Govt tightens bolts in contracts scrutiny

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Gov’t tightens bolts in contracts scrutiny

TO AVOID wasteful expenditure through penalties and interests on contracts, all such agreements will be submitted to the Ministry of Finance and National Planning before they are signed.


Secretary to the Treasury Felix Nkulukusa says it is unacceptable for ministries and spending agencies to accept interest as high as 18 percent per


month on delayed payments for contracts.
The latest Auditor-General’s report has revealed that wasteful expenditure on contracts increased from K3.7 million in 2019 to K1.4 billion in 2020 in penalties and interests.


The K1.4 billion included K856 million which the Ministry of Finance paid as interest and penalty on a contract between Food Reserve Agency and Advance African Solution.- Zambia Daily Mail

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