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Auditor General reveals financial irregularities of over K2 billion in 56 MPAs

• 19 ministries had 9,800 unaccounted for officers who were paid salaries in amounts totaling K707, 633,806.
• 25 officers from 4 institutions irregularly drew double salaries in amounts totaling K967, 411.
• 539 teachers had their salaries changed to a higher position without authority from Teaching Service Commission.

Office of the Auditor General in its audit of government payroll for the financial years ended 31st December 2017 to 2021, has revealed accounting related irregularities in amounts totaling K2,629,735,506, citing weaknesses in internal controls.
Speaking at a media briefing, Auditor General Dick Sichembe disclosed that the audit covered the payrolls of 56 Ministries, Provinces and Agencies (MPAs) that are on the Payroll Management and Establishment Control (PMEC).
Dr. Sichembe revealed that during the period under review, 19 ministries had 9,800 unaccounted for officers who were paid salaries in amounts totaling K707, 633,806 and that as at 31st July 2022, the institutions had not yet accounted for the officers in that they were not known.
He further said 25 officers from 4 institutions irregularly drew double salaries in amounts totaling K967, 411, adding that perpetrators used two different employee numbers but for one bank account number, hence the two salaries were paid into one account.
Dr. Sichembe added that 22,485 officers in 20 institutions that were paid salaries amounting to K944,990,554 were misplaced, meaning that an officer was drawing a salary from a pay point where they are not providing a service.
He also disclosed that the audit revealed that 76 officers who had left 5 institutions without permission for periods ranging from 1 month to 5 years continued receiving salaries totaling K8, 950, 264.
“239 officers who were paid amounts totaling to K70, 305, 937 were irregular recruited by 4 institutions in that there was no appointment letters,” Dr. Sichembe disclosed.
Dr. Sichembe revealed that Ministry of Education introduced 299 teachers on the payroll who received salaries in amounts totaling K3, 056,013 without authority from the Teaching Service Commission.
“539 teachers had their salaries changed to a higher position without authority from Teaching Service Commission, resulting in excess salary payments totaling K2, 541, 327,” he revealed.
He said during the period under review, government processed net salaries in amounts totaling K95, 421, 558, 342 through the salaries control account held at Zanaco bank, but that there was no evidence to show that Ministry of Finance had performed any reconciliation on the account.
“Further it was observed that unutilized funds in the salaries account had grown by 79 percent from K42, 468, 542 in June 2021, to K75, 944, 374 as at 30th June, 2022. As at 31st July 2022, the accumulated balance in the salaries account had not been returned to the consolidate fund. Funds in amounts totaling K75, 944, 374 held at Zanaco bank could be used for other developmental programs.
He recommended that the payroll should be reconciled on a regular basis and officers that have left the Civil Service should be removed from the system in a timely manner.

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