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Auditor-General’s report reveals woeful performance by 13 IDC subsidiaries (See details)


Thirteen Industrial Development Corperation (IDC) subsidiaries incurred losses amounting to over K1.8 billion in 2022.

The same companies also incurred losses amounting to over K746 million in 2021.

This is as revealed by the Report of the Auditor-General on the Accounts of Parastatal Bodies and other Statutory Institutions for the financial year ended December, 31, 2022.

The report highlighted that out of the 30 State-Owned Enterprises in which IDC holds 62.28 percent to 100 percent shareholding, only five declared dividends amounting to K61, 334, 600 and K62, 012, 587 in 2021 and 2022.

“During the period under review, it was observed that 13 subsidiary companies incurred losses amounting to K746, 984, 000 and K1, 854, 902, 817 in 2021 and 2022 respectively,” the report showed.

It also revealed that as at September 30, 2023, the IDC had not produced audited consolidated financial statements for the years December, 31, 2018 to 2022 and no sanctions were meted out on institutions that delayed in preparing their financial statements.

In addition, the report noted that eight State-Owned Enterprises had not produced audited financial statements for the financial years December, 31, 2020, 2021 and 2022 as at September, 30, 2023.

This is “Contrary to the provision of section 72 (2) (e) of the Public Procurement Act of 2020, IDC did not obtain clearance from the Attorney-General for three contracts,” it stated.

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The IDC did not provide clearance for the contracts for construction of fruit processing plant in Mwinilunga and Katete Districts at a contract sum of K62, 006, 153 which were revised by K85, 340, 834, to K147, 346, 987.

Under the report, it was noted that IDC did not also get clearance for the contract for the construction of the Tomato Processing Plant and associated works at Fig Tree in Chisamba District of Central Province at a fixed contract sum of US$4, 644, 508.66.

It was also noted that clearance for the contract was not obtained for the rehabilitation of Mukuba Hotel in Ndola District in the Copperbelt Province at a contract price of K18, 250, 654.82.

“During the period under review, the IDC had leases out for properties located in Lusaka, Ndola and Mongu however, a review of rent statements of accounts revealed that rentals in amounts totalling K5,001,895 for the period from January 2021 to December 2022 had not been collected as at September, 30,2023,” the report highlighted.

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