Lusaka Provincial Administration has failed to explain to the Public Accounts Committee the failure to not follow procedure before disbursing loans amounting to 3 million kwacha to 29 youth groups in seven districts.
According to the Auditor General’s report, contrary to the guidelines, the loans disbursed were not insured by the borrowers.
In responding to the query, Lusaka Province Permanent Secretary, Robert Kamalata says it was not indicated in the guidelines that they needed to insure the loans.
He says although it is regrettable, the guidelines had a lot of gaps.
Public Accounts Committee Chairperson Warren Mwambazi had to send back the Permanent Secretary and his team to put their house in order with relevant documentation on another day to respond adequately to the queries.
During the period under review, the Provincial Administration received 3 million kwacha from the Ministry of Youth, Sport and Arts for Youth Loan Empowerment project in seven districts.