Zambia: TBZ in K2.5 Billion Loss Last Year - Report

Source from:  allAfrica.com 05/31/2012

THE 2010 Auditor General's report has revealed that the Tobacco Board of Zambia (TBZ) incurred a loss of more than K2 billion after allegedly illegally selling off six institutional houses in July, last year. The six houses whose total market value was K2.5 billion, were offered for sale at a total value of K480 million reflecting a loss of more than K2 billion. As of January this year, K340 million had been paid in respect of the six houses leaving a balance of K139 million. "TBZ board and management irregularly drew authority to sell TBZ houses from the presidential directive of April 16, 2011 which in fact did not cover TBZ houses but had Zambia Forests and Forestry Industrial Corporation (ZAFFICO), National Pensions Scheme Authority (NAPSA), Development Bank of Zambia (DBZ) and Mukuba Pensions Fund," the report reads. The report also reveals that TBZ board chairperson was paid amounts totaling K61 million as sitting allowances between October 2005 and May 2010. The report states that the payments were irregular because there were no board minutes or notices for the meeting as evidence of meetings having taken place. The report reveals that the board increased sitting allowances from K1 million to K1.5 million for the board chairperson, and from K750,000 to K1.3 million for other board members. It further reveals that K650,000 was allocated as sitting allowances for non-board members without seeking the minister's approval. In this regard, K230 million was paid as board sitting allowances instead of K102 million resulting in an irregular payments of K 128 million. On conditions of service, the report says a review of the payroll revealed that between 2005 and 2010, TBZ paid amounts totaling K321million as responsibility allowances to officers in management without approval of the board. The beneficiaries included the accountant, assistant accountant, senior tobacco inspector, regional inspectors and a personal secretary. During the period under review, management paid monthly lunch allowances to all of its members of staff amounting to K473 million without any approval from the board for payment of allowances on a monthly basis. The report further reveals that the chief executive officer for the National Housing Authority (NHA) was allegedly paid a total of K82 million as car allowances between August 2009 and January 2010 when such disbursements were irregular as they had not been approved by the board. Contrary to the procurement guidelines, procurement of goods and services involving 67 transactions were made by NHA during the period under review in amounts totalling K1.8 billion without obtaining three competitive quotations.Enditem