The Auditor General’s report on Parastatal Bodies for the financial year ended 31st December 2024 has revealed that Zambia Railways Limited recorded operating losses totalling K315.4 million over 2023 and 2024, with its financial position further weakened by persistent negative working capital exceeding K1.17 billion,
According to the report issued by Acting Auditor General Dr. Ron Mwambwa, the losses were largely driven by an ageing rail fleet and high operating costs, raising concerns over the long-term viability of the state-owned rail operator.
The report has further revealed that rolling stock valued at K447.5 million remained uninsured, exposing strategic national assets to significant financial and operational risk.
Dr. Mwambwa has also highlighted challenges across the regional rail transport sector, citing the Tanzania Zambia Railway Authority (TAZARA), which incurred US$7.04 million in maintenance costs and US$3.3 million in revenue losses following 405 accidents, most of which were attributed to operational and infrastructure deficiencies.
The Auditor General noted that TAZARA has also failed to produce audited financial statements for three consecutive years, while K71.03 million in rental income remained uncollected, further undermining accountability within the Authority.
In November this year, China signed a $1.4 billion agreement with Zambia and Tanzania to modernise the TAZARA railway linking Zambia to the Indian Ocean.
The revamp is expected to raise freight volumes on the line to 2.4 million tonnes annually from 100,000 tonnes currently.
Dr. Mwambwa has warned that the scale and persistence of unresolved audit findings point to material fiscal risks, inefficient use of public resources, and weakened service delivery.
He has called for urgent corrective action, including recovery of outstanding amounts, strengthened board oversight, improved contract and asset management, and strict compliance with statutory reporting and governance requirements.
The Acting Auditor General cautioned that failure to address these issues could erode public trust and undermine value for money in the management of public funds.
By Best Jere
