PF spent more than $6 m public money on equipment not delivered

Govt spent $6.2m on dredgers equipment that was never delivered

The latest Auditor General Report has revealed that government through the ministry of Transport and Communication wasted US$6,271,420 (about K62,714,200) on the procurement of engineering equipment that was never delivered.

A contract was given to Chita Lodges proprietor James Kasanga Chungu who is also proprietor of MCD Civil and Mechanical Engineering to deliver 12 Dredging machines at the cost of $11.8m.

And the Auditor General has further disclosed that government was not using some of engineering equipment that was previously procured, as it was lying idle in provinces where it was distributed.

“In paragraph 40 of the Auditor General’s Report for the financial year ended 31st December 2015, mention was made of the total amount of US$9,240,370 (about K92,403,700) paid to MCD Civil and Mechanical Engineering as of November 2015 for the supply of 12 dredging machines at the total contract price of US$11,875,800 (about K118,758,000) and a delivery period of eight months from the date of advance payment,” read the Auditor General report.

“It was further mentioned that as of July 2016, the supplier had not delivered any of the dredging machines. In their Report for the First Session of the Twelfth National Assembly, the Public Accounts Committee strongly recommended that the Ministry must give the contractor a deadline by which date all the dredgers must be delivered failure to which the Ministry must fully enforce its contractual rights.”

The Auditor General observed that the supply contract had misleading information.

“A scrutiny of the contract document in 2017 revealed that specifications for the machinery to be delivered were six cutter dredgers and six excavators, not twelve dredgers as indicated on the face of the contract document. A review of the situation during the audit of 2016 accounts revealed that the contractor had only supplied three amphibious excavators valued at US$2,968,950 leaving a balance of three amphibious excavators and six cutter suction dredgers costing US$6,271,420,” stated the Auditor General.

“It could not be ascertained as to when the three undelivered excavators and six cutter dredgers would be delivered and no security guarantee was availed for the balance of US$6,271,420 being held by the supplier.”

And the Auditor General disclosed that the previously procured dredgers were not being used.

“Fifteen dredgers that were delivered during the period from 2014 to 2016, were not being utilised. In this regard, 11 were at the ministry headquarters, awaiting distribution, and four though distributed were idle,” stated the Auditor General.

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