K64 billion plundered from Zambezi Portland

An audit by Deloitte and Touche into Zambezi Portland has found plunder of K 64.398 Billion (unrebased) or US$12.2 Million within the period May 2010 to 24 December 2012.

An interim report seen by the Zambian Watchdog and produced below shows that the money was plundered by directors of the company at that time.

The report shows that the directors would get up to K1. 4 billion per month each  beyond the generally accepted salary levels in similar companies in Zambia. K45 billion was plundered this way in the 36 months under review.

The report also shows that the payments of these monies to directors were in violation of the shareholders agreement which clearly stipulates how the profit should be shared among shareholders.

The report also found that there was massive avoidance of paying tax to Zambia Revenue Authority in excess of K284 Billion.

The report further shows that directors were paying themselves K95 million each per month  for residential accommodation. According to Deloitte and Touche findings, this money was far beyond the accepted rentals in the city of Ndola and were not approved by the Board.

K4.398 Billion were made in personal withdrawing but could not be substantiated.

K 252 Million was withdrawn from ZPC account for some work at one of the directors houses situated on Plots F/748/Y20/16 & F/748/Y20/17.

The report also shows that there was violation of the Zambia law as Payments of salaries were made in foreign currency and remitted by the Company to personal bank accounts held overseas.

The report details how, who and on what dates the money were withdrawn often in cash by directors.

See the interim report here  ZPC status update 18.4.13

 

 

 

 

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