The first Auditor General’s report covering the period the PF regimes has revealed that 41 so-called youth associations were irregularly awarded loans under the Youth Development Fund (YDF) totalling K1.2 million without signing loan agreements.
These are not even genuine youth associations but PF cadres their fat minister Chishimba Kambwili was giving.
Auditor General Anna Chifungula said according to the YDF operational guidelines number 6.0 and 6.1, applicants of approved projects were required to sign binding loan agreements with the then Ministry of Labour, Youth and Sport. Ms Chifungula, however, said contrary to the provisions, the loans totalling K1,274,269 were paid to the 41 youth associations during the period under review without any agreements. The report added that the ministry entered into contracts amounting to K113.2 million and that there was no authority from the Zambia Public Procurement Authority availed for audit, which made it impossible to ascertain the basis on which the contracts were awarded.
This regarded the ministry receiving K58.4 million for the rehabilitation and construction works at the National Sports Development Centre, expansion of sports infrastructure at the Olympic Youth Development Centre, and rehabilitation and upgrading of the Olympic Swimming Pool. Other works were the rehabilitation of Nkoloma Stadium and hostels and facilities at the University of Zambia. The report said in this regard, the ministry engaged 12 contractors to carry out various works and as of December, 2013, the contractors had been paid amounts totalling K62.7 million. In the estimates of revenue and expenditure for the financial year ended December 2012, a total provision of K196.4 million was made to cater for various activities at the ministry, against which amounts totalling K164.5million were released, resulting in under-funding of K31.9 million. The report added that contrary to financial regulation numbers 52 and 65, there were 185 payments amounting to K5.7 million made during the period under review which were unvouchered in that the payment vouchers were either missing or had no supporting documents such as receipts and invoices. On the non-recovery of loans and advances, the Auditor General said that contrary to the terms and conditions of service for the public service, recoveries in respect of loans and advances in amounts of K140, 000 paid to six officers during the period under review had not been effected as of December last year.