet been availed to the Office of the Auditor General, the Committee resolves to leave the matter open. The Secretary to the Treasury is directed to ensure that the matter is resolved without further delay. A progress report will be awaited by the Committee. m) Failure to Avail Assets Ownership Documents - Sixteen (16) The Committee was disappointed that efforts to follow up with the process of insuring the properties were only made after the audit. The Committee cautioned the Council Secretary against this laissez-faire approach and urged him to ensure that all properties were insured without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until ownership documents were availed for audit scrutiny.

Committee’s Observations and Recommendations As the matter is yet be verified, the Committee resolves to await a progreee report on the finalization of ownership documents. n) Management of the Environment ii. Improper Disposal of Waste In noting the submission, the Committee previously urged the Council Secretary to ensure that he strictly adhered to license conditions. The matter was, however, recommended for closure subject to verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Dumpsite was approved by ZEMA and details availed for audit scrutiny.

Committee’s Observations and Recommendations As the dumpsite is not yet approved by ZEMA and details not yet been availed to the Office of the Auditor General, the Committee resolves to leave the matter open. The Secretary to the Treasury is directed to ensure that all available options are employed to ensure that the matter is resolved without further delay. A progress report will be awaited by the Committee.

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(o) Constituency Development Funds (CDF) K1, 420,640 The Committee previously found the reason given by the Council Secretary for this irregularity unacceptable. In this vein, the Committee previously urged the Council Secretary to mete out disciplinary measures against the officers responsible for allowing poor workmanship as their failure resulted in such a huge loss of public funds and denying the public the much needed service from the projects. The Committee further directed the Council Secretary to ensure that all outstanding works are completed without any further delay, and that all poorly done works are corrected and handed over promptly. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and the status of each project was as tabulated by the Table below:-

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Constituen Project Contractor Contract Contract Contract Amount Paid Scope of Works Project Status and other cy Date Start End Sum (K) (K) observations Chama Construction of Chilichonse 01/09/201 01/09/201 22/09/2015 20, 000 11, 285 Construction of a Although the works were South a Staff House at Nijume 5 5 staff house – No completed, the following Zoole Primary specifications were observed: School given and BOQs • Glass panes not not availed (Labour fixed for the kitchen, cost) storeroom and bedroom Thomas 30/07/201 30/07/201 14/08/2015 104, 640 104, 640 Supply of Building • Roofing has been Goma 5 5 Materials poorly done, in some places Suppliers using old iron sheets • Cracks had developed on the spoon drain.

Verification Status as of June 2020

The site was not reachable due to the terrain of the roads and management did not provide progress reports on the current status.

Therefore, The matter was outstanding. Construction of Kampheta 01/09/201 01/09/201 05/10/2015 20, 000 11, 000 Construction of a As at 28th February 2019, National General 5 5 staff house – No the building had not been Assembly Staff Dealers specifications completed. The following House at given and BOQs works were still Mangwele not availed outstanding.

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Chiboma 30/07/201 30/07/201 14/08/2015 98, 410 Supply of building • Beam filling Davidson 5 5 materials • Plastering Enterprises • Painting (interior and exterior) • window pane fitting • flooring • spoon drain

Verification Status as of June 2020

The site was not reachable due to the terrain of the roads and management did not provide progress reports on the current status.

Therefore, The matter was outstanding. Construction of Chalemanje 01/09/201 01/09/201 26/10/2015 60, 000 26, 000 Contract not Construction of the a 1*3 Class General 5 5 presented from classroom block was Room Block at Dealers which the scope of completed. However, it was Kabele Primary works was to be observed that the window School derived panes for the office were not Inner Change 30/07/201 30/07/201 14/08/2015 199, 225 59, 300 Supply of building fitted to frame Construction 5 5 materials & Suppliers

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Thomas Contract Contract Contract not 1, 540 Supply of building Goma not not presented materials Suppliers presented presented from which Verification Status as of from from details could June 2020 which which had been The site was not reachable details details derived due to the terrain of the could had could had roads and management did been been not provide progress reports derived derived on the current status. Therefore, The matter was outstanding. Construction of Namwima 01/09/201 01/09/201 13/10/2015 60, 000 10, 000 Contract not As at 28th February 2019, 1*3 Class Room General 5 5 presented from the building was at ring Block at Zebe Trading which the scope of beam level. The following Primary School works was to be were also observed. derived • Slab was not done Katsons 30/07/201 30/07/201 14/08/2015 258, 650 Supply of building • Works had stalled as General 5 5 materials the contractor was not on Dealers site • 350 pockets of cement costing K55,855 had caked. • 21 PVA, 22 HC & 1 GP paint costing K123, 333 had expired.

Verification Status as of June 2020 The site was not reachable due to the terrain of the roads and management did not provide progress reports

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on the current status.

Therefore, The matter was outstanding.

Construction of Namwima 01/09/201 01/09/201 13/10/2015 30, 000 14, 500 Contract not As at 28th February 2019, a Health Centre General 5 5 presented from the structure was at roof at Mundalanga Dealers which the scope of level with the following works was to be works outstanding: derived • Beam filling Exolic 103, 533 Supply of building • Painting Corporation materials • Fixing glass panes Ltd among others. Kampheta 16, 070 Supply of building General materials The following other Dealers observations were made: Katsons 6, 255 Supply of building • slab was not done General materials and materials bought for the Suppliers same were not on site Chiboma D 1, 280 Supply of building • cracks on one of the Enterprises materials supporting pillars and spoon drain had developed • separation had developed between wall plate, verandah and spoon drain • The foundation was infested with termites all around the structure.

Verification Status as of June 2020

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The site was not reachable due to the terrain of the roads and management did not provide progress reports on the current status.

Therefore, The matter was outstanding.

Construction of Namwima 31/01/201 31/01/201 14/08/2015 19, 100 19, 100 Contract not As at 28th February 2019, Manthepa Rural General 5 5 presented from the structure was at roof Health Post Trading which the scope of level with the following works was to be works outstanding: derived • Beam filling Fort 17/07/201 17/07/201 31/07/2015 74, 070.50 74, 070.50 Supply of building • Painting Suppliers 5 5 materials • Roofing Tongomala 8, 940 Fabrication of steel • Plastering Enterprises trusses • Fixing window Katsons 5, 840 Supply of building panes among others General materials Supplier The following observations Muchinga 16, 820 Supply of building were also made: Construction • Slab was not done and materials bought for the same were not on site • Concrete seats breaking off on one panel • Front ring beam sagging • 10x5liters paint on site expired on 10/10/2018

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• 26*50kg Cement had caked • Cracks on the spoon drain had developed • Foundation was infested with termites all around the structure.

Verification Status as of June 2020 All works were done and the Health Post is now operational.

Therefore, the matter was recommended for closure. Construction of ChilichoseNi 31/07/201 31/07/201 30/09/2015 20, 000 18, 624 Contract not As at 28th February 2019, a Maternity jume 5 5 presented from the maternity ward was at Ward at which the scope of roof level. The outstanding Mphalausenga works was to be works included painting and Rural Health derived glazing. Post Muchinga 2, 880 Fabrication of steel Construction trusses The following other observations were made: Darwin 17/07/201 17/07/201 30/07/2015 74, 406 74, 406 Supply of building • Slab was not done, Enterprises 5 5 materials however, materials bought Ltd for the same were not on site • Verandah and spoon drain detaching from main structure • Cracks on the spoon

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drain had developed • The foundation was infested with termites all around the structure.

Verification Status as of June 2020 All works were done and the maternity wing is now operational.

Therefore, the matter was recommended for closure.

Completion of a Techplan 01/09/201 01/09/201 24/10/2015 19, 000 19, 000 Contract not As at 28th February 2019, 1*2Class Room Construction 5 5 presented from the building had been Block at which the scope of roofed. However, the Chimilila works was to be following works were Primary School derived outstanding: Tongomola 3, 600 Fabrication of steel • Plastering Enterprises trusses • Painting (Interior Fort 17/07/201 17/07/201 31/07/2015 74, 373 74, 373 Supply of building and Exterior) Suppliers 5 5 materials • Fixing air vents Thomas 5, 810 Supply of building • Spoon drain Goma materials • Fixing doors Suppliers • Fixing window panes

Verification Status as of June 2020 The site was not reachable due to the terrain of the

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roads and management did not provide progress reports on the current status.

Therefore, the matter was outstanding.

Completion of a Namwima 01/10/201 01/10/201 31/12/2015 15, 000 10, 000 Contract not As at 28th February 2019, 1*2 Class Room General 5 5 presented from the roofing of a class room Block at Trading which the scope of block was completed. Kasambandola works was to be However, the following Primary School derived observations were made • Timber trusses used for roofing had been eaten off by termites • The roof had since been blown off on one of the class rooms.

Verification Status as of June 2020 The site was not reachable due to the terrain of the roads and management did not provide progress reports on the current status.

Therefore, the matter was outstanding.

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Committee’s Observation and Recommendation The Construction of a Maternity Ward at Mphalausenga Rural Health Post and Construction of Manthepa Rural Health Post are recommended for closure and since the remaining projects were not visited by the Office of the Auditor General as per report dated 30th June 2020, the Committee resolves to leave them open.

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CHILILABOMBWE MUNICIPAL COUNCIL

AUDIT QUERY PARAGRAPH 9

d) Failure to Remit Statutory Obligations – K10, 599,639 The Committee previously found the reasons given for this omission unacceptable as the Council already deducted the money from employees. The Committee was concerned that the failure by the Council to remit these tax obligations, as required by law, not only result in loss of revenue to the Government but it also denied the employees social protection. The Committee previously urged the Town Clerk to henceforth desist from diverting money meant for statutory obligations to other activities. The Committee further recommends that the Council should strictly adhere to the payment plans agreed upon to avoid further accumulation of arrears. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and it was recommended that it remain outstanding until the debt swap with NAPSA was concluded and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until all funds relating to statutory obligations are reimbursed through a debt swap as suggested by the Secretary to the Treasury. b) Failure to Remit Tax - K32, 855 The Committee previously expressed concern over the Council’s failure to remit tax, which was a serious offence. The Committee cautioned the Town Clerk against this serious irregularity, and urged him to explore strategies of expanding the revenue base in order to liquidate the amount outstanding. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the arrear of K32000 owed to ZRA was paid in full and details availed for audit scrutiny

Committee’s Observations and Recommendations The Committee resolves to await a progress report until all funds amounting to K32,855 are remitted to ZRA. g) Failure to Repair a Fire Tender – GRZ 851CN The Committee wonders what would be salvaged if any of the Fire Tender is involved in an accident and rendered beyond repair as the case is with Chililabombwe Municipal Council. The Committee strongly urged the Government to ensure that this matter is revisited to reflect the true value of the fire tenders. The Government is further urged to ensure that all the fire tenders which were procured for councils were all insured at the correct value to mitigate any possible loss of public funds. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Fire Tender was repaired or replaced by insurance company and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Fire Tender is repaired or replaced by insurance company and details availed for audit scrutiny. h) Management of Properties Owned by the Council i. Lack of Title Deeds – K1, 933,153 The Committee wondered why it had to take an audit for the Council to begin the process of acquiring the title deed. This, in the view of Committee, revealed a lack of seriousness in the handling of public property. The Committee previously urged the Council to accordingly protect public property and seriously pursue the title deeds acquisition process to its logical conclusion. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Title deeds for properties were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until Title deeds for properties are obtained and availed for audit scrutiny. i) Failure to Maintain Properties • Lubengele Community Hall • Engineering Buildings • Council Restaurant

The Committee was disappointed over the poor management of public property by the Council. The Committee previously found the explanation by the Town Clerk misleading as he claims that the properties have outlived their economic life while at the same the rehabilitation works on the properties have commenced. The Committee was further of the view that the Council did not prioritize maintenance of these properties as it did not ring fence some funds in its annual budget to re-invest in terms of rehabilitation. Moreover, the Committee was concerned that if this state of affairs is not addressed, public confidence in council services may be lost. The Committee also strongly feels that building new properties is a long term measure and may not be feasible in view of the current financial challenges. It urged the Town Clerk to ensure that these properties are rehabilitated without any further delay in order to continue providing services and enhance revenue collection. The Committee would await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the properties were rehabilitated and verified by the Office of the Auditor General’s office.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the properties are rehabilitated and verified by the Office of the Auditor General’s office.

CHINSALI MUNICIPAL COUNCIL

AUDIT QUERY PARAGRAPH 10 f) Irregular Payments K38, 433 The Committee failed to understand how the payment was processed by the Accounts and Internal Audit Departments. The Committee was of the view that this irregular conduct is unacceptable and constitutes an abuse of public funds. Further, The Committee previously noted that the recoveries were only effected after the Auditor General raised the query, a situation which could have resulted in the loss of public funds. The Committee calls on the Town Clerk to institute disciplinary action against all officers responsible for the irregular payments. The Committee would await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the full amount of K38, 433 was recovered and the recovery details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the full amount of K38, 433 was recovered and the recovery details availed for audit scrutiny. h) Fuel Drawn by Motor Vehicles not on Institutional Fleet K21, 049 The Committee noted with great disappointment the manner in which records are being kept at the Council. The findings by the Auditor General reveal weaknesses in supervision resulting in such kind of irregularities. The Committee also found the use of motor vehicles from other institutions unsustainable and urged the Council to urgently engage the Ministry of Local Government in order to address the state of affairs. The Committee further urged the Town Clerk to avail the documents for audit verification, subject to which the matter should be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the authorization letters for seven (7) motor vehicles that drew fuel costing K2, 188 were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the authorization letters for seven (7) motor vehicles that drew fuel costing K2, 188 were availed for audit scrutiny. i) Failure to Avail Title Deeds While noting the efforts being implored by the Council, the Committee previuosly expressed concern that the Council failed to secure public property contrary to contrary to the Lands Act No. 29 of 1995. The Committee previously urged the Town Clerk to ensure that all properties in question are on title without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the Title deeds were obtained and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until all the Title deeds were obtained and details availed for audit scrutiny. j) Uncollected Revenue K2, 117,166 The Committee previously found the reasons given by the Council for the failure to collect revenue unacceptable, and the response confirms that little importance is being attached to revenue generation. Further, the Committee was disappointed that the same Council which is failing to meet operational costs and staff obligations is exhibiting laxity in imploring measures of expanding the revenue base. The Committee was of the view that the Council should had been more proactive on this matter, and it should have assigned officers to assist in revenue collection while waiting for the LGSC to avail officers. The Committee strongly urged the Town Clerk to institute disciplinary action on erring officers for the failure. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until revenue amounting to K2, 112,366 are collected and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until revenue amounting to K2, 112,366 are collected and details availed for audit scrutiny. k) Failure to Remit Statutory and Other Contributions – K7, 482, 939 While noting the efforts by the Council to liquidate the outstanding obligations and to expand the revenue base, the Committee previously urged the Council to strictly adhere to the payment plan to avoid accumulation of debt and possible penalties.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the remaining statutory and other contributions were remitted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the remaining statutory and other contributions were remitted and details availed for audit scrutiny. l) Outstanding Staff Obligations K279, 035 The Committee noted the financial challenge the Council is undergoing and urged the Town Clerk to request the LGSC to only deploy critical staff in view of the narrow revenue base to avoid such recurrences. The Committee previously urged the Council to prioritise staff obligations amidst other urgent matters. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the remaining staff obligations were paid and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the remaining statutory and other contributions were remitted and details availed for audit scrutiny. n) Management of the Environment A review of the Council’s operations regarding the management of the environment revealed the following weaknesses as set out below. i. Failure to Produce Waste Management Plans and Reports The Committee noted the Submission by the Town Clerk and encouraged the Council to comply with regulations relating to this matter and further that evidence was availed to Office of the Auditor General for verification. The matter was recommended for closure subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Waste Management Plans and Reports are submitted to ZEMA and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the Waste Management Plans and Reports are submitted to ZEMA and details availed for audit scrutiny.

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CHIPATA CITY COUNCIL

PARAGRAPH 11 PARAGRAPH 11 c) Missing Payment Vouchers K235, 944 While appreciating the remedial measures taken, The Committee previously observed with concern the weak internal control systems at the Council and wonders what the supervising officers in Accounts Department and the Internal Audit Unit. The Committee did not accept the reason concerning staff levels and is of the view that this weakness if left to continue may pause a serious threat to the operation and accountability processes in the local councils because these same officers may be transferred from one council to another, a system the Committee describes as transferring problems. The Local Government Service Commission is, particularly, urged to ensure that disciplinary action was taken against erring officers in order to instil a sense of responsibility in them. In addition, the Committee previously urged the LGSC to ensure that the officers named in this query are made to locate these documents without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until twenty seven (27) payment vouchers amounting to K178, 279.15 were availed for audit scrutiny.

Committee’s Observations and Recommendations The matter remains outstanding until payment vouchers amounting to K178, 279.15 were availed for audit scrutiny. d) Unretired Accountable Imprest K58, 938 The Committee did not accept the reason given by the Town Clerk and urged her to ensure that erring officers were sternly cautioned for this failure. The Committee, however, resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the imprest amounting to K30, 428.75 was retired and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the remaining imprest amounting to K30, 428.75 is retired and details are availed for audit scrutiny. d) Irregular Medical Refunds K11, 892 While noting the submission, the Committee did not accept the reason given by the Town Clerk and urged her to ensure that erring officers were sternly cautioned for failure to interpret Section 156 of the Conditions of Service for Local Government Officers. The Committee, however, resolved to close the matter subject to audit verification.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the remaining balance of the Irregular Medical Refunds amounting to K9, 504 were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until irregularly paid medical funds are reimbursed and details availed for audit scrutiny. e) Failure to Inscribe Council Assets The Committee did not accept the reason given by the Town Clerk as it had to take Auditor General to remind them to inscribe their assets which is a very serious omission. The Committee previously urged the Town Clerk to ensure that erring officers are disciplined for this omission and further that the assets are inscribed expeditiously before the end of the first quarter of 2020. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the assets were inscribed and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until all the assets were inscribed and details availed for audit scrutiny. f) Failure to Remit Statutory obligations and PAYE K13, 364,355 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling the arrears in order to relieve the councils of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the balance of K13, 284,355 was remitted to ZRA and details availed for audit scrutiny.

Committee’s Observations and Recommendations As the Town Clerk had not availed the details for audit scrutiny, the Committee resolves to await a progress report n the matter.

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(e) Unaccounted for Stores K60, 825 The Committee directed the Town Clerk to ensure that evidence was availed to the Office of the Auditor General after which the matter will be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipt and disposal details costing K48, 616.70 was remitted to ZRA and details availed for audit scrutiny.

Committee’s Observations and Recommendations As the Town Clerk had not availed the receipts and disposal details costing K48, 616.70 for audit scrutiny, the Committee resolves to await a progress report n the matter. i) Misapplication of Funds - Equalization Funds K1, 811,379 The Committee did not accept the reasons given by the Town Clerk concerning borrowing part of the 20% portion of the Local Government Equalisation Fund (LGEF). The Committee sternly cautioned the Town Clerk to desist from misapplying the LGEF, and the Secretary to the Treasury was, particularly urged to ensure that stiffer penalties were put in place to deter councils from perpetuating this vice. The Committee would await a progress report until reimbursement was done of the full amount.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the full reimbursement of K 1,801,379 and details availed for audit scrutiny.

Committee’s Observations and Recommendations As the Town Clerk had not availed the details for reimbursemnent of funds K1,811,349 for audit scrutiny, the Committee resolves to await a progress report n the matter. j) Constituency Development Funds k) Management of Council Properties i. Lack of Title Deeds for Council Property The Committee previously expressed concern at the failure by Council management to secure their properties with title deeds. The Committee previously urged the Town Clerk to consider liaising with the Permanent Secretary to ensure that he assist through his counterpart at Ministry of Lands to ensure that the titles for properties that have not yet been acquired are secured expeditiously. In addition, the Town Clerk was urged to ensure that all their title deeds held by banks are retrieved without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Title deeds were obtained and details availed for audit scrutiny.

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Committee’s Observations and Recommendations Since the Town Clerk had not obtained Title deeds and availed details for audit scrutiny, the Committee resolves to await a progress report n the matter. l) Weaknesses in the Management of Chipata Motel i. Failure to Register the Motel with PACRA The Town Clerk was sternly cautioned for failure to consult from the relevant authorities on matters that were not clear. It displeased the Committee to hear that she operated on assumption without seeking clarity until Auditor General unearthed the omission. The Committee strongly urged her to ensure that Chipata Motel is correctly licensed by PACRA without any further delay. The Committee would await a progress report on the matter.

Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Hotel was registered with PACRA and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee reiterated its earlier position and urged the Council management to ensure that the Hotel is registered with PACRA and details availed for audit scrutiny without further delay. A progress report is waited on the matter. ii. Failure to Pay Income Tax K36, 311 As already stated in l (i) above, the town Clerk was sternly cautioned for failure to consult from the relevant authorities on matters she was not clear about. It displeased the Committee to hear that the Town Clerk did not understand and interpret the provisions of Sections 2, 14 and 17 of the Income Tax Act Chapter 323 of the Laws of Zambia. The Committee strongly urged her to ensure that she consults each time she was not clear concerning the interpretation and enforcing of the law from the relevant authorities. The Committee, however, resolved to close the matter while also ensure that going forward, all taxes were remitted accordingly.

Treasury Response The Town Clerk did not remit the funds amounting to K36, 311 to Zambia Revenue Authority hence a progress report will be awaited.

Committee’s Observations and Recommendations As the Town Clerk did not remit the funds amounting to K36, 311 to Zambia Revenue Authority, the Committee resolves to await a progress report. ii. Outstanding Receivables from Council Workers K696, 390 The Committee previously found the reason given for this anomaly unacceptable as it is evident that the lapse is due to poor supervision of officers in the accounts department and negligence on the part of the officers. The Committee previously urged the Town Clerk to ensure that all erring officers are disciplined for this failure and is also directed to ensure that all documentation

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relating to this query were availed to the Auditor General for verification only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the unsettled receivables amounting to K126, 444.64 was received and details availed for audit scrutiny.

Committee’s Observations and Recommendations As the Town Clerk did not avail details relating to outstanding recievables from council workers amounting to K696,390, the Committee resolves to await a progress report. iv. Unaccounted for Stores K40, 829.70 The Committee noted that this lapse was due to poor supervision of the officers, and negligence on the part of the officer. While the Committee appreciates that a new officer has been deployed to the Council, the Committee previously urged the Town Clerk ensure that the erring officer is disciplined, and further that internal controls were strengthened to avoid recurrence of this matter. The Committee resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipt and disposal details were availed for audit scrutiny.

Committee’s Observations and Recommendations As the Town Clerk did not avail details relating to outstanding receipts and disposal details amounting to K40, 829.70 the Committee resolves to await a progress report. m) Environmental Management An assessment of the effectiveness of the environmental management at the Council revealed the following weaknesses and the Town Clerk responded as set out below. i) Dump Site

• Illegal use of Dumping Site The Committee noted with concern the failure by management at this council to secure land for a Dumpsite. It displeased the Committee that despite the resolution by the Council to purchase new land for a dumpsite, the Council to date has failed to secured land. The Committee strongly cautioned the Town Clerk to desist from causing inordinate delays in securing the said land. The Town Clerk was directed to ensure that land was secured before the end of the first quarter of 2020. The Committee resolved to await a progress report on the matter. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Council stopped using the illegal dumpsite.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Council stops using the illegal dumpsite.

• Lack of a Weigh Bridge The Committee encouraged the Town Clerk to ensure that land for a permanent Dumpsite was secured by 31st January 2020 in order for them to construct a weigh bridge on it. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Council installed a weigh bridge at the dumpsite.

Committee’s Observations and Recommendations The Committee resolves to await a progress report the Council installs a weigh bridge at the dumpsite.

• Dumpsite Not Fenced The Committee encouraged the Town Clerk to ensure that land for a permanent Dumpsite is secured by 31st January 2020 in order for them to construct a fence on it. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dumpsite was fenced and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the dumpsite is fenced and details availed for audit scrutiny.

• Exposure of Community to Health Risk In noting the submission, the Committee previously urged the Town Clerk to ensure that the dump site is managed in accordance with health laws including Statutory Instrument No. 112 of 2013. The Committee resolved to close the matter subject to audit verification while the Office of the Auditor General was urged to ensure that The matter was kept in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Council implements Health Measures at the dumpsite and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Council implements Health Measures at the dumpsite and details availed for audit scrutiny.

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• Lack of Borehole The Committee encouraged the Town Clerk to ensure that land for a permanent dumpsite was secured expeditiously in order for them to sink a borehole for monitoring ground water quality. The Committee would await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Borehole was dug at the dumpsite and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Borehole is dug at the dumpsite and details availed for audit scrutiny. vi) Transportation and Management of Waste

• Non Payment for Use of Dump Site In noting the submission, the Committee resolved to close the matter subject to audit verification while the Office of the Auditor General was urged to ensure that the matter was kept in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the payment for the use of dumpsite was made and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the payment for the use of dumpsite is made and details availed for audit scrutiny.

CHIRUNDU DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 12 c) Unaccounted for Revenue K20, 047 The Committee did not accept the reason given by the Council Secretary and urged him to ensure that erring officers were sternly cautioned for this failure. The Committee, however, resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the payment vouchers to support the cash payments were availed for audit scrutiny.

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Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the payment vouchers to support the cash payments were availed for audit scrutiny. d) Unsupported Payments K220,963 The Committee previously observed with concern the weak internal control systems at the Council and wonders what the supervising officers in accounts department are doing including the internal audit unit. The Committee was of the view that this weakness if left to continue may pause a serious threat to the operation and accountability processes in the local councils because these same officers causing such irregularities may be transferred from one council to another a system the Committee describes as transferring problems. The Local Government Service Commission is, particularly, urged to ensure that disciplinary action was taken against erring officers in order to instil a sense of responsibility in them. In addition, the Committee previously urged the LGSC to ensure that the officers named in this query are made to locate these documents without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the supporting documents amounting to K131, 879.26 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the supporting documents amounting to K131, 879.26 are availed for audit scrutiny. e) Unretired Accountable Imprest K10,000 As observed in d) above, the Committee was previously of the view that this weakness if left to continue may pause a serious threat to the operation and accountability processes in the local councils because these same officers would be transferred from one council to another, leaving problems behind. The Local Government Service Commission was, particularly, urged to ensure that disciplinary action was taken against erring officers in order to instill a sense of responsibility in them. In addition, the Committee previously urged the Council Secretary to ensure that the officers who caused this query were surcharged without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until imprest amounting to K2, 700 was retired and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until imprest amounting to K2, 700 is retired and details availed for audit scrutiny.

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f) IrregularUse of Accountable Imprest K23, 100 The Committee did not accept the reason given by the Councils Secretary and expressed concern at the Council’s rampant disregard of procurement procedures. The Committee previously found it strange that the Council restricted itself to purchasing from unregistered businesses, whereas there are many registered businesses in the nearby districts where the Council would have considered procuring from. The Committee sternly cautioned the Council Secretary to desist from misleading the Committee. He was also urged to ensure that procurement officers in the Council were sternly cautioned to avoid abrogating procurement procedures to their advantage. The matter was, however, recommended for closure subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the retirement documents were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the retirement documents are availed for audit scrutiny. g) Unaccounted For Stores K227,32 General Stores –( K101,045 and fuel – K126,276) The Committee did not accept the reason given and observes with concern that this amounts to concealing acts of fraudulent activities. The Committee previously urged the Council Secretary to ensure that stern disciplinary action was taken against erring officers who failed in their duty to avail the stores receipts and disposal details to Auditor General and also that all these documents were found and availed for audit verification. The Committee awaits progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipt and disposal details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the receipt and disposal details are availed for audit scrutiny. i) Failure to Settle Staff Obligations 5,057,149 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet and hence if nothing happens, the Council may suffer from possible litigation costs which may arise from this situation. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the settlement of K3, 231,033.65 owed to staff and settlement details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the settlement of K3, 231,033.65 owed to staff and settlement details availed for audit scrutiny. j) Failure to Settle Statutory Obligations and Contributions K 2,511,448 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the statutory obligations and other contributions amounting to K2, 337,710.88 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the statutory obligations and other contributions amounting to K2, 337,710.88 are settled and details availed for audit scrutiny. k) Equalization Funds

Misapplication of Capital Funds K752, 449 The Committee did not accept the reasons given by the Council Secretary concerning the borrowing of the Local Government Equalisation Fund (LGEF). In addition, The Committee previously found the statement by the Council Secretary concerning comingling of funds in one account misleading as there are clear guidelines on where LGEF had to be kept, and despite their omission on accounts, management at the Council must have ensured that separate balances were kept on each budget line. The Committee sternly cautioned the Council Secretary to desist from misleading it and the Secretary to the Treasury is, particularly, urged to ensure that stiffer penalties were put in place to deter councils from perpetuating this vice. The Committee resolved to await a progress report on full recovery of the funds.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until capital funds amounting to K652, 449 were reimbursed and details availed for audit scrutiny.

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Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the capital funds amounting to K652, 449 are reimbursed and details availed for audit scrutiny. iii. Construction of an Office at Rented Premises K40, 780 The Committee expressed a serious concern on the commencement of the project by the Council basing its action on a verbal agreement. It worries the Committee that such a huge cost agreement would be signed after commencement of the project. While it was appreciated that office space for the Council was their priority, the Committee cautioned the Council Secretary to desist from committing Government before formal procedures are finalized. The matter was, however, recommended for closure subject to audit verification.

Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the recovery details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the recovery details were availed for audit scrutiny.

CHOMA MUNICIPAL COUNCIL

PARAGRAPH 13 PARAGRAPH 13 f) Weaknesses in the Management of Commercial Properties – (K96, 673 loss) The Committee previously observed with concern the failure by the Council Secretary to put in place a maintenance policy, and strong management to manage its properties which is a serious omission. The Committee previously urged the Council Secretary to ensure that the maintenance policy is put in place to ensure that all properties are well maintained at the right time to avoid loss of the much needed revenue from these commercial centres. The matter was recommended for closure subject to presentation of evidence to the Office of the Auditor General.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the properties were rehabilitated and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until all the properties are rehabilitated and details were availed for audit scrutiny.

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i) Irregular Drawing of Fuel (K6, 855 and K5, 397) The Committee previously observed with concern the failure by the Town Clerk to manage the fuel drawings with a well-defined system. The Committee was displeased to learn that some of the fuel was drawn by un-qualifying officers a situation the Committee describes as illegal drawing. The Committee previously urged the Town Clerk to ensure that The matter was reported to investigative wings for further probe. As a lasting solution, the Committee also urged the Town Clerk to ensure that a well-defined system is put in place where all drawings are controlled with strong checks and balances to avoid recurrence. The Committee awaits a progress report on the full recovery of all the amounts pertaining to irregularly drawn fuel.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the recovery details amounting to K6, 855 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the recovery details amounting to K6, 855 are availed for audit scrutiny. j) Unpaid Settling in Allowances – K885, 601 The Committee noted the efforts made to dismantle the outstanding staff obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet. The Committee was worried that if nothing happens, the Council would face a risk of possible litigation costs which may arise from this situation. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the payment of settling in allowances amounting to K502, 420.84 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the payment of settling in allowances amounting to K502, 420.84 are settled and details availed for audit scrutiny. k) Failure to Remit Statutory Contributions As in j) above, The Committee previously noted the efforts made to dismantle the outstanding staff obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is held besides the current obligations the Council is expected to meet. If nothing happens, the Committee was worried that the Council may have a possible risk of litigation costs which may arise from this situation. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the

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Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the remittance of statutory obligations amounting to K9, 587,367.66 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the remittance of statutory obligations amounting to K9, 587,367.66 are settled and details availed for audit scrutiny.

l) Constituency Development Funds (CDF) - K1, 267,792 unspent

i. Failure to Implement Projects The Committee previously observed with concern the failure by the Council management to complete and implement projects within the planned period. The Committee previously urged the Town Clerk to ensure that all the projects approved by the Full Council and DDCC are implemented and completed expeditiously to grant full benefit to the intended users. The Committee resolved to await a progress report on the matter.

Treasury Response

The matter was verified by the Office of the Auditor General and the status on each of the projects is as tabulated in the Table below:-

No Project and Location Constituency Amount Status as at 30th September Scope 2019 1 Construction of Railways Surgery Choma Central 100,327.00 Project was completed Water Bourne Toilets 2 Construction of Simpweze Rural Choma Central 21,091.00 Application was approved in VIP Toilets at Health Centre 2017 but it was not funded, Simpweze the project had since been funded under CDF 2018 3 Construction of Simaata Choma Central 127,582.00 Project was completed 1x2 Classroom Community Block School 4 Construction of Nkumbula Health Choma Central 102,106.00 Application was approved in Water Bourne Post 2017 but it was not funded, Toilets the project had since been funded under CDF 2018 5 Construction of Pangwe Health Choma Central 109,939.00 Project was complete Rural Health Post Post 6 Construction of Mboole Health Choma Central 70,343.00 Project was completed

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Rural Health Post Post 7 Construction of Chipande Health Choma Central 33,117.00 Application was approved in Rural Health Post 2017 but it was not funded, Post the project will be funded in future CDF funding as it was not funded under CDF 2018 8 Construction of Chandamali/ Choma Central 37,037.00 Application was approved in Rural Health Kabanana Health 2017 but it was not funded, Post Post the project had since been funded under CDF 2018 9 Construction of Sichikali Health Choma Central 37,037.00 Project was completed Rural Health Post Post 10 Creation and Mwapona Choma Central 31,039.00 Work commenced and now Opening of Compound in progress Drainages 11 Construction of Kachenje Rural Mbabala 55,022.00 Project was completed Rural Health Health Post Post 12 Construction of Kaseko Rural Mbabala 48,467.00 Project was completed Staff House Health Post 13 Construction of Halumba Rural Mbabala 49,120.00 Project was ongoing at Staff House Health Post Plaster level. 90% completion 14 Construction of Hakaloba Rural Mbabala 58,649.00 Project was completed Rural Health Health Post Post

Committee’s Observations and Recommendations

The Committee resolves to close the following matters subject to audit verification:

i construction of Water Bourne Toilets; ii construction of Rural Health Post ; iii construction of Rural Health Post ; iv construction of Rural Health Post ; v construction of Rural Health Post ; vi construction of Staff House ; vii construction of Rural Health Post; and viii construction of 1x2 Classroom Block.

The Committee, however, resolves to await a progress report on the remaining projects.

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ii. Failure to Complete a Project - Community Radio Station - K195,300 The Committee previously observed with concern the failure by the Council management to complete and implement the Community Radio Station Projects within the planned period. The Committee previously urged the Town Clerk to ensure that all the projects approved by the Full Council and DDCC are implemented and completed expeditiously to grant full benefit to the intended users. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the project was commissioned and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the project is commissioned and details availed for audit scrutiny.

CHONGWE MUNICIPAL COUNCIL

PARAGRAPH 14 PARAGRAPH 14

Accounting and Other Irregularities An examination of financial and other records maintained at the Council for the period under review and a physical inspection of selected projects carried out in December 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. h) Under Collection of Revenue from Office Block and House Rentals K260, 000 The Committee previously observed with concern the failure by the Council to maintain a well- defined billing system and debtors ledgers. The Committee was of the view that this is a deliberate move by officers so as to take advantage of the weak internal controls at the Council. The Council was urged to ensure that officers were sternly cautioned for this failure and all the outstanding rental amounts are collected without further delay. The Committee also urged the Town Clerk to ensure that internal controls were strengthened coupled with putting in place a well-defined billing system to avoid recurrence. The Committee furthermore urged the Town Clerk to ensure that Tenants Ledgers were put in place to enhance property management systems. The Committee resolved to await a progress report on full collection of the remaining amount owed by tenants.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until amounts totaling K134, 800 were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until amounts totaling K134, 800 are collected and details availed for audit scrutiny.

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i) Failure to Insure Assets The Committee previously observed with concern the failure by the Council to shift possible risk by insuring its property. While noting the efforts made to insure motor vehicles yet leaving out other immovable assets, the Committee previously urged the Town Clerk to ensure that other revenue sources are explored to improve the Council’s liquidity levels which has been observed to be very low. The Committee also calls upon management to be proactive and innovative by creating business ventures which will improve revenue sources for the Council. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General was recommended that it remained outstanding until the buildings were insured and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the buildings are insured and details availed for audit scrutiny. j) Failure to Provide Title Deeds The Committee previously expressed concern at the failure by Council management to secure their properties with title deeds. It worries the Committee that the Council failed to carry out such a duty of great importance with impunity. The Committee previously urged the Council Secretary to consider liaising with the Permanent Secretary to ensure that he assists through his counterpart at Ministry of Lands to ensure that the matter was resolved expeditiously. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the title deeds are obtained and details availed for audit scrutiny. k) Failure to Remit Statutory Obligations and Other Contributions K13, 969,791 The Committee noted the efforts made to dismantle the outstanding statutory obligations but expressed concern at the huge debt stock owed by the Council. It worried the Committee that this huge debt stock was besides the current obligations the Council was expected to meet and hence if nothing happened, the Council would be risking possible litigation costs which may arise from this situation. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the amounts totalling K37, 175,128.63 were remitted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the amounts totalling K37, 175,128.63 are remitted and details availed for audit scrutiny. l) Outstanding Staff Obligations The Committee noted the efforts made to dismantle the outstanding staff obligations but expressed concern at the huge debt stock owed by the Council. It worried the Committee that this huge debt stock was besides the current obligations the Council was expected to meet and hence if nothing happened, the Council would be risking possible litigation costs which may arise from this situation. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the unpaid terminal benefits and long service bonus amounting to K664, 586.14 was settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the unpaid terminal benefits and long service bonus amounting to K664, 586.14 is settled and details availed for audit scrutiny. m) Environmental Management ii. Lack of a Weigh Bridge The Committee previously expressed concern at the failure by council management to ensure that a weigh bridge was constructed at the site which made it very difficult for them to know what tonnage they were transporting at the any given time and also that the same made it difficult for them to prepare Zambia Environmental Management Agency (ZEMA) reports. The Committee previously urged the Town Clerk to ensure that funds are secured for construction of a weigh bridge. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the weigh bridge at the dumpsite was put in place and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the weigh bridge at the dumpsite is put in place and details availed for audit scrutiny. x. Failure to Collect Waste The Committee noted the submission and urged the Council Secretary to ensure that garbage is collected and disposed in accordance with the provisions of the law. The matter was recommended for closure and the Committee previously urged the Office of the Auditor General to keep it in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it be closed following the councils adherence to health and environmental rules during transportation and handling of garbage to and at the dumpsite.\

Committee’s Observations and Recommendations

As the matter was verified by the Office of the Auditor General, the Committee resolves to close the matter.

IKELENGI MUNICIPAL COUCIL

PARAGRAPH 15 PARAGRAPH 15

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the financial years ended 31st December 2016 and 2017 and physical inspections of on-going projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. b) Lack of a Strategic Plan The Committee previously observed with concern the failure by the Council Secretary to put in place a strategic plan and the Committee wonders how the council was running without any guidance. The Committee previously urged the Council Secretary to ensure that a strategic plan is in place and also that he liaises with the Controlling Officer, Ministry of Local Government to promptly finalise the starndardised format of a strategic plan for use by all councils. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the strategic plan was put in place and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the strategic plan is put in place and details availed for audit scrutiny.

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c) Lack of a Risk Management Policy The Committee previously observed with concern the failure by the Council Secretary to put in place a Risk Management Policy which is a serious omission. The Committee previously urged the Council Secretary to ensure that the Risk Management Policy is regularly updated to ensure that they move with current trends to avoid recurrence. The Committee awaits a progress report on the full adoption of the Risk Management Policy by the full Council. The Town Clerk was urged to report the development to the Office of the Auditor General.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Risk Management Policy was adopted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Risk Management Policy is adopted and details availed for audit scrutiny. d) Failure to Adopt ICT Frameworks The Committee previously observed with concern the failure by the Council Secretary to put in place an ICT policy and other necessary frameworks including Service Level Agreements and Dove Computing Service which is a serious omission. The Committee previously urged the Council Secretary to ensure that the ICT policy is regularly updated to ensure that they move with current trends to avoid recurrence. The matter was recommended for closure subject to audit verification. The Council Secretary was urged to report the update to the Office of the Auditor General.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the ICT framework was adopted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Risk Management Policy is adopted and details availed for audit scrutiny. e) Failure to Prepare Valuation Roll The Committee previously observed with concern the failure by councils to expedite the process of ensuring that they finalise their negotiations for land owing to the fact that it be will very difficult to prepare financial statements without a valuation roll. The Council Secretary was urged to ensure that a valuation roll is expeditiously put in place. The Committee resolved to await a progress report.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the valuation roll was prepared and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the valuation roll is prepared and details availed for audit scrutiny. f) Lack of Title Deeds The Committee did not accept the reason given as it was evident that management at this Council was not proactive to pursue the matter relating to acquisition of title deeds which was a very serious omission. The Council Secretary was directed to ensure that he uses all available options to ensure that all its properties are secured with title deeds without any further delay.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the title deeds are obtained and details availed for audit scrutiny. g) Failure to Produce Activity Reports The Committee did not accept the reason given and observes that this amounted to concealing acts of fraudulent activities. The Committee previously urged the Council Secretary to ensure that stern disciplinary action was taken against erring officers who failed in their duty to avail the activity reports to Auditor General and also that all these documents were found and availed for audit verification not later than 31st December 2019. The Committee awaits progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the activity reports were produced and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the activity reports are produced and details availed for audit scrutiny. h) Unretired Accountable Imprest K102, 146 The Committee did not accept the reason given and observed that this amounted to concealing acts of fraudulent activities. The Committee previously urged the Council Secretary to ensure that stern disciplinary action was taken against erring officers who failed in their duty to avail documents relating to unretired imprest to auditors, and also that all these documents were found and availed for audit verification not later than 31st December 2019 or officers must be surcharged with the amount in accordance with Local Authorities Financial Regulation No. 119. Further the officers involved should be surcharged with the amount in accordance with Local Authorities Financial Regulation No. 119. The Committee awaits progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until imprest amounting to K102, 146 was retired and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until imprest amounting to K102,146 is retired and details availed for audit scrutiny. n) Irregular Payment of Subsistence Allowance within the District K 56,450 The Committee was displeased that officers disregard the provisions of Cabinet Circular Minute of 2015 dated 30th December 2015 with impunity. The Council Secretary was urged to ensure that all officers responsible are surcharged for this omission. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and it was recommended that it remained outstanding until the irregular payment of subsistence allowance amounting to K 56,450 was recovered from the erring officers and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the irregular payment of subsistence allowance amounting to K56,450 is recovered from the erring officers and details availed for audit scrutiny. k) Irregular Payment of Sitting Allowances K2, 900 The Committee previously expressed concern at the rampant disregard of the provisions of Cabinet Office Circular No. 11 of 2013 with impunity. The Council Secretary was urged to ensure that all officers responsible are disciplined for this omission and further that the amount is recovered without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Irregular Payment of Sitting Allowances amounting to K2, 900 was recovered from the erring officers and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until until the Irregular Payment of Sitting Allowances amounting to K2, 900 is recovered from the erring officers and details availed for audit scrutiny. l) Failure to Deduct Pay As You Earn (PAYE) K34, 110 The Committee did not accept the reason given and urged the Council Secretary to ensure that the officers responsible are disciplined for this omission without any further delay. The Council Secretary was also urged to ensure that the remaining funds were recovered without any further delay. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until amounts totaling K22, 110 were recovered from the erring officers and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until amounts totaling K22, 110 are recovered from the erring officers and details availed for audit scrutiny. m) Failure to Remit Statutory Obligations K681, 949 The Committee noted the submission but sternly cautioned the Council Secretary for failure to remit statutory obligations which is a very serious omission. The Committee previously urged the Council Secretary to ensure that other revenue collection options are explored to increase its revenue base in order for it to meet its statutory obligations. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until amounts totaling K498, 891 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until amounts totaling K498, 891 are settled and details availed for audit scrutiny. n) Failure to Report a Road Traffic Accident (repaired at a cost of K15, 000.00) The Committee previously found it highly irregular that the accident records were not in place despite claiming that it was reported to police. The Committee doubts the claim because it is evident that their failure to report the accident suggests that the vehicle was not even insured hence the decision of repairing it on the Council’s cost, an expense the Committee regards as being wasteful. The Committee previously urged the Council Secretary to ensure that the officer responsible is surcharged without any further delay. The Committee awaited a progress report on the matter and urged the Council Secretary to immediately report the accident to the Police.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Police and Accident Reports were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Police and Accident Reports are availed for audit scrutiny.

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o) Management of Equalisation Funds i. Misapplication of Funds K429, 367 The Committee did not accept the reasons given by the Town Clerk concerning the borrowing of the 20% portion of the Local Government Equalisation Fund (LGEF). The Committee sternly cautioned the Council Secretary to desist from misapplying the LGEF and the Secretary to the Treasury is, particularly urged to ensure that stiffer penalties were put in place to deter councils from perpetuating this vice. The Committee resolved to await a progress report from Ikelenge Council on the full recovery of the funds.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until amounts totaling K365, 983 were reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until amounts totaling K365, 983 are reimbursed and details availed for audit scrutiny. ii. Splitting of Payments to Circumvent Tender Procedure K89,100 The Committee previously observed with concern the failure by Council Management to circumvent tender procedure with impunity. The Council Secretary was urged to ensure that officers responsible are disciplined for failure to adhere to Circular No 1 of 2011 and Procurement Act of 2008 No. 42 (c) (d). The Committee awaited a progress report on the matter. The matter should be reported to the investigative wings for further investigations.

Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until disciplinary action was taken against erring officers and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until disciplinary action is taken against erring officers and details availed for audit scrutiny.

ISOKA DISTRICT COUNCIL

PARAGRAPH 16 PARAGRAPH 16

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the period under review and a physical inspection of projects carried out in February 2019 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below.

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c) Missing Receipt and License Books The Committee did not accept the reason given and observed that this amounted to concealing acts of fraudulent activities. The Committee previously urged the Council Secretary to ensure that the matter was reported to law enforcement agencies without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until eleven (11) revenue receipt books and two (2) firearm license books were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until eleven (11) revenue receipt books and two (2) firearm license books are availed for audit scrutiny. d) Unaccounted for Revenue K95,357 The Committee did not accept the reason given by the Council Secretary and he was cautioned to desist from misleading it. The Committee strongly urged the Council Secretary to ensure that the officers responsible are surcharged for this negligence in respect of the remaining amount without any further delay and only then will the matter be closed. Proof of the surcharge should be presented to the Auditor General for verification before the matter can be closed. .

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until proof is given to Auditors on the surcharge.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until until proof is availed to the Office of the Auditor General on the surcharge of officers responsible. f) Failure to Update Valuation Roll The Committee expressed its disappointment that the Council did not prioritise maintenance of a Valuation Roll which was the basis of revenue collection in the local authority. It also found the reason given by the Council Secretary for the failure unacceptable as other options would had been explored including using other departments within the district to ensure that a new valuation roll is prepared and updated in accordance with the provisions of Section 8 (3) of the Rating Act, No. 12 of 1997. In this regard, the Committee previously urged the Council Secretary to engage the Ministry of Local Government on this matter and to expeditiously formulate the Valuation Roll without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until an updated valuation roll was submitted for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until an updated valuation roll is submitted for audit scrutiny. h) Missing Payment Vouchers K509, 742 The Committee did not accept the reason given by the Council Secretary they urged the Council Secretary to ensure that The matter was reported to law enforcement agencies for further investigations. A progress report on the matter must be presented to the Auditor General by the Council.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until forty four (44) payment vouchers in amounting to K156, 863 were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until forty four (44) payment vouchers in amounting to K156, 863 are availed for audit scrutiny. p) Unsupported Payments K506, 211 The Committee did not accept the reason given by the Council Secretary as they were of the view that officers did not take the matter seriously when Auditor General were at their station. The Committee previously urged the Council Secretary to ensure that all officers who failed to trace the payment vouchers during the time of audit are disciplined of this failure. The Committee also directed the Council Secretary to ensure that all the payment vouchers recovered are submitted to the Office of the Auditor General for verification and also that the remaining ones were found without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the supporting documents for fourteen (14) payments amounting to K40, 703 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the supporting documents for fourteen (14) payments amounting to K40, 703 are availed for audit scrutiny. q) Unretired Accountable Imprest K234, 165 The Committee did not accept the reason given by the Council Secretary as they are of the view that officers did not take the matter seriously when Auditor General was at their station. The Committee previously urged the Council Secretary to ensure that all officers who failed to trace the payment vouchers during the time of audit are disciplined for this failure. The Committee directed that proof of the discipline should be presented to the Auditor General before the issue can be considered for closure.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until retirement documents amounting to K41, 730 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until retirement documents amounting to K41, 730 are availed for audit scrutiny. k) Failure to Prepare Activity Reports The Committee did not accept the reason given by the Council Secretary as they are of the view that officers did not take the matter seriously when Auditor General was at their station. The Committee previously urged the Council Secretary to ensure that all officers who failed to trace the activity reports during the time of audit are disciplined of this failure. The Committee resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until activity reports were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until activity reports are availed for audit scrutiny. r) Irregular Payments i. Subsistence Allowances K156, 424 The Committee previously found it unacceptable that management paid Subsistence Allowance to ineligible officers without authority. The Committee sternly cautioned the Council Secretary to ensure that all funds which are irregularly paid are be recovered from the officers who processed the payment without written authority. The Committee resolved to await a progress report on the matter and also urged the Council Secretary to ensure that The matter was resolved with the Ministry on the treatment of such special cases.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details amounting to K156, 424 were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until recovery details amounting to K156, 424 are availed for audit scrutiny. ii. Sitting Allowances - K2, 650 The Committee noted the submission and resolved to close the matter once the Council presents the documents to the Auditor General for verification.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details for the Sitting Allowances were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until recovery details for the Sitting Allowances are availed for audit scrutiny. iii. Out of Pocket Allowances for Sponsored Activities The Committee previously found it unacceptable that management paid Subsistence Allowance to ineligible officers without authority. The Committee sternly cautioned the Council Secretary to ensure that all funds which were irregularly paid were recovered from the officers who processed the payment without written authority. The Committee resolved to await a progress report on the matter and also urged the Council Secretary to ensure that The matter was resolved with the Ministry on the treatment of such special cases.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details for Out of Pocket Allowances were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until recovery details for Out of Pocket Allowances are availed for audit scrutiny. o) Failure to Avail Title Deeds The Committee noted with concern that council properties are not secured with title deeds and urge the Council to immediately follow up the matter with the Ministry of Lands and Natural Resources without any further delay. The Committee resolved to await progress on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the Title Deeds were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until all the Title Deeds are availed for audit scrutiny. q) Failure to Remit Tax - K536, 483 The Committee previously observed with concern the failure by management to ensure that they paid their statutory obligations. The Committee previously urged the Town Clerk to ensure that they increase their revenue base to enable them clear all the outstanding obligations owed to various statutory bodies. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the settlement of PAYE and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the settlement of PAYE and details are availed for audit scrutiny. r) Misapplication of Equalisation Funds The Committee previously observed with concern the failure by management to adhere to the Local Government (Amendment) Act No. 12 of 2014. The Committee strongly cautioned the Council Secretary to desist from this habit, and also urged him Secretary to the Treasury to consider stiffening punishment for failure by councils to adhere to the stated Act. It is also the Committee’s view that the Councils need to explore more revenue sources to enable them meet all its outstanding obligations and operational costs. The Committee previously urged the Council to present proof that the issue has been resolved to the Auditor General before the case can be considered for closure.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the capital funds amounting to K58, 914 was reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the capital funds amounting to K58, 914 is reimbursed and details availed for audit scrutiny. s) Constituency Development Funds The Committee noted the submission and urged the Council Secretary to ensure that the remaining projects were maintained, and that works were completed before the end of the first quarter in 2020. The Committee, therefore, resolved to close the matter relating to completion of 1x2 classroom block at Nachisungu Primary School and Completion of 1x2 classroom block at Kafwimbi Primary School while a progress report was being awaited on the Construction of Market Shelter at Sansamwenje. t) Management of the Environment ii. Use of uncertified Dumpsite The Committee noted the submission and urged the Council Secretary to ensure that the land usage issues are finalised with the local leaders and subsequently followed up with ZEMA for approval. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dumpsite was certified and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the dumpsite is certified and details availed for audit scrutiny.

KABWE MUNICIPAL COUNCIL

PARAGRAPH 17 PARAGRAPH 17

Accounting and Other Irregularities

An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2017 and physical inspections of selected projects carried out in November 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. c) Uncollected Revenue K6, 375,020 The Committee was displeased that the Town Clerk failed to collect revenue during the period under review. The Committee previously found the reason given by the Town Clerk misleading and he was sternly cautioned to desist from misleading it regarding political interference. The Town Clerk was requested to apologise before the Committee for misleading it. The Committee previously urged the Town Clerk to ensure that revenue is collected without further delay, and that the Council’s revenue collection capacity is enhanced to avoid recurrence. The Committee awaits a progress report on the full recovery of the amounts outstanding.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Nshinda Debt Collectors unaccounted for revenue was resolved and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until Nshinda Debt Collectors unaccounted for revenue is resolved and details availed for audit scrutiny. e) Failure to Avail Receipt Books The Committee previously expressed concern at the failure by the Town Clerk to secure the receipt books during the period of audit. It surprises the Committee that receipt books which went missing from the office since the period of audit were found within a day upon being directed by the Committee. The Committee previously urged the Town Clerk to ensure that officers who failed to find the documents during the time of audit be disciplined for failure to take audits seriously. The Committee previously urged the Town Clerk to present proof to the Office of the Auditor General that the officers involved were disciplined before the case could be closed by the committee.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the eight (8) receipt books were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the eight (8) receipt books are availed for audit scrutiny.

Failure to Remit Statutory Obligation The Committee noted the efforts made to dismantle the outstanding statutory obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation costs. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the statutory obligations were liquidated and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the statutory obligations are liquidated and details availed for audit scrutiny. f) Outstanding Staff Obligations The Committee noted the efforts made to dismantle the outstanding staff obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock was besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation costs. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the staff obligations amounting to K20, 363,975 were liquidated and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the staff obligations amounting to K20, 363,975 are liquidated and details availed for audit scrutiny.

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i) Failure to Avail Title Deeds The Committee was alarmed at the failure by the Council to secure property with title deeds and urged Management to ensure that the process of acquiring title deeds is expedited. The Committee previously urged the Town Clerk to present to the Auditor General copies of title deeds so far acquired. The Committee awaits a progress report.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Title deeds were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Title deeds are availed for audit scrutiny. j) Equalisation Funds i. Installation of Street Lighting –

• Failure to declare Interest – Director Engineering The Committee was alarmed at the failure by the Council to carryout due diligence before engaging a contractor. The Committee was of the view that there should be some connivance within the Council which explains why there is some laxity by the Procurement Committee to search for the names with PACRA. The Committee strongly cautioned management to be patriotic and ensure that personal interest and gains are put aside when serving the communities. As The matter was already before the investigative wing, the Committee resolved to await the outcome on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the investigative wings concluded the investigations.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the matter is concluded by the investigative wings.

• Irregular Payment of VAT to a Non - Registered Supplier The Committee expressed great concern at the failure by the Council to review all the documents relating to suppliers. The Committee expects that suppliers submit the documents for review before being awarded a contract to supply either goods or services but it is not clear how the officers in the Accounts Department would pay VAT to a non-registered supplier. The Committee previously found this as a clear act of fraud and urged the Town clerk to ensure that the officers responsible are disciplined and reported to the investment wings for Further Action. The Committee awaits a progress report on this matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the disciplinary action is taken against the erring officers.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the disciplinary action is taken against the erring officers.

• Independence Avenue The Committee was alarmed at the failure by the Council to put in place a system to ensure value for money is harnessed and confirmed before payment is made for the works. The Committee was worried at the number of cases involving fraudulent activities at this council. The Committee was of the view that a forensic audit should be carried out to review its operations and unearth the real problems to improve the status quo. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the investigations by the investigative wings were concluded and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the investigations by the investigative wings are concluded and details availed for audit scrutiny. ii. Paving of the Civic Centre - additional payment The Committee expressed great concern at the failure by the Council to ensure that all works are included in the BOQs to avoid variations. The Committee cautioned the Town Clerk to be vigilant on scrupulous contractors who understate their BOQs for purposes of being awarded contracts and thereafter seek for variations during the period of execution. This act is scrupulous as it puts the clients at a great risk of under budgeting for the contract which may result in abandoning works and delayed completion. The Committee however, resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the valuation order was availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the valuation order was availed for audit scrutiny.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the documents were traced and availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the documents are traced and availed for audit scrutiny.

• Bill of Quantity overpriced by K7,677,730 The Committee did not accept the reason given and urged the Town Clerk to ensure that officers responsible are disciplined for this error of commission. The Committee cautioned the Town Clerk, as a supervisor and sub-warrant holder, to be vigilant on scrupulous staff who may willfully overstate the BOQs for purposes of connivance with contractors and seek payment from them after payment by the Council. This act is scrupulous and, since circumstances are not clear, must be reported to law enforcement agencies for further probe. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the quantities of material on the BOQs were qualified and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the quantities of material on the BOQs are qualified and availed for audit scrutiny.

• Overpayment of K2, 618,653 on mobilisation The Committee did not accept the reason given as it is not clear why guidance may not had been sought before executing the payment. The Committee previously urged the Town Clerk to ensure that officers responsible are disciplined for this anomaly. The Committee was of the view that this act is scrupulous and, since circumstances are not clear, must be reported to law enforcement agencies for further probe. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recoveries for the overpayment were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until recoveries for the overpayment were availed for audit scrutiny.

• Stalled Works due to Non-Payment While noting the submission, The Committee previously observed with concern the failure by the Council to source funds before commencing works on the project. The Committee cautioned that there was a possible risk of penalties that may be incurred as a result of terminating the contract which may work to the Council’s disadvantage as they are already grappling with liquidity problems. The Town Clerk was urged to ensure that the matter was resolved amicably but expeditiously to avoid further delay on completing the project. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the works were completed and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the works are completed and details availed for audit scrutiny. iv) Financing Arrangements The Committee expressed great concern as to why the Permanent Secretary, Ministry of Local Government chose to execute duties of arranging finances through the bank contrary to provisions of Chapter 366 of the Loans and Guaranties (Authorisation) Act. The Committee previously urged the Secretary to the Treasury to consider reporting this matter to law enforcement agencies for further probe. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the financing agreements were availed for audit scrutiny. Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the financing agreements are availed for audit scrutiny.

I) Environmental Management i. Unpaid Service Fees for Transporters The Committee noted the submission and urged the Town Clerk to ensure that all the funds were recovered without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the unpaid fees were cleared and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the unpaid fees are cleared and details availed for audit scrutiny. ii. Unpaid Tipping Fees The Committee noted the submission and urged the Town Clerk to ensure that all the funds were recovered without any further delay. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the unpaid tipping fees were cleared and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the unpaid tipping fees are cleared and details availed for audit scrutiny. iv. Dumpsite Management In noting the submission, the Committee resolved await a progress report while also encouraged the Town Clerk to ensure that the matter was attended to with the urgency it deserves.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until remedial measures were undertaken and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until remedial measures are undertaken and details availed for audit scrutiny.

Failure to Fence the Site In noting the submission, the Committee resolved to await a progress report while also encouraged the Town Clerk to ensure that the matter was attended to with the urgency it deserves.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the fencing of the dumpsite was undertaken and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the fencing of the dumpsite is undertaken and details availed for audit scrutiny.

There were no warning signs at the dumpsite. In noting the submission, the Committee resolved to await a progress report while also encouraged the Town Clerk to ensure that the matter was attended to with the urgency it deserves.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the warning signs are erected and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the warning signs are erected and details availed for audit scrutiny.

Council workers had no protective clothing. In noting the submission, the Committee resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the protective clothing for the staffs were purchased and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the protective clothing for the staffs are purchased and details availed for audit scrutiny.

• Dumping of prohibited electronic equipment at the dump site.

Committee’s Observation and Recommendations The Committee awaited a progress report on the Sensitisation of the community on the need to avoid dumping of electronic items at the dumping site.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it be closed following the Sensitisation of the community on the need to avoid dumping of electronic items at the dumping site.

Committee’s Observations and Recommendations As the matter was verified by the Office of the Auditor General, the Committee resolves to close the matter.

• There were no boreholes for monitoring of ground water quality at the dumpsite. In noting the submission, the Committee resolved await a progress report while also encouraged the Town Clerk to ensure that the matter was attended to with the urgency it deserves.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the boreholes were sunk and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the boreholes are sunk and details availed for audit scrutiny.

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• Waste at the dumpsite was being burnt thereby posing a health hazard to the Community In noting the submission, the Committee resolved await a progress report while also encouraged the Town Clerk to ensure that the matter was attended to with the urgency it deserves.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Council put up measures to address the pollution of the public and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the Council puts up measures to address the pollution of the public and details availed for audit scrutiny.

KALABO DISTRICT COUNCIL

PARAGRAPH 18 PARAGRAPH 18

Accounting and Other Irregularities

18. An examination of accounting and other records maintained at the Council for the periods under review and a physical inspection of selected projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury submitted as set out below. c) Failure to Produce Receipt Books The Committee did not accept the reason given and urged the Council Secretary to ensure that disciplinary action was taken against erring officers who failed to avail the receipt books during the time of audit. The Council Secretary was cautioned to desist from the habit of getting involved seriously in resolving matters only when called upon by the Auditor General or the Committee. The Committee, however, resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it be closed following the availing of the receipt books for audit scrutiny.

Committee’s Observations and Recommendations As the matter was verified by the Office of the Auditor General, the Committee resolves to close the matter. d) Unsupported Payments K8, 350 The Committee did not accept the reason given by the Council Secretary and hence urged him to ensure that officers responsible are disciplined for this failure. The Committee also cautioned the Council Secretary for his laxity on the matter as efforts to look for the documents were only seen

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after the audit. The Council Secretary was sternly cautioned to ensure that future audits are taken seriously. The matter was, however, recommended for closure subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it be closed following the availing of the supporting documents for audit scrutiny.

Committee’s Observations and Recommendations

As the matter was verified by the Office of the Auditor General, the Committee resolves to close the matter. g) Payments of Subsistence Allowances within Station of Duty - K171, 290 In noting the submission, the Committee previously expressed concern at the failure by management to seek authority prior to undertaking the activities. It displeased the Committee and it found the transaction unacceptable as there is no urgency on the activities that were undertaken. The Council Secretary was sternly cautioned to desist from the habit of seeking retrospective authority, and the Committee previously urged him to ensure that the amount is recovered from the officers. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it be closed following the availing of recovery details for audit scrutiny.

Committee’s Observations and Recommendations As the matter was verified by the Office of the Auditor General, the Committee resolves to close the matter. e) Irregular Refunds for Officers' Medical Bills - K10,900 While noting the submission, The Committee previously expressed concern at the failure by management to comply with the Local Government Condition of Service No. 158. The Committee resolved to close the matter subject to audit verification, while the Office of the Auditor General was urged to keep the matter in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until recovery details are availed for audit scrutiny. f) Failure to Recover Laptops from Transferred Officers K36, 000 The Committee noted the submission but urged the Council Secretary to ensure that disciplinary action was taken against erring officers who failed in their duty to ensure that assets in form of laptops were handed over before clearing the officers. The Council Secretary was cautioned to

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desist from the habit of getting involved seriously in resolving matters only when called upon by the Auditor General and the Committee. The Committee, however, resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the transferred laptops were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the transferred laptops are availed for audit scrutiny. s) Failure to Remit Tax K238, 200 The Committee previously observed with concern the huge debt stock owed by the Council. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Tax owed was remitted to ZRA and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Tax owed is remitted to ZRA and details were availed for audit scrutiny. t) Lack of Title Deeds for Properties The Committee previously expressed concern at the failure by the Council to secure its properties with title deeds. The Council Secretary was reminded that it will be difficult to defend themselves in case of a dispute in the court of laws which may arise in relation to any of its properties. He was urged to ensure that all council properties were secured with title deeds without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Title deeds were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the title deeds are availed for audit scrutiny.

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u) Failure to Update the Valuation Roll The Committee previously observed with concern the lack of seriousness and laxity on the part of officers tasked with the responsibility of managing local authorities. The Committee did not accept the reason provided by the Council and counseled the Council Secretary to be proactive as the failure to have an updated valuation roll may result in other failures including low revenue base and difficulties in preparing financial statements. The Committee previously urged the Controlling Officer, Ministry of Local Government to consider helping all local authorities to update their valuation rolls by providing the expertise lacked by the Councils. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Valuation Roll is updated and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Valuation Roll is updated and availed for audit scrutiny. o) Environmental Management iii. Lack of an Official Dumpsite The Committee noted the submission by the Council Secretary but impresses upon him to ensure that his negotiations with the traditional leaders at Barotse Royal Establishment are expedited, and that a site for disposal of waste is found without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the official dumpsite was allocated and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the official dumpsite is allocated and details availed for audit scrutiny. p) Lack of Fire Fighting Services The Committee noted with concern that the Council management are reluctant in ensuring that a fire station is established at the local authority. It also worries the Committee that it has taken Auditor General to remind on the importance of having fire services in the area. The Committee previously urged the Council Secretary to ensure that he impresses upon the Permanent Secretary to consider allocating fire equipment to Kalabo District Council. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the fire-fighting equipment was purchased and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the fire-fighting equipment is purchased and details availed for audit scrutiny. q) Management of Land ii. Irregular Payment of Allowances K49, 750 iii. The Committee did not accept the reason given and sternly cautioned the Council Secretary to desist from such unlawful acts. The Committee recommends that the officers involved should be made as soon as possible. The Committee would await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the recovery details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the recovery details are availed for audit scrutiny.

KAPUTA DISTRICT COUNCIL

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Accounting and Other Irregularities

19. An examination of accounting and other records maintained at the Council for the financial years ended 31st December 2015, 2016 and 2017 carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. a) Failure to Acquire Title Deeds The Committee previously found unacceptable at the laxity exhibited by management at this council to an extent of waiting to be reminded by Auditor General on the need to liaise with the Provincial Planning Unit on the need to update the plan of the district. The Committee was displeased with the poor approach to issues of governance and the Council Secretary was sternly cautioned against this lapse. The Council Secretary was urged to ensure that all processes are finalised without any further delay, and that title deeds are secured for council properties to do away with difficulties in preparing accurate financial statements. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the title deeds are obtained and details availed for audit scrutiny. b) Failure to Insure Property and Office Equipment The Committee previously observed with concern the failure by the Kaputa Council to insure property which may result in loss of the major resources in case of unforeseen happenings. The Committee previously observed that this failure had put the Council at risk and needs to be resolved without any further delay. The Committee previously urged the Council Secretary to explore other revenue collection options to increase the Councils revenue base, and to enable it meet all its obligations and operation costs. The Committee awaits a progress report on the full cover insurance of all the Council’s properties.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the office equipment, furniture and buildings are insured and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the office equipment, furniture and buildings are insured and details availed for audit scrutiny. c) Lack of a Strategic Plan The Committee noted with concern the failure by the Council Secretary to put in place a strategic plan thereby making it difficult to have guidance for the Councils operations. The Committee also bemoans the delays by the Ministry to come up with a standard strategic plan for use by the councils. The Committee strongly urged to Controlling Officer, Ministry of Local Government to expeditiously come up with a standard plan for use by all councils. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Integrated Development Plan was prepared and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Integrated Development Plan is prepared and details availed for audit scrutiny..

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g) Failure to Remit Statutory Obligations and Other Contributions The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Council Secretary to explore more revenue sources to ultimately enhance its revenue base and to reduce the huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of the burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the remaining amounts totaling K4, 455,833 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the remaining amounts totaling K4, 455,833 are settled and details availed for audit scrutiny.

KASAMA MUNICIPAL COUNCIL

PARAGRAPH 20 PARAGRAPH 20

Accounting and Other Irregularities 20. An examination of accounting and other records maintained at the Council for the period under review and a physical inspection of projects carried out in November 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. a) Failure to Fill Key Positions

The Committee noted with concern that the Local Government Service Commission does not attend to requests made from councils while officers are sent to other councils where they did not require them. The Committee previously urged the Local Government Service Commission to ensure that in the interim before fiscal decentralization, councils may be allowed to maintain staff they could afford to pay in order not to be over burden the them with huge wage bills. In addition, the Local Government Service Commission was urged to consider reviewing individual councils’ establishments, and to allow them to state the kind of staff they need unlike using a standard establishment for all councils. The Committee resolved to keep the matter in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until all the key positions were filled and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until all the key positions are filled and details availed for audit scrutiny. i. Failure to Settle Statutory Obligations and other Contributions K6, 790,731 The Committee previously observed with concern the failure by management to ensure that they pay their statutory obligations. The Committee previously urged the Town Clerk to ensure that they increase their revenue base to enable them clear all the outstanding obligations owed to various statutory bodies. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the settlement of statutory obligations and other contributions amounting to K4, 643,435.25 and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the settlement of statutory obligations and other contributions amounting to K4, 643,435.25 and details availed for audit scrutiny. j) Outstanding Receivables K3, 605,181

The Committee previously observed with concern the councils laxity to collect their revenue despite the financial constraints it is facing. The Committee also observes that this failure may continue to worsen without any serious intervention by council management. The Committee directed the Town Clerk to ensure that he enhances the revenue collection and that all receivables are collected efforts by 31st December 2019. A progress report on the matter was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the uncollected receivables amounting to K2, 378,736.12 were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the settlement of statutory obligations and other contributions amounting to K4, 643,435.25 and details availed for audit scrutiny. k) Missing Payment Vouchers K146, 965 The Committee did not accept the reason given by the Town Clerk. The Committee previously observed that the matter was not taken seriously when the auditors were at their station. The Committee previously urged the Town Clerk to ensure that all officers responsible are disciplined for this failure, and that all the missing documents are located and availed for verification by 31st December, 2019. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until thirteen (13) missing payment vouchers in amounts totalling K146, 965 were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until thirteen (13) missing payment vouchers in amounts totalling K146, 965 were availed for audit scrutiny. l) Unretired Accountable Imprest K423, 102 The Committee did not accept the reason given by the Town Clerk. The Committee previously observed that officers did not take the matter seriously when Auditor General was at their station. As a matter of urgency, the Committee previously urged the Town Clerk to ensure that all officers who did not retire imprest are surcharged with the whole amounts they were issued with in accordance with Clause 119 of the Local Government Financial Regulation. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the retirement documents were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the retirement documents were availed for audit scrutiny. m) Unapproved Payment Vouchers K37, 192 The Committee previously found it unacceptable that principal officers allowed payments to go through while they were away from their station. The Committee expressed a great concern to learn that some principal officers and treasurers at this Council are in the habit of signing cheques and other payment documents in advance to allow for such payments to go through whilst they are away from the station. The Local Government Service Commission is particularly urged to ensure that officers at this Council were sternly cautioned to desist from this habit, and that those responsible for this unapproved payment queried are surcharged in order to deter others from perpetuating this vice. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Five (5) payments in amounts totalling K37, 192 were approved and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the retirement documents are availed for audit scrutiny.

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v) Failure to Produce Activity Reports K340, 186 The Committee did not accept the reason given by the Town Clerk as they are of the view that officers may not have undertaken the activities they were paid for as evidenced from their failure to produce reports. The Committee previously observed an act of fraud by these officers as their failure to produce the reports within 48 hours after implementing the purported activity meant that they did not account for the funds they were paid. The Committee previously urged the Town Clerk to ensure that all officers responsible are surcharged with the whole amounts they were issued with in accordance with Clause 119 of the Local Government Financial Regulation. The Committee awaits a progress report on the full recovery of the funds not later than 31st December, 2019.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the activity reports were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the activity reports are availed for audit scrutiny. w) Unaccounted-for Stores K1, 061,425 (General Stores – K547, 128 and Fuel – K514, 297) The Committee did not accept the reason given by the Town Clerk where he cites lack of qualified staff as being the cause of the query. The Committee cautioned the Council Secretary against hiding under capacity of staff as they are of the view that filing and storing documents systematically does not require any technical know-how. The Committee previously urged the Council Secretary to ensure that the officers responsible are disciplined for this failure without any further delays and that all documents are located only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipt and disposal details for stores items costing K1, 061,425 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the receipt and disposal details for stores items costing K1, 061,425 are availed for audit scrutiny. x) Irregular Hiring of a Motor Vehicle K17, 850 The Committee previously observed that His Worship Mayor of Kasama is not properly dressed during the meeting, and when asked to state why he was dressed like that, the Mayor asked the Members to state whether they needed him or a suit. However, the meeting continued after a short adjournment to discuss the action to be taken concerning the conduct of the Mayor. Concerning the hire of the vehicle, the Committee did not accept the reason given by the Town Clerk as circumstances are not very clear surrounding the hire of the vehicle which was used by the Mayor. The Committee previously noted with concern that the Council decided to single- source the services from one supplier without authority and a no objection from the Full Council.

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What worries the Committee most is the fact that hired vehicle did not even exist in the Road Traffic and Safety Agency (RATSA) data base. The Committee previously observed that there is likelihood of an act of fraud encounted and that the purported vehicle, could had been owned by one of the interested parties very close to Council Management. After the two meetings involving His Worship the Mayor, the Town Clerk and other former and current staff at the council, the following recommendations were made. i. His Worship the Mayor of Kasama to be subpoenaed to appear before the Standing Committee on Privileges, Absences and Support Services of Parliament to state why he had misconducted himself in the manner that he had by uttering words the Committee find as demeaning the authority of Parliament. ii. That the matter relating to the hire of the vehicle be reported to investigative wings for further investigation. iii. The Committee to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until disciplinary action was taken against erring offices and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the receipt and disposal details for stores items costing K1, 061,425 are availed for audit scrutiny. y) Failure to Collect Revenue from the Sale of Plots K 8,544,340 The Committee previously expressed concern at the failure by the Council to ensure that revenue is collected from their plot sales. It displeased the Committee that despite having liquidity problems, the Council is not aggressive in ensuring that they collect the much needed revenue. The Committee cautioned the Town Clerk for this failure and urged him to ensure that their revenue collection capacity is enhanced to improve the status quo. The Committee, however, resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until revenue amounting to K8, 544,340 was collect and receipt details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until revenue amounting to K8, 544,340 is collect and receipt details were availed for audit scrutiny . s) Misapplication of Equalisation Funds K1,567,944 The Committee did not accept the reasons given by the Town Clerk as it was noted that management at this council was not aggressive in collecting their earned revenue. This had resulted in the misapplying of funds to meet their daily operation’s needs. The Committee also noted the failure by the Council Management to ensure that other revenue mobilisation strategies

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including updating its valuation roll are employed to improve the liquidity of the local authority. It saddened the Committee that management willfully chose to misapply the 20% portion of the Local Government Equalisation Fund (LGEF) contrary to the Local Government (Amendment) Act No. 12 of 2014 and the Ministry of Local Government and Housing Circular No. MLGH/71/1/87 dated 30th March 2015. The Committee previously found it unacceptable and the Town Clerk was strongly cautioned to desist from this practice, and also to ensure that the Council’s revenue base is improved accordingly to avoid this irregularity. The Committee awaited a progress report on the matter until all the funds were reimbursed by June 30th, 2020.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the reimbursement of K1, 472,239 to capital account and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the reimbursement of K1, 472,239 to capital account and details are availed for audit scrutiny.

Failure to Maintain Buildings The Council did not have a maintenance policy to give guidance on how buildings were to be maintained. As a result, the Council’s properties were in a general state of disrepair. In particular, the following were observed:

• Bantungwa Tarven The Committee noted the submission and urged the Town Clerk to ensure that the building was maintained and that works were completed before the end of the first quarter in 2020. The Committee also directed the Town Clerk to provide a copy of the Lease agreement to Auditor General for verification. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the renovation of the property and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the renovation of the property and details are availed for audit scrutiny.

• Abattoir The Committee noted the submission and urged the Town Clerk to ensure that the building is maintained and that works are completed before the end of the first quarter in 2020. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the renovation of the property and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the renovation of the property and details are availed for audit scrutiny.

• Buseko Community Hall 1. Buseko Community Hall

The Committee noted the submission and urged the Town Clerk to ensure that the building is maintained and that works are completed before the end of the first quarter in 2020. The Committee also directed the Town Clerk to provide a copy of the Lease agreement to Auditor General for verification. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the renovation of the property and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the renovation of the property and details are availed for audit scrutiny.

Building with seven (7) classrooms The Committee noted the submission and urged the Town Clerk to ensure that the building was maintained and that works were completed before the end of the first quarter in 2020. The Committee also directed the Town Clerk to provide a copy of the Lease agreement to Auditor General for verification. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the broken windows and ceiling board were replaced and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the broken windows and ceiling board are replaced and details availed for audit scrutiny. t) Environmental Management An examination of the Council’s operations regarding its environment management revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. ii. Poor Management of the Dump Site In noting the submission, the Committee previously urged the Town Clerk to ensure that they strictly comply with the Solid Waste Regulation and Management Act, 2018. The matter was, however, recommended for closure while the Office of the Auditor General was urged to ensure that it is kept in view during future audits.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dump site was fenced and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the dump site is fenced and details availed for audit scrutiny.

KAWAMBWA DISTRICT COUNCIL

PARAGRAPH 21 PARAGRAPH 21

Accounting and other Irregularities An examination of accounting and other records maintained at the Council for the period under review and physical inspections of selected projects carried out in February 2019 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. b) Failure to Acquire Title Deeds The Committee previously observed with concern the failure by council management to acquire title deeds. It also displeased the Committee that council management has not seriously pursued this matter until Auditor General unearthed it. The Council Secretary was strongly cautioned to ensure that title deeds are acquired without any delay as there is a great risk in case of an eventuality. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds are obtained and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the title deeds are obtained and details availed for audit scrutiny. c) Failure to Insure Immovable Properties The Committee previously observed with concern the failure by council management to acquire title deeds which consequently led to the failure to insure the properties. It also displeased the Committee that council management has not seriously pursued this matter until Auditor General unearthed the matter. The Council Secretary was strongly cautioned to ensure that title deeds are acquired and subsequently insure the properties without any delay. A progress report was being awaited by the Committee.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the properties were insured and details availed for audit scrutiny. Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the properties are insured and details availed for audit scrutiny. d) Loss of Revenue in the Leased-out Council Building

Committee’s Observation and Recommendation The Committee previously observed with concern the failure by council management to resolve the matter with the tenant until the audit period. Particularly, the Committee was also concerned with the failure by the Council to sermon Chita Lodge Management being their tenant unlike dealing with a third party, His Royal Highness Chief Munkata. The Committee previously urged the Council Secretary to ensure that he uses all available options to ensure that all the outstanding revenue in the leased-out is recovered without any further delay. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the agreement on the adjustment of rentals was reached with the lessee and details availed for audit scrutiny. Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the agreement on the adjustment of rentals is reached with the lessee and details availed for audit scrutiny. e) Failure to Settle Outstanding Debts K626, 222 The Committee previously observed with concern the failure by council management to ensure that they pay their debtors on time. The Committee previously urged the Council Secretary to ensure that they explore more sources of revenue and increase their revenue collection capabilities to enable them clear all the outstanding obligations owed to debtors. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the amount totaling K406, 689.63 is settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the amount totaling K406, 689.63 is settled and details availed for audit scrutiny.

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LIVINGSTONE CITY COUNCIL

PARAGRAPH 22 PARAGRAPH 22

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the period under review and a physical inspection of projects carried out in November 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. e) Outstanding Staff Obligations K1, 173,253.83 The Committee noted the efforts made to dismantle the outstanding staff obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation costs which may arise from this situation. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this huge burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the outstanding amount of K676, 663.41 was settled and details availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee resolves to await a progress report until the outstanding amount of K676, 663.41 is settled and details availed for audit scrutiny. g) Waste Management- Lack of Perimeter Boundary to the Dumpsite The Committee noted the submission and urged the Town Clerk to ensure that the Council adhered to the Solid Waste Regulation and Management Act, 2018 by ensuring that the dumpsite id secured, accordingly. The Committee will await acquisition of a new dumpsite.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the perimeter boundary to the dumpsite was constructed and verified by the Auditor General.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the perimeter boundary to the dumpsite is constructed and verified by the Auditor General.

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LUANO DISTRICT COUNCIL

PARAGRAPH 23 PARAGRAPH 23

Accounting and Other Irregularities 23. An examination of accounting and other records maintained at the Council and an inspection of selected projects for the financial years ended 31st December 2015, 2016 and 2017 carried out in October 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. f) Lack of a Strategic Plan The Committee previously expressed concern that the Council is operating without a well- defined strategic direction and wonders what is guiding the operations of the Council in the absence of this important document. The Committee was disappointed that the Ministry of Local Government is not helping the situation by not facilitating the formulation of guidelines in liaison with the Management Development Division at Cabinet Office. In this regard, the Committee previously urged the Ministry to ensure that guidelines are formulated and circulated to all council and that the Strategic Plan is prepared and implemented as a matter of urgency. The Committee awaits an update on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Strategic Plan was prepared and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the Strategic Plan was prepared and availed for audit scrutiny. h) Unaccounted for Revenue – K228, 990 The Committee previously expressed concern that the Council Secretary failed to discipline revenue agents who performed their duties in an unacceptable manner. While the Committee appreciates the measures the Council has put in place, the Committee regrets that the Council Secretary has neither recovered the revenue nor instituted disciplinary action against the officers who caused the anomally. Therefore, the Committee previously urged the Council Secretary to discipline the officers involved and recover the amount in question without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the unaccounted for funds were fully recovered and disciplinary action is instituted against the erring officers and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee resolves to await a progress report until the unaccounted for funds are fully recovered and disciplinary action is instituted against the erring officers and details availed for audit scrutiny. i) Failure to Avail Authority for Plots Offered at Discounted Prices The Committee expressed disappointment that the Council flouted clearly stipulated procedure. The Committee previously noted that there was abuse of authority by the Council as this privilege was a condition applicable only to members of staff. The Committee strongly urged the Town Clerk to institute disciplinary action against erring officers for the anomaly and recouver the discounted funds from the individuals who illegally acquired plots. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the discounted funds were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the discounted funds are recovered and details availed for audit scrutiny. j) Failure to Avail Receipt Books for Audit The Committee previously found the justification given for the failure unaccepted. The situation depicts lack of supervision of officers by management and a serious lapse in internal controls exacerbated by a laissez-fair attitude. While The Committee previously noted that the documents had been traced, it is disappointed that disciplinary action has not been instituted against erring officer and neither have the missing receipts been reported to the investigative wings. Therefore, the Committee previously urged the Council Secretary to strengthen internal controls at the Council to avoid such anomalies in future audits. The Committee also urged the Council to report the matter to relevant investigative wings and institute disciplinary action against erring officer for the failure. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the seven (7) receipt books were traced and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the seven (7) receipt books are traced and details availed for audit scrutiny. k) Unsupported Payments – K361, 324 The Committee previously found the justification given by the Council Secretary insufficient as the supporting documents could had been attached to the vouchers at the time of payment. The Committee was of the view that Financial Regulations are being flouted with impunity and this unfortunate state of affairs is a recipe for malpractice. The Committee previously urged the

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Town Clerk to take disciplinary action against the officers who failed in their duties to secure the supporting documents. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the documents for disciplinary action taken against the erring officers were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the documents for disciplinary action taken against the erring officers were availed for audit scrutiny.

(i) Unapproved Payments – K821, 383 The Committee was disappointed that the Council Secretary had recommended that the payments should be approved retrospective by officers who were present at the time. The Committee previously noted that retrospective approval of payment for a transaction already done is illegal and should not be entertained by the Council Secretary. The Committee was disappointed that disciplinary action has not been instituted against the officers who caused this irregularity. The Committee strongly urged the Council Secretary to ensure that disciplinary action was taken against erring officers and also that all documents are traced and availed to the Office of the Auditor General for verification without any delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until amounts totaling K439, 148.55 were approved and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until amounts totaling K439, 148.55 are officially approved and details are availed for audit scrutiny.

(m) Un acquitted Allowances – K157, 626 The Committee was disappointed with the Submission by the Council Secretary as the query relates to unacquited allowances and not unapproved vouchers as submitted by the Council Secretary. The Committee expressed serious concern over the lack of seriousness to the work of the Committee by the Council. The Council Secretary is, therefore, sternly cautioned to ensure that the work of the Committees of Parliament is accorded with the seriousness it deserves and also that all queries in the Auditor General’s Reports are addressed, accordingly. The Committee strongly urged the Council to recover the money from the officers in question without any further delay. The Committee awaited a progress report on the matter. The Committee further urged the Council Secretary to enhance internal controls to avoid recurrence of the query in future audits.

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Treasury Response\ The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until amounts totaling K125, 198.80 were acquitted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until amounts totaling K125, 198.80 are acquitted and details are availed for audit scrutiny. m) Questionable Payments – K153,053 The Committee previously noted the response and urged the Council Secretary to institute disciplinary action against officers in question. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until disciplinary action was instituted against the erring officers and details availed for scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until disciplinary action is instituted against the erring officers and details availed for scrutiny. n) Procurement of Goods and Services and Stores Management i. Unaccounted for General Stores – K344,209 (General Stores - K218,944 and Fuel - K125,265) While noting the response, the Committee was concerned that the Council Secretary has not stated whether the unaccounted store queried had now been accounted for. The Committee was concerned that the failure by the Council to request key officers from the LGSC is causing a lapse in the smooth operations of the Council. The Committee fears that failure to account for stores could result in pilferage, a situation which is unfortunate. The Committee was of the strong view that the Council does not engage the Commission in time to deploy key staff. The Committee previously urged the Council Secretary to always ensure that the Council has key officers at all times to avoid this anomaly. The Committee awaits a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the items costing K218, 944 were accounted for and details availed for audit scrutiny verified by the Auditor General.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the items costing K218, 944 are accounted for and details availed for audit scrutiny verified by the Auditor General.

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iii. Questionable Procurement of Solar Panels– K34, 098 The Committee previously found the state of affairs disheartening. The Committee was of the view that the Council took advantage of the absence of the Procurement Officer and flouted procurement guidelines. The Committee strongly urged the Council Secretary to ensure that procurement guidelines are adhered to at all times. The Committee previously urged the LGSC to conduct a comprehensive staff audit at the Council to avoid such irregularities in future audits. The Committee recommends that officers are disciplined for this failure and an update is awaited.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until disciplinary action was taken against the erring officers and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until disciplinary action is taken against the erring officers and details availed for audit scrutiny. p) Unretired Accountable Imprest – K220,233 The Committee was disappointed that the Council Secretary did not take any action against the irregularity before the matter was raised by the Auditor General. The Committee previously noted that financial Regulations No. 119(1) regarding accountable imprest was disregarded with impunity. In this regard, the Committee sternly cautioned the Council Secretary to ensure that internal controls were strengthened to avert recurrence of such regularities. The Council Secretary was urged to institute disciplinary action against the erring officers for the failure. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until accountable imprest amounting to K220, 233 was fully retired and disciplinary action was taken against the erring officers.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until accountable imprest amounting to K220, 233 is fully retired and disciplinary action is taken against the erring officers and details availed for audit scrutiny. q) Failure to Provide Activity Reports The Committee expressed great concern at the poor adherence to stipulated procedure by the Council. The Committee previously noted with concern the poor supervision of officers by management at this council. The Committee previously urged the Council Secretary to institute disciplinary action against erring officers and recover the money from the officers who failed to produce activity reports. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the activity reports were availed for audit scrutiny and disciplinary action taken against the erring officers.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the activity reports are availed for audit scrutiny and disciplinary action taken against the erring officers. s) Irregular Payment of Subsistence Allowance –K142, 651 The Committee previously noted the Submission by the Council Secretary and urged the Ministry of Local Government to consider making exceptions for places that can only be accessed through other districts. The Committee also directed the Permanent Secretary, Ministry of Local Government to ensure that a clear position of such exemptions is arrived at, promptly, and communicated accordingly to all councils in order to resolve this matter of great concern. The Committee, however, urged the Council to ensure that prior authority is sought before such allowances can be facilitated. The Committee awaited a progress report on the matter. Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the irregularly paid allowances amounting to K142, 651 were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the irregularly paid allowances amounting to K142, 651 are recovered and details availed for audit scrutiny. t) Irregular Payment of Subsistence Allowance on Sponsored Activities –K13920 While noting that funds had been recovered, the Committee was disappointed that the Council has neither disciplined nor cautioned the officers concerned for the irregularity. In this regard, the Committee previously urged the Council Secretary to strongly caution the officers to avoid reoccurrence. The Committee directed the Council Secretary to ensure that all supporting documents were availed to the Office of the Auditor General for verification only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the irregularly paid subsistence allowances in amounts totalling K13, 920 were fully recovered and details were availed for audit verification.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the irregularly paid subsistence allowances in amounts totalling K13, 920 were fully recovered and details were availed for audit verification.

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u) Wasteful Expenditure – K12,298 The Committee previously observed with concern the poor attitude of officers at the Council resulting in loss of revenue which could otherwise be directed towards service delivery. The Committee was concerned that the same Council facing financial constraints is unable to ensure that there was value for money in its operations. The Committee strongly urged the Council Secretary to take stern disciplinary action against erring officers by surcharging them for this failure. The Council Secretary was also directed by the Committee to ensure that all the evidence regarding actions taken were availed to the Office of the Auditor General and only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until disciplinary action was taken against erring officers and details were availed for audit verifications.

Committee’s Observations and Recommendations The Committee resolves to await a progress report until the irregularly paid subsistence allowances in amounts totalling K13, 920 are fully recovered and details are availed for audit verification. v) Questionable Payments – K114, 631 The Committee was dismayed at the occurrences at the Council. The Committee previously observed that there were serious lapses in internal controls resulting in the abuse of authority on public funds. The Committee was disappointed with the behavior exhibited by the Council Secretary for facilitating his own payment, a situation which is highly irregular. The Committee strongly recommends that disciplinary action is taken against him for abuse of authority. The Committee further urged the Council to maintain a data base of suppliers in Kabwe to avoid such irregularities. The Committee directed the Council Secretary to ensure that all supporting documents were availed to the Office of the Auditor General for verification only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until internal controls were enhanced so as to avoid the abuse of public funds and disciplinary action was taken against erring officers.

Committee’s Observations and Recommendation The Committee resolves to await a progress until internal controls were enhanced so as to avoid the abuse of public funds and disciplinary action was taken against erring officers. w) Transport Management i. Irregular Drawing of Fuel – K11,394 The Committee previously found the reasons given unacceptable and observes that it was a serious omission for the Council Chairperson and the Council Secretary to receive fuel allowance and at the same time draw fuel. The Committee directed the Council Secretary to

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institute recoveries without any further delay. The Committee awaited a progress report on the matter.

Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the recoveries of fuel allowances amounting to K11,394 were undertaken and details were availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the recoveries of fuel allowances amounting to K11,394 are undertaken and details are availed for audit scrutiny. x) Sponsorship of Officer for Training without Authority from the Commission The Committee previously noted the response and expressed concern as to why the Council Secretary could not provide these details to the Auditor General. The Committee contends that this irregularity could had been avoided had the officer followed correct procedure. The Committee directed the Council Secretary to ensure that all supporting documents were availed to the Office of the Auditor General for verification only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the authority for paid study leave from Local Government Service was availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the authority for paid study leave from Local Government Service was availed for audit scrutiny. y) Failure to Remit Statutory Obligations and Other Contributions – K751, 193 The Committee previously noted the financial challenges being faced by the Council. Nevertheless, statutory obligations are mandatory and must be remitted as and when they fall due. The Committee previously urged the Council to quickly conclude with negotiations for a payment plan with the institutions being owed and to strictly adhere to it in order to liquidate the outstanding obligations. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the statutory obligation and other contributions are settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the staff obligations are settled and details are availed for audit scrutiny.

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a.a) Outstanding Staff Obligations – K1, 749, 012 The Committee took note of financial constraints the Council is experiencing. However, the Committee previously urged the Council to find ways of expanding the revenue base in order to settle these staff obligations and avoid inconveniencing officers. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the staff obligations were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the staff obligations are settled and details are availed for audit scrutiny. bb) Irregular Payment of Social Holiday Allowances – K 23,000 While noting the effected recoveries, the Committee was concerned that the Council only instituted recoveries after the matter was raised by the Auditor General. The Committee strongly urged the Council Secretary to strictly adhere to conditions of services when paying emoluments. The Committee directed the Council Secretary to ensure that all supporting documents were availed to the Office of the Auditor General for verification only then will the matter be closed.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until recovery details availed for audit scrutiny. dd) Non-recovery of Salary Advances – K72, 750 Submission by the Council Secretary The Committee regrets this occurrence which reveals clear weakness of internal controls. The Committee directed the Council Secretary to ensure that the outstanding amount is recovered from concerned officers and disciplinary action is meted out to officers who caused this anomaly. The Committee previously urged the Council Secretary to scale up supervision of officers in the Accounting Department. A progress report is awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until K36, 700 were recovered and details were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until K36, 700 is fully recovered and details are availed for audit scrutiny.

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ee) Irregular Payment of Salary Advances – K80,000 The Committee previously noted that Financial Regulations are being flouted with impunity. The Committee expressed disappointment that the Council Secretary had not undertaken any action to recover the money or discipline the officers in question. The Committee directed the Council secretary to institute disciplinary action for the irregularity and immediately recover the funds. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details for salary advances were availed for audit scrutiny and disciplinary action was taken against the erring officers.

Committee’s Observations and Recommendation The Committee resolves to await a progress until recovery details for salary advances are availed for audit scrutiny and disciplinary action is taken against the erring officers. gg) Equalisation Funds k) Misapplication of Capital Funds K1, 000,170 The Committee previously found the misapplication of capital funds in question very unfortunate as it is contrary to the Local Government (Amendment) Act No. 12 of 2014. The Committee previously urged the Council Secretary to reimburse the misapplied funds to the Capital Account without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the capital funds borrowed amounting to K1,000,170 were reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the capital funds borrowed amounting to K1,000,170 are reimbursed and details availed for audit scrutiny. ii) Failure to Insure Buildings – K 905, 309 The Committee previously expressed concern at the failure by the Council to secure public property through insurance. The Committee also found the justification of lack of funds inappropriate as it is the same Council which was failing to collect revenue through rentals from the properties owned it owned. The Committee directed the Council to ensure that all revenue is collected and that a budget provision is made annually for insurance of its properties. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the buildings were insured and the insurance covers were availed for audit scrutiny.

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Committee’s Observations and Recommendation The Committee resolves to await a progress until the buildings are insured and the insurance covers were availed for audit scrutiny. hh) Constituency Development Funds (CDF) – K 97, 781 i. Misapplication of CDF Funds The Committee was very concerned that the Council ignored CDF Guidelines by diverting CDF to operations of the Council without prior approval. While the Council Secretary commits to repaying the misapplied funds, The Committee previously noted that no time frame has been attached to this commitment. The Committee previously urged the Council Secretary to sternly caution the officers against the practice and immediately pay back the whole amount within the first quarter of 2020. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until CDF funds amounting to K 97, 781 were reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until CDF funds amounting to K 97, 781 are reimbursed and details availed for audit scrutiny. ii. Unsupported CDF Payments – K2, 550,687 The Committee previously expressed concern at the level of negligence exhibited by the Council. The Committee previously found it unacceptable that the Council facilitated payment without obtaining supporting documents contrary to Financial Regulation No. 86. The Committee previously urged the Council Secretary to take disciplinary action against the officers who failed to secure supporting documents from the suppliers. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipts and deposals details supporting the CDF payments amounting to K2, 550,687 were availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the receipts and deposals details supporting the CDF payments amounting to K2, 550,687 are availed for audit scrutiny.

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LUFWANYAMA MUNICIPAL COUNCIL

PARAGRAPH 24 PARAGRAPH 24

Accounting and Other Irregularities

An examination of accounting and other records maintained at the Council for the financial years ended 31st December 2015, 2016 and 2017 and physical inspections of selected projects carried out in October 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. d) Failure to Remit Statutory Obligations - K700, 855

The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. It worried the Committee that this huge debt stock is besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the outstanding amounts totaling K511, 637 was settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the outstanding amounts totaling K511, 637 is settled and details availed for audit scrutiny. e) Non-Recovery of Salary Advances K8, 000

The Committee noted the submission with serious concern at the Council’s failure to deduct salary advance owed by the officer with impunity. The Committee previously urged the Council Secretary to ensure that the officer responsible was sternly cautioned and only then will the matter be closed.

Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it be closed following the cautioning of the erring officer and the availing of recovery details for audit scrutiny.

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Committee’s Observations and Recommendation The Committee resolves to await a progress until the title deeds are obtained and availed for audit scrutiny. f) Lack of Title Deeds The Committee noted with serious concern the Council’s failure to secure its properties with title deeds. It worries the Committee that this state of affairs would result in loss of public funds in case of a dispute as the Council would not have any basis of claiming ownership of the properties. The Committee strongly urged the Council Secretary to ensure that all its properties are secured without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the title deeds are obtained and availed for audit scrutiny. g) Failure to Collect Land Fees from Sale of Plots K8, 245,930 The Committee noted with serious concern the Council’s weak debt collection systems that resulted in the current state of affairs. The Committee wonders why a council which is having liquidity problems would wait for audit to enforce warrants of distress and other provisions of the law. The Committee previously urged the Council Secretary to ensure that the Council enhances its follow up systems in ensuring that all debt owed is collected without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the amounts totaling K5, 955,574.54 were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the amounts totaling K5, 955,574.54 are collected and details availed for audit scrutiny. h) Inadequacies in Provision of Fire Fighting and Rescue Services i) Lack of a Fire Station The Committee noted the submission and urged the Council Secretary to ensure that land issues are resolved without any further delay. The Committee resolved to await a progress report on the full establishment of the fire station.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the construction of the fire station completed and operationalised.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the construction of the fire station completed and operationalised.

LUNDAZI DISTRICT COUNCIL

PARAGRAPH 25 PARAGRAPH 25

Accounting and Other Irregularities 25. An examination of accounting and other records maintained at the Council for the period under review and a physical inspection of selected projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury submitted as set out below. i. Failure to Remit Statutory Obligations and PAYE K2, 498,637 The Committee previously observed with concern the failure by management to ensure that they paid the statutory obligations. The Committee previously urged the Town Clerk to ensure that they increase their revenue base to enable them clear all the outstanding obligations owed to various statutory bodies. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the outstanding amount of K2, 498,637 was settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter was yet to be verified by the Office of the Auditor General, the Committee resolves to await a progress report until the outstanding amount of K2, 498,637 is settled and details availed for audit scrutiny. j) Lack of Title Deeds for Council Property The Committee previously expressed concern at the failure by the Council to secure its properties with title deeds during the time of audit. The Council Secretary was reminded that it will be difficult to defend himself in case of a dispute in the court of laws, which may arise in relation to any of its properties as the properties were not secured with tile deeds and insured, The Committee recommends to close the matter subject to the presentation of the cited documents to the Office of the Auditor General for verification.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds for eight (8) properties were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter was yet to be verified by the Office of the Auditor General, the Committee resolves to await a progress report until the title deeds for eight (8) properties are obtained and availed for audit scrutiny. k) Weaknesses in the Management of Tigone Motel An examination of accounting records and other related documents maintained at Tigone Motel and a physical inspection of assets carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below.

LUSAKA CITY COUNCIL

PARAGRAPH 26 PARAGRAPH 26

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the period under review and a physical inspection of projects carried out in December 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. a) Unsupported Payments K16, 672, 859 The Committee did not accept the reason given by the Town Clerk and urged her to ensure that erring officers were sternly cautioned for this failure. The Committee, however, resolved to close the matter subject to presentation of the cited documents to the Office of the Auditor General for verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the supporting documents two hundred and twenty seven (227) payments amounting to K2, 254,261.89 were availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter was yet to be verified by the Office of the Auditor General, the Committee resolves to await a progress report until the supporting documents two hundred and twenty seven (227) payments amounting to K2, 254,261.89 are availed for audit scrutiny. b) Un acquitted Allowances K3, 736, 009 The Committee did not accept the reason given by the Town Clerk and urged her to ensure that erring officers were sternly cautioned for this failure. The Committee, however, resolved to close the matter subject to presentation for the cited documents to the office of the Audit General verification.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until acquittals for payments amounting to K1, 253,644 are availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter was yet to be verified by the Office of the Auditor General, the Committee resolves to await a progress report until acquittals for payments amounting to K1, 253,644 are availed for audit scrutiny. c) Unretired Accountable Imprest K994, 718 The Committee did not accept the reason given by the Town Clerk and urged her to ensure that erring officers were sternly cautioned for this failure. The Committee, however, resolved to close the matter subject to presentation for the cited documents to the Office of the Auditor General for verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until retirement details for imprests amounting to K100, 045.16 were availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter was yet to be verified by the Office of the Auditor General, the Committee resolves to await a progress report until retirement details for imprests amounting to K100, 045.16 are availed for audit scrutiny. o) Constituency Development Funds (CDF) p) Motor Vehicles Involved in Road Traffic Accidents The Committee bemoans the state of affairs regarding the Council and the insurance firms. It displeased the Committee that the City Council with all the available revenue sources would be grappling with liquidity problems resulting in incurring debt due to unpaid premiums. The Committee strongly urged the Town Clerk to ensure that resource mobilisation was enhanced by management, this and further that all outstanding premiums are paid as a basis for claiming insurance for all the motor vehicles and fire tenders. The Committee, therefore, resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the loss and police reports were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the loss and police reports were availed for audit scrutiny.

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q) Failure to Register Motor Vehicles The Committee previously urged the Town Clerk to ensure that all the moveable assets which are unregistered are registered without further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the eighteen (18) motor vehicles are registered with Road Transport and Safety Agency (RTSA) and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until title deeds are obtained and availed for audit scrutiny. r) Lack of Title Deeds The Committee previously expressed concern at the failure by Council management to secure title deeds for their properties. The Committee previously urged the Town Clerk to consider liaising with the Permanent Secretary, Local Government to ensure that he assists through his counterpart at Ministry of Lands to ensure that the titles for properties that have not yet been acquired are secured expeditiously. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds are obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until title deeds are obtained and availed for audit scrutiny. r) Failure to Maintain the Council Residential Houses The Committee noted the submission and urged the Town Clerk to ensure that funds were secured for the maintenance of the houses, and also that the Council adhered to its maintenance policy in order to maintain properties and avoid dilapidation. The Committee resolved to wait for a progress report on completion of maintenance works on Stand No. KABUL/100/522.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it be outstanding until works on stand numbers Stand No. KABUL/100/522 – Ibex Hill, Stand No. KABUL/100/524 – Ibex Hill and Stand No. KABUL/100/527 – Ibex Hill are completed and physically verified.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the Statutory and Other Contributions are works on stand numbers Stand No. KABUL/100/522 – Ibex Hill, Stand No.

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KABUL/100/524 – Ibex Hill and Stand No. KABUL/100/527 – Ibex Hill are completed and physically verified. t) Failure to Remit Statutory and Other Contributions K160, 705,911 (K25, 261,750 INCLUSIVE LASF) The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Town Clerk to explore more revenue sources, and to ultimately enhance its revenue base in order to reduce the huge burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Statutory and Other Contributions are amounting to K160, 705,911 were remitted and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the Statutory and Other Contributions are amounting to K160, 705,911 were remitted and details availed for audit scrutiny. u) Outstanding Staff Obligations K97, 787, 115 The Committee noted the efforts made to dismantle the outstanding staff obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce the huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Staff Obligations amounting to K97, 787, 115 were paid to eligible officers and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the Staff Obligations amounting to K97, 787, 115 are paid to eligible officers and details availed for audit scrutiny. x) Environmental Management A scrutiny of environmental related records and a physical inspection of the surrounding communities and of the dumpsite carried out in November 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. i. Operation of a Dumpsite without ZEMA License The Committee noted with concern the failure by management at the Council to improve the land fill. It displeased the Committee that despite being better placed to uplift its standards, the land fill for Lusaka Council leaves much to be desired. The Committee strongly cautioned the Town Clerk to desist from causing inordinate delays in improving the landfill. The Town Clerk

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was directed to ensure that the landfill is face lifted before 30th January 2020, and subsequently approved for licensing by ZEMA. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the license to use the dumpsite was obtained from ZEMA and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the license to use the dumpsite is obtained from ZEMA and availed for audit scrutiny. ii. Failure to Produce Plans and Reports The Committee encouraged the Town Clerk to ensure that the land fill was face lifted by 31st January 2020 in order for the Lusaka City Council to fully comply with the provisions of the law. Proof of improvement at the dumpsite should be presented to the Office of the Auditor General for verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the plans and reports were prepared and submitted to ZEMA.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the plans and reports are prepared and submitted to ZEMA. ii) Failure to Engineer the Dumpsite The Committee resolved to await a progress report on the enhanced engineering of waste at the dump site.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the three unengineered dumpsite were worked on.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the three unengineered dumpsite are worked on. iv. Failure to Secure the Dumpsite The Committee encouraged the Town Clerk to ensure that more land is secured and protected to avoid scavengers and other people from entering the dumpsite without control. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dumpsite was secured.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the dumpsite was secured.

MANSA MUNICIPAL COUNCIL

PARAGRAPH 27 PARAGRAPH 27

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the period under review and physical inspections of selected projects carried out in November 2018 revealed the following to which the Town Clerk responded as set out below.

MBALA MUNICIPAL COUNCIL

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Accounting and Other Irregularities

28. An examination of accounting and other records maintained at the Council for the financial years ended 31st December 2015, 2016 and 2017 and inspection of selected projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as out below. a) Outstanding Receivables K1, 381,698 The Committee noted the efforts made by the Council in collecting arrears but they noted with serious concern the Council’s weak in debt collection that resulted in the query. The Committee wonders why a Council with problems would wait for audit to enforce warrants of distress and other provisions of the law. The Committee also expressed concern at the failure by state owned institutions to pay the Councils in time, and were of the view that other options may be explored through the Office of the Secretary to the Treasury to consider deducting the dues at source to improve their compliance in honouring their obligations in time. The Committee previously urged the Town Clerk to ensure that he enhances the Council’s follow up systems in ensuring that all debt owed is collected without any further delay. Further, the Committee previously urged the Town Clerk to ensure that the valuation roll is updated expeditiously. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receivable amounting K937, 719.29 were settled and details availed for audit scrutiny.

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Committee’s Observations and Recommendation The Committee resolves to await a progress report until the receivable amounting K937, 719.29 are settled and details availed for audit scrutiny. b) Failure to Remit Statutory Obligations The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation costs which may arise from this situation. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce the huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of the burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Statutory Obligations amounting K4,954,652.25 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until statutory obligations amounting K4,954,652.25 are settled and details availed for audit scrutiny. c) Failure to Collect Land Development Fees from Sale of Plots K200,846 The Committee noted with serious concern the Council’s weak debt collection systems that resulted in the query. The Committee wonders why a Council which is experiencing liquidity problems would wait for audit to enforce warrants of distress and other provisions of the law. The Committee previously urged the Town Clerk to ensure that the Council enhanced its follow up systems in ensuring that all debt owed to the Council is are collected without any further delay to improve their liquidity situation. Further, the Committee previously urged the Town Clerk to ensure that all unpaid for plots are repossessed without further delay as per resolution made by the Full Council. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Land Development Fees from Sale of Plots amounting K200,846 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a rogress report until Land Development Fees from Sale of Plots amounting K200,846 are settled and details availed for audit scrutiny.

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g) Failure to Transfer Equalisation Funds K530, 508 The Committee did not accept the reasons given by the Town Clerk concerning the borrowing of the 20% portion of the Local Government Equalisation Fund (LGEF). The Committee sternly cautioned the Council Secretary to desist from misapplying the LGEF and the Secretary to the Treasury is, urged to ensure that stiffer penalties were put in place to deter councils from perpetuating this vice. The Committee resolved to await a progress report on the full recovery of the funds.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Local Government Equalisation Funds amounting to K466, 091 were transferred to the capital account and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the Local Government Equalisation Funds amounting to K466, 091 are reimbursed to the capital account and details availed for audit scrutiny.

MONGU MINICIPAL COUNCIL

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Accounting and Other Irregularities An examination of accounting and other records maintain at the Council for the financial year ended 31st December 2017 and physical inspections of projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. c) Under Collection of Revenue K2,518,783 While noting the responses The Committee previously expressed concern at the failure by the Council to collect enough revenue despite grappling with liquidity problems. The Committee previously urged the Town Clerk to ensure the suggested measures are actualized without any further delay. The Committee recommends the matter for Auditor General to keep in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until robust revenue collection measures were adopted and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until robust revenue collection measures are adopted and details availed for audit scrutiny.

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d) Payment of Subscription Fees to Professional Bodies K16,940 While it was appreciated that a circular was issued by the Permanent Secretary, Ministry of Local Government and Housing, The Committee previously observed with concern the failure by the Council to consult before making any payments. It displeased the Committee that the Town Clerk sought for guidance after the payment had already been effected. The Committee cautioned the Town Clerk, being a sub-warrant holder, to always seek for clarity before an expense is incurred. The Committee recommends that all the money should be paid back. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the funds were recovered from the affected officers and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the funds are recovered from the affected officers and details availed for audit scrutiny. e) Failure To Remit Tax K57,331 The Committee noted the payment plan agreed upon with ZRA for the year 2020. However, it found it unjustifiable that the Council failed to remit statutory obligations after effecting deductions from officers. The Committee previously urged the Town Clerk to settle the outstanding balance and henceforth prioritise statutory obligations to avoid recurrence of this matter. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and it was recommended that it remained outstanding until the unremitted tax amounting to K57, 331 was paid to ZRA and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the unremitted tax amounting to K57, 331 is paid to ZRA and details availed for audit scrutiny. f) Failure To Deduct Tax - K149,540 The Committee noted the submission and urged the Town Clerk to ensure that disciplinary action was taken against erring officers who failed to deduct taxes. The Town Clerk was also sternly cautioned to desist from the habit of only getting involved seriously in resolving matters only when called upon by the Auditor General. The Committee resolved to close the matter subject to presentation of the cited documents to the Office of the Auditor General for verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the un deducted Tax from officers amounting K118, 715.32 was recovered and details availed for audit scrutiny.

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Committee’s Observations and Recommendation The Committee resolves to await a progress report until the un deducted Tax from officers amounting K118, 715.32 is recovered and details availed for audit scrutiny. h) Outstanding Staff Bills K3, 414,914 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet, and hence if nothing happens, the Council may suffer from possible litigation costs which may arise therefrom. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Staff Bills amounting to K3, 327,889 was settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress report until the Staff Bills amounting to K3, 327,889 is settled and details availed for audit scrutiny. j) Lack of Title Deeds The Committee was alarmed at the failure by the Council to secure property with title deeds, and urged Management to ensure that the process of acquiring title deeds is expedited. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds for properties were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress report until the title deeds for properties are obtained and availed for audit scrutiny. l) Failure To Control Illegal Developments – Encroachments On The Water Reserve Well Field As the matter was before the court of laws, the Committee resolved to await an outcome of the ruling.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the case between Western Water and Sewerage Company and Zambeef over the encroachment on the piece of land was disposed off by the courts of law and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the case between Western Water and Sewerage Company and Zambeef over the encroachment on the piece of land is disposed off by the courts of law and details availed for audit scrutiny. n) Constituency Development Funds (CDF) - Nalikwanda Constituency i. Failure to Implement Approved Projects The Committee previously observed with concern the failure by Council management to supervise works on the projects, and thus delaying to the benefit to the communities. It also displeased the Committee that Council management had not seriously pursued this matter until Auditor General unearthed it. The Town Clerk was strongly cautioned to ensure that all the projects which were funded are completed expeditiously. A progress report was being awaited by the Committee.

Treasury Response

Approved Project Name Amounts Current Status Recommendation K Completion of Namufolo 1x2 No progress Matter was still CRB 70,000 outstanding. Completion of 1x2 CRB at The 1x2 CRB was at Matter was still Imalyo 50,000 75%. outstanding. Completion of 1x2 CRB at The 1x2 CRB was at Matter is recommended for Lushi Community School 40,000 90%. closure Completion of 1x2 CRB at The 1x2 CRB was MattMatter was still Sibongo Primary School 40,000 abandoned at window outstanding. level Proposed Construction of a 35,000 No progress MattMatter was still staff house at Nangalata outstanding. Primary School Moulding of blocks at No progress MattMatter was still Kaamba Community School 30,000 outstanding. Repair of blown off roof at No progress MattMatter was still Simulumbe Primary School 50,000 outstanding.

Total 315,000

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Committee’s Observations and Recommendation The Committee resolves to await a progress report on all the matters until the projects are completed and handed over to the end users accordingly.

MONZE DISTRICT COUNCIL

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Accounting and Other Irregularities

30. An examination of accounting and other record maintained at the Council for the period under review and physical inspections of projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. c) Misappropriation of Funds K100, 500 The Committee was very disappointed that the Council failed to account for such a huge amount during the time of audit. This clearly indicates that there are very porous internal controls, and that it is likely that the named officer may not be the only one involved in this matter. The Council Secretary was urged to ensure that The matter was reported to the relevant law enforcement agency without further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the misappropriated funds amounting to K54,702.43 were fully recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the misappropriated funds amounting to K54,702.43 are fully recovered and details availed for audit scrutiny. e) Failure to Remit Statutory Obligations K3, 263,401 The Committee previously observed with concern the failure by Council management to ensure that they paid their statutory obligations. The Committee previously urged the Town Clerk to ensure that they increase their revenue base to enable them clear all the outstanding obligations owed to various statutory bodies. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the statutory obligations amounting to K1,261,544 were remitted to ZRA and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the statutory obligations amounting to K1,261,544 are remitted to ZRA and details availed for audit scrutiny.

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g) Weakness in the Management of Properties During the period under review, the Council owned ninety-one (91) properties comprising shops, offices, houses and undeveloped plots among others. However, the following were observed:

1. Lack of Title Deeds for Properties i. Lack of Title Deeds The Committee previously observed with concern the failure by Council management to acquire title deeds. It also displeased the Committee that Council management has not seriously pursued this matter until Auditor General unearthed it. The Council Secretary was strongly cautioned to ensure that title deeds are acquired without any delay as there was a great risk in case of an eventuality. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the title deeds are obtained and availed for audit scrutiny. ii. Failure to Insure Assets The Committee previously observed with concern the failure by Council management to acquire title deeds which consequently led to their failure to insure the properties. It also displeased the Committee that Council management had not seriously pursued this matter until the Auditor General unearthed it. The Council Secretary was strongly cautioned to ensure that title deeds are acquired and subsequently to insure the properties without any further delay. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the insurance cover for the assets were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the insurance cover for the assets are obtained and availed for audit scrutiny. iii. Failure to Maintain Property

• Old Nchete Main Tarvern and Houses The Committee previously observed with concern the failure by Council management to maintain its properties. It also displeased the Committee that Council management had not seriously pursued this matter until Auditor General unearthed it. The Council Secretary was strongly cautioned to ensure that all its properties are maintained by putting up a well-defined maintenance plan further without any further delay. A progress report was being awaited by the Committee.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until renovations and maintenance works are carried out.

Committee’s Observations and Recommendation The Committee resolves to await a progress until renovations and maintenance works are carried out.

g) Constituency Development Funds

Weaknesses in the Management of CDF Projects

Treasury Response ii. CONSTITUENCY MOOMBA - Construction of Kaumba Staff House The matter was verified by the Office of the Auditor General and recommended that it be remained outstanding until cracks on the floor and wardrobe were rectified.

Committee’s Observations and Recommendation The Committee resolves to await a progress until cracks on the floor and wardrobe are rectified expeditiously.

iii. CONSTITUENCY BWEENGWA - Construction of Chuungu Bridge The matter was verified by the Office of the Auditor General and recommended that it be remained outstanding until cracks on the floor and wardrobe are rectified.

iv. CONSTITUENCY BWEENGWA - Construction of Culvert at Kanundwa Road The matter was verified by the Office of the Auditor General and recommended that it be remained outstanding until cracks on the floor and wardrobe were rectified.

Committee’s Observations and Recommendation The Committee resolves to await a progress until cracks on the floor and wardrobe are rectified expeditiously.

NDOLA CITY COUNCIL

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Accounting and other Irregularities An examination of accounting and other records maintained at the Council for the period under review and physical inspections of selected projects carried out in November 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below.

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a) Outstanding Receivables – Land Rates The Committee previously expressed concern that the Council is being owed so much money despite it facing financial constraints. The Committee previously urged the Council to reconcile the outstanding amount owed and ensure that measures were put in place to collect the amount owed. The Committee awaits an update on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until outstanding rates amounting to K22,580,170 were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until outstanding rates amounting to K22,580,170 are collected and details availed for audit scrutiny. c) Under Collection of Revenue K26,511,717

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until robust revenue collection measures were implemented to increase the revenue base for the council.

Committee’s Observations and Recommendation The Committee resolves to await a progress until robust revenue collection measures are implemented to increase the revenue base for the council. d) Loss of Revenue Due to Non-Issuance of Fire Certificate K134,200 While noting the progress made by the Council, the Committee previously expressed concern that the Council only became active in issuing certificates after the audit, a situation which was regrettable. The Committee contends that had the Auditor General not established this state of affairs, the Council would have continued to lose revenue. The Committee was of the view that this omission is due to a lapse in internal controls caused by poor supervision of officers at the Council. In this regard, the Committee previously urged the Town Clerk to eradicate this lesser- fair attitude and enhance internal controls to avoid this omission. The Committee further urged the Council to ensure that the outstanding amount is collected without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until robust revenue collection measures are implemented to increase the revenue base for the council which includes the collections from issuance of Fire Certificate.

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Committee’s Observations and Recommendation The Committee resolves to await a progress until a robust revenue collection measures are implemented to increase the revenue base for the council that includes the collections from issuance of Fire Certificate. e) Missing Payment Vouchers K6,093,965 The Committee previously observed that financial regulations are not being followed being at the Council and this could be a sure recipe of fraud. The Committee previously found it unacceptable that such important documents would go missing and only retrieved after the audit. The Committee directed the Town Clerk to report the remaining missing receipt books to the relevant investigative wings for further probe, and to institute disciplinary action against the officers who failed to secure accounting documents. The Committee would await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until 176 payment vouchers amounting to K4, 485,148 were traced and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until 176 payment vouchers amounting to K4, 485,148 are traced and availed for audit scrutiny. f) Unsupported Payment Vouchers K2, 855,924 The Committee previously found the justification given by the Town Clerk inconsistent as the supporting documents could have been attached to the vouchers at the time of payment. The Committee fears that financial regulations were being flouted with impunity and this unfortunate state of affairs was a recipe for malpractice. The Committee previously urged the Town Clerk to take disciplinary action against the officers who failed in their duties to secure supporting documents. The Committee directed the Town Clerk to report the matter to relevant investigative wings. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until 278 payments amounting to K1,826,392 were supported and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until 278 payments amounting to K1, 826,392 are supported and availed for audit scrutiny. g) Unaccounted for Stores K364,815.50 The Committee noted with concern the poor record keeping at the Council which had resulted in failure to avail required documents to Auditor General during audits. The Committee previously found the reason given for the irregularity misplaced and contends that the Council could have easily located the documents despite being filed in separate files had the record keeping been

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well organized. The Committee directed the Town Clerk to improve record keeping so as to avoid recurrence of such irregularities. In addition disciplinary action should be taken against the officers who failed in their duties by not securing supporting documents. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until stores items costing K628,661 were accounted for and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until stores items costing K628,661 are accounted for and details availed for audit scrutiny. h) Unretired Accountable Imprest K249,202 The Committee noted with concern the poor record keeping at the Council resulting in failure to avail required documents to Auditor General during audits. The Committee directed the Town Clerk to ensure that internal controls were enhanced at this Council, and also to avoid recurrence of such irregularities. In addition, disciplinary action should be taken against the officers who failed in their duties to account by failing to retire within 48 hours upon completion of the activity, and for not securing supporting documents. The Committee also urged the Town clerk to ensure that the amount remaining is recovered without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until imprest in amounting to K249, 202 was retired and retirement details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until imprest in amounting to K249, 202 is retired and retirement details availed for audit scrutiny. i) Irregular Payment of Holiday Allowance K54,000 Your Committee noted that the payment of the allowances was irregular and therefore urged the Council Secretary to ensure the allowances that were irregularly paid were recovered from the officers without any further delay. In addition, the Committee previously urged the Controlling Officer to ensure that disciplinary action is taken against all officers who initiated and approved the payment of such allowances. This was a very serious anomaly and a breach of the guidance contained in the Ministry of Local Government and Housing Circular No. MLGH/101/8/4 of 2014. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until imprest in amounting to K24, 000 was fully recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until imprest in amounting to K24, 000 is fully recovered and details availed for audit scrutiny. j) Un-acquitted Allowances K225, 649 The Committee did not accept the reason given by the Town Clerk and urged him to ensure that erring officers are disciplined for this failure. The Committee also directed the Town Clerk to ensure that all the remaining funds are accounted for or recovered from the officers concerned without further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the acquittals for the allowances amounting to K225,649 were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the acquittals for the allowances amounting to K225,649 are availed for audit scrutiny. k) Failure to recover Loans and Salary Advances K584,194 The Committee did not accept the reason given by the Town Clerk and urged her to ensure that erring officers were sternly cautioned for this failure. The Committee also urged the Town Clerk to ensure that all the remaining funds were recovered from the officers concerned. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details for the loans and salary Advances amounting to K461, 094 were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until recovery details for the loans and salary Advances amounting to K461, 094 are availed for audit scrutiny. o) Failure to Avail Lease Agreements The Committee did not accept the reason given by the Town Clerk and cautioned him to desist from misleading the Committee. The Town Clerk is also urged to ensure that erring officers were sternly cautioned for failure to avail documents to Auditor General during the time of audit. The Committee, however, resolved to await a progress report on the remaining lease agreements to be availed to Auditor General.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the lease agreements for the (11) properties were availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the lease agreements for the (11) properties are availed for audit scrutiny. p) Failure to Remit Statutory Obligations K76, 024,793 The Committee noted the efforts made to dismantle the outstanding statutory obligations but expressed concern at the huge debt stock owed by the City Council. It worries the Committee that this huge debt stock is held besides the current obligations that the Council is expected to meet. If nothing happens, the Council would be risking possible litigation costs and penalties which may arise therefrom. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden and avert the possible risks that may arise from litigation. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until statutory obligations amounting to K74, 711, 092.64 were settled and remitted to respective institutions.

Committee’s Observations and Recommendation The Committee resolves to await a progress until statutory obligations amounting to K74, 711, 092.64 are settled and remitted to respective institutions. q) Misapplication of Equalization Fund K201, 600 The Committee noted the submission and urged the Town Clerk to ensure that he adhered to the Local Government (Amendment) Act No. 12 of 2014. The Committee directed the Town Clerk to present the cited documents to the Auditor General for verification before the matter can be considered for closure.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Local government Equalisation Fund amounting to K201,600 were transferred to the capital projects account and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee rersolves to await a progress until the Local Government Equalisation Fund amounting to K201,600 are transferred back to the capital projects account and details availed for audit scrutiny.

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s) Land Management i. Uncollected Land Fees 12,631,072 The Committee noted the submission and urged the Town Clerk to ensure that the whole remaining amount relating to Land Fees is collected without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the land fees amounting to K12, 383,422 were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the land fees amounting to K12, 383,422 are collected and details availed for audit scrutiny. ii. Failure to Allocate Plots - K4,042,203 In noting the submission, the Committee previously urged the Town Clerk to ensure that plots are allocated to prospective buyers without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the plots were allocated to the prospective buyers and details availed for audit scrutiny. Committee’s Observations and Recommendation

The Committee resolves to await a progress until the plots are allocated to the prospective buyers and details availed for audit scrutiny. iii. Allocation of Plots to More than One Buyer - K2,537,500 In noting the submission, the Committee previously urged the Town Clerk to ensure that plots are allocated to prospective buyers without any further delay. The Town Clerk is also encouraged to ensure that the automation of the Planning Department using a Land Management System is implemented expeditiously to avoid recurrence of the query. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Land Management System was enhanced to ensure that allocation of plots to prospective buyers was fairly done by the council.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the Land Management System is enhanced to ensure that allocation of plots to prospective buyers is fairly done by the council.

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s) Constituency Development Funds - (CDF) ii. Completion of Riverside Market Shelter and Construction of an Ablution Block in Nkwazi – Ndola Central Constituency In noting the submission, the Committee previously urged the Town Clerk to ensure that all the remaining works were done expeditiously to avoid further delays in completing the projects. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the market shelter was completed and commissioned.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the market shelter is completed and commissioned.

PETAUKE DISTRICT COUNCIL

PARAGRAPH 32 PARAGRAPH 32

Accounting and Other Irregularities An Examination of accounting and other records maintained at the Council for the period under review and a physical inspection of selected projects carried out in September, 2018 revealed the following to which the Secretary to the Treasury responded as set out below. a) Failure to Collect Revenue K 1,496,948 The Committee previously found the reasons given by the Council for the failure to collect revenue unacceptable and the response confirms that little importance is being attached to revenue generation. Further, the Committee was disappointed that the same Council which is failing to meet operational costs and staff obligations is exhibiting laxity in imploring measures of expanding the revenue base and enforcing the provisions of the law in collecting revenue. The Committee was of the view that the Council should had been more proactive on this matter and that all its revenue must be collected without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the revenues amounting to K402, 384.84 were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the revenues amounting to K402,384.84 are collected and details availed for audit scrutiny.

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b) Failure to remit Statutory Obligations K 2,131, 127 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce the huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Statutory Obligations amounting to K1,741,127 are remitted to the respective institutions and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until statutory obligations amounting to K1,741,127 are remitted to the respective institutions and details availed for audit scrutiny. c) Lack of Title Deeds for Council Property While noting the efforts being implored by the Council, the Committee previously expressed concern that the Council failed to secure public property contrary to the Lands Act No. 29 of 1995. The Committee previously urged the Council Secretary to ensure that all properties in question are on title without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds for the properties were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the title deeds for the properties are availed for audit scrutiny. g) Environmental Management i. Dumpsite In noting the submission, the Committee previously urged the Council Secretary to ensure that a new dump site is secured without any further delay. The Committee also urged him to ensure that the dump site is managed in accordance with health and environmental protection laws including providing safety clothing to the workers, drilling a borehole, constructing a weigh bridge, fencing and other sanitary requirements. The Committee instructs the Council Secretary to present the cited documents to the Auditor General verification while the Office of the Auditor General was urged to ensure that. The matter was kept in view during future audits.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the new dumpsite is secured.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the new dumpsite is secured. ii. Failure to Prepare an Integrated Waste Management Plan In noting the submission, The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the integrated waste management plans were approved by ZEMA and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the integrated waste management plans are approved by ZEMA and availed for audit scrutiny. iii. Failure to Take Medical Examination In noting the submission, the Committee previously urged the Council Secretary to ensure that the dump site is managed in accordance with health laws including the Environmental Management Act of 2011. The Committee directed the Council Secretary to present the cited documents above to the Auditor General for verification before the matter can be considered for closure. The Office of the Auditor General was urged to ensure that the matter was kept in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the medical examinations reports for staff handling waste were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the medical examinations reports for staff handling waste are availed for audit scrutiny.

RUFUNSA DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 33

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the financial years ended 31st December 2016 and 2017 and a physical inspection of projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury submitted as set out below.

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b) Failure to Maintain a Valuation Roll The Committee previously expressed concern at the failure by the Council to prioritise maintenance of a Valuation Roll which is the basis of revenue collection in the local authority. The Committee previously found the reason given for the failure unacceptable. The Committee previously urged the Council to engage the Ministry of Local Government on this matter, and to expeditiously formulate the Valuation Roll without any further delay. The Committee awaits progress report.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the valuation roll was prepared and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the valuation roll is prepared and details availed for audit scrutiny. c) Unsupported Payments – K158, 858 The Committee previously expressed concern at the poor management of accounting documents by the Council. The Committee was disappointed that the Council failed to avail the documents during the audit period but only managed to locate them after the audit which was tantamount to fraud. The Committee previously urged the Council Secretary to ensure that officers responsible for the missing documents are disciplined for the anomaly. Further, supervision should be strengthened to avoid such flows. The Committee directed the Council Secretary to present the cited documents to the Auditor General for verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until payments amounting to K17, 366.91 were supported and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until payments amounting to K17, 366.91 are supported and details availed for audit scrutiny.

Failure to Remit Tax – K280, 211 The Committee previously found it unacceptable that the Council failed to remit tax to ZRA after deducting the tax from officers. The Committee, however, notes the financial challenges the Council is experiencing and urged the Council Secretary to strictly adhere to the payment plan with ZRA to avoid possible litigation. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Tax amounting to K280,211 was remitted to ZRA and details availed for audit scrutiny.

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Committee’s Observations and Recommendation The Committee resolves to await a progress until tax amounting to K280,211 is remitted to ZRA and details availed for audit scrutiny. j) Lack of Title Deeds

The Committee noted with concern that properties were not secured with title deeds and urged the Council to immediately follow up the matter with the Ministry of Lands and Natural Resources without any further delay. The Committee resolved to await progress on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Title Deeds are obtained and the deeds availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the Title Deeds are obtained and availed for audit scrutiny. l) Investment in Lusaka Water and Sewerage Company Limited The Committee expressed worry that the Council has been losing revenue through dividends from Lusaka Water and Sewerage Company. The Committee previously urged the Council Management strongly caution the erring officers and ensure that all arrears are collected and that the Financial Statement is accordingly updated. The Committee resolved to await a progress report.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the assets were officially transferred to Lusaka Water and Sewerage Company Limited and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the assets are officially transferred to Lusaka Water and Sewerage Company Limited and details availed for audit scrutiny.

SERENJE DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 34

Accounting and Other Irregularities 34. An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2017 and physical inspections of selected projects carried out in October 2018 revealed the following weaknesses to which the Secretary to the Treasury submitted as set out below.

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d) Failure to Meet Revenue Targets K3,834,254 While it was appreciated that new strategies had been devised to improve revenue collection, the Committee previously urged the Council Secretary to ensure that available officers capacity is enhanced to be aggressive in revenue collection, and to follow up so as to improve the revenue base of the council. The Committee was of the view that the Council is not exploiting its full potential. The Committee, however, resolved to close the matter subject to presentation of the documents to the auditor General for audit verification while the Office of the Auditor General was urged to keep the query in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until robust revenue collection mechanisms were developed to attain maximum annual collections.

Committee’s Observations and Recommendation The Committee resolves to await a progress until robust revenue collection mechanisms are developed to attain maximum annual collections. e) Failure to Present Receipt Books for Audit The Committee previously expressed concern at the failure by the Council Secretary to secure the receipt books and to avail them during the period of audit. It surprised the Committee that receipt books which went missing from the time of audit were found within a short period after the audit. The Committee previously urged the Council Secretary to ensure that officers who failed to find the documents during the time of audit are disciplined for failure to take audits seriously. The Committee resolved to await a progress report on the remaining receipt books.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the remaining sixteen (16) receipt books were traced and availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the remaining sixteen (16) receipt books are traced and availed for audit scrutiny. k) Uncollected Revenue from Sale of Plots The Committee previously expressed concern at the Councils laxity to collect revenue which they dearly need due to liquidity problems. The Committee previously urged the Council Secretary to ensure that the revenue base is increased. The Committee resolved to close the matter subject to audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until proof of payments for the plots were availed for audit scrutiny.

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Committee’s Observations and Recommendation The Committee resolves to await a progress until proof of payments for the plots are availed for audit scrutiny. l) Irregular Payment of Rural Hardship Allowance K545, 359 The Committee was displeased that officers disregarded the provisions of Terms and Conditions of Service for the Local Government with impunity. The Council Secretary was urged to ensure that the officer who instructed the payment was sternly cautioned for this omission, while full recovery of the amount was being awaited for from the officers who were erroneously paid. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the recoveries were instituted and the erring officers disciplined and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the recoveries are instituted and the erring officers disciplined and details availed for audit scrutiny. m) Non-Remittance of Statutory Obligations K3,953,116 The Committee previously noted the submission and sternly cautioned the Council Secretary for failure to remit statutory obligations which was a very serious omission. The Committee previously urged the Council Secretary to ensure that other revenue collection options are explored to increase its revenue base in order for it to meet its statutory obligations. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the statutory obligations amounting to K3, 953,116 were remitted and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the statutory obligations amounting to K3, 953,116 are remitted and details availed for audit scrutiny. p) Unsupported Payments K71,009 The Committee did not accept the reason given and sternly cautioned the Council Secretary for failure to safeguard accountable documents which is a very serious omission. The Committee previously urged the Council Secretary to ensure that officers responsible were sternly cautioned for this failure. The Committee resolved to await a progress report and further directed that the documents are located without further delay.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the twelve (12) payments in amounting to K48, 806.82 were supported and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the twelve (12) payments in amounting to K48, 806.82 are supported and details availed for audit scrutiny. q) Failure to Register and Insure Specialised Equipment The Committee noted the submission and sternly cautioned the Council Secretary for failure to obtain ownership documents which was a very serious omission. The Committee previously urged the Council Secretary to ensure that all its capital assets are registered and insured expeditiously avoid recurrence. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Tafe Tractor and Grader Caterpillar12B were registered and details availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until the Tafe Tractor and Grader Caterpillar12B are registered and details availed for audit scrutiny. r) Irregular Payment of Refunds K52, 990 The Committee did not accept the reason given by the Council Secretary as circumstances are not clear why the plots which were on offer were re-advertised before being repossessed. The Committee previously found it highly irregular and a total failure of systems to monitor the sale of plots by the local authority. The Committee strongly urged the Controlling Officer to take keen interest and ensure that The matter was reported to the law enforcement agencies for further probe and The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the documents in support of the payments were availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the documents in support of the payments are availed for audit scrutiny.

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t) Lack of a Maintenance Policy

Ii None Payment for Accommodation by Council Employees and Councilors K68,250

The Committee previously noted the submission and expressed concern as to the Council Secretary’s allowed such an irregularity, and for his failure to recover the funds. He was also strongly cautioned for this and urged to ensure that recoveries were made from all officers concerned without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the remaining amounts totaling K21, 670 were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the remaining amounts totaling K21, 670 are recovered and details availed for audit scrutiny. v) Constituency Development Fund (CDF) i. Procurement of Building Materials

• Failure to Avail Tender Documents K40, 671 The Committee previously noted the submission but expressed concern as to why internal controls were this weak to an extent of losing documents. While it was appreciated that there is an attempt to improve the filling system, the Committee directed the Council to ensure that internal controls were reviewed and strengthened holistically to avoid recurrence. The Council Secretary has been further directed to ensure that tender documents for all contractors in Serenje Central Constituency for contracts amounting to K40, 671 were found and availed for audit verification before 31st January 2020. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the amounts totaling K38, 991.25 were supported with tender documents and availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the amounts totaling K38, 991.25 are supported with tender documents and availed for audit scrutiny.

• Unaccounted for Building Material K523, 969 The Committee previously expressed concern on the weak internal controls at the Council. It was common sense that accountability of items bought had to be audited through the Council. Unfortunately the Council shifted its responsibility and left everything in the hands of the community as evidenced by their failure to account for the stores items. It was not clear how the Council monitored the use of these items on the projects and this was highly irregular. The

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Committee previously urged the Controlling Officer to consider a forensic audit at this Council without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until documents for distribution of materials amounting to K523, 969 were availed for audit scrutiny.

Committee’s Observations and Recommendation

The Committee resolves to await a progress until documents for distribution of materials amounting to K523, 969 are availed for audit scrutiny. x) Environmental Management i. Failure to Produce Waste Management Reports The Committee encouraged the Council Secretary to ensure that land is found for a permanent dump site without further delay, and that reports are always prepared in accordance with the requirements imbedded in Clause 56 Section (2) of the Statutory Instrument No. 12 of 2011 on Environmental Management The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the waste management reports were submitted to ZEMA and details availed for audit scrutiny.

Committee’s Observations and Recommendation The Committee resolves to await a progress until the waste management reports are submitted to ZEMA and details availed for audit scrutiny. ii. Operating without a ZEMA Licence The Committee encouraged the Council Secretary to ensure that land is found for a permanent dump site without further delay, and that the Council should comply with the requirements imbedded in Clause 55 Section (2) of the Statutory Instrument No. 12 of 2011 on Environmental Management. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the operating licence from ZEMA was availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the operating licence from ZEMA is availed for audit scrutiny.

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iv. TAZARA Dumpsite

• No Fencing on the Dump site The Committee encouraged the Council Secretary to ensure that land is secured and protected to avoid scavengers and others from entering it without control. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dumpsite was fenced and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the dumpsite is fenced and details availed for audit scrutiny.

• No Warning Signs at the Dumpsite The Committee encouraged the Town Clerk to ensure that land was secured and protected by putting signs to avoid scavengers and others from entering it without control. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until warning signs are put at the dumpsite and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until warning signs are put at the dumpsite and details availed for audit scrutiny.

• No Coverage on the Dumpsite While noting the submission, the Committee encouraged the Council Secretary to secure gabbage as a matter of urgency to comply with the waste management regulations. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dumpsite was covered by soil and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the dumpsite is covered by soil and details availed for audit scrutiny.

• No Boreholes for Monitoring of Ground Water Quality at the Dumpsite The Committee encouraged the Council Secretary to ensure that land is secured so that a borehole can be drilled to monitor contamination of ground water. The Committee awaited a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the boreholes for monitoring of ground water quality at the dumpsite were put in place and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the boreholes for monitoring of ground water quality at the dumpsite are put in place and details availed for audit scrutiny.

SESHEKE DISTRICT COUNCIL

PARAGRAPH 35 PARAGRAPH 35

Accounting and Other Irregularities 35. An examination of financial and other records maintained at the Council for the period under review and a physical inspection of selected projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. a) Lack of a Strategic Plan The Committee noted with concern the failure by the Council Secretary to put in place a strategic plan thereby making it difficult to have guidance in terms of the Councils operations. The Committee also bemoans the delays by the Ministry to come up with a standard strategic plan for use by the Councils. The Committee strongly urged to Controlling Officer, Ministry of Local Government to expeditiously come up with a standard plan for use by all councils. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Integrated Development Plan (IDP) was prepared and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the Integrated Development Plan (IDP) is prepared and details availed for audit scrutiny. c) Lack of a Billboard Policy The Committee previously observed with concern the lack of proactivenes in the operations of the Council. It displeased the Committee to note that despite grappling with liquidity problems, the Council fails to come up with policies such as Billboard Policy to enable them collect revenue which could boost their financial health. The Committee strongly cautioned the Council Secretary to ensure that he acts proactively on matters unlike being reminded to do so by the Auditor. The Committee awaits a progress report on the full operationalisation of the Billboard Policy.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the bill board policy was put in place and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the bill board policy is put in place and details availed for audit scrutiny. f) Irregular Refunds of Medical Expenses K10, 579 While noting the submission, the Committee previously expressed concern at the failure by management to comply with the Local Government Conditions of Service No. 158, and also for failure to seek clarity where management did not know its interpretation. The Committee cautioned the Council Secretary and urged him to ensure that he develops a culture of consulting from the Local Government Service Commission and the supervising ministry whenever matters relating to Conditions of Service were not clear to avoid recurrence of this query. The Committee, however, resolved to close the matter subject to presentation of the cited documents to the Office of the Auditor General for verification. The Office of the Auditor General was urged to keep the matter in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recoveries of the irregularly refunded medical bills amounting to K10, 579 were effected and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until recoveries of the irregularly refunded medical bills amounting to K10, 579 are effected and details availed for audit scrutiny. g) Misapplication of Equalisation Funds K145, 300 The Committee did not accept the reasons given by the Council Secretary as it is noted that management at this Council is not aggressive in collecting their earned revenue which has resulted in the misapplying of other funds to meet their daily operational needs. The Committee also notes the failure by the Council management to ensure that other revenue mobilisation strategies including updating of its valuation roll are employed to improve the liquidity of the local authority. It saddened the Committee that management willfully chose to misapply the 20% portion of the Local Government Equalisation Fund (LGEF) contrary to the Local Government (Amendment) Act No. 12 of 2014 and the Ministry of Local Government and Housing Circular

No. MLGH/71/1/87 dated 30th March 2015. The Committee previously found it unacceptable and the Council Secretary was strongly cautioned to desist from this habit and also to ensure that the Council’s revenue base is improved accordingly to avoid this irregularity. The Committee awaited a progress report on the matter until all the funds were reimbursed without further delay.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Equalisation Funds amounting to K61, 300 were reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the Equalisation Funds amounting to K61, 300 are reimbursed and details availed for audit scrutiny. i) Outstanding Statutory Obligations The Committee noted the efforts made to dismantle the outstanding statutory obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is held besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation costs and penalties. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately to enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until Statutory Obligations amounting to K2, 334,394 were settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until Statutory Obligations amounting to K2, 334,394 are settled and details availed for audit scrutiny. j) Failure to Settle Staff Obligations K2, 334,394 The Committee noted the efforts made to dismantle the outstanding statutory obligations but expressed concern at the huge debt stock owed by the Council. It worries the Committee that this huge debt stock is besides the current obligations the Council is expected to meet and hence if nothing happens, the Council would be risking possible litigation costs which may arise. The Committee previously urged the Town Clerk to explore more revenue sources and ultimately enhance its revenue base in order to reduce this huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the staff obligations amounting to K2, 334,394 was settled and details availed for audit scrutiny.

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Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the staff obligations amounting to K2, 334,394 is settled and details availed for audit scrutiny. k) Lack of Title Deeds and Insurance Policies The Committee previously observed with concern the failure by Council management to acquire title deeds. It also displeased the Committee that Council management had not seriously pursued this matter until the Auditor General unearthed the matter. The Council Secretary was strongly cautioned to ensure that title deeds are acquired without any further delay as there is a great risk in case of an eventuality. A progress report was being awaited by the Committee.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the title deeds are obtained and details availed for audit scrutiny. m) Failure to Maintain Properties n) Lack of Fire Fighting and Rescue Services The Committee noted the submission but urged the Council Secretary to impress upon the relevant institutions to ensure that all the necessary requirements for establishing a fire station were in place without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Fire Fighting and Rescue Services equipment and station were put in place.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the Fire Fighting and Rescue Services equipment and station are put in place. o) Environmental Management iii. Inadequate Staff In noting the submission, the Committee strongly urged the Council Secretary to ensure that he impresses upon the relevant institutions to ensure that staff levels are improved to enable them combat the problems related to management of waste. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the vacant positions are filled and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the council adheres to waste management measures of managing the dump site. vi. Failure to Cover Waste During Transportation In noting the submission, the Committee previously urged the Council Secretary to ensure that the dump site is managed in accordance with health laws including providing covering material when transporting waste. The Committee resolved to close the matter subject to presentation of the documents to the Office of the Auditor General for verification. The Office of the Auditor General was urged to ensure that the matter was kept in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the council adhered to waste management measures of managing the dump site.

Committee’s Observations and Recommendation

As the matter is yet to be verified, the Committee awaits a progress until the council adheres to waste management measures of managing the dump site. vii. Management and Operation of the Dumpsite

• Lack of a Weigh Bridge

In noting the submission, the Committee previously urged the Council Secretary to ensure that the Dump Site is managed in accordance with health laws, including providing a borehole on site to monitor water contamination. The Committee resolved to close the matter while the Office of the Auditor General was urged to ensure that the matter was kept in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the weigh bridge at the dumpsite is put in place and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the weigh bridge at the dumpsite is put in place and details availed for audit scrutiny.

• Dumpsite Not Fenced In noting the submission, the Committee previously urged the Council to ensure that disputes relating to the landfill are resolved without any further delay in order for the Council to provide

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the services needed to run the dump site efficiently and effectively within the provisions of the law. A progress report is being awaited.

Treasury Response

The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the dumpsite is fenced and details availed for audit scrutiny.

Committee’s Observations and Recommendation

As the matter is yet to be verified, the Committee awaits a progress until the dumpsite is fenced and details availed for audit scrutiny.

SIAVONGA DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 36

Accounting and Other Irregularities

An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2017 and physical inspections of selected projects carried out in September and December 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. a) Unsupported payments k170, 763 The Committee previously found the reason given for this anomaly unacceptable as the officers who processed the payments could have properly secured the documents. The Committee previously noted that this lapse is due to poor supervision of officers in the Accounts Department and negligence on the part of the officers. The Committee previously urged the Council Secretary to ensure that disciplinary action is taken against the erring officers, and further that internal controls were strengthened to avoid recurrence of this matter. The Committee resolved to close the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the balance of payments amounting to K3, 078 were supported with relevant documentation and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the balance of payments amounting to K3, 078 were supported with relevant documentation and details availed for audit scrutiny.

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b) Unretired Accountable Imprest K84, 150 The Committee previously found the reason given for this anomaly unacceptable as the officers failed to retire imprest within 48 hours as required by the law. The Committee previously noted that this lapse was due to poor supervision of officers in the Accounts Department and negligence on the part of the officers. The Committee previously urged the Council Secretary to ensure that disciplinary action is taken against the erring officers to avoid recurrence, while recoveries must be effected from officers who have not yet retired. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the balance of imprest remaining amounting to K3, 110 are retired and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the balance of imprest remaining amounting to K3, 110 are retired and details availed for audit scrutiny. c) Unaccounted For Stores K93,070 (General Stores – K23,070 and Fuel – K70,000) The Committee previously found the reason given for this anomaly unacceptable as the officers who processed the documents for stores could have properly secured the documents. The Committee previously noted that this lapse is due to poor supervision of officers in the Accounts Department and negligence on the part of the officers. The Committee previously urged the Council Secretary to ensure that disciplinary action is taken against the erring officers’ and further that internal controls were strengthened to avoid recurrence of this matter. The Committee resolved to close the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipt and disposal details for the balance of stores costing K20,000 were availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until the receipt and disposal details for the balance of stores costing K93,070 are availed for audit scrutiny. d) Failure to Avail Activity Reports K290, 453 The Committee previously found the reason given for this anomaly unacceptable as the officers who carried out the activities should have filed the reports in appropriate files for future refernce. The Committee previously noted that this lapse is due to poor supervision of officers in the accounts department and negligence on the part of the officers. The Committee previously urged the Council Secretary to ensure that disciplinary action is taken against the erring officers and further that internal controls were strengthened to avoid recurrence of this matter. The Committee resolved to close the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until activity reports for payments amounting to K20, 000 were availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress until activity reports for payments amounting to K20, 000 are availed for audit scrutiny. e) Failure To Insure Assets The Committee noted the submission but urged the Council Secretary to ensure that all its assets are insured each year in order to avert possible losses. The Committee was awaiting a progress report on the matter while the Office of the Auditor General was urged to ensure that the matter was kept in view during future audits.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until insurance cover for the remaining three (03) vehicles are insured availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until insurance cover for the remaining three (03) vehicles are insured availed for audit scrutiny. f) Failure To Remit Statutory Obligations K3, 955,130 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce the huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the amounts of K3, 678,044 deducted from employees’ salaries are remitted to the Zambia Revenue Authority and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the amounts of K3, 678,044 deducted from employees’ salaries are remitted to the Zambia Revenue Authority and details availed for audit scrutiny.

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SOLWEZI MUNICIPAL COUNCIL

AUDIT QUERY PARAGRAPH 37

Accounting and Other Irregularities An examination of accounting and other records maintained at the Council for the financial year ended 31st December 2017 and physical inspections of projects carried out in September 2018 revealed the following weaknesses to which the Secretary to the Treasury responded as set out below. a) Lack of a Risk Management Policy The Committee expressed worry on why it has taken so long for the Council to formulate a Risk Management Policy and wonders how the Council has been managing the various risks without policy direction. The Committee strongly urged the Council to immediately table the draft Policy before the full council and ensure that the Policy is operational without any further delay. The Committee awaits a progress on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the draft Risk Management Policy is approved and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the draft Risk Management Policy is approved and details availed for audit scrutiny. b) Lack of Title Deeds – K14, 340, 000 The Committee was alarmed at the failure by the Council to secure property with title deeds and urged Management to ensure that the process of acquiring title deeds was expedited. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the title deeds are obtained and availed for audit scrutiny. c) Failure to Collect Revenue - Bill Boards K420,571 While noting the response from the Council, the Committee previuosly expressed concern that the Council did not avail the Auditor General with receipts and the letter for the debt swap for verification at the time of audit. The Committee was disappointed that that Council was planning to have a debt swap without full knowledge of the Council. The Committee previously urged the Town Clerk to ensure that such decisions are brought to the attention of the full Council. Committee awaits a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the revenue from G Rutherford of K128, 197 was collected and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the revenue from G Rutherford of K128, 197 was collected and details availed for audit scrutiny. e) Failure to Collect Rentals - Kyawama Market K693, 000 The Committee was alarmed at the Council’s non-pro activeness in collecting the much needed revenue. The Committee previously noted that the Council has not provided a timeline for when it will complete servicing the new area. The Committee previously urged the Council to take serious measures in ensuring that revenue is not lost in such a manner, and ensure that servicing of these plots is expedited without fail. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the rentals from the twenty one (21) Kyawama Market shops were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendation

As the matter is yet to be verified, the Committee awaits a progress report until the rentals from the twenty one (21) Kyawama Market shops are collected and details availed for audit scrutiny. g) Unretired Accountable Imprest - K90, 727 The Committee was very concerned about the failure by the Council to institute recoveries on officers who fail to retire imprest within the stipulated period in accordance with the Financial Regulations. The Committee previously urged the Town Clerk to strictly adhere to laid down procedure and ensure that officers are disciplined accordingly for such failures. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the imprest amounting to K25, 375 is retired and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the imprest amounting to K25, 375 is retired and details availed for audit scrutiny. k) Failure to Recover Salary Advances – K4, 000. The Committee expressed disappointment at the Council for failure to follow Financial Regulations regarding recovery of salary advances. The Committee feels that this is a reflection of laxity on the part of officers concerned and their supervisor. The Committee previously urged

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the Council to immediately recover the outstanding balance without any further delay. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the salary advances amounting to K3,000 were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the salary advances amounting to K3,000 are recovered and details availed for audit scrutiny. n) Irregular Payment of Weekday Overtime Allowance – K40, 495 The Committee was disappointed that public funds were lost due to failure to adhere to Terms and Conditions of Service for Local Government Officers No. 167 (c). The Committee previously noted that there was negligence on the part of the Accounting Officer to pay allowances contrary to the stipulated conditions of service, and that there are weak internal controls at the Council. The Committee previously urged the Town Clerk to institute recoveries from the affected officers and disciplinary action taken against the erring officer. Progress report is awaited.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the irregularly paid funds were recovered from the erring officers and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the irregularly paid funds were recovered from the erring officers and details availed for audit scrutiny.

o) Environmental Management i. Failure to Prepare an Integrated Waste Management Plan - Solwezi The Committee was dismayed that the Council has been illegally operating without an Integrated Waste Management Plan contrary to Regulation No. 56 (f) of the Environmental Management Act of 2011. The Committee previously urged the Town Clerk to finalise and implement the plan as a matter of urgency. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the draft Integrated Waste Management Plan is approved and availed for audit scrutiny.

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Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the draft Integrated Waste Management Plan is approved and availed for audit scrutiny. iii. Failure to Fence Dumpsite The Committee was disappointed that the Council illegally paid the contractor a full contract sum before completion of the works. The Committee previously noted that the matter was under litigation, and urged the Council to sternly caution the concerned officers. The Committee awaits a progress report.

Treasury Response The matter was verified by the Office of the Auditor General and it was recommended that it remained outstanding until the fencing of the dumpsite was completed.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the fencing of the dumpsite is completed.

ZAMBEZI DISTRICT COUNCIL

AUDIT QUERY PARAGRAPH 38 b) Failure to Update the Valuation Roll

The Committee previously observed with concern the lack of seriousness and laxity on the part of officers tasked with the responsibility of managing local authorities. The Committee did not accept the reason and provided by the Council Secretary. They urge him to be proactive as the failure to have an updated valuation roll will result in other failures including low revenue base and difficulties in preparing financial statements. The Committee previously urged the Controlling Officer, Ministry of Local Government to consider helping all local authorities to update their valuation rolls by providing the expertise lacked by the Councils. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the valuation roll is updated and availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the valuation roll is updated and availed for audit scrutiny. d) Lack of Title Deeds The Committee previously expressed concern at the failure by the Council to secure its properties with title deeds. The Council Secretary was reminded that it will be difficult to defend the Councils in case of disputes in the court of laws that may arise in relation to any of its

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properties. He was also urged to ensure that all its properties are secured with title deeds without any further delay. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the title deeds are obtained and availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the title deeds are obtained and availed for audit scrutiny. e) Missing Receipts Books - forty-nine (49) The Committee previously expressed concern at the failure by the Council to keep receipt books and the Committee wonders how one could then ascertain how much was collected in the period under review. The Council Secretary was urged to ensure that The matter was reported to law enforcement agencies for further probe as circumstances that led to their disappearance are not clear.. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the missing receipt books were traced and availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report the missing receipt books were traced and availed for audit scrutiny. i) Unaccounted For Stores K310,978 (General Stores – K290,643 And Fuel – K20,335) The Committee was disappointed that the Council did not avail these documents to the Auditor at the time of audit, and that the amount involved is too much. This clearly indicated that there was very poor record keeping and internal controls. The Council Secretary was urged to ensure that officers are disciplined for this failure to avoid recurrence of similar irregularities. The Council Secretary was, therefore, directed to avail these documents for audit verification. The Committee would await a progress report on the remaining documents.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the receipt and disposal details for stores items costing K310,978 were availed for audit scrutiny.

Committee’s Observations and Recommendation

As the matter is yet to be verified, the Committee awaits a progress report until the amounts totaling K310,978 are settled and details availed for audit scrutiny.

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j) Unretired Accountable Imprest K371, 023 The Committee was disappointed that the Council did not avail these documents to the Auditor General at the time of audit, and also that similar queries resulting from misfiling were too many involving huge amounts. The Council Secretary is, therefore, directed to avail these documents for audit verification.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the balance of imprests amounting to K256, 260 were retired and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the amounts totaling K256,260 are settled and details availed for audit scrutiny. l) Irregular Payment of Night Duty and Responsibility Allowances K17, 380 The Committee previously observed with concern the failure by management to interpret circulars and Conditions of Services correctly. The Committee sternly cautioned management to desist from disregarding clearly written instructions and for their failure to consult for clarifications where they are not clear. The Committee previously urged the Council Secretary to ensure that management follows strictly the provisions of the Conditions of Service applicable to officers. The Committee, however, resolved to await a progress report on the matter for full recovery of funds.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details for the irregular paid Night Duty and Responsibility Allowances amounting to K17, 380 were availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the amounts totaling K17,380 are settled and details availed for audit scrutiny. n) Irregular Payment of Subsistence Allowances K52, 990 While noting the submission, the Committee previously expressed concern at the failure by management to seek authority prior to undertaking the activities. It displeased the Committee and found the transaction unacceptable as there was no urgency on the activities that were undertaken. The Council Secretary was sternly cautioned to desist from the habit of seeking retrospective authority, and the Committee previously urged him to ensure that the amount is recovered from the officers without further delay. The Committee resolved to await a progress report on the matter.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until recovery details for the irregular paid subsistence allowances amounting to K52, 990 were availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the amounts totaling K52,990 are settled and details availed for audit scrutiny. p) Unapproved Payment K183,731 The Committee did not accept the reason given and sternly cautioned management to desist from disregarding Auditors during the audit period. The Committee previously urged the Council Secretary to ensure that all erring officers are sternly disciplined for this failure and that all the remaining documents were availed for verification before 31st December, 2019. The Committee would await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the payments amounting to K183,731 were approved and availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the amounts totaling K183,731 are settled and details availed for audit scrutiny. s) Questionable Payment Of Subsistence Allowances K26, 000 (K6,000 Unapproved) The Committee was disappointed that the Council did not find the documents from the time of audit to date which is a clear indication that there is a total collapse of internal controls at this council. The Council Secretary was urged to ensure that officers are disciplined for this failure, and to avoid recurrence of similar irregularities. The Council Secretary is, therefore, directed to avail these documents for audit verification without any further delay and the officers must be surcharged to resolve the matter. The Committee will await a progress report on the remaining documents.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the subsistence allowances amounting to K26, 000 were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the subsistence allowances amounting to K26, 000 are recovered and details availed for audit scrutiny.

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x) Outstanding Staff Entitlements K6, 652,074 The Committee noted the efforts made to dismantle the outstanding obligations but expressed concern at the huge debt stock owed by the Council. It worried the Committee that this huge debt stock was besides the current obligations the Council is expected to meet and hence if nothing happened, the Council may suffer from possible litigation costs. The Committee previously urged the Council Secretary to explore more revenue sources and ultimately enhance its revenue base in order to reduce the huge burden. The Committee also urged the Office of the Secretary to the Treasury to consider helping the Councils with dismantling some of these arrears to relieve them of this burden. The Committee resolved to await a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the amounts totaling K5, 761,764 was settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is yet to be verified, the Committee awaits a progress report until the amounts totaling K5, 761,764 are settled and details availed for audit scrutiny. y) Failure to Remit Tax and Statutory Contributions The Committee contends that the reasons submitted for this omission is unaccepted as the Council had already deducted the money from employees. The Committee was concerned that the failure by the Council to remit these tax obligations, as required by law could result in loss of revenue to the Government and it denied the employees social protection. The Committee previously urged the Town Clerk to desist from diverting money meant for statutory obligations to other unrelated activities. The Committee further recommends that the Council should strictly adhere to the payment plans agreed upon to avoid further litigations. The Committee awaited a progress report on the matter.

Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the Tax and Statutory Contributions amounting to K663, 967.57 are settled and details availed for audit scrutiny.

Committee’s Observations and Recommendation

As the matter is yet to be verified, the Committee resolves to await a progress report. b) Management Of the Constituency Development Funds (CDF) ii. Misapplication of Funds K16, 030 As the matter was before investigative wings, the Committee resolved to wait for a progress report on the matter while the Council Secretary was urged to ensure that he follows up the matter to its logical conclusion.

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Treasury Response The matter was verified by the Office of the Auditor General and recommended that it remained outstanding until the funds amounting to K16, 030 were reimbursed in full and details availed for audit scrutiny.

Committee’s Observations and Recommendation As the matter is before investigative wings, the Committee resolves to wait for a progress report on the matter while the Council Secretary is urged to ensure that he follows up the matter to its logical conclusion.

PART II

CONSIDERATION OF THE OUTSTANDING ISSUES REPORT ON THE REPORT OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS ON THE REPORT OF THE AUDITOR GENERAL FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER 2014, 2015 AND 2016

PARAGRAPH 6 PARAGRAPH 6

CHINGOLA MUNICIPAL COUNCIL a) Equalisation Fund i. Failure to Avail Tender Document– K1, 750,084 The previous Committee expressed disappointment over the failure by the Council to orient the new officers and establish standardised hand over procedures to avoid disruptions in the delivery of services to stakeholders. The previous Committee, therefore, urged the Town Clerk to ensure that such irregularities were avoided by ensuring that adequate hand over requirements were enforced so as to avoid disruptions in service delivery. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until the new officers were oriented in standard procedures for staff handover and tender documents amounting to K 1, 750,084 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. ii. Misapplication of funds - K238, 007 In noting the submission, the previous Committee sternly cautioned the Town Clerk against further abuse of the 20 percent Equalisation Fund and urged him to adhere to financial regulations in order to ensure that these funds were solely applied on the developmental projects for which it was appropriated. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the Council stopped abusing 20 percent Equalisation Fund and adheres to the financial regulations.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. c) Failure to Collect Revenue from Debtors - K9, 552,695 The previous Committee expressed concern over the delay by the Council to collect the debts from defaulters, which denied the Council revenue to improve service delivery to areas under its jurisdiction. The previous Committee, therefore, urged the Town Clerk to pursue the matter aggressively until the debts were paid in full. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council collect the remaining balance of K 2,403,393 and details were available for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. d) Failure to Collect Penalties from Illegal Settlers - K4, 602,500 The previous Committee noted the submission and urged the Town Clerk to keenly pursue the matter until all the debts were paid in full. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council collected the remaining penalties of K 4, 137, 060 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. e) Uncollected revenue for plots in Gymkhana Township- K534,900 The previous Committee noted the planned action to be taken and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council collected the uncollected revenue for Gymkhana plots amounting to K 534, 900 and details were available for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. f) Failure to allocate Plots in Gymkhana- K897,600 In noting the progress made in the allocation of plots, the previous Committee resolved to await a progress report on the remaining twenty one plots yet to be allocated.

Treasury Comment The matter remained outstanding until the Council allocated all the eighty one (81) plots to the successful applicants in Gymkhana and documents were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter regarding allocation of all the eighty one (81) plots to the successful applicants in Gymkhana. g) Failure to Collect Land Development Fees from sale of plots – K 858,160 In noting the submission, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council collected the land development fees amounting to K858,160 from the sale of plots and details were available for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. h) Unretired Imprest- K85,575 The previous Committee expressed concern over the manner in which the financial regulations were being flouted with impunity. The previous Committee urged the Town Clerk to not only make recoveries from officers who deliberately flout the financial regulations but also to institute disciplinary action against erring officers. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council make recoveries from the six (6) officers who did not retire imprest amounting to K 59, 967 and institute disciplinary action against the erring officers.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter.

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i) Irregular Payment of Subsistence Allowance on Sponsored Activities - K33,397 The previous Committee noted the submission with concern given that the Council made payments to officers without seeking clarification on what expenses were covered by the sponsors for the workshop, leading to abuse of financial privileges by officers who erroneously received payments for a sponsored workshop. The previous Committee sternly cautioned the Town Clerk against the repeat of such erroneous payments and urged him to institute disciplinary action against all officers who perpetrated or abetted this irregularity. The previous Committee would await progress report on the matter.

Treasury Comment The matter remained outstanding until the Council institute disciplinary action against all officers who perpetrated or abetted this irregularity and makes full recovery of irregular subsistence paid to the erring officers.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. j) Failure to Compute Fuel Imprest Using Prescribed Formula The previous Committee expressed serious disappointment over the total disregard of the financial regulations by the Town Clerk and sternly cautions him against such acts. The previous Committee called for full recovery of the funds without any further delay and resolved to await a progress report on the recovery of the remaining balance.

Treasury Comment The matter remained outstanding until the Council makes fully recovery of the remaining balance of K 7, 069.74 which was overpaid from the cited officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. k) Failure to Constitute a Medical Board- K238, 075 The previous Committee noted that the first request was only made 3.5 years after the cited officer had been absent from work when the terms and conditions of service for Local Government Service No 169 stated that an officer might be absent from duty due to ill health for ninety days, after which a medical certificate should be provided. The previous Committee, therefore, sternly cautioned the Town Clerk against such laxity and urges him to actively pursue the matter with the Ministry of Local Government and the Local Government Service Commission and ensue that a medical board was constituted at the earliest possible time. The previous Committee would await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the Council constitutes a medical board to look in this matter and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. l) Travel Abroad Without Authority - K111, 262 In noting the submission, the previous Committee insisted that the Town Clerk recovered the money erroneously paid to officers who travelled abroad without authority before the end of 2018, despite them having left the service of the Council. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council recovered the amount of K 111, 262 paid to the officers who travelled abroad without authority and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. n) Failure to Pay Staff Obligation- K10, 874,161 The previous Committee noted the measures taken to liquidate staff obligations and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council fully liquidated the remaining balance of staff obligations amounting K 5,424,553 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. o) Failure to Remit Statutory Obligations, PAYE and Contributions to Union- K4, 767,982 In noting the submission, the previous Committee urged the Town Clerk to ensure that funds were set aside on a monthly basis by his Council to liquidate the staff obligations in accordance with the Council’s own liquidation plan.

Treasury Comment The matter remained outstanding until the council fully remit the amount of K 4,767,982 for statutory obligations and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. p) Non-Recovery of Salary Advances K21, 564 In noting the submission, the previous Committee urged the Town Clerk to ensure that adequate staffing levels were maintained to avoid a repeat of similar cases in the future. The Town Clerk was also urged to actively pursue the matter of the four officers who were transferred to other councils until the whole K15, 314 was recovered. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council fully recovers the amount of K15, 314 for salary advance and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. q) Failure to Provide Oral Contracts for Casual Workers - K805, 883 The previous Committee found this practice at the Council completely unacceptable. The previous Committee, further, observes that there was no proof that those purported casual workers who signed the contracts retrospectively were the ones who were initially employed by the council. The previous Committee, therefore, also urged the Town Clerk to institute disciplinary action against the officers who employed casual workers without following proper procedures.

Treasury Comment The matter remained outstanding until the Council institute disciplinary action against the officers who employed casual workers without following proper procedures and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. r) Payment of Social Holiday Allowance- K30, 000 In noting the submission, the previous Committee urged the Town Clerk to aggressively pursue the recovery of these funds from the officers and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council recovers the holiday allowances amounting to K30, 000 paid to the officers and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. s) Irregular Payment of House Rentals In noting the submission, the previous Committee urged the Town Clerk to ensure that conditions of service were adhered to without fail as stipulated by the Local Government Service Commission. The previous Committee recommends that the overpaid rentals in relation to the former Town Clerk be recovered. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council recovers the overpayment for rentals of K34, 512 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. t) Management of Non-Current Assets i. Lack of Title Deeds- K26,255,791 In noting the progress, the previous Committee expressed concern that the Council allowed its property to remain unsecured for a long time. The previous Committee, therefore, resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council secures the title deeds for the forty four properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. iii. Lack of Maintenance Policy The previous Committee noted the submission and resolved to wait a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council put in place a maintain policy and rehabilitate the dilapidated workshop.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter.

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Abattoir The previous Committee noted the submission and resolved to wait a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council put in place a maintain policy and rehabilitate the Abattoir.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter.

Twashuka Tarven In noting the submission, the previous Committee urged the Town Clerk to aggressively pursue the outstanding rentals from the tenant. The previous Committee also urged the Town Clerk to ensure that rehabilitation works commence at the earliest possible time once the funds for the project were disbursed. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council put in place a maintain policy and ensure rehabilitate works commences at Twashuka Tarven.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter.

Chiwempala Community Hall The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the tenancy agreement was signed and Chiwempala Community Hall was rehabilitated.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter.

Zhikilalo Jere Library The previous Committee noted the submission and resolved to await a progress report on matter.

Treasury Comment The matter remained outstanding until the Council rehabilitates the Zhikalilo Jere Library and the matter was verified by Auditor General.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter.

PARAGRAPH 7 PARAGRAPH 7

CHINSALI MUNICIPAL COUNCIL a) Failure to Transfer Commercial Plots The previous Committee noted the response and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the Council transfers the two properties valued at K 141,000 to the litigant and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. c) Failure to Adopt Information and Communication Technology (ICT) Frameworks The previous Committee noted the submission and urges the Council Secretary to ensure that he requests Local Government Service Commission for IT personnel to manage operations and administration of the ICT environment. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the Council adopts Information and Communication Technology framework and a request to recruit IT personnel by Local Government Service Commission was made.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. d) Lack of Title Deeds and Insurance The previous Committee observed with concern the failure by the Council to secure its property, noting that the lack of Title Deeds makes it difficult to verify the ownership of the properties. Further, contrary to the Local Authorities Financial Regulation No. 154, the properties had not been insured. The previous Committee recommended that the Council engaged the provincial lands office on how best they could help the Council to acquire its title deeds promptly, and thereby insure the properties to cushion against loss or damage of properties. The previous Committee would await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council secured title deeds for the nine (9) properties, insures them and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. e) Failure to Fill Key Positions The previous Committee was aware that the mandate to fill vacant positions, particularly those in Divisions I, II and III lay with the LGSC, established under Article 228 of the Constitution of Zambia, Chapter 1 of the Laws of Zambia, as amended by Act No. 2 of 2016. The previous Committee urged the Council Secretary to ensure that the Commission was updated on quarterly basis of the Council’s staff returns to guarantee the smooth running of the Council. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council fills all the vacant positions and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. f) Irregular Payment of Subsistence Allowances K32, 496 The previous Committee was seriously concerned that the Council appears to be entertaining these irregularities by directing that retrospective authority be sought. In this vein, the previous Committee directed that disciplinary action be instituted against all officers who authorised these payments. The previous Committee further urges the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial regulations were adhered to henceforth. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until disciplinary action was taken against the officers who authorised the payments amounting to K 32,496 and internal controls were enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. g) Allowances Paid to Non-Council Employees without Authority The previous Committee noted the submission and directed that disciplinary action be taken against the officers who authorised these irregular payments in order to forestall similar irregularities in future. Further, the previous Committee urged the Council Secretary to ensure that all payments to non-Council employees were only made with prior authority from relevant authorities. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until disciplinary action was taken against the officers who authorised the irregular payments amounting to K 29,640 and internal controls were enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. h) Irregular Payments of Social Holiday Allowances K28,309 The previous Committee urged the Council Secretary to adhere to Ministry of Local Government and Housing Circular No. MLGH/101/8/4 which abolished the payment of entertainment allowances such as social holiday and talk time allowances. The previous Committee urged the Council Secretary to ensure that stipulated financial regulations were adhered to at all times. In this vein, the previous Committee urged that disciplinary action be taken against all those involved in approving these payments in contravention of the said circular. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until disciplinary action was taken against the officers who authorised the irregular payments of holiday allowances and internal controls were enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. i) Unretired Accountable Imprest K14,240 The previous Committee observed with concern the failure to adhere to Local Government Financial Regulation No. 119. The previous Committee urged the Council Secretary to write to all the transferred officers so as to effect recoveries. The previous Committee further implored the Council Secretary to ensure that an imprest register was introduced to track retirement of imprest. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the imprests were recovered and details were availed for audit verification.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. j) Failure to Prepare Activity Reports K37, 166 The previous Committee observed with concern that there were no reports produced for audit for various activities undertaken by the Council, making it difficult to ascertain whether or not these activities in fact took place. The previous Committee urged the Council Secretary to strictly ensure that all activities undertaken were supported by activity reports and accounted for. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until all the activity reports were availed for audit verification.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. k) Unsupported Payments K37, 795 The previous Committee observed with concern that Local Authority Financial Regulation No. 86 had been abrogated. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid recurrence of this irregularity. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until payments amounting to K 37, 795 were supported and internal controls were enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. l) Unaccounted for Stores K58,056 (General Stores – K44,570 and Fuel – K13,486) The previous Committee finds the failure to account for stores unacceptable. The previous Committee strongly urges the Council Secretary to ensure that Financial Regulation No. 145, were strictly adhered to at all times. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until stores amounting to K58, 056 were accounted for and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff provided an update on the matter. The Committee awaits a progress report on the matter. m) Failure to Remit Statutory Contributions, PAYE and Contributions to Unions K3,388,051(PAYE – K2,595,908, NAPSA – K442,630, Contributions to Unions - K5,149 and LASF – K344,364) The previous Committee finds the non-remittance of statutory contributions to the National Pension Scheme Authority (NAPSA) and PAYE unacceptable and implores the Council Secretary to expeditiously follow up on the proposed debt swaps in order to clear the arrears. Further, the previous Committee urged the Council Secretary to ensure that monthly payments towards these obligations should continue to avoid the debts accruing. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the debt swap with NAPSA was done and the payment plan with ZRA was put in place in order to clear the arrears and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited. n) Outstanding Staff Obligations K1, 184,990 The previous Committee urged the Council Secretary to ensure that part payments for terminal benefits were made on a monthly basis so that they were liquidated as and when they fall due. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until terminal benefits were liquidated and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited. o) Outstanding Receivables K966, 467 The previous Committee noted the response and urges the Council to ensure that it collected all the rates to boost its revenue. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until outstanding property rates amounting to K966, 467 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited.

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PARAGRAPH 8 PARAGRAPH 8

CHIPATA CITY COUNCIL a) Lack of Strategic Plan

In noting the submission, the previous Committee resolved to await progress report on the adoption of the draft strategic Plan.

Treasury Comment The matter remained outstanding until the draft strategy plan was adopted and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Lack of Risk Management Policy The previous Committee finds it unacceptable that the City Council has been operating without a risk management policy, which is supposed to aid the Council to identify and mitigate risks. The previous Committee, therefore, urged the Town Clerk to expedite the drafting process and submission of the policy to the full Council for approval. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the risk management policy was put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Outstanding Receivables- K6,011,207 In noting the steps being taken by the Council to reduce on the outstanding receivables, the previous Committee urged the Council to pursue debtors in a timely manner so as to alleviate the cash flow challenges it currently faces. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the all outstanding debts amounting to K 6,011,207 were collected and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Failure to Fill Vacant Positions In noting the submission, the previous Committee urged the Town Clerk to ensure that requests to fill vacant positions were submitted to the Local Government Service Commission in time and not to wait until audit queries had been raised. The previous Committee would await a progress report on the remaining vacancies yet to be filled.

Treasury Comment The matter remained outstanding until the vacant positions were filled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Failure to Obtain Title deeds - K180,000 The previous Committee noted the submission and urged the Town Clerk to expedite the process of acquiring the Title Deeds for the farm along Chadiza Road. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the title deeds for the farm along Chadiza road were obtained and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Missing Payment Vouchers K392, 475 The previous Committee was seriously concerned with the trend of waiting for an audit query before corrective measures were taken by councils. The previous Committee, therefore, sternly cautioned the Town Clerk against such laxity and urged him to institute disciplinary action against any officer who would be found wanting in this regard. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the missing vouchers amounting to K 392,475 were traced and disciplinary action was taken against erring officers and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Unretired Imprest - K42, 450 The previous Committee noted with serious concern that despite inadequate staffing levels, the Finance Department was able to make payments, but the same staff was deemed inadequate when it came to enforcing financial control measures to deter irregularities such as unretired imprest. The previous Committee, therefore, urged the Town Clerk to ensure that in addition to halting issuance of any further imprest to those officers with outstanding imprest, recoveries were instituted immediately, followed by disciplinary action whenever officers failed to retire their imprest within the minimum period stipulated by the Local Government Financial Regulation No. 119. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the unretired imprest amounting to K42, 450 were recovered and disciplinary action was taken against erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Unsupported Payments - K175,229 In noting the submission, the previous Committee highly questions the authenticity of the supporting documents which were only traced for purposes of the appearance before the previous Committee, as opposed to availing these documents to the external auditors during the audit process. The previous Committee sternly cautioned the Town Clerk against poor record keeping and urges him to institute disciplinary action against all officers who would be found wanting in this regard. The previous Committee directed that all supporting documents be presented for audit verification, and would await a progress report on the remaining supporting documents which were yet to be traced and attached to payment vouchers.

Treasury Comment The matter remained outstanding until all the supporting documents amounting to K175, 229 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and providers an update and, hence, a progress report is therefore being awaited by the Committee.

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i) Unaccounted for Stores - K82,637 The previous Committee is concerned over the volume of records which were not availed to auditors during the audit, only to resurface at the time of appearing before the previous Committee. The previous Committee urged the Town Clerk to ensure that best practices in record keeping were upheld in light of the improved staffing levels. The Town Clerk was, therefore, urged to, henceforth, mete out disciplinary action against any officers who fail to maintain records. Closure of the matter was recommended subject to audit verification.

Treasury Comment The matter remained outstanding until stores amounting to K 82, 637 were accounted for and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and providers an update and, hence, a progress report is therefore being awaited by the Committee. i. Failure to Transfer Funds to the Project Account - K1,151,872 The previous Committee expressed great concern in the way that Councils in general, and Chipata City Council in particular, had been flouting financial regulations on the utilisation of the 20 per cent Equalisation Fund meant for capital projects with impunity. The previous Committee, therefore, sternly cautions the Town Clerk to forthwith desist from misapplying the 20 percent reserved for capital projects from the Equalisation Fund on operational expenditures. The previous Committee reiterates that it will not tolerate any further misapplication of these funds as they were intended to benefit the communities in these areas. The previous Committee further urged the Town Clerk to expedite the repayment of the funds misapplied by the Council on operational expenses. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the balance of the borrowed funds amounting to K 407,496 were reimbursed to project account and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Remit Statutory obligations and PAYE - K10, 061,323 The previous Committee noted the submission, including the debt swap initiative and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the debt swaps for all the three institutions, namely ZRA, LASF and NAPSA were implemented and details availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

PARAGRAPH 9 PARAGRAPH 9

CHIPILI DISTRICT COUNCIL a) Failure to Fill Vacant Positions The previous Committee noted the submission and urges the Local Government Service Commission to fill all vacant positions at the Council without delay. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the vacant positions were filled up and detail were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Non-Preparation of Financial Statements The previous Committee noted the progress made by the Council in the preparation of the Financial Statements and directed that the Council should prepare all the remaining Financial Statements without undue delay. The previous Committee further urges the Local Government Service Commission to institute disciplinary action against Town Clerks and Council Secretaries who fail to supervise their officers adequately, resulting in failure to adhere to the provisions of the Financial Regulations such as requirements to prepare Financial Statements. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the remaining financial statements were prepared and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Failure to Adopt ICT Frameworks The previous Committee noted the submission and recommends that the Council should prioritise the adoption of the ICT framework in order to better manage the operations and administration of the Council. The previous Committee would await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the ICT framework was adopted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Unaccounted for Stores-K149, 764 In noting the submission, the previous Committee urged the Council Secretary to maintain updated stores records at all times in accordance with Local Authorities Financial Regulation No.145. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the receipt and disposal details for stores items costing K149, 764 (fuel - K96, 006 and general stores - K53, 758) were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Equalisation Funds The previous Committee observed that the Councils were spending the 20 percent project component of the Equalisation Fund on non-capital projects and, therefore, strongly recommended that the Ministry of Local Government should sensitise the Town Clerks and Council Secretaries on the need to broaden their revenue bases in order to stop misapplying the Equalisation Fund on noncapital projects such as personal emoluments. The previous Committee further urges Chipili District Council to ensure that it utilises the 20 per cent capital component of the Equalisation Fund on capital projects only. The previous Committee directed the Council to repay back the money misapplied and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the expenditure records amounting to K281, 400 were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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CHISAMBA DISTRICT COUNCIL PARAGRAPH 10 a) Failure to Produce Receipt Books The previous Committee is seriously concerned that the Council is failing to maintain receipt books as this may result in abuse of funds. It, therefore, urges the Council devise a system of securing all accountable documents and to mete out disciplinary action against officers who failed to adhere to the Financial Regulations, resulting in this query.

Treasury Comment The matter remained outstanding until the 10 general receipt books were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

(b) Unaccounted for Revenue – K5,260 The previous Committee finds it unacceptable that funds were used at source in total disregard of the Financial Regulations. The Council Secretary is urged to ensure that all revenues were banked within the times stipulated by law without fail forthwith and that disciplinary action was taken against all officers who approved this irregular use of revenue immediately.. The previous Committee will await a progress report on this matter.

Treasury Comment The matter remained outstanding until the revenues amounting to K 7, 560 were accounted for and details were availed for audit scrutiny. Furthermore, the revenues amounting to K5, 260 utilised for the funeral expenses were reimbursed. A progress will be availed to the Secretary to the Treasury.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Missing Payment Vouchers – K84,807 The previous Committee is concerned about the poor record keeping in the Council which has led to misplacement of accountable documents. The previous Committee noted that payment vouchers were very important documents which should be filed systematically for easy retrieval. The previous Committee urged the Council Secretary to devise a system of securing accountable documents. The previous Committee further urges the Council Secretary to institute disciplinary action against all officers responsible for this irregularity. The matter recommended for closure subject to audit verification.

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Treasury Comment The matter remained outstanding until the 39 missing vouchers amounting to K84, 807 were traced and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Unapproved Payments – K21,019 The previous Committee finds it disturbing and unacceptable that a payment could be made without approval by a Controlling Officer. In this regard, the previous Committee called for stern disciplinary action to be meted out against the officers who perpetrated this irregularity and a full criminal investigation into the transaction as it appears that there was collusion among the officers involved in this process. Further, the previous Committee urged the Council Secretary to ensure that no payment can be effected without the approval of the Controlling Officer. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the disciplinary action was taken against the erring officers.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Un acquitted Allowances – K82,347 In noting the submission, the previous Committee urged the Council Secretary to ensure that officers were sternly cautioned for the failure to acquit allowances in line with the Financial Regulations. The previous Committee further urges the Council Secretary to effect deductions from the officers’ emoluments for the failure to acquit the allowances as stipulated in the Financial Regulation. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until the traced acquittal sheets were verified by the Auditor General.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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e) Unsupported Payments – K344,124 The previous Committee urged the Council Secretary to institute disciplinary action against erring officers for their failure to attach receipts, purchase orders and delivery noted. To avoid the recurrence of this irregularity, a system should be devised to ensure that the documents were always attached to the payment vouchers. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until the council institutes disciplinary action against erring officers who failed to attach disposal details and documents were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Unaccounted for Stores and Undelivered Materials The previous Committee was concerned that the Council failed to account for stores and undelivered materials. In this vein, the previous Committee directed the Local Government Service Commission Management to ensure that a qualified stores officer is deployed to the Council to manage stores with immediate effect. With regards the non-delivery of building materials, the previous Committee directed the Council Secretary to report the matter to law enforcement agencies. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the disposal details of unaccounted for stores amounting to K178, 187 and the refund of K 8500 is paid back.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Unretired Accountable Imprest – K14,118 The previous Committee expressed concern on the matter of unretired accountable imprest and directed Management to be proactive to audit queries in curbing this vice. In this regard, it directed Management to institute deductions for any outstanding imprest. It further directed the Council Secretary to ensure that laid down rules were adhered to at all times whenever imprest is issued. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until the retirement details for imprest amounting to K 14, 118 were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Failure to Prepare Activity Reports – K104,338 The previous Committee urged the Council Secretary to ensure that the officers were sternly cautioned over their failure to prepare activity reports every time they undertake trips. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until the activity reports were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Failure to Remit Tax to ZRA – K97,890 The previous Committee is concerned that the Council has so far failed to broaden its revenue base and is instead relying on the Local Government Equalisation Fund to fund its operations. The previous Committee, therefore, urges the Council Secretary to come up with income generating ventures and other measures to broaden the revenue base so that it is able to deliver necessary services and meet various statutory obligations. The previous Committee awaited the progress report on the matter.

Treasury Comment The matter remained outstanding until the tax amounting to K 97, 890 was paid to ZRA and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Unaccounted for Fuel – K134,500 The previous Committee finds it unacceptable that fuel was unaccounted for at the Council. The previous Committee urged the Council Secretary to ensure that all necessary processes required for withdrawal of fuel were followed to the letter. Further, it recommends that all officers who failed to maintain these records and avail them for audit should face disciplinary action for the lapse. The previous Committee awaited progress report in the matter.

Treasury Comment The matter remained outstanding until the disciplinary action against the erring officers and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Questionable Payment of Refund – K157,000 (and Overpayment of K15,000) The previous Committee finds the response insufficient and completely unacceptable. The previous Committee is further displeased that this has led to loss of public funds. Accordingly, the previous Committee called for disciplinary action to be taken immediately against all officers involved in the matter, who occasioned this loss of a colossal sum of public funds, including those who approved the payments in the absence of necessary documentation. In this regard, the funds should be recovered in full from the emoluments of the officers involved, commencing immediately. In addition, the previous Committee directed that the matter be reported to the investigative wings for further inquiry. The previous Committee, furthermore, urges the Council to henceforth strictly adhere to the Financial Regulations whenever making payments and any officer who deviates from or violates the Financial Regulations should face disciplinary action without waiting for the audit process. The previous Committee awaited a progress report in the matter.

Treasury Comment The matter remained outstanding until a refund is made to the council by the erring officer and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Questionable Payment of Refund – K9000 The previous Committee finds it disappointing and unacceptable that the Council could refund an individual without verifying the claim of a double payment, resulting in loss of public funds to the tune of K9, 000, especially in the face of the financial constraints that the country is facing. Accordingly, the previous Committee called for disciplinary action to be taken immediately against all officers involved in the matter, who occasioned this loss of these public funds, including those who approved the payments in the absence of necessary documentation. In this regard, the funds should be recovered in full from the emoluments of the officers involved, commencing immediately. In addition, the previous Committee directed that the matter be reported to the investigative wings for further inquiry. The previous Committee, furthermore, urges all officers at the local authority to exercise utmost diligence in the performance of their duties so as to safeguard the public assets and resources entrusted to their custody. The previous Committee urged the Council Secretary and the Local Government Service Commission to institute disciplinary action against any officer who fails to exercise the required levels of diligence without waiting for the audit process. The previous Committee awaited a progress report in the matter.

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Treasury Comment The matter remained outstanding until the disciplinary action against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. p) Constituency Development Funds (CDF) – Fuel costing K73, 258 The previous Committee finds it unacceptable that fuel was unaccounted for at the Council. The previous Committee urged the Council Secretary to ensure that all necessary processes required for withdrawal of fuel were followed to the letter. Further, it recommends that all officers who failed to maintain these records and avail them for audit should face disciplinary action for the lapse. The previous Committee awaited progress report in the matter.

Treasury Comment The matter remained outstanding until the disciplinary action against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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CHOMA MUNICIPAL COUNCIL a) Equalisation Funds i. Failure to Transfer Funds to the Project Account - K1,558,064.51 The previous Committee observed with concern that the Council is not adhering to the Local Government (Amendment) Act No. 12 of 2014, of the Laws of Zambia which provides that a Council shall use at least 20 percent of the Equalisation Fund received in any financial year, to finance capital expenditure. The previous Committee directed the Town Clerk to ensure that resources were expended as per law. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the balance of K 276, 326 was reimbursed to project account and details availed for audit scrutiny.

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ii. Misapplication of Funds – K348,558.67 The previous Committee observed with concern that the Council is not adhering to Financial Regulation No. 31(1), which states that Treasury authority should be obtained on varying funds. In this regard, the Town Clerk should ensure that all funds paid towards allowances were deducted from the emoluments of the officers concerned and any other resources spent on other activities should be paid back into the capital funds account. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the balance of K 257, 695 spent on unrelated activities was reimbursed to project account and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Weaknesses in Accounting for Revenue from Sale of Plots - K1, 895,000 The previous Committee urged the Town Clerk to ensure that a comprehensive land register is compiled for all plots offered by the Council, complete with details of offers and amounts paid. All revenues received from the sale of plots should be receipted and periodically reconciled with the land register. The previous Committee further directed the Town Clerk to sternly warn and caution officers deliberately misfiling documents. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council compiles a land register for all the plots offered and ensures that all the revenue is receipted and deposited. Furthermore, disciplinary action was taken against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Outstanding Receivables – K2,060,5865 The previous Committee expressed concern that the Council Management was not adhering to the Local Authorities Financial Regulations Nos. 12(h) and 76 which states that all revenue and other Council monies, which become due and payable to the Council, must be collected punctually. The Town Clerk was directed to seriously come up with adequate mechanisms and strategies to collect all incomes without delay as indicated. The previous Committee awaited a progress report on the strategies to be put up in a comprehensive report during the fourth coming audit verification.

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Treasury Comment The matter remained outstanding until all the outstanding receivables amounting to K2, 060,566 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Pay Payables (Creditors) – K13,188,129.76 The previous Committee expressed concern at the failure by management to settle terminal benefits, long service bonuses and statutory obligations as the Council risked accumulating the obligations to unmanageable levels. The previous Committee worries about this omission because it may attract litigation which may result in the loss of the much needed funds. The previous Committee urged the Council to ensure that the severance packages and statutory obligations were budgeted for annually and that the debt liquidation plan is followed to avoid the accumulation of debt and litigation. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the payables amounting to K 12,701602 were paid to the creditors and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Weakness in Management of Properties a) Lack of Title Deeds for Properties The previous Committee observed with concern that Council properties do not had titles deeds. It urges Management to ensure that the matter is followed up with the Ministry of Lands and Natural Resources in order for them to finalise the issuance of title deeds and to further ensure that all properties were surveyed. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until all the title deeds were secured and the properties were surveyed.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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CHONGWE MUNICIPAL COUNCIL a) Weakness in the Management of Properties and other Movable Assets i. Failure to Insure Motor vehicles The previous Committee draws the attention of the Council to Local Authorities Financial Regulation No.154, which requires the Council to take out insurance cover in relation to its assets. In this regard, the previous Committee directed the Town Clerk to abide by the above Regulation and insure all insurable Council assets without further delay. The previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until all insurable council assets were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure To Avail Assets Ownership Documents The previous Committee expressed concern that the Council is not complying with the Roads and Roads Traffic Act Chapter 464 of the Laws of Zambia, which requires motor vehicles and earth moving equipment to be registered with Road Transport and Safety Agency. This is very important because it will provide proof of ownership of the assets by the Council. In this regard, your calls for disciplinary action against all officers who failed to perform their duties of having the motor vehicles registered and securing the documents and present them to the auditors when so requested during the audit process. The previous Committee urged the Town Clerk to ensure that all motor vehicles and other equipment were registered without fail. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until all the fifteen (15) motor vehicles and other equipment were registered with RATSA and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Land and Buildings The previous Committee observes that failure to obtain titles deeds for land and building is a very common problem among the councils in the country. This has, in part, caused a lot of encroachments on Council land, which is negatively affecting service delivery. The previous

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Committee, therefore, calls upon the Ministry of Local Government to intervene and ensure that all Councils obtain title deeds for their properties. The previous Committee, further, directed the Town Clerk to ensure that the Council complies with the Lands Act, Chapter 184 of the Laws of Zambia, which requires that institutions or individuals owning land must possess title deeds as proof of ownership. The previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until the council obtains title deeds for the twenty (20) buildings and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Failure To Change Ownership of Motor Vehicles – K610,000 The previous Committee expressed concern over the inordinate delays in changing ownership of the two vehicles by the Council. The previous Committee observes with dismay that the Council failed to resolve the matter from 2011. The previous Committee directed the Town Clerk to resolve the matter as a matter of urgency by obtaining guidance from the Ministry of Local Government. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council changes ownership of the two (2) vehicles which were procured from the Royal Danish Embassy and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Irregularities in The Procurement of Two New Motor Vehicles From Toyota Zambia Limited –K926,209 The previous Committee finds the response of the Town Clerk unacceptable and calls for disciplinary action to be taken against all officers responsible for this irregularity. The previous Committee further urged the Town Clerk to ensure that the Council Management abides by ZPPA Circular No. 1 of 2013, on the procurement threshold for goods and services without fail. It also directed the Town Clerk to ensure that International Accounting Standards 16 on Property, Plant and Equipment which requires depreciation to be charged only when the asset is available for use for its intended purpose is strictly adhered to, so as to be able to produce reports which reflect a true and fair position on the statement of affairs and avoid misrepresentation. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the disciplinary action against the erring officers responsible for this irregularity of depreciating the motor vehicles amounting to K 185, 242 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Failure To Value Disposed of Motor Vehicles The previous Committee is disappointed that the motor vehicles were disposed of in contravention of the provisions of section 67 of the Local Government Act, Chapter 281 of the Laws of Zambia, which provides guidelines and conditions for disposition of Council property. The previous Committee therefore, calls for disciplinary action against all officers who were responsible for this irregularity. Further, the previous Committee urged the Council to strictly adhere to the provisions of the law in all dispositions of Council property. The previous Committee in order to curb possible abuse of the process resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the valuation report from the Government Valuation Department availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Failure To Revalue Council Properties The previous Committee urged the Town Clerk to ensure that the Council adheres to International Accounting Standard (IAS) 16 which provides for periodic revaluation of property, plant and equipment. The previous Committee noted that non-valuation of assets hinders the preparation of Financial Statements. The previous Committee directed the Town Clerk to expedite the re-valuation of the Council properties. The Council awaits a progress report on the matter.

Treasury Comment The matter remained outstanding until the council properties were revalued and the revaluation report is availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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vii. Failure to Maintain the Council Abattoir The previous Committee expressed concern that the Council was failing to maintain critical public infrastructure like the abattoir. The previous Committee directed the Town Clerk to ensure that funds were provided in the budget for the overall rehabilitation of the abattoir without undue delay. Further, the Town Clerk should ensure that the Council routinely maintains its assets to avoid disruption of provision of services. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Abattoir is rehabilitated and is in use.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report was therefore being awaited by the Committee. d) Failure to Remit Statutory and Union Contributions – K8, 727,570 The previous Committee observed with concern that failure to remit statutory obligation may result in the accumulation of debt which may attract penalties and interest. The accumulating of debt may, therefore, adversely affect the provision of critical public services by the Council. The previous Committee, therefore, urges the Management to ensure that the Council raises enough revenues by broadening the revenue base and paying the statutory obligations without further delay because the debt swap is not sustainable. The previous Committee also strongly urges Management to ensure that adequate provision is made for statutory contributions in the annual budget and that the payment plans were strictly adhered to. The previous Committee resolved to await progress report on the matter.

Treasury Comment The matter remained outstanding until the council remitted all the outstanding statutory obligations amounting to K8, 727,570 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Outstanding Staff Obligations – K3, 804,549 The previous Committee is concerned over the failure by Management to settle staff obligations as they risk accumulating arrears to unmanageable levels. Also, staff obligations could eventually attract litigation which may result in increased liabilities through legal costs and interest. The previous Committee urged the Council to ensure that the severance packages were budgeted for annually and also to put in place a debt liquidation plan. The previous Committee awaited a progress report.

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Treasury Comment The matter remained outstanding until the council remitted all the outstanding statutory obligations amounting to K8, 727,570 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Equalisation Fund - K11, 569,330 The previous Committee observed with concern the that the Council has violated the Local Government Act, Chapter 281 of the Laws of Zambia as amended by Act No. 12 of 2014, by not reserving at least 20 percent of the Equalisation Fund for capital expenditure. The previous Committee directed the Town Clerk to ensure that resources were expended in strict compliance with the law and that all misapplied funds were refunded immediately. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council refunded all the misapplied for Equalization funds and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KABWE MUNICIPAL COUNCIL a) Failure to Collect Land Charges on Plots - K10, 893,503 The previous Committee finds the reasons given by the Town Clerk unacceptable as this clearly shows that officers at the Council neglected to guide the land buyers to take the bank deposit slips to the Council after depositing the money for issuance of a receipt. The previous Committee, consequently, urged the Town Clerk to ensure that records were normalised in the shortest possible time to avoid possible pilferage by some defiant officers due to this financial weakness which, among other things, could had led to the suspension of the land agency by the Ministry of Lands and Natural Resources. The Town Clerk was also urged to institute disciplinary measures against officers who neglected to advise the land buyers to take the deposit slips to the Council to signify their payment of the requisite charges. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council collected the land charges amounting to K10, 893,503 and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Revoke Offers Not Paid for - K7, 455,800 The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council reconciled with bank on the status of the plots and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Issuance of Plots under Special Conditions to Council Employees - K850,500 In noting the submission, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council received response from the Ministry of Local Government and is available for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Outstanding Receivables - K3,019,965 In noting the submission, the previous Committee resolved to wait a progress report on the collection of the outstanding balance.

Treasury Comment The matter remained outstanding until all the outstanding receivables amounting to K3, 019,965 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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e) Missing Payment Vouchers - K68, 668 In noting the submission, the previous Committee cautions the Town Clerk against the trend of finding the misfiled documents only when called to appear before the previous Committee. The Town Clerk was particularly urged to institute disciplinary action against officers who failed to secure the supporting documents and avail them for audit review when called upon to do so. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until all the 20 missing payment vouchers in amounts totalling K68, 668 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Unsupported Payments - K214,984 In noting the submission, the previous Committee noted that by virtue of their training, accounting staff ought to be aware, without the need for special orientation, that supporting documents had to be properly secured and availed for audit. The previous Committee, therefore, directed that disciplinary action be meted out against all accounting staff who failed to secure and avail the documents for audit review. The previous Committee also wondered how the internal audit allowed unsupported payments. The previous Committee urged the Town Clerk to strengthen his internal audit function in order to avoid a repeat of such anomalies. Further, in as much as the previous Committee appreciated the procurement of a new Palmsoft Software, the previous Committee still urged the Town Clerk to always ensure that new staffs were oriented in their new roles to avoid such irregularities, which point to poor supervision. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the relevant supporting documents in amounts totalling K 214,984 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Unacquitted Allowances- K51, 328 In noting the submission, the previous Committee urged the Town Clerk to mete out disciplinary action against officers who failed to secure the documents and avail them to the auditors. The previous Committee further reminded the Town Clerk that he was required to ensure that important documents were not misfiled and were made available for audit review as required by law. The previous Committee will await a progress report on this matter.

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Treasury Comment The matter remained outstanding until all the payment for allowances were acquitted and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Unaccounted for Stores- K154,019 The previous Committee was dismayed over the growing trend of key accounting documents not being availed to the auditors during audits and only being made available during meetings of the previous Committee. The previous Committee, therefore, urged the Town Clerk to sternly discipline all officers responsible for this irregularity. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all disposal details for stores were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Irregular Payments- K60,599 In noting the submission, the previous Committee cautions the Town Clerk against breach of well-established Financial Regulations. Further, the previous Committee sternly cautioned the Town Clerk from condoning such financial irregularities and urges him to institute punitive measures against all officers who facilitated this irregularity. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until disciplinary action was taken against the erring officer and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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h) Failure to Insure Assets i) Buildings/Properties - K36, 860,594 In noting the submission, the previous Committee expressed disappointment at the failure by the Council to insure the property posing a risk of loss of Council property in the event of a calamity such as fire. The previous Committee also noted the insurance cover obtained through Madison Insurance as it is a move in a positive direction. The Committee resolved to await a progress report on the full insurance cover of all Council properties.

Treasury Comment The matter remained outstanding until all the council’s properties were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Motor Vehicle - K97, 870 The previous Committee expressed disappointment at the failure by the Council to insure motor vehicles contrary to section 133 of the Roads and Road Traffic Act, Chapter 464 of the Laws of Zambia and further expresses worry on the unjustified overpayment in repairing the damaged vehicle. The Committee, therefore, urged the Town Clerk to ensure that the overpayment is recovered from the officers responsible for the overpayment. Further, the previous Committee called for disciplinary action to be meted out against all the officers responsible for this loss of public funds in order to deter recurrence of such a practice. The previous Committee further cautions the Town Clerk against flouting Financial Regulations by authorising payments above his allowable threshold. The previous Committee will await a comprehensive progress report on the matter.

Treasury Comment The matter remained outstanding until the overpayment is recovered and disciplinary action was taken against the erring officer.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. l) Failure to Follow Tender Procedures - K50, 000 The previous Committee expressed disappointment over the level of defiance in the Council as regards the failure to follow tender procedures. In this vein, the previous Committee called upon the Local Government Service Commission to probe the Management of the Council and take action to arrest the situation as a matter of urgency. Further, the previous Committee called upon the law enforcement agencies to follow up the case of overpayment by K19,600 to Daviba General Dealers owned by a Mr David Banda, an accounting officer at the Council, and any

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other procurement irregularities that may border on criminality.. The previous Committee further directed the Town Clerk to forthwith comply with all the Financial Regulations, including those prohibiting the authorisation of payments above his threshold. The previous Committee further directed that all relevant documents be presented to the Auditor General for verification and resolved to await a progress report on the overpayment case and any other cases.

Treasury Comment The matter remained outstanding until the council and investigative wings follow up on the overpayment of K19,600 paid to Daviba General Dealers and review all the procurements highlighted by the Auditor General.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Irregular Medical Refunds - K55,738 The previous Committee observes that direct payment to the officers, without a medical scheme, was irregular and finds it disappointing and unacceptable that the Town Clerk appears to be justifying these irregularities. Whilst appreciating the procured medical scheme with Kabwe General Hospital, the previous Committee directed the Town Clerk to make recoveries on the refunds that were irregularly paid without any medical aid scheme in force. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council recoveries the irregular paid medical bills amounting to K55, 738 from the officers affected.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. p) Irregular Hire of Skip Bins - K502,000 The previous Committee is seriously concerned over the number of important documents being misplaced at the time of audit only to be found at the time of appearing before the previous Committee. As far as the previous Committee is concerned, the authenticity of such documents cannot be proved during the meetings. The previous Committee, therefore, sternly warns the Town Clerk against this trend and directed him to institute disciplinary measures against all officers who failed to secure and avail such important documents during the audit. The previous Committee will await a report on the matter.

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Treasury Comment The matter remained outstanding until the council takes disciplinary action against the officers who failed to secure and avail the contract to high garbage trucks at the time of audit and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. q) Unretired Accountable Imprest - K146,396 The previous Committee finds the answer given by the Town Clerk unacceptable and urged the Town Clerk to tighten the internal control measures to avoid such levels of financial indiscipline in the Council. The previous Committee further directed the Town Clerk to immediately institute recoveries from all the officers who had unretired imprest. Further, a s a deterrent, the previous Committee urged the Town Clerk not to pay any imprest to officers without standing unretired imprest until the whole amount of K146,396 has been recovered. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the unretired imprest amounting to K 146,396 is recovered from the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. r) Failure to Remit Statutory Contributions and PAYE - K11,932,377 In noting the submission, the previous Committee urged the Town Clerk to ensure that the debt liquidation plan is strictly followed. Closure of the matter was recommended subject to audit verification.

Treasury Comment The matter remained outstanding until a debt plan was put in place and the statutory contributions amounting to K11, 932,377 were remitted to all the statutory bodies.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. s) Irregular Payment of Social Holiday Allowances - K32, 600 The previous Committee noted with concern on the refusal by the Council to abide by the parent Ministry’s circular and calls upon the Local Government Service Commission to probe this matter with a view to taking necessary action to address the situation as a matter of urgency. The

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previous Committee further urged the Town Clerk to take seriously, all the circulars issued by the Government through its parent Ministry. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the local Government Service Commission probes the matter with the view of taking the necessary action to address the issue and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

(t) Failure to provide Lease Agreement The previous Committee finds the Council’s failure to secure lease agreements unacceptable as this could be a conduit for siphoning money from the Council as it makes it difficult to ascertain collectable rentals. The previous Committee strongly cautions the Town Clerk against such laxity as it finds the excuse given unacceptable. The previous Committee resolved to await a comprehensive report on the matter.

Treasury Comment The matter remained outstanding until the council secures the lease agreement for 191 properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. t) Outstanding Staff Obligations - K20,022,827 The previous Committee expressed concern over the Council’s failure to settle outstanding obligations as this failure could dampen the morale among the affected officers. In noting the formulated liquidating plan, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the outstanding staff obligations amounting to K20, 022,827 were liquidated and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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u) Failure to Provide Reports - K72,117 The previous Committee wondered how officers could undertake various activities such as inspections and monitoring without a record of these activities for the benefit of the Council. The previous Committee finds lackadaisical attitude by the Town Clerk and his management team unacceptable and urged the Town Clerk not only to make recoveries from such officers but institute disciplinary action against them forthwith. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until activity reports were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v) Environmental Audits i. Failure to Produce Waste Management Reports In noting the submission, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council produces a waste management report and avails it for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Transport and Management of Waste The previous Committee noted the submission with concern on the engagement of garbage collecting companies despite them not meeting the required conditions and without valid documentation, contract period and no contract amount. The previous Committee implores the Local Government Service Commission to inquire into this matter and address the serious Management lapses at the Council as a matter of urgency. The previous Committee further recommends that other law enforcement agencies should also take keen interest in the procurement of these service providers. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Local Government Service Commission addresses the serious Management lapses at the Council and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• Collection of Waste in Excess of the Licence The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the measures to address the management of the dumpsite by the council were reviewed by the office of the Auditor General and details were availed to the Secretary to the Treasury.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• Dumping of Waste without Authority The previous Committee noted the submission and urged the Town Clerk to expedite the erection of the wall fence at the dumpsite in order to protect the site from illegal dumping. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the measures to address the management of the dumpsite by the council were reviewed by the office of the Auditor General and details were availed to the Secretary to the Treasury.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. y) Mukobeko Dumpsite In noting the submission, the previous Committee urged the Town Clerk to ensure that all the issues surrounding Mukobeko Dumpsite with regard to complying with the Waste Management Act .

Treasury Comment The matter remained outstanding until the landfill is constructed.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KALOMO DISTRICT COUNCIL a) Failure to Prepare Financial Statements The previous Committee observes that the Council failed to adhere to section no. 43 (3) of the Local Government Act, Chapter 281 of the Laws of Zambia, which require the preparation of Financial Statements within a period of six months after the end of the financial year. The previous Committee further noted that the failure was due to lack of asset values to be included in the Financial Statements. The previous Committee encourages the Council to conclude the valuation of assets without fail following recruitment of the Valuation Officer. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the valuation of asset was done and financial statements were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Weaknesses in the Management of Revenue - Failure to Provide General Revenue Receipt Books The previous Committee expressed concern that the Council failed to adhere to Local Authorities Financial Regulation No.72 (5) by failing to provide general revenue receipt books to the auditors, making difficult to ascertain revenue received. The previous Committee noted that failure to produce the receipt books for audit could expose the Council to loss of revenue through theft. The previous Committee urged the Council Secretary to ensure that all accountable documents were properly stored and the officers responsible were cautioned for the lapse. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council produces the five (5) General Receipt Books and avails them for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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c) Outstanding Receivables – K1,046,952 The previous Committee urged the Council to develop a strategy to collect debts so as to improve its financial position. Further, following the reported deployment of fully qualified revenue collectors, the previous Committee expects to see an improvement in debt collection generally and in particular the amount cited by the auditors. The previous Committee further directed the Local Government Service Commission to hasten the employment of necessary staff at the Council. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the debtors’ management policy was put in place and the outstanding receivables amounting to K1, 046,952 was recovered.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Outstanding Statutory and Other Obligations – K5,720,777 The previous Committee expressed concern at the failure by Management to settle staff obligations as they risked accumulating debt to unmanageable levels. This may eventually attract litigation which may result in loss of funds through costs and interest. The previous Committee urged the Council to ensure that the severance packages were budgeted for annually and that a debt liquidation plan was put in place to avoid accumulating debt and possible litigation. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council settles all the statutory and other obligations amounting to K5, 720,777 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Weaknesses in the Management of Properties i. Lack of Title Deeds for Properties The previous Committee observed with concern that the Council’s properties were not secure as they were not on title. The previous Committee, therefore, urges Management to follow up the matter with the Surveyor General in order for them to finalise the preparation of survey diagrams and to further ensure that all properties were surveyed. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council secures title deeds for its properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Insure Council Property The previous Committee expressed concern that the Council failed to adhere to the Local Authorities Financial Regulations No. 154, by failing to insure its property. This exposes the property to risk in case of any unforeseen occurrence. The previous Committee directed the Council to ensure that all council properties were insured to absorb the risk. The previous Committee resolved to await a for progress report on the matter.

Treasury Comment The matter remained outstanding until all council properties were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KAOMA DISTRICT COUNCIL e) Outstanding Receivables – K18,400 The previous Committee noted the submission and cautions the Council Secretary against such laxity which had cost the Council some irrecoverable revenues due to lack of tenancy agreements. The previous Committee also noted the efforts being made to normalise the situation and resolved seek a progess report on the matter.

Treasury Comment The matter remained outstanding until the outstanding receivable amounting to K 18, 400 was recovered and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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f) Failure to Collect Quarry Levy – K375,900 In noting the submission, the previous Committee urged the Council Secretary to ensure that the quarry levy is collected in full as it is part of the law and ignorance of its existence on the part of the three companies at the time of entering into a contract with the RDA does not constitute a defence or sufficient excuse for the levy to be waived. Further, the previous Committee urged the Council Secretary to ensure that information on chargeable levies is disseminated to all stakeholders, in order to avoid resistance such as that experienced on the quarry levy. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council facilitates the processes of approval to abandon the levy collections charged to the three (3) companies amounting K375,900.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Lack of Billboard Policy The previous Committee noted the submission and urges the Ministry of Local Government to ensure that the Billboard Policy is in place within the shortest period of time so as to bring to a stop the wrangles between the local authorities and RDA, which had been observed in most Councils by the previous Committee. The previous Committee awaited a comprehensive report on the matter.

Treasury Comment The matter remained outstanding until the billboard policy was put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Unsupported Payments – K54,004 The previous Committee noted the submission and urges the Council Secretary to ensure that record keeping by her staff was enhanced to avoid misplacing important documents such as payment vouchers. The previous Committee further urges the Council Secretary to take disciplinary action against the officers who misfiled these important documents so that they were as not availed for audit review and to submit them for verification. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the trace documents were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Approval of Payments by Payee – K33,256 The previous Committee does not accept the reasons given by the sub-warrant holder as this was a serious breach of good corporate governance, and the previous Committee finds it unacceptable. The previous Committee recommends that the matter should be resolved without any further delay, and deductions should be instituted on the erring officer. Further, disciplinary action should be meted out against the officer without delay. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council institute recoveries of the payments made without authorisations and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Unretired Accountable Imprest – K43,992 The previous Committee finds it unacceptable that documents were only found after audits, as some queries can be avoided if all documentation was availed to auditors during their audits. The previous Committee sternly cautioned the Council Secretary against this practice in her Council and urges her to institute disciplinary action against officers who failed to cooperate with auditors by availing necessary documentation which only surfaces during the previous Committee’s meetings. The previous Committee directed the Council Secretary to submit the documents for audit verification and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the documents in respect of retirements were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Irregular Payment of Social Holiday and Other Allowances – K16,500 The previous Committee noted the submission but resolved that the irregular allowances cannot be written off. It reiterates that it is incumbent upon the Council Secretary to trace the former Council official and recover these public funds from him in full. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council recovers the irregular payment of holiday allowances amounting to K16, 500 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report was therefore being awaited by the Committee.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. q) Irregular Payment of Settling in Allowances – K35, 800 The previous Committee reiterates its concerns with regard to numerous erroneous payments which in some cases had resulted in loss of public funds. In this vein, the previous Committee called for disciplinary action to the taken against the responsible officers in this matter and directed that all relevant documentation be submitted for audit verification. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the erring officer reimburses the amount of K35, 800 paid to him as settling in allowance and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. r) Payment for Training Expenses without Authority – K20,637 In noting the submission, the previous Committee sternly cautioned the Council Secretary to desist from entertaining payments for training without first seeking authority from the Local Government Service Commission. Further, the previous Committee called for disciplinary action to be instituted against all officers who were responsible for this serious irregularity. The previous Committee resolved to seek a progress report on the matter.

Treasury Comment The matter remained outstanding until the recovery details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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s) Misapplication of Funds – K11,208 The previous Committee observes with great disappointment that the Council once again lost money due to non-adherence to Financial Regulations. In this regard, the previous Committee resolved that the misapplied funds cannot be written off. It reiterates that it is incumbent upon the Council Secretary to trace the former Council official and recover these public funds from him in full. Alternatively, the officers who authorised this payment should pay back the funds in full. The previous Committee, further, sternly cautions the Council Secretary to avoid a repeat of similar misapplication of funds. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the recovery details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Misapplication of Equalisation Fund- K1, 424,612 In noting the submission, the previous Committee cautions the Council Secretary from utilising the 20 percent Equalisation Fund on non-capital projects. Accordingly, the previous Committee emphasises that the misapplied funds should be paid back in full without undue delay so that the planned projects can be implemented. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the 20 percent Equalisation Fund on non- Capital projects were reimbursed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. t) Failure to Settle Personal Emolument Arrears – K1,111,122 In noting the submission, the previous Committee urged the Council Secretary to strictly adhere to the debt servicing plan so that all the arrears were paid off in the shortest possible time. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the balance of K338, 045.52 for Personal Emolument Arrears were fully paid off and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. u) Over - Payment of Settling in Allowance – K111,753 In noting the submission, the previous Committee urged the Council Secretary to ensure that her accounting officers were acquainted with existing accounting guidelines to avoid a repeat of such errors. Closure of the matter was recommended subject to audit verification.

Treasury Comment The matter was recommended for closure following the recovery of the over-payment of settling in allowance of K111, 753.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v) Non Recovery of Salary Advances The previous Committee finds it unacceptable that deductions were only effected after an audit query was raised by auditors, given that advances paid in 2015 and 2016, had not yet been affected by 31st December, 2017. The previous Committee directed the Council Secretary to immediately institute disciplinary action against the officers who failed to effect recoveries of these salary advances and sternly cautions her to take charge of the financial operations of the Council so as to avert recurrence of similar anomalies going forward. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the salary advances amounting to K36, 357 were fully recovered and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. w) Unaccounted for Stores –K360,481 The previous Committee finds it unacceptable that receipt and disposal details for stores were only found after the audit and urges the Council Secretary to mete out disciplinary action against the officers responsible for this lapse. Further, the previous Committee urged the Council Secretary to ensure that local government financial regulations on stores were strictly adhered to henceforth and to submit all relevant documentation for audit verification. The previous Committee would await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the stores receipt disposal details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. a) Management of Council Property, Plant and Equipment i. Wasteful Expenditure on Procurement of a Gear Box – K52,000 The previous Committee noted the submission and is dismayed at the wastage of resources at the Council in light of competing needs. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the issue surrounding the gearbox is fully resolved.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Lack of Title Deeds In noting the submission from the Council Secretary, the previous Committee called for greater care to secure the assets of the Council and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the title deeds for the properties were secured.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Failure to Insure Council Property The previous Committee noted the submission and urges the Council Secretary to ensure that all Council properties were insured in the shortest possible time in conformity with the local government regulations. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until all the council properties were insured and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Failure to Dispose of Unserviceable Plant, Vehicles and Equipment – K560, 000 In noting the submission, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the unserviceable Plant, Vehicles and Equipment amounting to K560, 000 were disposed off and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Illegal Occupation of Council Hall – K73, 200 The previous Committee finds it unacceptable that the Council had not evicted the defiant tenant from its hall in the last ten years and had further failed to collect the outstanding rentals from the said tenant in the midst of conflicting financial demands. The previous Committee, therefore, directed the Council Secretary to:

(i) evict the defiant tenant from its hall forthwith; (ii) sue for any damage to the hall that could had come about through the said tenant; and (iii) claim for rentals for the whole period the tenant has been using the hall illegally.

The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council collect the accrued rentals, evict the defiant tenant and sue for any damage that could have occurred to property.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. bb) Failure to Prepare an Integrated Waste Management Plan The previous Committee expressed concern over the Council’s laxity to prepare an Integrated Waste Management Plan which seemingly was only included in its budgetary provision for 2018, after the auditors queried the anomaly. The previous Committee sternly cautioned the Council Secretary over such kind of laxities as its neglect and failure to prepare an Integrated Waste Management Plan is a direct assault on Governments quest to keep Zambia clean. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council puts in place an Integrated Waste Management Plan and is availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Supply of Faulty Banana Boats – K59, 200 The previous Committee finds it unacceptable to entertain such wasteful expenditure and urges the Council Secretary to pursue the matter to the latter with the supplier until every part of the contract by the supplier has been performed or revoke the contract and demand repayment plus damages for inconveniencing the Council through the courts of law. The previous Committee awaited progress report on the matter.

Treasury Comment The matter remained outstanding until the banana boats were replaced by the supplier.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KAPIRI MPOSHI DISTRICT COUNCIL a. Failure to produce Receipt Books (58) The Committee noted the submission and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the fifty eight (58) General Revenue Receipt books used during the period from February to December 2016 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b. Failure to Update Valuation Roll The previous Committee observes that an updated Valuation Roll will indicate the potential revenue for the local authority from the rateable properties and capture all the rateable properties in the District has the potential to boost the Council’s revenue. In this regard, the previous Committee directed the Council Secretary to ensure that the process of updating the Valuation

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Roll is completed without any further delay in line with the Rating Act, No. 12 of 1997. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the valuation roll is updated by the council and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c. Unaccounted for Funds K23,580 The Committee noted the submission and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the acquittals for the amount of K 23, 580 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Unsupported Payments K165,418 The previous Committee noted the submission and urges the Council Secretary to ensure that record keeping by her staff was enhanced to avoid misplacing important financial documents. The previous Committee further urges the Council Secretary to take disciplinary action against the officers who failed to secure these important documents so that they were as not availed for audit review. The previous Committee further directed that all the relevant document were submitted for verification. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until supporting documents for payments amounting to K 165, 418 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f. Unaccounted for Stores K70,724 The Committee noted the Council Secretary’s submission that all the relevant documents had been traced and urges the Council Secretary to ensure that receipt and disposal documents were secured at all times and made available for audit when required. In this vein, the previous

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Committee urged the Council Secretary to take disciplinary action against the officers who failed to secure these important documents and to submit them for verification. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until receipt and disposal details of various stores items costing K63, 924 and a balance of 40 chairs costing K6, 800 availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g. Irregular Refunds - K23,790 The previous Committee noted the submission and urges the Council Secretary to ensure that all necessary documents were availed to the auditors to avoid unnecessary queries. In this vein, the previous Committee urged the Council Secretary to take disciplinary action against the officers who failed to produce these important documents for audit review. Further, all the documents should be submitted for verification. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until traced the Council minutes in which approval was given for the officers to commit the Council to the expenditure were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h. Unretired Accountable Imprest- K377,216 The Committee noted the submission and cautions the Council Secretary to ensure that all relevant documents were submitted during the audit process to avoid unnecessary queries. However, the previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the retirement forms for accountable imprest in amounts totalling K213, 636 issued to various officers for petty cash and procurement of stores items were audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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Failure to Prepare Activity Reports In noting the submission, the previous Committee directed the Council Secretary to admonish his officers for the failure to avail the reports during the audit process. Nevertheless, the previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the activity reports for imprest in amounts totalling K60, 320 issued to two (2) officers to undertake activities such as Councillors orientation meeting and ward development committee workshop were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j. Failure to Register a Tractor and Trailer with RTSA The previous Committee noted the Council’s submission that the Council has commenced the process of registering the tractor and trailer with RTSA and, therefore, resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council registers the tractor and trailer with RTSA and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k. Failure to Insure Motor Vehicles and Specialised Equipment The previous Committee noted the submission that the Council has commenced the process of insuring the motor vehicles and specialised equipment and awaits a progress report on the matter.

Treasury Comment The matter remained outstanding until the council insures the motor vehicles and specialised equipment and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. l. Failure to Obtain Title deeds In noting the submission, the Committee urges the Council to expedite the process of acquiring title deeds for the properties in question and resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council acquires title deeds for the properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m. Failure to Provide Tenancy / Lease Agreements The Committee observes that the failure to make available the lease agreement makes it impossible for auditors to ascertain the revenue from the property concerned and, therefore, cautions the Council Secretary for the lapse. The previous Committee further urges the Council Secretary to ensure that all staff in the Council take audits seriously and ensure that the Council and specifically officers responsible for specific activities such as real estate make all auditable documents available when requested to do so. Furthermore, the Council Secretary should ensure that lease agreements were properly kept at all times. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the lease agreements for the old Mukuni Bar property leased to the Judiciary was availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. p. Outstanding Obligations-K16,211,613 The previous Committee expressed concern that the Council risks litigation unless it institutes sustainable measures to settle the outstanding obligations. In view of this, the previous Committee recommends that the Council urgently concludes negotiations on the proposed debt swaps with the agencies concerned. The previous Committee further recommends that the Council should settle obligations related to personal emoluments owed to serving staff. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained unresolved until the outstanding obligations amounting to K 16, 211,613 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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q. Equalisation Funds

(i) Irregular Payment of Value Added Tax (VAT)-K10,678 The previous Committee noted the submission and sternly cautions the Council Secretary against committing financial irregularities. In this vein, the previous Committee expects that all necessary due diligence is always undertaken before any payments were effected. To this effect, the previous Committee urged the Council Secretary to mete out disciplinary measures against all officers who failed to perform due diligence in this case and caused this irregular payment, which has the potential to result in loss of public funds. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until Value Added Tax amounting to K 10,678 was refunded or paid to ZRA by the supplier and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

(ii) Misapplication of Equalisation Funds-K169,029 The previous Committee, in noting the submission, cautions the Council Secretary against this practice. The previous Committee, however, resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the amount of K169, 029 of the equalisation fund reserved for capital expenditure spent on Personal Emoluments such as gratuity, terminal benefits and servicing of a hearse were the reimbursed and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. r. Constituency Development Fund - Failure to Implement Projects Timely The previous Committee is of the view that the people of Kapiri Mposhi District expect better services from the local authority and, therefore, finds it unacceptable that the Council failed to implement projects that could have benefited the local people. The previous Committee sternly cautioned the Council Secretary for the failure and urges him to ensure that this does not recur and will await a progress report on the matter.

Treasury Comment The matter remained outstanding until the projects were fully implemented and completion certificates were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. s. Environmental Management i. Lack of Environmental Management Policy and By laws The previous Committee noted the Council’s submission that it has commenced the preparation of the Environmental Management Policy and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council develops the Environment Policy and formulates By-Laws to support.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Lack of Operating Licenses The Committee noted the submission and is disappointed over the level of ignorance of the law exhibited by the Council. The previous Committee emphasizes that Council management team to familiarise themselves with the provisions of the law. The previous Committee awaited a progress report on the Council’s acquisition of the operating license.

Treasury Comment The matter remained outstanding until the council acquires the Waste Management Licences and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KASAMA MUNICIPAL COUNCIL a) Equalisation Funds i. Missing Payment Vouchers – K188,726 The previous Committee expressed concern at the Council’s non-adherence to the Local Authorities Financial Regulation No. 98. The previous Committee, therefore, urged the Town Clerk to mete out disciplinary action against all officers who were involved in this irregularity in order to deter recurrence. Further, the previous Committee implores the Council to adhere to the

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Financial Regulations all the time. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the payment vouchers amounting to K 188, 726 were traced and were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Questionable Introduction of Officer on Payroll- K20,684 The previous Committee is disappointed over the apparent poor payroll management practices of the Council and called for disciplinary action against all those involved in the matter. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the salaries paid to the officer amounting to K 20,684 were recovered and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Irregular Payment of Responsibility Allowance- K7,474 The previous Committee cautions the Council against disregard or violation of the Financial Regulations and would, therefore, await a progress report on the recovery of the money.

Treasury Comment The matter remained outstanding until the council recovers the responsibility allowance paid to officer amounting to K7,474 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Irregular Payment of Allowances in Lieu of Personal to Holder Vehicles- K29,122 The previous Committee expressed displeasure that the Council had continued making irregular payments to officers. The previous Committee reiterates that adherence by the Council to the conditions of service and Financial Regulations is mandatory and not voluntary. In this vein, all the allowances that were paid irregularly should be recovered in full from the beneficiaries without any delay. If the beneficiaries cannot be traced, recoveries should be effected from the

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officers who authorised the payments. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council recovers in full the allowances in Lieu of Personal to Holder Vehicles mounting to K 29, 122 paid to the two officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Unauthorised Payments - K290,691 The previous Committee finds the response from the Council unacceptable as approving payment vouchers in retrospect is against the Financial Regulations. In this regard, the previous Committee directed that rather than the Council engaging in another irregularity, the funds should simply be recovered from the emoluments or benefits of the officers responsible for the unauthorised payments. Additionally the previous Committee urged the Council to adhere to Financial Regulations all the time. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council recovers the unauthorised amounts of K290,691 from the officers ‘personal emoluments and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Failure to Recover Salary Advances- K35,474 The previous Committee noted the submission and urges the Council to adhere to the Terms and Conditions of Service for Local Government Officers with regard to salary salary advances. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council fully recovers the salary advances issued to four (4) officers amounting to K35, 474 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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vii. Failure to Remit Statutory Contributions- K8,924,471 The previous Committee noted the response and resolved to await a progress report on the dismantling of the arrears in statutory contributions.

Treasury Comment The matter remained outstanding until the council settles the outstanding statutory obligations amounting to K8, 924,471 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Constituency Development Fund (CDF) i. Missing Payment Vouchers-K418, 365 The previous Committee noted the response with disappointment and urges the Local Government Service Commission to closely monitor the performance of the officers they deploy to the various local authorities so as to ensure that all officers perform to expectations. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council traced the missing vouchers and were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Unaccounted for Fuel-K274,638 The previous Committee noted the response and strongly cautions Kasama Municipal Council to desist from flouting the Public Stores Regulations. The Town Clerk was urged to institute disciplinary action against the officer responsible for this irregularity without delay. Further, should any amount of fuel remain unaccounted for, the amount should be recovered from the officers responsible immediately. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council commence disciplinary action against the erring officers and stores disposal details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Failure to implement Payments to Unapproved Project-K29, 135 The previous Committee observes that the Council has deliberately ignored to seek final approval from the CDC and urges the Council to ensure that only Projects that were approved by the CDC and the Ministry of Local Government were implemented. In this regard, disciplinary action should be taken against all officers responsible for this irregularity without any delay. The previous Committee resolved to see a progress report on the matter.

Treasury Comment The matter remained outstanding until the council takes disciplinary action taken against all officers responsible for this irregularity and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vii Approved Projects - K70, 500 The previous Committee observes that the failure to implement approved projects would deprive the local people of enjoyment of various services and, therefore, recommends that the Council should refund the K70, 500 and use it to implement the projects which the funds were originally meant for. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council reimburses the K 70, 500 and use the aforesaid funds on the approved projects.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vii. Irregular Payments for Projects Under Lukashya Constituency- K57,835 The previous Committee noted the response and resolved to await a progress report on the reimbursement of the Kasama Central Constituency CDF account.

Treasury Comment The matter remained outstanding until the council reimburses the amount of K57, 835 to Lukashya Constituency CDF account from Kasama Central Constitutency account and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. viii. Irregular Payments for Projects under Kasama Central Constituency- K115,774 The previous Committee noted the response and resolved to await a progress report on the reimbursement of the Lukashya Constituency CDF account.

Treasury Comment The matter remained outstanding until the council reimburses the amount of K115, 774 to Lukashya Constituency CDF account from Kasama Central Constitutency account and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ix. Failure to Deliver Building Materials Lukashya CDF The previous Committee noted the response and implores the Local Government Service Commission to take appropriate action against the Management team which was said to have been colluding with service providers to defraud the Council. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the suppliers refund their respective amount of K 15,735 and K 30, 498 to the council for the unsupplied building materials. In addition, the investigations on the purported fraud by suppliers were concluded by the Drug Enforcement Commission (DEC).

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. x. Irregular Drawing of Accountable Imprest-K6,000 The previous Committee observes that the pre-signing of cheques is a bad practice which exposed the Council to possible fraud. Therefore, the previous Committee recommends that Management should stop pre-signing cheques to avoid the drawing of unauthorised funds. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the investigations by Drug Enforcement Commission (DEC) were concluded.

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Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. xi. Weaknesses in the Implementation of CDF Projects and other Irregularities a) Lukashya Constituency - Construction of Mukanga Bridge-Lusenga Ward

Delayed Completion of the Project The previous Committee noted with dismay the failure by the Council to complete the construction of Mukanga Bridge within the stipulated time and urges the Council to always follow the provisions of the Ministerial Circular MLGH/102/28/1 of 26th December, 2006, when implementing projects funded from CDF in the communities. The previous Committee further strongly recommends that the Council should ensure that the project is completed without any further delay as it will be of great benefit to the community once completed. The previous Committee will await a progress report on the completion of the project.

Treasury Comment The matter remained outstanding until the council completes the construction of Mukanga Bridge.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Kasama Central Constituency i. Wasteful Expenditure - Procurement of a 16 HP Power Tiller-Lukupa Ward The previous Committee noted the response and seeks a progress report on the matter.

Treasury Comment The matter remained outstanding until the council hands over the tiller to Misolo farmers.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. xii. Rehabilitation of 1x3 CRB at Milungu Primary School - Julia Chikamoneka Ward The previous Committee observes that officers at Kasama Municipal Council had a tendency of flouting Financial Regulations and CDF Guidelines with impunity. In this regard, the previous Committee urged the Town Clerk to mete out stern disciplinary action against officers involved in this clear disregard of Financial Regulations. Further, the previous Committee called upon the

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Ministry of Local Government and the Local Government Service Commission to take keen interest in the operations of the Council in order to stem the financial irregularities and ensure that the residents were not deprived of necessary services.

Treasury Comment The matter remained outstanding until the supplier refunds the overpayment amounting to K24, 787 and disciplinary action was taken against officers who flouted procurement procedures.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KASEMPA DISTRICT COUNCIL a) Lack of a Strategic Plan

Committee’s Observations and Recommendations The previous Committee noted the response and urges the Council to expedite the preparation of an updated strategic plan that is in line with the provisions of the Seventh National Development Plan. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the strategic plan is finalised and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Update Valuation Roll The previous Committee noted the response and urges the Council to expedite the updating of the valuation roll in order to comply with the provisions of the Rating Act, No. 12 of 1997. The Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council finalises the valuation roll and is availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Unaccounted for Revenue- K747,547 The previous Committee noted the response and urges the Council Secretary to take disciplinary action against the officers who failed to produce the necessary documentation to the auditors. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the council avails the documentation to account for the revenue deposit amounting to K747, 547.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Un supported Payments - K454,655 The previous Committee noted the response and urges the Council Secretary to take disciplinary action against the officers who failed to produce the necessary documentation to the auditors. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the council avails the supporting documents in amounts totalling K454, 655 for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Unretired Accountable Imprest-K 377,216 The previous Committee noted the response and urges the Council Secretary to take disciplinary action against the officers who failed to produce the necessary documentation to the auditors. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the council avails the retirements details for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Unapproved Payment Vouchers - K27,350 The previous Committee noted the response and urges the Council Secretary to mete out stern disciplinary action against all officers who occasioned this irregularity in order to deter recurrence of this practice. The previous Committee further strongly advises the Council to strictly adhere to the financial regulations. The previous Committee also resolved to a progress report on the matter.

Treasury Comment The matter remained outstanding until the approved payments eleven (11) payments in amounting to K27, 350 disciplinary action is against all officers who orchestrated the irregularity and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Irregularities in the Management of Assets i. Outstanding Receivables- K97,056 The previous Committee noted the response and urges the Council to ensure that it collected all the rentals from the Council buildings to boost its revenue. Further, the previous Committee urged the Council Secretary to take disciplinary action against the officers who failed to avail the necessary documentation on this arrangement to the auditors. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council collected all the rentals from the council buildings and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Lack of Title Deeds The previous Committee expressed concern that the Council has no title deeds for a number of its properties and, therefore, recommends that the Council should expeditiously undertake the valuation exercise and engage the Provincial Lands Office to ensure that the Council acquires title deeds promptly. The Committee will await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council acquires the title deeds for the twenty eighty (28) properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Failure to Insure Council properties The previous Committee expressed concern at the non -insurance of the Council’s properties and urges the Council to insure the properties without fail as that guaranteed compensation in the event of any loss or damage. Further, the previous Committee recommends that the issue of insurance should be factored into the Council’s budget on annual basis.

Treasury Comment The matter remained outstanding until the council insures the properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Failure to Dispose of Unserviceable Vehicles The previous Committee noted the response and is disappointed that this information was not availed to the auditors to avoid this unnecessary query. The previous Committee called for disciplinary action to be taken against the officers who occasioned the query. The Council Secretary is strongly advised to caution all officers at the Council to fully cooperate with the auditors at all times. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the Mitsubishi Colt and Yuinjin Canter were repaired and the other two (2) vehicles were boarded.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Failure to Register Assets with Road Transport and Safety Agency ( R TSA ) The previous Committee observes that the response from the Council is not factual as a vehicle has to be registered first before being insured. The previous Committee, therefore, sternly warns the Council Secretary against misleading Parliament as this is a punishable offence under the law. The previous Committee recommends that the Council should register all the equipment

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without any further delay. The previous Committee will await a progress report on the registration of the equipment.

Treasury Comment The matter remained outstanding until the council registers the vehicles with RATSA and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Staff Related Matters i. Failure to fill Key positions The previous Committee noted the response and calls upon the local Government Service Commission to attend to the request from the Council expeditiously. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the vacant key positions were filled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Outstanding Staff Obligations-K1,179,763 The previous Committee noted the response and expresses its concern over the negative impact on the balance sheets of local authorities of the transfers initiated by the Local Government Service Commission. The previous Committee recommends that this matter should be carefully handled so as to minimise the challenges for the Councils. The previous Committee resolved to await a progress report on the settlement of outstanding staff obligations.

Treasury Comment The matter remained outstanding until the settlement plan for the outstanding staff obligations amounting to K1, 179,763 was put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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o) Management of Grants i. Unsupported Payments Vouchers-K278,082 The previous Committee noted the response and is disappointed that the Council appears not to had taken the audit process seriously. In this vein, the previous Committee sternly cautioned the Council Secretary and all officers at the Council to henceforth take all audits seriously and cooperate fully therewith. The previous Committee, further, urges the Council Secretary to take disciplinary action against the officers who failed to avail the necessary documentation and provide the required explanations to the auditors. Meanwhile all the documents should be submitted for audit verification forthwith. The previous Committee resolved to seek a progress report on the matter.

Treasury Comment The matter remained outstanding until the payments in amounts totalling K278, 082 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Unaccounted for Stores-K472,571 Contrary to Local Authorities Financial Regulation No. 145 which states that a Treasurer shall The previous Committee noted the response and urges the Council Secretary to take disciplinary action against the officer who failed to produce the necessary documentation to the auditors. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the receipt and disposal details stores items in amounts totalling K472, 571 were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KAZUNGULA DISTRICT COUNCIL a) Misapplication of Funds - K201, 881 The previous Committee observes that the Council acted contrary to the Financial Regulations, 2006 and specifically Financial Regulation No. 31(1) by wilfully misapplying the funds without treasury authority. In this regard, the previous Committee urged the Council to desist from misapplication of public funds as it will not be tolerated. The previous Committee further

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directed that the Council reimburses the remaining funds meant for capital projects in full, and without any further delay.

Treasury Comment The matter remained outstanding until the Council reimburses the remaining funds meant for capital projects in full and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Misapplication of Funds - Plot Fees -K822,922 The previous Committee observes that the Council acted in contravention of Local Authorities Financial Regulation No. 10(1). Further, the previous Committee noted that the issuance of annual budget guidelines to Councils by the Ministry of Local Government cannot be construed as authority for Councils to misapply funds meant for specific services such as service delivery to newly allocated plots with impunity. The Council was supposed to apply for supplementary provision as stipulated in the Financial Regulations, which it failed to do. The previous Committee, therefore, finds the submission from the Council unacceptable and strongly cautions the Council Secretary to desist from disregarding the Financial Regulations. The previous Committee, therefore, recommends that the Council should reimburse the funds meant for service delivery to newly allocated plots in full. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Council reimburses the funds meant for service delivery to newly allocated plots in full and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Over Payment -Commutation of Leave Days - K15,116 The previous Committee finds it difficult to believe that the Council did not know the correct formula to be used to calculate the commutation. In this regard, the previous Committee called for disciplinary action against all officers involved in this irregularity in order to deter others. Further, all relevant document should be presented to the Auditor General for verification. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council takes disciplinary action against all officers involved in this irregularity amounting K 15,116 and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Irregular Payment of Subsistence and Meal Allowances within the District -K82,216 The previous Committee observes with dismay that the Council wilfully chose to disregard the provisions of Cabinet Circular Minute of 30th December, 2015 in irregularly paying subsistence and meal allowances to officers who were not eligible. The previous Committee, therefore, sternly cautions the Council Secretary to desist from making irregular payments to undeserving officers. In this vein, the previous Committee recommends that appropriate disciplinary action be meted out against all officers who were involved in this matter, including those who approved the irregular payments. Additionally, the irregularly paid allowances should be recovered from the officers concerned immediately. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council takes appropriate disciplinary action against all officers who were involved in this matter, including those who approved the irregular payments and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Unaccounted for Stores- K72,905 The previous Committee noted the submission and directed the Council Secretary to ensure that the missing receipt and disposal details were traced and made available for audit, and disciplinary action taken against all erring officers in this matter. The Committee awaits a progress report on the matter.

Treasury Comment The matter remained outstanding until the missing receipt and disposal details were traced and made available for audit, and disciplinary action taken against all erring officers in this matter.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Outstanding Receivables- K251,180 The previous Committee finds it suspicious that the debtors’ ledgers could go missing after being updated. In this vein, the previous Committee urged the Council Secretary to institute disciplinary action against the erring officers and report this matter to the investigative wings for a further probe. The Council is further urged to ensure that it develops a debtor management

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policy which will serve as a guide in debt management. The previous Committee further directed the Council Secretary to ensure that the Council collected the moneys owed to it so as to boost its revenue. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council institute disciplinary action against the erring officers, a debtor management policy is developed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Outstanding Statutory and Other Obligation-K962, 996 The previous Committee observes that the Council has not responded to the audit query and, therefore, resolved to keep the matter open. The previous Committee awaited a status report on the matter through the treasury minutes.

Treasury Comment The matter remained outstanding until the Outstanding Statutory and Other Obligation amounting to K962, 996 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Weaknesses in the Management of Properties i. Lack of Title Deeds for Properties The previous Committee was concerned at the Council’s failure to acquire title deeds for Council properties and recommends that the Council follows up the matter with the Ministry of Lands and Natural Resources and expedite the securing of title deeds. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council acquires title deeds for all its properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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ii. Failure to Insure Council Property The previous Committee bemoans the failure by the Council to insure its property. It is concerned that in the absence of indemnity, the Council risks losses in case of unforeseen events such as fire. In this regard, the previous Committee directed the Council management to ensure that all Council property is insured forthwith. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council insures its property and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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KITWE CITY COUNCIL a) Failure to Prepare Financial Statements The previous Committee noted the submission and directed the Town Clerk to prepare the Financial Statements in question without undue delay. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council prepare the Financial Statements in question and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Grants Received- K76, 870,820 iii. Constituency Development Fund (CDF) - Contract for the Supply and Installation of Street Lights along Twatasha –Garnatone Road The Committee noted the submission and resolved to await a progress report on the outcome of the court process.

Treasury Comment The matter remained outstanding until the council recovers the advance of K107, 335 paid to the contractor and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Questionable Payments i. Government Valuation Department In noting the submission, the previous Committee is of the view that the payment should had been made to the Government Valuation Department and not to an employee of the Department. The previous Committee, therefore, recommends that there should be clear guidance from the Ministry of Local Government on the issue in relation to payment procedures, to avoid any doubts in future. The previous Committee will await a report on this matter.

Treasury Comment The matter remained outstanding until clear guidance is given by the Ministry of Local Government on the procedures of such payments.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Surveyor General In noting the submission, the previous Committee is of the view that the payment should had been made to the Survey Department and not to an employee of the Department. The previous Committee recommends that there should be clear guidance from the Ministry of Local Government on the issue in relation to payment procedures, to avoid any doubts in future.

Treasury Comment The matter remained outstanding until clear guidance is given by the Ministry of Local Government on the procedures of such payments.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Outstanding Receivables-K98,652,195 The previous Committee is concerned at the Council’s failure to collect outstanding amounts owed to it and, therefore, urges the Council to ensure that it collected all the outstanding amounts to boost its revenue. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council collected all the Outstanding Receivables amounting to K98, 652,195 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Irregular Payment of Long Service Bonus The Committee noted that the matter has been taken over by the Anti-Corruption Commission and would, therefore, await a progress report on the matter.

Treasury Comment The matter remained outstanding until the investigations were concluded by Anti-Corruption Commission and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Unremitted Pay As You Earn (PAYE)-K43, 705,000 The previous Committee observes that the Council has been deducting PAYE but has not been remitting to ZRA. The previous Committee finds this unacceptable and recommends that the Council should ensure that it honours its statutory obligations by adhering to the payment plan entered into with ZRA to remit to ZRA K159, 000 per month. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council adheres to the payment plan entered into with ZRA to remit to ZRA K159, 000 per month and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Non Remittance of Pension Contributions – NAPSA and LASF-K34, 929 The previous Committee observed with concern that the Council risks possible litigation for non- payment of statutory obligations. The previous Committee recommends that the Town Clerk should ensure that the Council expedited the dismantling of outstanding statutory obligations by strictly adhering to the payment plan entered into with LASF and NAPSA. The Council is further urged to explore more sources of revenue and collection options to improve its revenue. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council ensure that the Council expedited the dismantling of outstanding statutory obligations amounting to K34, 929 by strictly adhering to the payment plan entered into with LASF and NAPSA.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Failure to Settle Terminal Benefits-K33, 815,091 The previous Committee noted the submission and resolved to await a progress report on the settlement of the outstanding terminal benefits.

Treasury Comment The matter remained outstanding until the council settles the balance of outstanding terminal benefits amounting K 28, 409, 425.37 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

(j) Irregularities in the Management of Assets i. Dilapidated Kitwe Bamboo Workshop Buildings ii. Failure to Maintain a Shop , Bakanda Hall, Plot 4149 Nyerere Road, Stand No. 1301- Council Abattoir, Stand No. 68 BUC – Buchi Domestic Science Training Centre, Stand No. 66BUC- Buchi Hotel, Block Three Shop No. 7 Buchi Kamitondo The previous Committee observes that the failure by the Council to sale the properties is as a result of the dilapidated state of the properties and, therefore, urged the Town Clerk to embark on a rehabilitation exercise of the properties before advertising them for sale. The previous Committee resolved to close the subject to audit verification.

Treasury Comment The matter remained outstanding until the council embarks on a rehabilitation exercise of the properties and rentals arrears were collected by the council.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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v. Lack of Title Deeds The Committee noted the submission and urges the Council to seriously pursue the matter of title deeds with the Ministry of Lands and Natural Resources. The Committee will await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council acquires title deed for its properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Failure to Insure Assets The previous Committee observes that the Council has challenges with the maintenance of Council properties, thereby failing to insure them. In this regard, the previous Committee recommends that the Council should expedite the rehabilitation of properties in order to fulfill the requirements for the provision of insurance cover by ZSIC. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council rehabilitates and insures its properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Staff Related Matters i. Failure to Fill Vacant Posts The previous Committee observed with concern the huge number of vacant positions at Kitwe City Council and therefore, directed the Town Clerk to urgently pursue the matter with the Local Government Service Commission to ensure that the Council has the relevant personnel to provide services to the public.

Treasury Comment The matter remained outstanding until the council fill the vacant positions and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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LIVINGSTONE CITY COUNCIL a) Failure to Transfer Funds to the Project Account The previous Committee observed with concern that the councils were not adhering to the Local Government (Amendment) Act No. 12 of 2014 which states that a Council shall use at least 20 per cent of the Equalisation Fund received in any financial year, to finance Capital Expenditure. The previous Committee directed the Town Clerk to ensure that resources were expended as per the law and that the 20 per cent for infrastructure is kept in a separate account. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council refunded all the misapplied for Equalization funds and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Unsupported Payment Vouchers – K584,167 The previous Committee finds the explanation given by the Town Clerk unacceptable. The previous Committee directed the Town Clerk to ensure that as per Local Authorities Financial Regulations No.98 all payments were supported by relevant documents. The previous Committee further directed the Town Clerk to ensure that a proper filing system was put in place to keep all accountable documents in one place and that all erring officers should be sternly cautioned for the lapse. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the supporting documents were in place and that all erring officers were sternly cautioned for the lapse.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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c) Irregular Payment of Social Holiday Allowances – K139,000 The previous Committee expressed concern on the non-adherence to the Ministry of Local Government and Housing Circular No. MLGH/101/8/4 of 2014, which abolished the payment of Social holiday allowances. The previous Committee directed the Town Clerk to ensure that directives were strictly followed and that recoveries were instituted immediately from all officers who received the allowance. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until recoveries were instituted immediately from all officers who received the allowance and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Irregular refunds of Medical Expenses – K17,962 The previous Committee expressed concern that the Council failed to adhere to Council condition of service part (vii), section 156 which clearly states that officers and dependants were entitled to free medical attention from an approved medical institution provided that the medical services had been authorised by the supervising officer, on the recommendation of an approved medical officer, and that officers were entitled to a refund on the production of evidence of payment in accordance with any medical aid scheme in force. The previous Committee observes that Management allowed refunds of medical expenses even without prior approval. The previous Committee in this regards directed the Town Clerk to ensure that this anomaly is corrected and deductions were instituted on all officers who got refunded without prior approval. Further, the previous Committee directed the Town Clerk to sternly caution the staff on the practice. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the deductions were instituted on all officers who got the medical refunded without prior approval and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Irregular Payment of Sitting Allowances – K38,345 The expresses concern that the Council failed to adhere to Cabinet Office Circular No.11 of 2013 which banned the payment of administrative allowances. The previous Committee directed the Town Clerk to clarify the matter with the Local Government Service Commission and the Ministry with regard to the Local Government Service Commission Circular No.9 of 2017. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment

The matter remained outstanding until the council clarifies the matter with the Local Government Service Commission and the Ministry with regard to the Local Government Service Commission Circular No.9 of 2017.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Outstanding Receivables – K248,783

The previous Committee observes that the Council failed to adhere to the Local Authorities Financial Regulations Nos. 12 (h) which states that all revenue and other Council moneys which become due and payable to the Council must be collected in good time. This is despite the fact that the Council is currently experiencing financial problems. The previous Committee urged the Town Clerk to ensure that the Council comes up with a Debt Management Policy which will guide debt management. The previous Committee cautions the Council that the failure to collect revenue will grossly affect the much needed public service delivery. Therefore, the previous Committee resolved to await a progress report on the matter.

Treasury Comment

The matter remained outstanding until that the Council comes up with a Debt Management Policy for the collecting of the outstanding receivables and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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LUANGWA DISTRICT COUNCIL a) Failure to Prepare Financial Statements The previous Committee observes that the Council failed to adhere to Section No. 43 (3) of the Local Government Act, Chapter 281 of the Laws of Zambia, which provides that the accounts of a council shall be made up and balanced for each financial year of the council and a summarized statement thereof certified under the hand of the treasurer of the council shall be presented to the

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council at a meeting to be held within six months after the end of the financial year of the council, or within such longer period as the Minister may determine. While the previous Committee appreciated that the failure to prepare financial statements was due to asset values to the absence of Net Book Values emanating from the irregular application of depreciation rates to various property categories, it directed the Council undertake valuation of assets and apply acceptable accounting standards without fail. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the assets were valued, Financial Statements prepared and were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Lack of Title Deeds The previous Committee finds it unacceptable that the Council is not getting title deeds for properties because they were not surveyed. This is clear indication that the Council has not prioritised the issue of obtaining title deeds and may had problems proving ownership of these assets in the absence of titles. The previous Committee, therefore, directed the Council Secretary to expedite the application for title deeds through the Ministry of Lands and Natural Resources and ensure that follow-ups were made regularly. The previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until the council acquires the title deeds for the properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Failure to Insure Assets The previous Committee draws the attention of the Council to Local Authorities Financial Regulation No.154, which states that the Treasurer shall take out insurance cover against losses, damages, risks and liabilities which the Council may incur and shall regularly review such cover in consultation with heads of departments. In this regard, the previous Committee directed the Council Secretary to ensure that it abides by the above regulation and insures all the insurable Council assets without further delay. The previous Committee resolved to await a progress report.

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Treasury Comment The matter remained outstanding until the council insures all the assets and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Failure to Update the Main Roll In noting the submission, the previous Committee urged the Council Secretary to ensure that the Valuation Roll was updated regularly as provided for by the law and that all properties were surveyed and valued. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council updates the valuation rolls and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Unaccounted for Stores – K55,745 The previous Committee expressed concern that the Council failed to account for stores thereby risking loss of stores through theft. In this vein, the previous Committee directed Management to ensure that a qualified officer is employed through the Local Government Service Commission to man the stores with immediate effect. The matter was recommended for closure subject to audit verification.

Treasury Comment The matter remained outstanding until receipts and disposal details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Failure to Remit Statutory Contributions and PAYE – K3, 924,756 The previous Committee observed with concern that failure to remit statutory obligation may result in accumulating debt which may attract penalties and interests. The accumulating of debt may eventually affect the provision of critical public services. The previous Committee, therefore, urges the Management to ensure that the Council raised enough revenues by broadening the revenue base and to pay the statutory contributions without further delay. The previous Committee also urges Management to ensure adequate provision is made for statutory

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deductions in the annual budget and that the payment plan is strictly adhered to. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the council remit statutory contributions amounting to K3, 924,756 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Failure to Pay Benefits – K2,374,772 The previous Committee expressed concern at the failure by Management to settle staff obligations thereby risking accumulating the obligations to unmanageable levels. This may eventually attract interest and penalties which may result in loss of the much needed funds. The previous Committee urged the Council to ensure that the severance packages were budgeted for annually and that the debt liquidation plan was put in place to avoid accumulating debt. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the debt liquidation plan was put in place to avoid accumulating debt and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. l) Lack of Bill Board Policy The previous Committee urged the Council to make a follow up with the Ministry of Local Government on the Outdoor Advertising Policy to ensure that the Council does not lose revenue any more. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Outdoor Advertising Policy was put in place.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m) Failure to Dispose of Unserviceable Motor Vehicles The previous Committee expressed concern that Council fails your adhere to the laws governing public finance on matters of disposing of unserviceable plant or vehicles. Committee directed the Council to ensure that authority is obtained from the Board of Survey and dispose of all

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unserviceable vehicle and plant without delay. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until all unserviceable vehicles and plants were disposed of and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. n) Equalisation Fund Misapplication The previous Committee observed with concern that generally the Councils were with impunity, not adhering to the Local Government (Amendment) Act No. 12 of 2014, of the Laws of Zambia which provides that a Council shall use at least 20 per cent of the Equalisation Fund received in any financial year, to finance capital expenditure. The previous Committee directed the Council Secretary to ensure that resources were expended according to the law. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council refunded all the misapplied for Equalization funds and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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LUANSHYA MUNICIPAL COUNCIL a) General Administration i. Employment of Casual Workers The previous Committee observes that the Council had clearly acted in contravention of the law on the employment of casual workers. The previous Committee is concerned that although the Council has commenced the redundancy exercise, indications were that the exercise will take much longer than desired to be completed considering the number of casual workers being laid off at a time. The previous Committee sternly cautioned the Town Clerk for the failure and urged the Town Clerk to ensure that this does not occur again in future. The previous Committee will await a progress report on the redundancy exercise.

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Treasury Comment The matter remained outstanding until the redundancy exercise is completed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Pay Benefits-K26, 030,716 The previous Committee expressed concern at the failure by the Council to settle outstanding staff benefits as this has a negative effect on employee morale and motivation. The previous Committee is further concerned that the Council owes some retirees terminal benefits and warns that this may attract legal action against the Council. In light of this, the previous Committee urged the Town Clerk to put measures in place to liquidate the debt owed to staff and especially retirees in order to avoid litigation. The Council is further urged to ensure that it collected all the funds owed to it in order to boost its revenue. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the liquidation plan was put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Income i) Failure to Collect Property Rates - K21, 899,325 The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council collect property rates amounting to K21, 899,325 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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ii) Failure to Collect Revenue - Bill Boards and Outdoor Advertising-K278, 700 The previous Committee noted that despite the Council having collected K45, 695, it is still owed a colossal amount and, therefore, urged the Town Clerk not to relent in the collection of outstanding revenues. The previous Committee awaited a progress report on the collection of outstanding revenues.

Treasury Comment The matter remained outstanding until the council collected revenue for bill boards and outdoor advertising amounting toK278, 700 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Failure to Provide Lease Agreements The previous Committee observes that the Council has not responded to the audit query and, therefore, resolved to keep the matter open. The previous Committee awaited a status report on the matter through the Treasury Minutes.

Treasury Comment The matter remained outstanding until the lease agreements for 21 properties were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Uncollected Rental Charges -K1,389,705 The previous Committee bemoans the failure by the Council to collect rental charges for the period under review, which were a stable source of revenue for the Council. The previous Committee, however, noted the measures that the Council has put in place to improve the collection of rental charges and urged the Town Clerk to ensure that all the outstanding rental charges were collected without any further delay. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the outstanding rental charges were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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d) Expenditure i. Unsupported Payment Vouchers-K222, 874 The previous Committee noted the submission and directed the Town Clerk to ensure that the documents in support of the remaining payment vouchers were found and made available for audit verification. The previous Committee further urged the Town Clerk to take disciplinary action against all officers who failed to secure these supporting documents and avail them to the auditors in accordance with the law. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the remaining payment vouchers amounting to K 222, 874 were supported and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Remit Statutory Obligations-K13,939,124.71 The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council remits statutory obligations amounting K13, 939,124.71 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e. Management of Council Assets i. Failure to Provide Proof of Ownership and Insurance – K30, 432,884 The previous Committee bemoans the failure by the Council to secure title deeds for and insure its property as this exposes the property to the l risk in case of unforeseen events such as fire. The previous Committee, therefore, directed Council Management to ensure that all Council property is insured without any further delay. The previous Committee further directed Council Management to follow up the issue of title deeds with the Ministry of Lands and Natural Resources and expedite the process. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the title deeds and insurer cover for the properties were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Irregularities in the Leasing out of Baluba Motel The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the case is disposed of by the courts of law and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Failure to Avail Breakdown for Investment Amounts The previous Committee noted the submission and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the share certificates were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Irregularities in the Procurement of a Fire Tender The previous Committee expressed concern at the whole transaction surrounding the fire tender especially that the Council ended up with second hand equipment instead of a brand new one as agreed in the contract. The previous Committee strongly recommends that the investigative wings should, as a matter of urgency, follow the transaction. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until investigative wings conclude their investigations.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Physical Inspection of Assets

Muchinshi Cocktail Bar – Mikomfwa Township The previous Committee observes with dismay the failure by the Council to positively utilise the property in question, which has the potential to generate substantial revenues for the Council. The previous Committee, therefore, directed the Town Clerk to ensure that the Council finds tenants for the property without any further delay and expedites the renovations. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the properties were renovated and leased out and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Council Factory The previous Committee rejects the response from the Council as it was not addressing the audit query. Accordingly, the previous Committee strongly cautions the Town Clerk to take Parliamentary oversight work seriously and ensure that the Council responds to audit queries adequately when requested to do so. The previous Committee resolved to await a progress report on the matters raised by the Auditor General.

Treasury Comment The matter remained outstanding until one property were renovated and two were leased out and details were availed for audit scrutiny

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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LUSAKA CITY COUNCIL a) Under Collection of Revenue – K78,284,802

The previous Committee noted that Article 151(1) (a) of the Constitution of Zambia, Chapter 1 of the Laws of Zambia, as amended by Act No.2 of 2016, provides for a local government system where a sound financial base is established for each local authority with reliable and predictable sources of revenue. In Article 151(2) (f) and (g), the Constitution provides that a local government system shall promote social and economic development and encourage the involvement of communities and community organisations in matters of local government. The previous Committee expressed concern that there was a general lack of willingness to pay rates, especially by residential rate payers in the city. The previous Committee also noted that market occupancy is greatly affected by traders preferring to be on the street than occupying markets.

In this regard, the previous Committee directed the Town Clerk to expedite and intensify the implementation of the following proposed measures: i. intensified awareness of the obligations of all rate payers in paying property rates on radio and in the various print media; ii. engage the office of the Under Sherriff to help recover unpaid rates through the issuance of warrants of distresses and the execution of the same; encourage the traders to move back into the markets; and iii. commence the process of automating bill distribution through SMS and email in order to eliminate the lost time in physical distribution of bills.

The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the all the measures proposed by the committee were implemented.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Memorandum of Agreement for Partnership on Parking Slots Management and Tow Services i. Failure to Provide Procurement Process Records The previous Committee noted the submission and urges the Anti-Corruption Commission to provide authenticated copies of the documents to the Council for audit purposes. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the Anti-Corruption Commission to provide authenticated copies of the procurement documents to the Council for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to sign the Working Contract The previous Committee expressed concern that the failure by the Council to sign a working contract within the stipulated time is highly irresponsible on the Council. The previous Committee noted that the lack of a working contract may lead to loss of revenues, considering that the company did not terminate the MOA within three months. The previous Committee directed the Ministry of Local Government and the Attorney General’s chambers to render an opinion and clear the proposed working contract without any further delay. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Attorney General’s chambers rendered opinion on the contract is availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Non Remittance of Revenue to the Council The previous Committee is of the view that the only sure way that the Town Clerk can determine the 40 percent share of the profit is through the Financial Statements. The Council risks losing colossal sums of money through its failure to determine the expenses of the other party which were deducted in computing the profits. In addition, the reporting of losses in the first three months arising from the purported full capital expenditure of implementing the parking system is also highly irregular because no physical infrastructure has been erected in the central business district. The previous Committee, therefore, directed the Town Clerk to ensure that audited financial statements were submitted before any remittance was made.

Treasury Comment The matter remained outstanding until the audited financial statements were submitted were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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c) Outstanding staff Obligations – K27, 816,181 Terminal Benefits and K20, 038,195 Long Service Bonuses. The previous Committee expressed concern over the failure by Management to settle terminal benefits and long service bonuses to both existing and retired officers as it risks accumulating obligations to unmanageable levels. This could eventually attract litigation, which could result in even bigger financial obligations in the form of penalties and interest. The previous Committee, therefore, urges the Council to ensure that the severance packages were budgeted for annually and that the debt liquidation plan is strictly adhered to in order to avoid accumulating further debt and possible litigation. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the debt liquidation plan starts yielding the results

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Failure to Remit Statutory Contributions and PAYE – K106,336,983 The previous Committee observed with concern the failure to remit statutory obligations by the Council, which has resulted in the accumulation of debt and has attracted penalties and interest. The accumulation of debt will inevitably adversely affect the provision of critical public services by the Council. The previous Committee, therefore, urges Management to ensure that the Council raises sufficient revenues by broadening the revenue base and liquidating these outstanding statutory obligations without further delay. The previous Committee also urges Management to ensure adequate provision for statutory obligations in the annual budget and also that payment plans should be strictly adhered to. The previous Committee awaited a progress report on this matter.

Treasury Comment The matter remained outstanding until adequate provision for statutory obligations in the annual budget and also that payment plans were adhered to.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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LUWINGU DISTRICT COUNCIL a) Lack of Title Deeds The previous Committee noted with concern the lack of title deeds for the Council properties and urges the Council Secretary to ensure that all properties were secured with title deeds, as it is the only sure way of proving ownership for properties. The previous Committee awaited progress report on the matter.

Treasury Comment The matter remained outstanding until the title deeds were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Insure Council Properties – Buildings – K8,646,290 The previous Committee observed with concern the lack of title deeds and insurance for the Council properties and fears that the Council could lose everything in the event of fire or an accident that resulted in the destruction of the properties. In noting the submission, the previous Committee urged the Council Secretary to urgently pursue the issuance of title deeds and subsequently, insurance of the properties without any further delay. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the properties were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Outstanding Receivables – K586,770 The previous Committee noted the submission with concern and finds it unacceptable that funds which could enhance service delivery for the council had remained uncollected for about two years due to inadequate sensitisation programmes. The previous Committee, therefore, urges the Council Secretary to ensure that the sensitisation programme is continued, so that once sensitised, penalties could be imposed on the defaulters who deliberately refuse to pay in order to discourage would be defaulters. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the outstanding receivables amounting to K586, 770 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Outstanding Debts – K5, 545,910 In noting the submission, the previous Committee is concerned that the payment plan was only put in place after an audit query. The previous Committee cautions the Council Secretary against such laxity and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the outstanding debts amounting to K5, 545,910 is liquidated and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Weaknesses in the Utilisation of Equalisation Funds – K9,463,881 i. Procurement of an Engine - Nissan Navara – K68, 500 The previous Committee finds this level of wasteful expenditure unacceptable and sternly cautions the Council Secretary against a repeat of such wastefulness. Further, the previous Committee called for stern disciplinary action to be instituted against all officers responsible for this serious irregularity and that they be made to pay back the wasteful expenditure. The previous Committee also urges the Council Secretary to have the vehicle worked on without further delay. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the vehicle is worked on and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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MANSA MUNICIPAL COUNCIL a) Unsupported Payment Vouchers-K235,507 The previous Committee is seriously disappointed over this matter and calls for disciplinary action against all officers who caused this irregularity. Further, the previous Committee resolved to await a progress report on the efforts by the Council to have the payment vouchers supported.

Treasury Comment The matter remained outstanding until the payment vouchers were supported and were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Irregular Payments of Social Holiday Allowances-K19,881 The previous Committee called upon the Town Clerk to immediately institute recoveries of the irregular payments. Further, the previous Committee directed the Town Clerk to take disciplinary action against the officers who committed these financial irregularities. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the recoveries were instituted from erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Irregular Use of Imprest-K24,680 The previous Committee finds the submission from the Council unacceptable and calls for disciplinary action to be taken against all officers who committed or abetted this. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until disciplinary action was taken against the erring officers and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Irregular Payment of Sitting Allowances-K18,773 In noting the submission, the previous Committee yet again cautions the Town Clerk and his officers against committing financial irregularities. In this vein, the previous Committee called for disciplinary action to be meted out against all officers involved in this irregularity. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until recoveries were instituted against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Irregular Payment of Allowances-K17,462 The previous Committee observes with dismay that the Mansa Municipal Council has become notorious for committing financial irregularities and once more cautions the Town Clerk and his officers against committing financial irregularities. The previous Committee resolved to await a progress report on the recovery of the irregularly paid allowances.

Treasury Comment The matter remained outstanding until recoveries were instituted against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Misapplication of Equalisation Funds-K3,088,164

Committee’s Observations and Recommendations The previous Committee is saddened by the Council’s failure to allocate 20 percent of the Equalisation Fund towards capital projects. It is of the view that this failure disadvantages the residents of the municipality who were the potential beneficiaries of such capital projects. The previous Committee urged the Council to strictly adhere to the provisions of the law in the utilisation of the Equalisation Fund and to immediately refund the misapplied funds so that the planned projects can be undertaken. Further, reiterating that it will not tolerate a recurrence of this irregularity, the previous Committee called for stern disciplinary action to be taken against

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all officers who perpetrated and abetted this serious irregularity. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council refunded all the misapplied for Equalization funds and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Outstanding Obligations-K18,310,407 In noting the submission, the previous Committee is concerned that the Council risks litigation unless it institutes viable measures to settle the outstanding obligations. In view of this, the previous Committee recommends that the Council urgently concludes negotiations on the payment plans and the proposed debt swaps with the agencies concerned. The previous Committee further recommends that the Council should settle obligations related to personal emoluments owed to serving staff. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the payment plans through debt swaps were implemented and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Failure to Acquire Title Deeds In noting the submission, the previous Committee urged the Council to expedite the process of acquiring title deeds for all Council properties and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the title deeds were obtained and were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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l) Failure to Insure Council Properties

The previous Committee noted the Council’s submission and will, therefore, await a progress report on the matter.

Treasury Comment The matter remained outstanding until the council insures the Civic Centre and Civic Hotel and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m) Failure to Maintain Properties The previous Committee noted the submission and will await a progress report on the decision of the Council. The previous Committee, however, advises the Council to endeavour to maintain Council properties as they can be a reliable source of revenue if well managed.

Treasury Comment The matter remained outstanding until the new structures were put up and also the Civic Centre and other buildings were rehabilitated.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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MKUSHI DISTRICT COUNCIL a) Lack of a Strategic Plan The previous Committee finds it inconceivable for a council to be operating without a strategic plan which should give a general direction for achievement of the set objectives. The previous Committee, therefore, urges the Council Secretary to expedite preparation of the strategic plan in order to enhance efficiency in the dispensation of its services to the general public within its jurisdiction. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the strategic plan was put in place and were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Outstanding Receivables - K3,890,647 The previous Committee noted the response and urges the Council Secretary to ensure that timely collection of accrued debts and all collectable revenues is stepped up. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the outstanding receivables amounting to K3, 890,647 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Outstanding Statutory Obligations and PAYE - K7,188,470 The previous Committee finds the Council’s failure to remit statutory obligations unacceptable and calls for a specific update as regards the K7, 188,470 cited in the Report of the Auditor General.

Treasury Comment The matter remained outstanding until the plans to liquidated the statutory obligations amounting to K7, 188,470 through a debt swap was implemented.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Outstanding Staff Obligations - K2,539,589

Committee’s Observation and Recommendations The previous Committee noted the efforts being made towards liquidation of debts but expresses dissatisfaction over the matter. The previous Committee, therefore, calls for more concerted efforts to clear these outstanding obligations, and awaits a progress report.

Treasury Comment The matter remained outstanding until the outstanding staff obligations of K2, 539,589 and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Accident Vehicle – Toyota Prado – ALC 2074 The previous Committee finds the lack of timely action by the Council in this matter unacceptable as it poses the risk of occasioning irrecoverable loss to the Council. In this vein, the previous Committee called upon the Council to immediately trace the former Chairperson so that he can be made to pay for the damaged asset. Further the previous Committees sternly cautions the Council Secretary to ensure that henceforth, there should be no driving of Council vehicles by unauthorised persons to avoid possible loss of Council property. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the former Chairperson to pays for the damaged asset and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Creditors - Council Motel – K71,387 In noting the submission from the Council Secretary, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the outstanding water bills amounting to K71, 387 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Failure to Fence the Dumpsite In noting the submission, the previous Committee urged the Council Secretary to expedite the procedures for opening the new dumpsite and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the new dumpsite was opened.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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MONGU MUNICIPAL COUNCIL b) Management of Land

Failure to Collect Revenue from the Residential Plot Premium The previous Committee expressed concern that the Council was failing to collect the much needed revenues. The failure to collect the revenue may compromise the provision of public service delivery. The previous Committee directed the Council Secretary to come up with a robust debt collection strategy to enhance collections and a debt management policy to provide guidance on debt issues. The Council should also prepare and update land register to avoid loss of revenues. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until a debt management policy and debt collection strategy were in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Maintenance of Parks and Gardens The previous Committee observes that the parks had not been maintained. It is aware that if the parks were not maintained the local community will encroach in these facilities. In this regard, the previous Committee urged the Council Secretary to ensure that the Local Government Act Section 61 (33) that states that the local authority is mandated to maintain the gardens and parks is adhered to. It also directed the Local Government Service Commission to expedite the recruitment of a trained officer to be in charge of parks and gardens. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the parks and gardens officer is recruited and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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k) Illegal Development of Structures on Council Property (Bus Station) The previous Committee expressed concern that the Council Management has allowed developers to develop structures at the bus stop without following procedure with impunity. The previous Committee noted that the Council had since started writing letters these developers, but he Committee cautioned the Council of being reactive. In this regards, it directed the Council Secretary to ensure that all developers follow the laid down procedures before embarking on any project. Further, the previous Committee directed the Council to issues lease agreements all time without fail. The previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until measures were put in place to compel developers to follow laid down procedures before embarking on any project.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. l) Failure to Register and Insure Tractors In noting the submission, the previous Committee urged the Council Secretary to ensure that two tractors were registered and insured without any further delay. The previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until the two tractors were registered and insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m) Businesses Operating without Licenses The previous Committee expressed concern that businesses were operating without being registered and unlicensed. The previous Committee directed the Council Secretary to ensure that all businesses were registered and licensed to ensure proper enforcement of regulations. Further, licensing of properties is a way of raising the much needed revenue; therefore, if properties were not registered it may lead to loss of revenues. The previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until all businesses were registered and licensed and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. n) Failure to Maintain an Updated Valuation Roll

Committee’s Observation and Recommendation In noting the submission the Council Secretary is urged to ensure that for the purpose of levying rates, main roll is prepared by the valuation surveyor in which all rateable property in the area shall be listed by number. Further the previous Committee urged the Council Management to expedite the process of updating the roll to improve revenue sources. The previous Committee resolved to await a progress report on the matter.

Treasury Comment

The matter remained outstanding until the valuation Roll is updated and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Irregularities in Waste Management Operations i. Operation of Uncertified Dumpsite The Council Secretary is urged to ensure that the process of designating certified dump site in Kasima Township is expedited. The Council should also ensure that there were no encroachers at the site to avoid another prolonged litigation process. In addition, the Council should take into account proper measures for the disposal of waste because certain types of wastes can be hazardous and can contaminate the environment if not handled properly. These types of waste also had the potential to cause diseases like cholera. Additionally, although waste is the unwanted by-product of industrial, in other countries priority was being given to the reduction of waste at source; it’s re-use, its recovery by recycling and the use of waste as a source of energy. As a way forward, the Council should be exploring these initiatives. In this regard, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the designating certified dump site in Kasima Township was expedited and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. q) Inadequacies in Provision of Fire Fighting and Rescue Services i. Lack of Appropriate Communication System The Council Secretary is urged to ensure that the Communication System was in a sound working condition to be able to respond to emergencies promptly and avoid fire disasters. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Communication System is operationalized and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Lack of Adequate Fire Hydrants in the Township The Council Secretary is urged to ensure that the Council works with Western Water and Sewerage Company in making sure that fire hydrants were installed in public places to be able to effectively respond to fire emergencies. Fire hydrants provide a consistent place for water supply and storage. The previous Committee noted that in many areas, especially in cities where many people live and work, fire hazards were a constant worry. For that reason, it’s essential for fire protection services and systems that a supply of water be local and quickly accessible. In this regard, the previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Fire hydrants were installed in public places.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Failure To Remit Statutory Contributions – K882,388 The Council Secretary is urged to ensure that the Council remits statutory contribution as provided for by the law. The previous Committee also urges the Council to explore some other revenue measures to improve liquidity. The previous Committee cautioned the Council that accumulating debt and entering in debt swap with land was not sustainable. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council remit statutory contributions amounting to K882, 388 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. p) Equalisation fund - Capital Projects i. Rehabilitation of Sir Mwanawina Motel III lot 1 The Council Secretary is urged to ensure that projects were properly monitored to void poor workmanship and delayed completion of projects. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the projects were completed and commissioned.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Construction of Shops at the Main Station The Council Secretary is urged to ensure that projects properly monitored to avoid delays in completion. The previous Committee directed the Council Secretary to ensure that only credible suppliers were awarded contracts to supply building materials to ensure smooth implementation of works. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until all the projects were completed and commissioned.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii) Construction of Wall Fence at Main Bus Station The Council Secretary is urged to ensure that projects were properly monitored to avoid delays in completion. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until all the projects were completed and commissioned.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee

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MPOROKOSO DISTRICT COUNCIL a) Failure to Insure Council Properties – Buildings. The previous Committee cautions the Council Secretary to ensure that all assets were insured and the Committee will await a progress report.

Treasury Comment The matter remained outstanding until the buildings were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Outstanding Receivables- K2, 622,249 The previous Committee observed with concern that despite the dispute which arose between Food Reserve Agency and the Council regarding outstanding crop levy, the Council has not shown any efforts of pursuing the matter through other means. The previous Committee feels that this was a clear indication of negligence of duty by the responsible officers. What worries the Committee most is that the Council is grappling with huge debts or payables yet it is not aggressive in following up with its debtors so as to improve the Council’s liquidity. The previous Committee directed the Controlling Officer, specifically, to intervene into this matter by ensuring that the Food Reserve Agency is pursued and the matter resolved to its logical conclusion without any further delay. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the outstanding receivables amounting to K2, 622,249 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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c) Poor Debt Management -K12, 734,511 (Statutory contribution - K2, 987,486, Trade creditors - K5, 246,930 and Staff creditors - K4, 500,094).

The previous Committee noted the submission but implored the Council Secretary to impress upon the Controlling Officer to consider liaising with the Secretary to the Treasury on the possibility of paying at source or increasing their allocation on the Local Authorities Equalisation Funds to enable the Council dismantle its debt on statutory obligations. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the debt amounting to K12, 734,511 is dismantled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Equalisation Fund i. Misapplication of Equalisation Fund -K47, 100 The previous Committee finds it unacceptable that funds were varied without authority which was a direct abrogation of Financial Regulation No. 31(1). The previous Committee observes that using the Equalisation Fund on activities unrelated to its intended purpose is a serious disregard of its purpose and the previous Committee took much exception on this fact. The Council Secretary is sternly cautioned to desist from abrogating financial regulations at will. The Controlling Officer is, specifically, urges to ensure that the Council management is charged for this anomaly. Further, the Council Secretary is urged to ensure that the remaining balance was reimbursed without any further delay. The Committee will await a progress report on the matter.

Treasury Comment The matter remained outstanding until the balance of K36, 100 was reimbursed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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ii. Weaknesses in the Project Implementation of Equalisation Funds on Capital Projects

Construction of a Wall fence at Mikomba Guest House

Inflated Pricing of a Four (4) Meters Sliding and Pedestrian Gates As the matter was under court process, the previous Committee resolved to await a progress report.

Treasury Comment The matter remained outstanding until the court process was concluded and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Constituency Development Fund (CDF) - K1, 400,000 ii. Rehabilitation of Mikomba Recreation Centre

Lack of Site Possession Certificate

Lack of Variation Orders - Rehabilitation of Mikomba Guest House The previous Committee expressed serious concern over the submission and calls for disciplinary action to be taken against all officers involved in this matter, who clearly violated the law.

Treasury Comment The matter remained outstanding until disciplinary action was taken against all the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Double payments for Building Materials - Rehabilitation of Mikomba Guest House The previous Committee was disappointed over the failure by the Council Secretary to resolve the matter promptly but wait until the auditors’ visit to attempt to resolve it. The previous Committee directed the Council Secretary to aggressively pursue the contractor for recovery of the public funds that had been paid for which no work had been done and for any other relief for breach of contract in accordance with the provisions of the contract. The previous Committee directed that these actions be initiated immediately so that another contractor can be engaged in order that the remaining works can be completed expeditiously. The previous Committee resolved to await a progress report on the matter.

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Treasury Comment

The matter remained outstanding until the contractor pays back the funds for which work had not been done and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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MUFURILA MUNICIPAL COUNCIL a) Outstanding Amounts Due on Leased Property The previous Committee observed with concern the failure by the Council to pursue this matter aggressively despite facing serious liquidity challenges. The previous Committee takes exception to the laissez-faire approach of the Town Clerk to such serious matters and directed him to ensure that all available options, including issuance of warrants of distress, were pursued in ensuring that all outstanding amounts were recovered from the tenants without any further delay. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until outstanding amounts due on leased property is collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Prepare Financial Statements The previous Committee does not accept the reasons given by the Town Clerk as it is clear that there is laxity on the part of management as evidenced by its failure to update the accounting software package. It is worrying that this Council operated for three consecutive years without audited Financial Statements, which is against financial regulations. The previous Committee directed the Town Clerk to ensure that the system is upgraded without any further delay and that all outstanding Financial Statements were prepared and availed for audit. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the financial statements were prepared and availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Procurement of Goods and Services Using Imprest The previous Committee does not accept the reasons given by the Council Secretary as it is clear that he allowed this irregularity to continue unabated in the name of building the image of the institution. The previous Committee sternly cautioned the Council Secretary to desist from this practice and calls for disciplinary action against all officers who perpetrated or abated it. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until disciplinary action was taken against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Irregular Appointment of Bailiffs The previous Committee is deeply disappointed over the response by the Town Clerk and strongly warns him to desist from such practices. Further, the previous Committee called for disciplinary measures to be instituted against all officers responsible for this irregularity. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until disciplinary action was instituted against all officers responsible for this irregularity and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Issuance of Plots to Council Staff at a Discounted Price The previous Committee cautions the Council Secretary to ensure that he complies with prevailing regulations at all times to avoid recurrence of this irregularity. Further, the previous Committee called for disciplinary action to be taken against all officers responsible for this irregularity. The previous Committee would await a progress report on the matter.

Treasury Comment The matter was recommended for closure following the recoveries made against the employees’ emoluments.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Amounts Owed to Retirees The previous Committee urged the Town Clerk to ensure that the Council explores the possibilities for widening the revenue base so as to be able to pay retirees’ benefits as and when they fell due. The previous Committee further directed the Council to ensure that it adheres to the payment plan and clears all outstanding payments to avoid litigation. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all outstanding terminal benefits in amounts totalling K1, 332,773 were paid and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report was therefore being awaited by the Committee. f) Property Management ii) Physical Status of Houses and Buildings - K1, 345,692.41

● House Number 1911(3) Fairview ● House Number 1911(2) ● Plot No. 1182 – Minambe Tarven – Mupambe T/ship ● Plot No. 1182 (a) – Kamuchanga Medium Shops - Kamuchanga ● Part of 1182 (b) – Bwangalo Tavern – Kamuchanga T/ship ● Farm No. 932 (a) – Buseko Tavern – Kankoyo T/ship ● Farm No. 932 (b) – Malela Rest House – Malela

The previous Committee noted the submission of the Council and directed the Council to explore avenues of widening its revenue base so as to be able to maintain properties. The Committee will await a progress report on the matter.

Treasury Comment The matter remained outstanding until title deeds were obtained and rehabilitation on all council buildings was done. Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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MUMBWA DISTRICT COUNCIL a) Use of Revenue Before Banking – K308,169 The previous Committee expressed concern at the Council’s decision to use revenue before banking as this compromised internal controls and could result in loss of public funds. The previous Committee directed the Council Secretary to adhere to the Local Government Financial Regulations No 19 (1) that states that all cheques and cash received shall be banked as soon as possible, but not later than two days after the day of receipt. The previous Committee strongly cautions the Council Secretary against using cash before banking and calls for disciplinary measures against all officers who perpetrated and abetted this irregularity. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until disciplinary action was taken against all erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Outstanding Receivables – K6,303,439 The previous Committee urged the Council Secretary to expedite the finalisation of a Debtor Management Policy so as to the Councils debt issuance practices adhere to various laws and regulations. The policy should be updated regularly to meet the ever changing trends in the market. This will help the Council to know the debtor profile, which can aid debt collection and hence improve liquidity. The previous Committee awaited progress report in the matter.

Treasury Comment The matter remained outstanding until the council collected the outstanding receivables amounting to K6, 303,439 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. a) Failure to Settle Outstanding Bills – Payables i. Unremitted Statutory Contributions and PAYE – K16,497,458 The previous Committee observed with concern that failure to remit statutory obligations may result in accumulating debt which may attract penalties and interest. The accumulation of debt may adversely affect the provision of critical public services by the Council. The previous Committee, therefore, urges Management to ensure that the Council raises enough revenues by

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broadening the revenue base so as to pay the statutory obligations timely. The previous Committee also urges Management to ensure that adequate provisions were made for statutory deductions in the annual budget and that the payment plan is strictly adhered to.

Treasury Comment The matter remained outstanding until the unremitted statutory contributions and PAYE amounting to K16, 497,458 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Land Acquisition The Committee observed with concern that the Council is failing to maintain proper records for the land it acquired under the township boundary extension Programme. This may lead to duplications and litigations which could cost substantial sums of money. The previous Committee strongly urges that a land records management system should be put in place and that ledgers should be updated frequently. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the land records management system was put in place and ledgers were updated and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Lack of Title Deeds – K781,000 The previous Committee finds it unacceptable that the Council is requesting the Ministry to generate duplicate titles without conclusively explaining the whereabouts of the original titles. This is a clear indication that the Council has poor record keeping. The previous Committee therefore urges the Council to caution all officers charged with the custody of these documents to avoid recurrence.

With regard to buildings without title deeds, the Council should expedite the process of acquiring these titles. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the title deeds for the properties were obtained and availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Management of Commercial Ventures i. Unreimbursed Borrowing – K11,000 The Council Secretary is urged to ensure that the laid down procedures were followed when handling officers transferred from other Councils and those on first appointment with regard to meals and accommodation. The previous Committee strongly urges the Council Secretary to desist from borrowing funds from other accounts without reimbursing. In this light, disciplinary action should be taken against all officers who perpetrated or abetted this practice in order to deter other officers from engaging in it. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the borrowing was reimbursed amounting to K 11,000, disciplinary action was taken against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Deplorable State of Mumbwa Tavern – K235,000 and K416,000 The previous Committee noted the submission of the Council Secretary regarding the deplorable state of the Mumbwa Tavern due to liquidity challenges. The previous Committee urged the Council to maintain property frequently to avoid dilapidation. The previous Committee strongly urges the Council to expedite the creation of residential plots to avoid wasting of the asset.

Treasury Comment The matter remained outstanding until the residential plots on the land were demarcated and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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MWENSE DISTRICT COUNCIL b) Failure to acquire title deeds The previous Committee observed with concern the inordinate delays it had taken for the Council to acquire title deeds for its properties in accordance with the Land Act No 29 of 1995. The previous Committee directed the Controlling Officer, specifically, to engage his counterpart in the Ministry of Lands and Natural Resources to ensure that the matter is resolved without any further delay. The Committee will await a progress report on the matter.

Treasury Comment The matter remained outstanding until the title deeds for the properties were obtained and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Failure to recover funds – K11, 500 The previous Committee observed with concern the weak internal controls at the Council and wondered how a civic leader, who must ordinarily be outside the payment systems, will be allowed to handle cash. The previous Committee recommends for a reprimand to the erring officers who processed the payment in the Councillor’s name together with the officers who authorized the payment in cash form without any security measure. The previous Committee will await a progress report on the reprimands only then would the matter be closed.

Treasury Comment The matter remained outstanding until disciplinary action was taken against the erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Failure to remit PAYE, Statutory and other Contributions The previous Committee noted the submission but implored the Council Secretary to impress upon the Controlling Officer to consider liaising with the Secretary to the Treasury on the possibility of paying at source or increasing their allocation on Equalisation fund to enable the Council dismantle its debt on statutory obligations. The previous Committee would await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the council remits PAYE, statutory and other contributions amounting to K591, 720 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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NAKONDE DISTRICT COUNCIL a) Failure to Prepare Financial Statements The previous Committee observed with concern the failure by the Council to prepare financial statements for the years under review, in accordance with Section 52 of the Local Government Act, Chapter 281 of the Laws of Zambia. The previous Committee urged the Council Secretary to ensure that the Council adopts and implements the International Public Sector Accounting Standards (IPSAS) without further delay. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the council prepares the financial statements for the period under review and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Lack of Strategic Plan The previous Committee is of the view that failing to anticipate or preparing for fundamental changes will result in the Council losing valuable time and momentum to combat them when they actually do occur. Therefore, the previous Committee is of the view that Nakonde Town Council should develop strategic plans to clearly provide a strategic framework on how it intends to achieve its goals and vision and not stall. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Strategic Plan was put in place and availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Failure to Update Asset Register The previous Committee expressed concern at the failure by the Council to update its asset register contrary to the Public Stores Regulation No. 99, which requires controlling officers to maintain a register of all machinery and equipment on their charge. The previous Committee sternly cautioned the Council Secretary against such laxity and directed him to ensure that the assets register is updated regularly. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the assets register is updated and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Failure to Fill Key Positions The previous Committee is aware that the mandate to fill vacant positions, particularly those in Divisions I, II and III lays with the Local Government Service Commission (LGSC), established under Article 228 of the Constitution of Zambia (Amendment) Act No. 2 of 2016. The previous Committee urged the Council Secretary to ensure that the Commission is updated, quarterly, of the Council’s staff returns to guarantee the smooth running of the Council. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council fills up the vacant positions and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Unaccounted for Revenue – K168, 763 The previous Committee observed with concern that contrary to Local Authorities Financial Regulation No. 72, which states that the treasurer shall ensure that collectors of revenue account for the money collected on a daily basis, Nakonde Town Council has failed to comply. The previous Committee had thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until Drug Enforcement Commission (DEC,) concludes the investigations and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Misappropriation of Funds – K40,530 The previous Committee strongly cautions the Council Secretary against inordinate delays in recovering monies that had been misappropriated by officers. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the K40, 530 is recovered from the terminal benefits of the dismissed officer and internal controls were enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Missing Payment Vouchers – K502, 397 The previous Committee finds it unacceptable that such important documents can go missing during audit and reappear immediately after. The previous Committee directed the Council Secretary to ensure that officers responsible for safe-keeping of these documents were disciplined for this serious lapse. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the officers responsible for safe-keeping of these payment vouchers were disciplined and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Unsupported Payment Vouchers – K483, 010 The previous Committee finds it unacceptable that such excessive amounts can be paid out without supporting documents. The previous Committee strongly cautions the Council Secretariat and further directed the Council Secretary to ensure that the Council’s internal

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controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the documents were supported and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Failure to Avail Contracts for Court Cases – K200,000 The previous Committee urged the Council Secretary to ensure that the Council adheres to the financial regulations before any payments were made. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the signed contracts for court cases were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Unretired Accountable Imprest – K93,214 The previous Committee noted the submission and awaits a progress report on the matter.

Treasury Comment The matter remained outstanding until all the recoveries were completed and details were availed for audit scrutiny. k) Irregular Refunds – K26,612 In noting the submission, the previous Committee strongly cautions the Council to adhere to the financial regulations. The previous Committee directed the Council Secretary to ensure that prior written authority is sought with the appropriate authorising officer before officers use personal money on official activities. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the measures put in place yield the intended results.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. l) Allowances Paid to Non-Council Employees without Authority – K172,319 The previous Committee noted the submission and urges the Council Secretary to ensure that all payments to non-Council employees were only made with prior authority from relevant authorities. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the measures put in place yield the intended results.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Over Payments – K60, 000 The previous Committee finds the overpayment unacceptable. The previous Committee further directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that lapses of this nature do not reoccur. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the report resulting from investigations is availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m) Irregular Payments of Allowances i. Subsistence and Meal Allowances The previous Committee is aware that Cabinet Circular Minute dated 30th December, of 2015 impedes the payment of subsistence and meal allowances for activities undertaken within the district boundary. The previous Committee urged the Council Secretary to ensure that the Council treasurer and internal auditor strengthen the internal controls to ensure strict adherence to stipulated financial regulations.

Treasury Comment The matter remained outstanding until the recoveries amounting to K227, 870 were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Social Holiday Allowance The previous Committee urged the Council Secretary to adhere to the Ministry of Local Government and Housing Circular No.MLGH/101/8/4 which abolishes the payment of entertainment allowances such as social holiday and talk time allowances. The previous Committee urged the Council Secretary to ensure that stipulated financial regulations were adhered to. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the consultations between the Council and Ministry of Local Government on entitlements that were not clear is concluded.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Transport Allowances The previous Committee noted the submission and urges the Council Secretary to effect recovery of the monies paid. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the deductions to recover the irregularly paid allowances were completed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. q) Unaccounted for Stores – K468,622 The previous Committee finds the unaccounted for monies unacceptable. The previous Committee sturdily urges the Council Secretary to ensure that Financial Regulation No. 145, which provides that a treasurer shall keep proper records of receipts and issue of stock and stores be adhered to. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the receipts and disposal details for general stores amounting to K 298,736 and fuel costing of council K169,886 were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. r) Irregular Employment of Administrative Officer The previous Committee sturdily urges the Council Secretary to desist from employing staff in Divisions I, II and II as this was the mandate of the LGSC. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the recruitment of Administrative officer is normalised by the Local Government Service Commission (LGSC) and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. s) Sponsorship of Officers for Training without Authority – K302,520 The previous Committee sternly cautioned the Council Secretary against abrogating the Local Government Act by sponsoring officers for training without obtaining authority from the Local Government Service Commission. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter was recommended for closure and be kept in view for future audits.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. t) Failure to Recover Salary Advances – K47,367 The previous Committee noted the submission and urges the Council Secretary to adhere to Condition of Service for Local Government Officers No. 105(d) and to sternly caution the officers involved and ensure that recoveries were in full. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the recoveries details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. u) Payment of Salary Advances above Gross Pays The previous Committee noted that contrary to the Term and Condition of Service for Local Government Officers No. 105(c), the Council paid officers advances in excess of their gross pays. The previous Committee urged the Council Secretary to ensure that the Council treasurer and internal auditor strengthen the internal controls to ensure strict adherence to stipulated financial regulations. A progress report is being awaited.

Treasury Comment The matter remained outstanding until the internal controls were enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v) Salary Over Payments (Wrong Salary Scale) – K263,469

The previous Committee expressed concern that Section 93 of the Local Government (Amendment) Act No.6 of 2010 is not being adhered to. The previous Committee recommends that only the LGSC is supposed to appoint principal officers in the Council. The previous Committee urged the Council Secretary ensure that quarterly staff returns were submitted to the Commission to guarantee smooth running of the Council and to avert wrong appointments. A progress report was being awaited.

Treasury Comment The matter remained outstanding until the recovery details of overpayment were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. w) Failure to Remit Statutory Contributions and PAYE – K2,864,651 The previous Committee finds the non-remittance of statutory contributions to the National Pension Scheme Authority (NAPSA) and PAYE unacceptable. The previous Committee implores the Council Secretary to ensure that the programme of liquidating the arrears by monthly commitments continues to avoid the debts accruing. The previous Committee is awaiting a progress report.

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Treasury Comment The matter remained outstanding until the council remits statutory contributions and PAYE – K2, 864,651 and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. x) Outstanding Staff Obligations – K159,850 In noting the submission, the previous Committee urged the Council secretary to ensure that part payments for terminal benefits were made on a monthly basis so that they were liquidated as and when they fall due. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the staff obligations amounting to K159, 850 were liquidated and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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NCHELENGE DISTRICT COUNCIL a) Misapplication of Equalisation Fund – K388,721 The previous Committee is aware that the Local Government (Amendment) Act No.12 of 2014 establishes the Local Government Equalisation Fund and that 20 percent of this Fund is specifically for capital projects. The previous Committee therefore does not accept the reasons given and directed the Council Secretary to ensure that the funds were fully reimbursed and used for its intended purpose i. e capital projects. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council refunded all the misapplied for Equalization funds and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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b) Failure to Insure Council Properties The previous Committee observed with concern the failure by the Council to adhere to Local Authorities Financial Regulation No.154. The previous Committee further expressed bewilderment at the laxity by the Council to insure against losses, damages, risks and liabilities which the Council may incur if markets, stores and buildings were to get damaged. The previous Committee urged the Council Secretary to ensure that Council property is insured to mitigate losses. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council insures the properties and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Unaccounted for Revenue – K318, 351 The previous Committee observed with concern that contrary to Local Authorities Financial Regulation No. 72, which states that the treasurer shall ensure that collectors of revenue account for the money collected on a daily basis, Council has failed to comply.

The previous Committee has thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the reconciliation of the unaccounted for revenue amounting to K318, 351 were done and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Failure to Produce Receipt Books The previous Committee observed with concern that Financial Regulation No.10 (n) has been abrogated. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the eight (8) General Receipt Books were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Unsupported Payment Vouchers – K127,768 The previous Committee observed with concern that Local Authority Financial Regulation No. 86 has been abrogated. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the payment vouchers amounting to K127, 768 were supported and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Unretired Accountable Imprest The previous Committee observed with concern the lack of adherence to Local Government Financial regulation No.119. The previous Committee urged the Council Secretary to write to all the transferred officers to effect recoveries. The previous Committee further implored the Council Secretary to ensure that an imprest register is introduced to track down unretired imprest. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the recoveries were instituted from the officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Excess Payment of Cash Awards – Over Payment The previous Committee observed with concern that PSMD Circular No.b (6) of 2001 revises the monetary Labour Day awards. The previous Committee is however bewildered that the Council has gone ahead and paid monetary Labour Day awards above the ceiling of K350. The previous Committee urged the Council Secretary to ensure that PSMD Circular No. b (6) of 2001is adhered to and recoveries were made. A progress report is being awaited.

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Treasury Comment The matter remained outstanding until the excess amount of K9, 850 is recovered and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Loss of Public Funds The previous Committee noted the submission and urges the Council Secretary to ensure that legal practitioners were consulted on matters that require the interpretation of the law. The previous Committee awaited a progress report.

Treasury Comment

The matter remained outstanding until the legal practitioners were consulted on matters and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Failure to Remit Third Party Deductions The previous Committee observed with concern that Income Tax deducted is not being remitted to the Zambia Revenue Authority (ZRA) and the National Pensions Scheme Authority (NAPSA) in time. The previous Committee urged the Council Secretary to ensure that outstanding obligations were liquidated through a monthly payment plan that the Council must develop.

Treasury Comment The matter remained outstanding until the statutory obligations were liquidated through a monthly payment plan and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Loss of funds through Penalties on Outstanding NAPSA Obligations – K143, 119 The previous Committee noted the submission and urges the Council Secretary to submit returns on time. The previous Committee awaited a progress report.

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Treasury Comment The matter remained outstanding until the request for debt swap with real estate is concluded and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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NDOLA CITY COUNCIL a) General Administration i. Failure to Fill Vacant Positions The previous Committee observed with concern that service delivery may be affected negatively in the Council if recruitment is delayed and urged the Town Clerk to consistently submit staff vacancy reports, as they fall due, as well as staff establishment, to the LGSC so that qualified, skilled and competent staff were employed by the Council. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the vacant positions were filled up and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Employment of Unqualified Officers to Key Positions The previous Committee noted the submission and urged the Town Clerk to consistently submit staff vacancy reports as they fall due and staff establishment to the Service Commission so that qualified, skilled and competent staff were employed by the Council. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until qualified, skilled and competent staff was employed and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Employment of Casual Workers The previous Committee observes that Employment Act No.15 of 2015, which states that a body corporate that engages a casual employee for a job that was permanent in nature commits an offence and is liable upon conviction has been abrogated. The previous Committee beseeches the Town Clerk to start paying off casual workers who wish to continue working for the Council. The previous Committee further urged the Town Clerk to reduce the labour force and only retain casual workers that the institution can afford to pay. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council pays off casual workers who were working for the council and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Outstanding Receivables i. Variances in Debtors Amounts The previous Committee observed with concern that the failure by the Council to collect debt may result in serious penalties and eventual loss of colossal sums which can otherwise be applied in provision of critical public service. The previous Committee urged the Town Clerk to request for debt collectors from the LGSC so the revenue collection was enhanced. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the outstanding receivables amounting to K221, 472 were collected from the debtors and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Exempt Billboards The previous Committee observed with concern that the exemption of the billboards would entail the Council forfeiting some reasonable amount. The previous Committee urged the review the contract with the outdoor advertising company. The previous Committee awaited a progress report.

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Treasury Comment The matter remained outstanding until the contract with the outdoor advertising company is reviewed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Unsupported Declaration of Personal Levy K344, 120 The previous Committee noted the submission and urged the Town Clerk to assign an officer to clearly label and document movement of auditable documents. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the ledgers to support the income amount of K344, 120 reflected in the financial statements were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Failure to Include Leased Properties in the Revenue Database – K8, 154,381 The previous Committee observed with concern that twenty-two Council properties were not included on the revenue register. The previous Committee urged the Town Clerk to revise the tenancy agreement with Lowenthal Theatre and endeavour to update the billing system as soon as the lease is signed. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the tenancy agreement with Lowenthal was revised, updated the billing system and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Missing Payment Vouchers – K1,526,559 The previous Committee observed with concern that Local Authorities Financial Regulation No.98, which states that all payment vouchers with supporting documents, and any other forms which support a charge entered in the accounts, shall be carefully filed, secured against loss and be readily availed for audit has been abrogated. The previous Committee finds it unacceptable that such important source documents would miss from storage facility without trace. The Town Clerk was directed to ensure that officers responsible for the safe keeping of these documents were disciplined for this serious lapse. The previous Committee also directed the Town Clerk to

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ensure that internal controls were enhanced and that important documents were secured expeditiously to avoid reoccurrence. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the council refunded all the missing payment vouchers amounting to K1, 526,559 were availed for audit scrutiny and disciplinary action was taken against erring officers.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Unsupported Payment Vouchers The previous Committee observes with dismay that the Council is abrogating Local Authorities Financial Regulation No. 86. The previous Committee also directed the Town Clerk to ensure that internal controls were enhanced and that important documents were secured expeditiously to avoid reoccurrence. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the unsupported payment vouchers amounting to K8, 358,187 were supported and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Unretired Imprest The previous Committee observed with concern that Local Authorities Financial Regulation No.119(1), which states that special imprest shall be retired immediately for the purpose for which it is issued has been fulfilled, has been abrogated. The previous Committee also directed the Town Clerk to ensure that internal controls were enhanced and that important documents were secured expeditiously to avoid reoccurrence. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until imprest amounting to K501, 520 was retired and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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g) Failure to Avail Activity Reports The previous Committee observed with concern that there were no reports produced for audit for various activities undertaken by the Council, making it difficult to ascertain whether or not these activities took place. The previous Committee urged the Town Clerk to ensure that all activities undertaken were supported by activity reports and accounted for. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until all the Activity Reports were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Unaccounted for Stores – K15,255,048 The previous Committee finds the unaccounted for monies unacceptable. The previous Committee sturdily urged the Town Clerk to ensure that Financial Regulation No. 145, which provides that a treasurer shall keep proper records of receipts and issue of stock and stores be adhered to. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until disposal details costing fuel (K9, 345,789) and general stores (K5, 909,258) were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Unacquitted Wages and Allowances – K542,515 The previous Committee noted the submission and resolved to await a progress report.

Treasury Comment The matter remained outstanding until the acquittal sheets amounting to K542,515 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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j) Failure to Remit Tax The previous Committee noted the submission and urged the Town Clerk to ensure that the programme of liquidating the arrears by monthly commitments continues to avoid the debts accruing. The previous Committee is awaiting a progress report.

Treasury Comment The matter remained outstanding until tax amounting to K44, 586.05 is remitted and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Irregular Payment of Social Holiday Allowance – K67,500 The previous Committee urged the Town Clerk to adhere to Ministry of Local Government and Housing Circular No. MLGH/101/8/4 which abolishes the payment of entertainment allowances such as social holiday and talk time allowances. The previous Committee urged the Town Clerk to ensure that stipulated financial regulations were adhered to. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the consultations between the Council and Local Government was concluded.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

l) Non Recovery of Salary Advances – K78,600 The previous Committee observed with concern that contrary to Local Government Terms and Conditions of Service No.105 (d), recoveries in respect of salary advances had not been effected to date. The previous Committee also directed the Town Clerk to ensure that internal controls were enhanced and that important documents were secured expeditiously to avoid reoccurrence. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the salary advances amounting to K78, 600 were effected and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m) Payments of Long Service Bonus The previous Committee is aware that the Ministry of Local Government Ministerial Circular No. MLGH/71/6/93 of 31st July, 2012 informs all local authorities of the abolishment of the Long Service bonus. The previous Committee urged the Town Clerk to ensure that all funds were paid back by effecting deductions on their salaries. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the irregularly paid Long Service Bonus amounting to K1, 524,818 were recovered and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. n) Failure to Produce Title Deeds and to Insure Properties The previous Committee noted the submission and urged the Town Clerk to ensure that old and new properties had documents of Title and ensure that assets were safe-guarded by fully insuring them. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until Title deeds were obtained and properties were insured and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Irregularities in the Procurement of Motor Vehicles – Ford Rangers - K4,318,624 The previous Committee finds the purchase of the eight Ford Rangers for directors through a finance lease obtained from the Zambia National Commercial Bank (ZANACO) unacceptable. The previous Committee wondered how Council management decided to acquire personal-to- holder vehicles on finance lease when the Council was facing liquidity problems.

Treasury Comment The matter remained outstanding until Council minutes approving the purchase of the eight Ford Rangers and the budgetary provisions were availed for audit scrutiny. The previous Committee observes that the purchase of the vehicles lacks prudency and urges the Office of the Auditor General to use the Memorandum of Understanding (MoU) between his Office and the different

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law enforcing agencies to investigate the glaring irregularities in the Council thoroughly. The previous Committee awaited a progress report on the matter.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. p) Investments i. Investment in Kafubu Water and Sewerage Ltd The previous Committee noted the submission and resolved to await a progress report.

Treasury Comment The matter remained outstanding until the breakdown of investment costing K74, 290,660 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Management of the Commercial Ventures – Kafubu Inn and New Ambassador Hotel i. Failure to Recover Hotel Bills The previous Committee noted with concern the colossal sums that the Council is losing from the non-recovery of bills. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced. The previous Committee awaited a progress report on the matter.

Treasury Comment

The matter remained outstanding until measures to manage the operations of the hotel were put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Remit VAT The previous Committee noted the submission and resolved to close the matter subject to audit verification.

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Treasury Comment The matter remained outstanding until VAT amounting to K773, 251 and K147, 621 were remitted and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Understatement of Revenue and Expenditure Figures - New Ambassador Hotel – K102,261 The previous Committee noted the submission and awaits a progress report.

Treasury Comment The matter remained outstanding until the expenditure and ledger variances of K102, 261 and K169, 829 were resolved and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Missing Payment Vouchers - New Ambassador Hotel The previous Committee observed with concern that contrary to Local Authorities Financial Regulation No. 98 (1), payment vouchers with supporting documents, and any other forms which support a charge entered into the accounts, were not carefully filed and secured by the Council to be availed on audit. The previous Committee also directed the Town Clerk to ensure that internal controls were enhanced and that important documents were secured expeditiously to avoid reoccurrence. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until 128 payment vouchers amounting to K228, 932 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Unaccounted for Stores The previous Committee finds the unaccounted for monies unacceptable. The previous Committee sturdily urges the Council Secretary to ensure that Financial Regulation No. 145, which provides that a treasurer shall keep proper records of receipts and issue of stock and stores be adhered to. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the disposal details costing K71,718 (General stores K29,861 and Fuel K41,857) were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Unsupported Payment Vouchers The previous Committee observed with concern that Local Authority Financial Regulation No. 86 has been abrogated. The previous Committee thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until documents supporting 20 payment vouchers amounting to K89, 323 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vii. Failure to Maintain Kafubu Inn The previous Committee urged the Town Clerk to ensure that the Council’s properties were appropriately managed in order to protect the properties from dilapidation. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until measures to manage the hotel were put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. r) Overdrawn Bank Accounts – K5,885,827 The previous Committee observed with concern that there were no records for the overdrawn accounts so that it is not possible to ascertain the interest or charges to the Council in respect of servicing overdrafts. The previous Committee urged the Town Clerk to ensure that the Council only makes payments within available funds. The previous Committee is awaiting a progress report.

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Treasury Comment The matter remained outstanding until all the cancelled cheques amounting to K5, 885,827 were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. s) Unremitted Statutory Contribution and PAYE The previous Committee is concerned that failure to remit statutory obligations may lead to loss of public funds through penalties which may arise as a result of this default. The previous Committee also urged the Town Clerk to explore innovative avenues of raising revenue in order to improve service delivery. The previous Committee thus directed that all relevant documentation be submitted for verification and seeks a progress report on the liquidation of the outstanding statutory contributions.

Treasury Comment The matter remained outstanding until PAYE amounting to K122, 015,975 is remitted and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. t) Failure to Follow Suppliers Payment Policy The previous Committee observed with concern that the Council owes various suppliers who had supplied various goods and services, contrary to the institution’s payment policy of 2016 item 4 (Suppliers), which states that all suppliers shall be paid between forty and fifty days after the date of supplying goods or services. The previous Committee urged the Town Clerk to ensure that payment for the suppliers of goods and services were expedited.

Treasury Comment The matter remained outstanding until the Suppliers Payment Policy is implemented and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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u) Outstanding Staff Obligations – K66,754,892 The previous Committee urged the Council secretary to ensure that part payments for terminal benefits were made on a monthly basis so that they were liquidated as and when they fall due. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the outstanding staff obligations amounting to K 66,754,892 were cleared and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v) Unsettled Liabilities

The previous Committee noted the submission and awaits a progress report.

Treasury Comment The matter remained outstanding until the unsettled liabilities amounting to K2, 623,008 were cleared and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. w) Management of Land i. Lack of Separation of Duties The previous Committee is aware that the mandate to fill vacant positions, particularly those in Divisions I, II and III lays with the Local Government Service Commission (LGSC), established under Article 228 of the Constitution of Zambia (Amendment) Act No. 2 of 2016. The previous Committee urged the Council Secretary to ensure that the Commission is updated, quarterly, of the Council’s staff returns to guarantee the smooth running of the organisation. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the vacant positions were filled and ensure that separation of duty was implemented and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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ii. Joint Venture with Henan Guoji Group for Development of Housing Units – Dola Hill The previous Committee noted that the Town Clerk did not provide a response for the query on Joint Venture with Henan Guoji Group for development of 1,208 housing units on Stand No.LN8841/623 in Dola Hill in Ndola. The previous Committee however, directed the Town Clerk to ensure joint venture is implemented without fail or if they were any impediments to cancel it to avoid litigation and loss of revenue. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the joint venture was implemented between the council and Henan Guoji Group is implemented and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Uncollected Land Fees from the Sale of Plots The previous Committee noted the response and urges the Council to ensure that it collected all the rates from the Council buildings to boost its revenue. The previous Committee further urges the Council to ensure that it updated the valuation roll in accordance with the provisions of the Rating Act, No. 12 of 1997. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the balance of K6, 478,035 for sale of land was collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Unallocated Plots – Dola hill LN1002683, Dola Hill DH and Itawa The previous Committee noted that the Town Clerk did not provide a response for the query on failure to advertise plots before allocating to the public in Dola Hill. The previous Committee however, urged the Town Clerk to ensure that procedures regarding land allocation were followed before allocating any plots to the public. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the plots were allocated and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Allocation of Plots to More than One Person – Dola Hill The previous Committee noted that the Town Clerk did not provide a response for the query on allocating plots to more than one person in Dola Hill. The previous Committee however, urged the Town Clerk to ensure that the allocation of plots to more than one person is rectified so the Council can start collecting revenue. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the allocation of plots to more than one person was rectified and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Failure to Provide Site Plans The previous Committee observed with concern the failure by the Council provide site and map plans for audit scrutiny. The previous Committee observes that without site plans, it is not possible to ascertain the number of plots demarcated and the total amount of revenue collected. The previous Committee urged the Town Clerk to ensure that all approved site maps and plans were scanned and stored as a back-up of hard copies. The previous Committee is awaiting a progress report.

Treasury Comment The matter remained outstanding until all approved site plans were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vii. Plots not Beaconed The previous Committee noted the submission and urged the Town Clerk to expedite the process so that site plans can be numbered and approved by the Ministry of Lands, Environment and Natural Resources. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the plots were beaconed and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. viii. Variance in Land Demarcation - Chifubu and Pamodzi The previous Committee noted the submission and urged the Town Clerk to ensure accuracy in the capturing and planning of parcels of land to avert the variances. The previous Committee awaited a progress report.

Treasury Comment

The matter remained outstanding until the variance in land demarcation was resolved and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. x) Environmental Management iv. Failure to Produce Plans and Reports The previous Committee observed with concern that contrary to Clause 17, Section (1) of the Statutory Instrument No.13 of the Zambia Environment Management Agency (ZEMA) Act, which states that a local authority shall prepare and submit to ZEMA every three years an integrated waste management plan, the Ndola City Council did not submit any waste management plan during the period under review. The previous Committee strongly cautions the Town Clerk and further directed that waste management plans and reports be prepared to ZEMA on time. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the waste management plans and reports were submitted to ZEMA and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. v. Collection and Transportation of Waste The previous Committee noted the submission and urged the Town Clerk to come up with a system that is more accommodative to private companies to improve waste management services and help curb the problem of illegal waste collectors. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until waste management system was enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Solid Waste Transporters - Franchise Agreements The previous Committee urged the Town Clerk to come up with a system that is more accommodative to private companies to improve waste management services and help curb the problem of illegal waste collectors. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until waste management system was enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vii. Expired Franchise Contracts The previous Committee urged the Town Clerk to ensure that contracts with the three companies were reviewed to improve waste management services and help curb the problem of illegal waste collectors. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the contracts to the three companies was reviewed and were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. viii. Transportation Equipment The previous Committee urged the Town Clerk to ensure that lorries/trucks used in the transportation of solid waste were covered to avert a risk of littering the city when in transit. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until waste management system was enhanced.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ix. Use of Uninsured Vehicles by Transporters The previous Committee urged the Town Clerk to ensure that transporters contracted under the franchise agreement had their operating vehicles insured. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until waste management system was enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Non-Payment of Franchise Fees by Transporters The previous Committee urged the Town Clerk to come up with a system that is more accommodative to private companies to improve waste management services and help curb the problem of illegal waste collectors. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until waste management system was enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vi. Illegal Dumping of Waste – Mine Masala Market The previous Committee urged the Town Clerk to intensify public awareness on the responsibility of waste producers in residential areas to help curb the current problem of illegal dumping in streets and markets. The previous Committee is awaiting a progress report.

Treasury Comment The matter remained outstanding until waste management system was enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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vi. Illegal Transporters of Solid Waste The previous Committee observed with concern that contrary to Clause 12 Section (1), of the ZEMA Act, which requires every person who intends to handle solid waste to apply to ZEMA for a waste management licence, many transporters who were contracted to collect and dispose of solid waste at the Kaloko dumpsite had no licences. The previous Committee urged the Town Clerk to come up with a system that is more accommodative to private companies to improve waste management services and help curb the problem of illegal waste collectors. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until waste management system was enhanced.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. vii. Dumpsite Management The previous Committee noted that the Town Clerk did not provide a response for the query on dumpsite management. The previous Committee, however, urged the Town Clerk to ensure that the Council strictly adheres to the legal provisions in dumpsite management and among other things avoid dumping of medical wastes, fence the dumpsite and provide sign posts to alert and warm the public of the dumpsite. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the waste management system was enhanced.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Paragraph 36 Paragraph 36

PEMBA DISTRICT COUNCIL a) Establishment –Failure to Fill Key Positions The previous Committee noted the submission and urges the Council Secretary to promptly bring to the attention of the LGSC the vacant positions so that they were filled for smooth running of the Council. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the key positions were filled and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Collect Rentals – K10, 500 The previous Committee noted the submission and urges the Council Secretary to request for revenue collectors from the LGSC to enable prompt follow-up on all outstanding rental revenues and breaches of tenancy agreements. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until rentals amounting to K10, 050 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Misapplication of Funds – K2, 317,425 The previous Committee is aware that the Local Government (Amendment) Act No.12 of 2014 establishes the Local Government Equalisation Fund and that 20 percent of this Fund is specifically for capital projects. The previous Committee therefore does not accept the reasons given and directed the Council Secretary to ensure that the funds were fully reimbursed and used for its intended purpose i. e capital projects. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until misapplied funds amounting to K463, 485 were reimbursed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Weaknesses in the Non-Current Asset Management The previous Committee noted the submission and awaits a progress report.

Treasury Comment The matter remained outstanding until all Title deeds were acquired and measures to manage non-current assets were enhanced and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Failure to Insure Motor Vehicles The previous Committee noted the submission and awaits a progress report.

Treasury Comment The matter remained outstanding until all the motor vehicles were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Lack of Maintenance Policy The previous Committee noted the submission and awaits a progress report.

Treasury Comment The matter remained outstanding until the Maintenance Policy was approved and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Failure to Pay Benefits The previous Committee noted the submission and urges the Council Secretary to ensure that the construction of the motel is expedited so that terminal benefits owed to former employees were paid off. The Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the balance of Terminal Benefits amounting to K138, 178.29 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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h) Illegal Developers along Kasiya Road

The previous Committee noted the submission and urges the Council Secretary to ensure that the situation was rectified. The previous Committee awaited a progress report.

Treasury Comment

The matter remained outstanding until the re-planning of the area is concluded and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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PETAUKE DISTRICT COUNCIL a) Misapplication of Funds for Capital Projects The previous Committee is aware that the Local Government (Amendment) Act No.12 of 2014 establishes the Local Government Equalisation Fund and that 20 percent of this Fund is specifically for capital projects. The previous Committee, therefore, urges the Council Secretary to come up with a repayment plan to reimburse the money as well as increase the revenue base so that other expenses in relation to personnel emoluments could be paid. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the misapplied equalisation balance of K114, 679 was reimbursed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Prepare Financial Statements The previous Committee observed with concern that the officers in the accounts department failed to prepare financial statement for such a long period. The previous Committee finds it unacceptable that such an important activity was neglected by the officers. The previous Committee sternly cautioned the officers for the failure. The previous Committee further urges the Council secretary to ensure that all financial statements for the period under review were prepared and audited without further delay. The previous Committee awaited a progress report on the matter.

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Treasury Comment The matter remained outstanding until the Financial Statements were prepared and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Under-collection of Receivables The previous Committee noted the response and urges the Council to ensure that it collected all the rentals from the Council buildings to boost its revenue. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the rentals for council building were collected and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Lack of a Strategic Plan The previous Committee noted the response and urges the Council to expedite the preparation of an updated Strategic Plan that is in line with the provisions of the Seventh National Development Plan. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Strategic Plan that is in line with the provisions of the Seventh National Development Plan was approved and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Lack of a Procurement Plan The previous Committee noted the response and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the Procurement Plan was approved and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Lack of a Risk Management Policy The previous Committee noted the submission and directed the Council Secretary to ensure that the Risk Management Policy is finalised and put in place, expeditiously, in order to mitigate risks that might be detrimental to the operations of the Council. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Risk Management Policy was approved and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. g) Failure to Fill Vacant Posts The previous Committee is aware that the mandate to fill vacant positions, particularly those in Divisions I, II and III lies with the Local Government Service Commission (LGSC), established under Article 228 of the Constitution of Zambia (Amendment) Act No. 2 of 2016. The previous Committee urged the Council Secretary to ensure that the Commission is updated, quarterly, of the Council’s staff returns to guarantee the smooth running of the organisation. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until all the vacant positions were filled up and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Poor Maintenance of a Register of Accountable Documents The previous Committee noted the submission and thus directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that accountable documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Register of Accountable documents was availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Management of Nyika Motel

Failure to Inscribe Government Assets The previous Committee noted that contrary to Public Stores Regulation No. 154, which requires all furniture and equipment belonging to the Government to be clearly marked with distinguishing letters of Government of the Republic of Zambia (GRZ) in an inconspicuous part of the asset to identify it as a Government property, various assets for the motel did not identification marks. The previous Committee urged the Council secretary to expeditiously procure a machine for inscribing the assets. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until all the assets were inscribed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Failure to Remit Value Added Tax (VAT) The previous Committee noted the submission and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until VAT amounting to K147, 168 was remitted to the Zambia Revenue Authority and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. j) Management of other Council Properties

Failure to Insure Movable Assets The previous Committee expressed concern at the non-insurance of the Council’s properties and urges the Council to insure the properties without fail as that guaranteed compensation in the event of any loss or damage.

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Treasury Comment The matter remained outstanding until all the movable assets were insured and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

Lack of Title Deeds for Council Property The previous Committee expressed concern that the Council had no Title Deeds for a number of its properties and therefore, recommended that the Council should engage the Provincial Lands Office on how best they could help the Council to acquire its title deeds promptly. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the Title deeds were obtained and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Failure to Remit Statutory Obligations The previous Committee observes that the Councils were spending the 20 percent project component of the Equalisation Fund on non-capital projects and, therefore, strongly recommended that the Ministry of Local Government should sensitise the Town Clerks and Council Secretaries on the need to broaden their revenue bases in order to stop misapplying the Fund on non-capital projects such as personal emoluments. The Committee further urges Chipili District Council to ensure that it utilized the 20 percent capital component of the Equalisation Fund on capital projects only.

Further, the previous Committee observed with concern that the failure to remit statutory obligations may result in serious penalties and eventual loss of colossal sums of the much needed financial resources. The Council secretary is therefore urged to ensure that all statutory contributions were remitted to the respective institutions without further delay and that more revenue generation options were explored to improve the Council’s revenue base. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the statutory obligations amounting to K5, 987,983 were remitted and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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SERENJE DISTRICT COUNCIL a) Failure to Collect Revenue In noting the submission, the previous Committee urged the Council Secretary to ensure that quarterly staff returns were submitted to the Local Government Service Commission to guarantee the smooth running of the Council. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the staffing position is improved.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to Fill Vacant Positions The previous Committee observed with concern that service delivery may be affected negatively in the Council if recruitment to fill up the vacant positions is delayed. The previous Committee urged the Local Government service Commission (LGSC) to ensure that all vacant positions were filled up with competent and qualified staff without any further delay. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until all the vacant positions were filled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Lack of Strategic Plan The previous Committee noted the response and urges the Council to expedite the preparation of an updated Strategic Plan that is in line with the provisions of the Seventh National Development Plan. The Committee will await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the Strategic Plan was approved and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Failure to Prepare Financial Statements The previous Committee noted with dismay that section 43(3) of the Local Government Act, Chapter 281 of the Laws of Zambia, which requires the accounts to be prepared and certified under the hand of the Treasurer of the Council and presented to the Council meeting within six months after the end of the financial year of the Council or within such longer period as the Minister may determine has not been adhered to. The previous Committee urged Council Management to ensure that the accounts were audited without further delay and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until all the Financial Statements were prepared and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Outstanding Receivables The previous Committee noted the submission and urges the Council to continuously monitor revenue collection. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until receivables amounting to K330, 293 was collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Misapplication of Equalisation Funds The Committee observes that the Councils were spending the 20 percent project component of the Equalisation Fund on non-capital projects and, therefore, strongly recommended that the Ministry of Local Government should sensitise the Town Clerks and Council Secretaries on the need to broaden their revenue bases in order to stop misapplying the Fund on non-capital projects such as personal emoluments. The Committee further urges Chipili District Council to

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ensure that it utilised the 20 percent capital component of the Equalisation Fund on capital projects only. The Committee resolved to close the matter.

Treasury Comment The matter remained outstanding until misapplied equalisation funds amounting to K227, 988 were reimbursed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iv. Contract for the Refurbishment of the Council Secretary’s Residence The previous Committee observed with concern that the refurbishment of the house would be done using part of the Equalisation Fund. The previous Committee directed the Council Secretary to ensure that the funds were fully reimbursed and used for its intended purpose. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the total amount of K20, 850 paid to the contractor for refurbishment from the Equalisation Fund is paid back and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. a) Failure to Remit Statutory Obligations and PAYE The previous Committee observed with concern that the failure to remit statutory obligations may result in serious penalties and eventual loss of colossal sums of the much needed financial resources. The Council Secretary is, therefore, urged to ensure that all statutory contributions were remitted to the respective institutions without further delay and that more revenue generation options were explored to improve the Council’s revenue base. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until statutory obligations amounting to K2, 555,221 were remitted and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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Indebtedness of the Council to its Employees/Staff Obligations The previous Committee noted the response and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until staff obligations amounting to K3,385,853 were cleared and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Failure to Insure Immovable Assets The previous Committee noted the submission and urges the Council Secretary to ensure that in line with the Local Authorities (Financial) Regulations Part XVII No. 154, which states that the treasurer shall take out insurance cover against losses, damages, risks and liabilities, all its immovable assets. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the insurance of all immovable assets and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Failure to Insure Movable Assets The previous Committee observed with concern that contrary to the Roads and Road Traffic Act Cap 464 of the Laws of Zambia, Section 133, which required that all motor vehicles using public roads must have a minimum of third party insurance cover, but Council motor vehicles and equipment had not been insured, thereby risking loss. The previous Committee recommends that the Council, as a matter of urgency, insure the properties as soon as possible and awaits a progress report.

Treasury Comment The matter remained outstanding until the insurance cover for all movable assets is obtained and availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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n) Recreation Centre i. Outstanding Rentals The previous Committee noted the response and urges the Council Secretary to ensure that the youth club settles the outstanding bill. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the Youth club settles the outstanding bill of K8, 000 and details were availed for audit scrutiny. Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o) Failure to Follow Constituency Development Fund (CDF) Guidelines – Payment of Sitting Allowance The previous Committee observes that contrary to Constituency Development Fund (CDF) guidelines under item (16) which states, in part, that the administrative costs shall not include payment of sitting allowance, the Council paid sitting allowance to some members. The previous Committee urged the Council secretary to ensure that set guidelines were adhered to and directed the Council Secretary to ensure that the Council’s internal controls were enhanced so that financial documents were secured to avoid reoccurrence. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the enhancement of internal controls.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. p) Irregular Procurement of a Truck The previous Committee noted the submission and urges the Office of the Auditor General to use the Memorandum of Understanding (MoU) between his Office and the Anti-Corruption Commission (ACC) to ensure the matter is thoroughly investigated and a satisfactory conclusion is reached. The previous Committee awaited a progress report on the matter. Treasury Comment

The matter remained outstanding until the conclusion of the investigations by the Anti- Corruption Commission.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. q) Rehabilitation and Construction of the National Square i. Lack of Competitive Procurement of Contractor The previous Committee noted the submission and urges the Council Secretary to ensure that section 32(2) of the Public Procurement Act, No.12 of 2008 so as to avoid single sourcing contractors. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until an effective Public Procurement System is established by the Council.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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SIAVONGA DISTRICT COUNCIL

Lack of Strategic Plan The previous Committee noted the response and urges the Council to expedite the preparation of an updated Strategic Plan that is in line with the provisions of the Seventh National Development Plan. The previous Committee would await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Strategic Plan was approved and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. a) Lack of Title Deeds The previous Committee expressed concern that the Council had no Title Deeds for a number of its properties and therefore, recommended that the Council should engage the Provincial Lands Office on how best they could help the Council to acquire its Title Deeds promptly. The previous Committee would await a progress report on the matter.

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Treasury Comment The matter remained outstanding until the Title deeds were obtained and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Failure to fill staff establishment The previous Committee is aware that the mandate to fill vacant positions, particularly those in Divisions I, II and III lays with the Local Government Service Commission (LGSC), established under Article 228 of the Constitution of Zambia (Amendment) Act No. 2 of 2016. The previous Committee urged the Council Secretary to ensure that the Commission is updated on quarterly basis on the Council’s staff returns to guarantee the smooth running of the organisation. The previous Committee awaited a progress report.

Treasury Comment The matter remained outstanding until the vacant positions were filled up and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Under Collection of Revenue from property rates. The previous Committee noted the response and urges the Council to ensure that it collected all the rates from the Council buildings to boost its revenue. The previous Committee further urges the Council to ensure that it updated the valuation roll in accordance with the provisions of the Rating Act, No. 12 of 1997. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the collection of Property rates amounting to K4, 476,375 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Missing Receipt Books The previous Committee finds it unacceptable that such important documents will go missing from storage facility without a trace. The Council Secretary is directed to ensure that officers responsible for the safe-keeping of these documents were disciplined for this serious lapse and

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that the remaining receipts were located without any further delay. It also directed the Council secretary to ensure that internal controls were enhanced and the important documents were secured to avoid recurrence. The previous Committee awaited a progress report on the remaining receipt books.

Treasury Comment The matter remained outstanding until sixteen (16) General Revenue Receipts were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. h) Irregular payment of social holiday Allowance The previous Committee urged the Council Secretary to adhere to Ministry of Local Government and Housing Circular No. MLGH/101/8/4 which abolishes the payment of entertainment allowances such as social holiday and talk time allowances. The previous Committee urged the Council Secretary to ensure that stipulated financial regulations were adhered to. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the amounting paid to the former the Chief Administrative Officer and Deputy Treasurer for the abolished Social holiday Allowances were recovered and details availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i) Non-Remittance of Statutory Obligations and PAYE The previous Committee noted with concern that Contrary to Section 71 of the Income Tax Act and Section 72 of the Local Government Act, amounts deducted by the Council were not remitted to the various institutions. The previous Committee finds the non-remittance of statutory contributions to the National Pension Scheme Authority (NAPSA) and PAYE unacceptable. The previous Committee implores the Council Secretary to ensure that the programme of liquidating the arrears by monthly commitments continues to avoid the debts accruing. The previous Committee is awaiting a progress report.

Treasury Comment The matter remained outstanding until statutory obligations amounting to K8, 941,765 were remitted to National Pension Scheme Authority (NAPSA) and PAYE to Zambia Revenue Authority and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. k) Outstanding long service Bonus The previous Committee noted the response and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until Long Service Bonus amounting to K1, 229,412 is settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

I. Wasteful Expenditure on Abandoned Construction of Siavonga civic Centre The previous Committee expressed displeasure over the failure to complete the project and the waste of public funds. The previous Committee called for the recovery of the wasteful expenditure from the officers who caused the loss of the funds and resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until recovery of the wasteful expenditure amounting to K331, 084 from erring officers and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. l) Delay in Construction of Siavonga District Fire Station The previous Committee noted the response and strongly cautions the Council Secretary to adhere to established regulations and procedures at all times. The previous Committee called for disciplinary action to be taken against all officers who were involved in this irregularity. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the construction of the Fire station is completed and disciplinary action was taken against erring officers.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. m) High staff Turnover of Chief Officers The previous Committee, in noting the response, expresses serious concern over the constant transfers of key staff in the local authorities. The previous Committee called upon the Local Government Service Commission to ensure that there is stability in the staffing levels in the local authorities in order to foster efficiency and effectiveness in service delivery. The previous Committee resolved to await a progress report on the matter.

Treasury Comment

The matter remained outstanding until the measures were put in place to retain staff and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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SOLWEZI MUNICIPAL COUNCIL a) Missing Receipt Books The previous Committee is concerned that the Council cannot account for seventy-one receipt books. The previous Committee finds this unacceptable as receipt books were accounting records that were supposed to be preserved for a specified period of time in line with the provisions of Local Authorities Financial Regulation No28 (1).. Furthermore, disciplinary action should be taken against all officers who failed to secure the receipt books. In the meantime, the search for the missing receipt books should continue and the documents should be made available for audit verification at the earliest possible time. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the seventy one (71) receipt books were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. b) Unsupported Payments Vouchers- K1,244,603 The previous Committee urged the Council to adhere to the provisions of Local Authorities Financial Regulation No. 86 and ensure that all payment vouchers were always supported by relevant documents such as receipts and suppliers’ invoices. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until all the 116 payment vouchers amounting to K1, 244,603 were supported and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. c) Unaccounted for Stores- K403,216 The previous Committee noted the response and urges the Council to always keep proper records of receipt and issue stores. The previous Committee called for disciplinary action against all officers who failed to maintain receipt and disposal details, and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until the disposal documents for Stores costing K403,216 (General Stores – K257,275 and Fuel – K145,941) were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. d) Irregular Payment of Allowances The previous Committee noted the response and calls for disciplinary action to be meted out against all officers who authorised the payment of these allowances. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the recovery details amounting to K187, 649 for the Social Holiday – K66,249 and Talk Time – K121,400 were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. e) Failure to Reimburse Borrowed Funds- K105,036 The previous Committee is shocked that a Council that laments about inadequate funding could lend funds needed for service provision to the Provincial Local Government Office. The previous Committee wondered on what authority the Council lent the funds to another department. The previous Committee cautions the Town Clerk to desist from committing such irregularities and calls for disciplinary action to be taken against all officers involved in this serious irregularity in order to curb similar practices in future. In addition, the funds should be reimbursed as soon as possible. The previous Committee awaited a progress report on the matter.

Treasury Comment

The matter remained outstanding until the funds amounting to K105, 036 were reimbursed and details were availed for audit scrutiny.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. f) Failure to Deduct Tax- K549,880 The previous Committee noted the response and cautions the Council to desist from deliberately failing to deduct tax and remit it to ZRA. The previous Committee awaited a progress report on the payment of the outstanding PAYE to ZRA.

Treasury Comment The matter remained outstanding until the PAYE involving 22 officers who were paid settling allowance was remitted to Zambia Revenue Authority and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report was therefore being awaited by the Committee. m. Wasteful Expenditure on Demurrage and Storage Charges – Shaftex Zambia Ltd- K332,788 The previous Committee is doubtful as regards the veracity of the submission by the Council and wondered why the company would refund the payment if it was genuinely due to it in line with the provisions in the contract. The previous Committee, therefore, calls for a detailed investigation into this matter, and directed that all documents relating to the repayment of the

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K332, 788 be submitted for audit verification. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the investigations on the payment of K332, 788 by the Council for demurrage and storage charges and the refund of the amount by Shaftex Zambia Limited were concluded.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. n. Failure to Install Land and Property Management Information System The previous Committee observes with dismay that the Council paid for a service that has not been provided. The previous Committee finds this unacceptable and recommends that the Council should immediately initiate necessary proceedings for the recovery of the amount involved in accordance with its contractual rights. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the installation of the land and property management information system is done and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. o. Failure to follow procedure in Allocation of Residential and Commercial Plots The previous Committee noted the submission and urges the Executive through the Ministry of Lands and Natural Resources to take keen interest in and resolve the irregularities in land allocation at Solwezi Municipal Council. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until the Solwezi Municipal Council resolved the allocation of land and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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p. Irregularities in the Management of Assets i. Failure to Collect Lease Rentals – Mutanda Rest House- K350, 100 The previous Committee finds the failure by the Council to collect rentals from its leased property unacceptable and, therefore, implores the Council and the Town Clerk in particular to take their work seriously, especially with regard to collection of revenue due to the Council. The previous Committee called upon the Council to aggressively pursue this matter and ensure that the outstanding rentals were collected as soon as possible. The previous Committee awaited a progress report on the matter.

Treasury Comment The matter remained outstanding until measures to manage the assets were put in place and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Failure to Collect Shop Rentals – Kyawama Market Shops- K756, 000 The previous Committee finds the failure by the Council to collect rentals from its leased property unacceptable and, therefore, implores the Council and the Town Clerk to take their work seriously and ensure that they collect the revenue due to the Council with undue delay. The previous Committee awaited a progress report on the collection of the outstanding rentals from the shops at Kyawama Market.

Treasury Comment The matter remained outstanding until shop rentals amounting to K756, 000 were collected and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. i. Lack of Title Deeds The previous Committee noted the submission and urges the Council to seriously pursue the matter of Title Deeds with the Ministry of Lands and Natural Resources. The previous Committee resolved to await a progress report on the matter.

Treasury Comment The matter remained outstanding until the Title deeds were obtained and details were availed for audit scrutiny.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Insure Council Properties The previous Committee noted the submission and urges the onus is on the Council to always ensure that its properties were insured against loss or damage. The previous Committee resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until all properties were insured and details were availed for audit scrutiny. iii. Failure to Dispose of Unserviceable Vehicles The previous Committee noted the submission and resolved to await a progress report on the disposal of the unserviceable vehicles.

Treasury Comment The matter remained outstanding until all the unserviceable plant or vehicles were disposed off and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. ii. Failure to Fill Key Positions The previous Committee noted the submission and resolved to close the matter subject to audit verification.

Treasury Comment The matter remained outstanding until all the keys positions were filled up and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee. iii. Failure to Remit Statutory Obligations and PAYE- K25,172,411 The previous Committee observes that the Council has been deducting PAYE and other statutory contributions, but has not been remitting the funds deducted to the relevant agencies. The previous Committee finds this unacceptable and recommends that the Council should ensure that it honours its statutory obligations by implementing the measures it has put in place to remit to ZRA the monthly deductions and to also make part payments towards offsetting the outstanding

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debt in the 2018 financial year. The Council is further urged to remit the deducted statutory contributions for employees to LASF and NAPSA.

Treasury Comment The matter remained outstanding until statutory obligations amounting to K25, 172,411 were settled and details were availed for audit scrutiny.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

PART III

6. OVERALL RECOMMENDATION BY AUDITOR GENERAL

TREASURY RESPONSE TO THE OVERALL RECOMMENDATION BY AUDITOR GENERAL

The Secretary to the Treasury submitted that the recommendation made were noted and further added the following:

• That all Councils Should Obtain Title Deeds for Properties That Were under Their Custody. The Secretary to the Treasury submitted that to enhance the Public Asset Management, Government had made provisions in the revised Public Finance Management Act No. 1 of 2018 under Section 41 to regulate management of public assets and stores in the Public Sector and this is expected to resolve the issue of obtaining Title Deeds by Ministries, Provinces, Agencies and Local Authorities. The implementation of IPSAS will also compel Ministries, Provinces, Agencies and Local Authorities to obtain Title Deeds to prevent encumbrances on assets owned by Local Authorities and for the purposes of recording, maintenance and valuation of Assets.

Committee’s Observations and Recommendations

The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• That Councils should insure their assets against the risks of losses and damages. The Secretary to the Treasury submitted that it would issue instructions to all Local Authorities to insure their assets as guided by the Public Finance Management Act. However, it must be noted that although Local Authorities may be eager to insure their assets, they may be constrained by their resource envelope.

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Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• That Councils should develop Debt Management Policies in order to provide guidance on the management of the Councils’ debt. The Secretary to the Treasury noted the matter and committed to work with Ministry of Local Government to develop Debt Management Policies.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• That Councils should develop Risk Management Policies to manage the various risks that may affect their operations and internal controls that were responsive to the risks. The Secretary to the Treasury submitted that the Treasury had so far developed a Risk Management Framework for the Public Sector including Local Authorities. He informed the Committee that they were now working on the structural arrangements and implementation plan to institutionalise the said Risk Management Framework to mitigate risks of operations and weak internal controls in the Public Sector including Local Authorities.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• That Councils need to developed strategies that will enable them generate sufficient resources to sustain their operations and remove their dependence on the government funding The Secretary to the Treasury noted the matter and committed to work closely with the Ministry of Local Government to ensure that strategies were developed to enable local authorities generate sufficient resources to sustain their operations.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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• That all Councils to ensure that all key positions in their establishments were filled for effective delivery of services

The Secretary to the Treasury noted matter and informed the previous Committee that the Treasury Authorities for filling of key positions was granted to a number of Councils and the Local Government Commission commenced the recruitment processes for the positions.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

• That all Councils should ensure that its properties were appropriately managed in order to protect the properties from dilapidation. The Secretary to the Treasury informed the previous Committee that the matter was noted, and in order to improve accountability of public assets, the revised Public Finance Management Act, No. 1 of 2018 under Section 41, has outlined clear provisions for management of public assets and stores. In addition, the Treasury has embarked on reforms to migrate from accounting on cash basis to accrual based accounting through the adoption of International Public Sector Accounting Standards (IPSAS). It is expected that a number of public bodies will be using these standards by 2022.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues the matter aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

LOCAL TOUR REPORT i. The previous Committee observes that the councils had neglected to supervise the projects which resulted in shoddy and incomplete works. Further, the previous Committee observes that councils’ involvement in the procurement of materials has done more harm than good. In most cases, the materials purchased were substandard and not what is needed by the end-users.

The previous Committee, therefore, recommends that councils closely supervise projects to ensure that projects were built according to design and specifications. ii. The previous Committee observed with concern that no bills of quantities were prepared for all the projects inspected and almost all the works certified unsatisfactory.

The previous Committee, therefore, recommends that the councils should ensure that contractors prepare BoQs, showing all details for materials, parts, and labour and their costs to avoid shoddy and substandard works.

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iii. The previous Committee observed with concern the internal control lapses in a number of councils.

The previous Committee called upon Anti-Corruption Commission (ACC), the Drug Enforcement Agency (DEC) and other law enforcement agencies to fully investigate these lapses and prosecute the culprits if necessary. The previous Committee further lauds the enactment of the Public Finance Management Act, No.1 of 2018, which contains stiffer punishment for cases of financial misconduct. iv. The previous Committee noted with serious concern that no budget provision has been made in the Estimates of Revenue and Expenditure for the year 1st January to 31st December, 2018 for the audit of the 2017 accounts.

The previous Committee recommends that the Treasury should engage the Auditor General to ensure that supplementary budget and funding were availed to undertake audit of all local authorities. The previous Committee recommends that the Government should adequately fund the Office of the Auditor General so as undertake audits and verification exercises on audit queries in all the 116 councils. v. The previous Committee further observes that there is no co-ordination between councils and endusers, who were the communities, as they were not aware of projects in their areas. The councils were not involving the locals residing in the projects being undertaken.

The previous Committee, therefore, recommends that the councils should involve communities who were key stakeholders so as to fully address the needs of the communities and enhance acceptability of the projects. vi. The previous Committee also noted that some contractors had still not been paid by the councils despite completing and handing over projects.

The previous Committee urged the councils to expedite payments to the contractors.

Treasury Response The matters were noted and the Treasury shall endeavour to address the concerns of the Committee by availing funds to the Auditor General for audit of Local Authorities and engage the Ministry of Local Government and Housing to ensure that Community participation was enhanced in project management and implementation.

Committee’s Observations and Recommendations The Committee urges the Secretary to the Treasury to ensure that a committee of staff pursues all the above stated matters aggressively and provides an update and, hence, a progress report is therefore being awaited by the Committee.

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OUTSTANDING ISSUES REPORT ON THE PREVIOUS REPORTS OF THE COMMITTEE ON LOCAL GOVERNMENT ACCOUNTS FOR THE FINANCIAL YEARS ENDED 31ST DECEMBER 2011 TO 2016

MINISTRY OF DETAILS SUBMISSION OBSERVATION ACTION RECOMMEN LOCAL DATION GOVERNMENTMINISTRY OF DETAILS SUBMISSION OBSERVATION ACTION RECOMMENDATION ANDLOCAL HOUSING GOVERNMENT ParagraphAND HOUSING 35 Irregularities in the The Controlling Officer The Committee of The Committee will The matter was (35) g. ii. 2013 Purchase of Graders – submitted that the matter is Officials were availed with await the outcome of reported to the Paragraph 31 (31)Chama ( cCouncil ) (ii) Centralstill The before the Controlling courts of Law. The the Committee progress of reportThe the Committ courts.ee The matter police was reported and is 2010 Province – Kabwe Officer submitted Officialsregardi wereng the availed status ofwill the await the to the policestill and active Anti - in Municipal Council that the matter is still with matter. the progress report outcome of the corruption the Commission courts of before the courts of regarding the status of courts. and is still law. active in the Paragraph 42 Undelivered• Non-Delivery Tipper of Motor The Law. Contr olling Officerthe matter.The supplier has not The Committeecourts wi ofll law.The matter (42) z. 2014 TruckVehicles – Ndola–K55,107,000 City submitted that Council delivered new tipper truck await the remains Council withdrew the matter from as agreed in the consent implementation of the outstanding. courts by the consent judgement availed to consent judgement. judgement entered between committee of officials. the two parties in order to expedite the process of Property Masters Zambia Limited to deliver the Tipper truck worth K380,000.The Council is currently holding on to Supplier’s tipper truck which will be returned immediately he supplies the new one. Outstanding Issues Report On The Previous Reports Of The Committee On Local Government Accounts And Public Accounts Committee On The Reports Of The Auditor General For The Financial Years Ended 31st December, 2011 To 2016

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Paragraph 42 Construction of a Clinic The Controlling Officer The Committee awaits a The Committee of The matter (42) cc. ii. 2014 at Soloboni Community submitted that the progress report on the Officials to follow – remains Construction of a Construction of a Clinic at matter. up on the matter. outstanding. Soloboni Community is still at slab level. The Council has not allocated funds to the project to date because of inadequate resources to cater for various projects being undertaken.

Paragraph 42 Market Shelter at The Controlling Officer The Committee awaits a The Committee of The matter (42) cc. ii. 2014 Chipongwe submitted that the progress report on the Officials to follow – remains Construction of a Market matter. up on the matter. outstanding. shelter is still at lintel level. In addition, cracks have resurfaced on the slab

Paragraph 43 Unsupported Payments The Controlling Officer The Committee of The Committee will The matter was (43) j. 2014 submitted that the matter is Officials were availed with await the outcome of reported to the still with the investigative the progress report the courts. police and Council - K803,428 agencies. regarding the status of the Anti-corruption matter. Commission and is still active in the courts of law.

Appendix 1 - List of National Assembly Officials

Ms C Musonda, Principal Clerk Committees Mr H Mulenga, Deputy Principal Clerk of Committees (FC) Mrs C K Mumba, Senior Committee Clerk (FC) Mr A Chilambwe Committee Clerk

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Ms C K Muyunda, Typist Mr M Chikome, Committee Assistant Mr D Lupiya, Committee Assistant

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