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Glaring irregularities in the sourcing of fuel supplies by the Tanzania-Zambia Railway Authority (TAZAMA) have been unearthed in the latest Auditor General’s report.
According to the audit report, TAZAMA single sourced the supply of fuel from a Tanzanian firm.
The purchase of fuel amounted to over K9.95 billion despite the deal not being supported by a valid contract.
The latest audit report, which was received in Lusaka this week, covered accounts of parastatal bodies for the year ended 31 December 2011.
The report further disclosed that TAZAMA owed the Zambia Revenue Authority (ZRA) and the National Pensions Scheme Authority (NAPSA) amounts totaling over K53 billion in unsettled Value Added Tax (VAT), Pay As You Earn (PAYE) and NAPSA remittances during the period December 31 2010 to December 31, 2011.
TAZAMA owed ZRA in unsettled VAT and PAYE amounting to a total of K34, 496, 331, 590, and K1, 823, 147, 712 respectively and owed NAPSA non remittance of annual fees amounting to K17, 363, 361, 797.
These amounts bring the total to K53, 273, 131, 317.
Meanwhile, TAZAMA’s overtime expenditure exceeded the budget provision of over K2 billion resulting in an excess expenditure of over K3 billion during the period under review.
