WASTEFUL EXPENDITURE,LOSS OF PUBLIC FUNDS
CABINET APPROVES REPOSESSION OF MINISTERIAL LUXURY VEHICLES
By Amb. Emmanuel Mwamba
A Cabinet Meeting held on April 24th, 2023 decided that the purchase of Ministerial Permanent Secretaries, and State-owned Enterprises CEO luxury Vehicles, be repossed and sold off.
Since 2021, Government approved and bought luxury 4X4 vehicles for Ministers, Permanent Secretaries, Constitutional Office holders and others as part of their conditions of service.
In an official circular No.4 of 2023, Secretary to Cabinet has since ordered Secretary to Cabinet, Permanent Secretary, National Coordinator-Smart Zambia, all Chief Administrators in the Judiciary, NAPSA and all Secretaries to Service Commissions and the Anti-Corruption Commission to comply.
The purchase of these vehicles was approved by the President and Cabinet under the Appropriation Act. Further the purchase of these vehicles were so approved by Cabinet and Parliament through suppmentary budget.
However the disposal of state assets is regulated by Article 210(2) of the Constitution, the Public Service Financial Management Act of 2018, the Public Stores Act, including the Public Asset Management Policy and other laws.
Like the presidential jet, it will be difficult to sell the vehicles for many reasons including the issue that the assets are serviceable and remain in good condition.
The laws call for disposal of unserviceable, obscelent and obsolete assets and equipment. These are almost brand new assets but can only be sold at a huge loss to government as showroom assets immediately depreciate in value immediately they are taken out for use.
So while President Hakainde Hichilema appears prudent in this matter, it is a mere public stunt and grandstanding as these assets were bought after his approval and government will incur significant financial loss.
