building for the presentation of 2017 budget in Lusaka.
Zambia Institute of Chartered Accountants (ZICA) has appealed to Government to eliminate unnecessary expenditure in the 2018 National Budget.
In a statement to Pan African Radio today, ZICA’s Taxation Committee member Victor Nyasulu has called on the Ministry of Finance to eliminate unnecessary expenditure in the 2018 National Budget in order to improve the management of Government resources.
Mr. Nyasulu who observed that the Auditor General’s Report continues to highlight excessive internal control environment and financial irregularities in Ministries, Provinces and other Spending Agencies (MPSAs), said the irregularities indicate that the country is wasteful which should not be the case for a poor country like Zambia.
Mr. Nyasulu was quick to state that the recent Auditor General’s Report highlighted irregularities among MPSAs which include flouting of procurement procedures, failure to account for stores procured, failure to undertake activities which were paid for, undelivered materials, unaccounted for revenue and failure to collect revenue due to Government.
“We recommend that in the 2018 National Budget, MPSAs should critically analyse and evaluate their expenditure needs to eliminate unnecessary expenditure and eliminate excessive administrative overheads which are spent at the expense of the stressed taxpayers and the poorer segment of our society.” Mr. Nyasulu said
Below the table showing a comparative summary of the issues contained in the recent Auditor General’s report by ZICA
| Issues | 2015 | 2014 | 2013 |
|---|---|---|---|
| K | K | K | |
| Unaccounted for Revenue | 558,449 | 3,251,333 | 1,220,260 |
| Unaccounted for Funds | 193,910 | 506,354 | 4,767,666 |
| Misapplication of Funds | 28,153,997 | 73,637,561 | 65,158,686 |
| Unretired Accountable Imprest | 12,659,892 | 12,585,194 | 8,170,462 |
| Unvouched Expenditure | 349,306,160 | 389,905,333 | 67,139,852 |
| Unaccounted for Stores | 13,460,323 | 26,400,272 | 72,371,091 |
| Irregular Payments | 115,350,860 | 26,358,488 | 14,467,146 |
| Non Recovery of Advances and Loans | 2,352,451 | 2,877,442 | 2,744,814 |
| Failure to Follow Procurement Procedures | 35,701,492 | 2,720,434 | 8,406,729 |
| Undelivered Materials | 251,523,804 | 522,904 | 19,959,462 |
| Non Submission of Expenditure Returns | 6,308,762 | 1,232,749 | 1,792,192 |
| Wasteful Expenditure | 39,854,959 | 8,354,290 | 354,939 |
| Overpayments | 26,559,013 | 1,578,571 | 360,684 |
| Misappropriation of Funds | – | 4,767 | 44,500 |
During the period under review, the trend of irregularities raised had remained similar to the previous two (2) years. However, the Report on the Audit of the Accounts for the Financial Year 2015 shows an increase in some areas such as Undelivered Materials and Irregular Payments compared to the previous years. Although unvouched expenditure remained the same, it remains an area of high concern as it makes it difficult to ascertain the authenticity of expenditure incurred.
As seen from the above information from the Auditor General Reports for 2013, 2014 and 2015 there is mismanagement of government funds.
“Eliminate unnecessary expenditure and eliminate excessive administrative overheads which are spent at the expense of the stressed taxpayers and the poorer segment of our society…”
STOP UNNECESSARY GLOBAL TROTTING ,,,,,,,,…………..
Monkeys in a maize field would sooner let go of maize cobs on this advice than lungu and his criminal organisation would stop pilfering tax money.
It takes ZICA to make this sensible statement, where is the opposition UPND? Busy sleeping and dreaming of allowances and gratuity for their MPs. When some of us condemn the opposition we are condemned by their supporters, they never bring out issues and only jump to sensational sound bytes. The govt spends too much on top govt officials as well as top directors in govt institutions such as RDA, Zicta, ERA and govt parastatels such as Zesco, ZCCM – I can tell you each top govt officers if you are to include the vehicles they are given, housing allowances, overseas travel costs, salaries. Kids University fees etc these guys walk away with an average of USD500thousand to USD1million over a 5 year period and when you add up how many they are we are talking about over a USDbillion being spent…
USDbillion being spent on these fat bellies! May God Judge them accordingly!
…Correction ERB not ERA
Really the summary is- we can save billions by not spending money on people who are already rich!
i think there is sense in this ZICA story
eliminate we cry as Zambians, manage the resource well, these mismanaged funds can develop infrastructure
It is not mismanagement if public funds. It is called theft of public funds. MInisters and their PS are in the forefront, the rest of public servant follow. This has been happening in many dictatorship; the president asks the minister of finance for $5 million; the minister asks the PS to get $8 million dollars; the PS gets $10 million from central bank, but the president gets his $5 million, meanwhile $10 million or more left government coffers. This is a Real story!
The Office of the Auditor General is quick to show us the glaring irregular payments for the years under review but they do not tell us what happened to the culprits who made those irregular payments. At the end of the day it becomes an academic exercise
No kwenda kwamungulu must stop. The money could be used to pay civil servants.