Tuesday, 5th July, 2022 – The Government, through the Ministry of Finance and National Planning and the Office of The Auditor General, has successfully completed tender processes for engagement of independent consultants for evaluation of the process related to accumulation and audit of the public domestic arrears that its various institutions owe suppliers of goods and services.
The areas of focus are Value Added Tax (VAT) refunds, fuel arrears, Farmer Input Support Programme (FISP) arrears, Compensation and Awards, Road Contract arrears, and General Goods and Services arrears.
This step, aimed at complimenting the Government’s audit efforts with the services of independent consultants, is necessitated by the urgent need to re-assess the correctness of the figures owed by different Government entities. To facilitate the immediate commencement of the auditing of the public domestic arrears – following the completion of the competitive tender process – Six (6) firms have successfully been awarded contracts, these are:
- Client Focus Solutions Chartered Accountants;
- CYMA Chartered Public Accountants and Management Consultants;
- EY Advisory Services Limited;
- Grant Thornton Associates Limited;
- Mark Daniels Chartered Accountants; and
- PriceWaterhouseCoopers
The exercise will span two months at the end of which the consultants are expected to submit their final reports.
The Minister of Finance and National Planning Dr. Situmbeko Musokotwane, MP, is pleased that the assignment to audit the public domestic arrears will not only verify the said debt obligations in relation to the processes and utilization of public finances, but also establish whether the Government obtained value for money.
The evaluation and audit of public domestic arrears will further establish: 1) the correctness of procedures used in contracting the suppliers; 2) whether certification was done in accordance with contracts; 3) whether the set provisions for penalty interests were justified; and, 4) the correctness of claims pertaining to VAT refunds, fuel arrears, FISP arrears, Compensation and Awards, Road Contracts, and General Goods and Services.
Going forward and based on this audit, the Government will continue to work tirelessly towards returning the country to a state of fiscal stability, transparency and accountability that will facilitate sustainable economic growth and better livelihoods for all the people of Zambia. The Government will in this regard avoid overcommitments that have led to arrears building-up.
Through the soon to be launched Eighth National Development Plan (8NDP), the Public Private Dialogue Forum (PPDF) and other development delivery frameworks such as the national budget, the New Dawn Administration will continue to make sincere efforts targeted at trending the living conditions of our fellow citizens towards equal opportunities, sustained prosperity and poverty reduction, on the platform of a stabilized and transformed economy that inspires improved investor confidence, facilitates more local and foreign investments, creates more opportunities and jobs, and nurtures the economic freedom of the people of Zambia.
To attain the vision, mission, goals, objectives of transforming the economy in a sustainable manner, “fiscal discipline through clearly tracked public procurement and expenditure practices will be at the center of it all and there will be no compromises or admissible lapses. We are determined to follow the path of transparent and accountable economic governance, for the good of all Zambians,” Dr. Musokotwane has said.