State loses K1.7bn unsettled statutory contributions

GOVERNMENT has lost of K1.7 billion from 16 parastatal companies and other statutory institutions for the financial year ending in December 31 2017 through failure to settle statutory obligations.

According to the report of the Auditor General on the accounts of parastatal bodies and other statutory institutions for the financial year ending December 31, 2017, Government was deprived of revenue through non-remittances of National Pension Scheme Authority (NAPSA) and Local Authorities Superannuation Fund (LASF) contributions.

This is said to have a negative effect on retirees as they may not get their benefits on time at the time of termination of service and according to the report, K437 million was also lost through wasteful expenditure. And in a statement yesterday, head of public relations at the office of the Auditor General, Hellen Chikale, said during the financial year, the report revealed poor financial and operational performance in most of the audited entities.

Ms. Chikale said K54 million was lost through failure to recover loans while K13 million was lost through unsupported payments with missing payment vouchers accounting for K5 million.

The report has also recorded weaknesses in corporate governance, contract management and poor financial and operational performance among others.

She said the 16 institutions that appeared in the report had either had their operations reviewed, or had their accounts audited for periods longer than one financial year.

She said there was need for ICT systems audits to comply with international standards on ICT and adopt IT policies which could guide the operations of the institutions.