Auditor-General’s report reveals reduction in financial irregularities, unauthorized salary payments

The latest Auditor-General’s presentation on the accounts for the financial year ending December 31, 2023, reportedly shows a significant reduction in financial irregularities, from over K103 billion in 2022 to K81 billion in 2023.

Auditor-General, Dr. Ron Mwambwa, attributed this improvement to a decrease in audit findings related to uncollected tax arrears, which fell by K30.87 billion, from K97.86 billion in 2022 to K66.99 billion in 2023.

Additionally, overpayments decreased from K110.38 million to K71.83 million, and unaccounted revenue dropped from K53.78 million to K638,000.

However, the report noted increases in certain irregularities, including irregular payments, which surged from K152.45 million in 2022 to K745.93 million in 2023.

This rise was linked to unauthorized salary payments and allowances to ineligible staff across various ministries.

Other notable findings included increased revenue losses, which rose from K25.59 million in 2022 to K69.69 million in 2023, and unaccounted funds, which escalated from K388,756 to K27.30 million.

Mwambwa highlighted failures in tax collection, noting an increase in uncollected taxes from K68.91 million to K2.44 billion.

The report also pointed to challenges in revenue collection systems, which currently operate in silos, and called for urgent integration to prevent revenue leakages.

Mwambwa emphasized the need for increased resources for monitoring and enforcement, particularly in the Ministry of Mines and the Forestry Department.

Furthermore, the report raised concerns about outdated ICT systems in government projects, resulting in inefficiencies and security risks due to over-reliance on external consultants.

To address these issues, Mwambwa recommended establishing a robust revenue collection system, strengthening oversight mechanisms and enforcing compliance with government regulations.

He also called for improved procurement oversight and timely remittance of statutory contributions.

The report was produced under Article 250 of the Constitution of Zambia (Amendment) Act No. 2 of 2016.

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