27 councils fail to meet statutory obligations
Published On April 5, 2015 » 1743 Views» By Davies M.M Chanda » Latest News
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By REBECCA MUSHOTA –
TWENTY-SEVEN local authorities have not remitted statutory contributions worth more than K21 million, the 2013 Auditor General’s (AG) Report has revealed.
The report said 27 local authorities failed to pay K19, 285, 803 Pay As You Earn (PAYE), K954,263 to the National Pension Scheme Authority (NAPSA) and K1,440,571 to the Local Authorities Superannuation Fund (LASF) in 2013, money which was been deducted from employees.
The councils are Mongu, Senanga, Nakonde, Chama, Mpika, Serenje, Mkushi, Solwezi, Zambezi, Mufumbwe and Kasempa.
Others are Kasama, Mbala, Mpulungu, Luwungu, Lusaka, Chongwe, Luangwa, Chirundu, Siavonga and Kitwe.
The rest are Lufwanyama, Livingstone, Kazungula, Choma, Namwala and Nyimba.
Local Government and Housing Permanent Secretary Stanford Msichili said the councils were unable to remit statutory contributions because of inadequate revenue to support increased staff cost obligations.
He said this when he appeared before the Parliamentary Public Accounts Committee (PAC) which was chaired by United Party for National Development (UPND) Choma Central Member of Parliament (MP) Cornelius Mweetwa.
“The revenue that was made was not sufficient for the councils to pay the statutory obligations. However, the ministry wishes to report that funding to all councils has been increased in line with increased staff obligations,” Mr Msichili said.
He said the Ministry of Local Government and Housing had issued a directive to all councils to ensure that current statutory obligations were paid.
Mr Mschili said the councils ought to make arrangements with the statutory bodies on how to dismantle outstanding obligations.
He also said councils countrywide received their funding from the Treasury late in the year and that the local authorities were also under paid.
Out of a provision of K448, 471,000, only K246, 494,081 was paid resulting in an underfunding of K246, 494,081.
But PAC members cautioned Mr Msichili to monitor local authorities to ensure that the little that was funded to the ministry was properly used.
Mumbwa MMD MP Brian Chituwo said there was need to appropriately use the funds by channelling them to service delivery programmes.

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