ZRL misapplied K4m on workers’ bonuses - 2017 Auditor General

OVER K4 million was irregularly paid to Zambia Railways Limited (ZRL) employees by management between 2015 and 2017 as productivity incentive when they did not qualify for such a payment. According to the 2017 Auditor General’s report, the ZRL management paid workers productivity incentive allowances amounting to K4, 983,792, between 2015 and 2017, when the company did not attain the prescribed haulage target for making such a payment during the stated period. The report states that the ZRL management was only supposed to pay the productivity incentive allowances to its employees upon reaching a certain budgeted haulage target in each accounting year. “During the accounting years, the institution made a lose amounting to K227, 616,000 but went ahead to pay the allowances,” the report partially reads. The Auditor General’s report further states that, ZRL in 2015 had a budget haulage target of about 1,110,000 tonnes but only manage to transport 850,957 tonnes with a deficit of a out tonnes. “In 2016, ZRL was expected to reach the target of about 1,216,000, ut managed with a deficit of 571,683 tonnes,” the report states. “While in 2017 the institution had a target of 950,000 tonnes but only managed tonnes with a deficit of 209, 280,” according to the report. However, despite the failure to meet the haulage target and the fact that the company made losses totaling K227, 616,000, the Auditor General’s report says, the company anxiously did pay K4, 983,792 of allowances. “In 2017 the institution made the losses amounting to K94, 264,000 but paid productivity incentive allowance amounting to K738, 000, in 2016 made loses of about K134, 770,000 but paid allowances amounting to K186, 843,” states the report. “And in 2015 made losses amounting to K1, 418,000 but did pay allowances amounting to K4, 058,950…In this regard, the payment of the productivity incentive allowance when the haulage target was not met, was questionable,” according to the document.