.MWALE

By CHARITY MOONGA –

THE Public Accounts Committee (PAC) yesterday grilled Mulungushi University management for the institution’s liquidity position which worsened from net assets of K14,533,012 in 2009 to a liability of K24,030,802 in 2012.
The current ratio had deteriorated implying that the university might not be able to meet its obligations.
According to the Auditor General’s report, the current liabilities increased by K9,978,347 between 2011 and 2012, representing an increase of 25 per cent.
The committee led by Chipangali MMD MP, Vincent Mwale also took Mulungushi University to task over inadequately supported payments of K102, 303 made in the period ending December 2012.
Appearing on behalf of the university, Education permanent secretary Patrick Nkanza was also taken to task over the lack of title deeds on the land where the university water works plant and equipment were built.
The plant, which also consisted of a water reticulation and distribution system, was valued at K8,851,041.
The plant and equipment is sitting on a 40-hectare piece of land which the University claims ownership but has no title deeds.
A physical inspection by the auditors revealed that the land had since been encroached upon and permanent structures had been put up.
The land had also not been recognised in the financial statements of the university despite deriving economic benefits from it.
The committee also questioned the university for operating a filling station without approval from the Zambia Environmental Management Agency (ZEMA).
The university failed to carry out an environmental impact assessment before putting up the filling station.
The PAC further questioned Mulungushi University for non-remittance of statutory contributions amounting to K24,016,332 in respect of unremitted Pay As You Earn and outstanding penalties on pension contributions.
But Mulungushi University chancellor Professor Hellicy Ngambi told the PAC that the university had been facing financial difficulties from time of inception when Konkola Copper Mine (KCM) did not contribute the pledge of US$20 million to the university.
The Government should have also contributed the other $20million towards the university.
The mining giant instead contributed $1million in 2008 towards the university infrastructure and operations, which was far from the required amount.
She said the university in 2008 had pegged the students fees at K27 million and because of the poor infrastructure, many students withdrew from the institution and this greatly affected it financially.
She however, said that last year Government released funds for infrastructure development and works were currently on-going.
She bemoaned the shortage of water that led to the closure of the university saying that was a climate change issue, which the university had no control over, as the dam which was a source of water for the university had been drying up and all but four boreholes were dry.
The university needed K25 million to tap water from Brunelli River, which is 13 kilometres from the campus.