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Foreign Affairs misapplies K2m

…from China for conference hall

Story Highlights
  • The report indicates that China gave the money to Zambia for the construction of a conference hall at the ministry headquarters, with a condition that China Civil Engineering Construction Corporation (Zambia) Limited would be engaged to do the works.

By PETER SICHALI
OVER K2 million released by the Chinese government for the construction of a conference hall at the Ministry of Foreign Affairs has been squandered, the Auditor General’s report has revealed.

The ministry had misapplied the funds on unrelated activities such as air tickets, subsistence allowances and stationary.
The report indicates that China gave the money to Zambia for the construction of a conference hall at the ministry headquarters, with a condition that China Civil Engineering Construction Corporation (Zambia) Limited would be engaged to do the works.
It also indicates in August 2017, K2,598,418 was received from China and deposited into the Third Party Account for the Ministry.
Zambia was to provide counterpart funding of K1, 180, 207.
The AG’s report disclosed that the site possession certificate was signed on August 30, 2018.
On October, 23 2018, the contractor requested for an advance payment of K944,656 VAT inclusive which was not paid as the ministry had misapplied the funds on unrelated activities such as air tickets, subsistence allowances and stationary.
The report disclosed that a physical inspection of the site carried out in July, this year revealed that only site clearing had been done.
“On 3rd August 2018, a contract was signed between the Ministry of Foreign Affairs and Messrs China Civil Engineering Construction Corporation (Zambia) Limited for the construction of the conference hall at a contract sum of K3,778,625, VAT inclusive with a completion period of six (6) months ending on 2nd February 2019,”The reported states.
The report also states that the scope of works included design, excavation earthworks, substructure, super structure, roofing, carpentry, joinery and iron mongery, plumbing and electrical installation, flooring, wall and ceiling finishing and painting and decorating.
According to the report, the execution of the works could not commence as the funds were only reimbursed in September last year.

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