Claim Being Fact-Checked:
The Government is not breaking the law by diverting money from the sale of Mukula logs directly to the revamping of the Kawambwa Tea Plantation without depositing the money into the Treasury control account. – Hon Jean Kapata, Minister of Lands and Natural Resources.
On 20 February 2018, Minister of Lands and Natural Resources stated in Parliament that government was not breaching any regulations in diverting proceeds from the sale of illegally harvested Mukula logs to the rehabilitation of the Kawambwa Tea Plantation without the money passing through the Treasury Account generally referred to as Control 99. We fact-checked whether government can legally spend revenue without it first being deposited into the Consolidated Account Treasury Account.
Verification process
To verify the above claim, the ACA Fact-checking Unit reviewed the following legislation that pertains to government revenue:
Republican Constitution of Zambia 1991 (As amended in 2016):
Article 200 (1) states that there is established a Consolidated Fund to which shall be credited the revenues and other monies accruing to the Treasury.
Financial Regulations of 2006:
Article 130 states that all revenue shall be deposited to the credit of the Treasury Account (Control 99) at the Bank of Zambia, using Accounts Form 25(Rev.), six copies of which shall be completed in respect of each deposit.
Public Finance Act of 2004:
Article 15 (1) Subject to any express direction of the Secretary to the Treasury in respect of the operation of any Fund or Working Account established pursuant to section twenty-five all moneys received by any accounting officer shall be deposited not later than the next business day following the day of receipt.
Article 15 (3) A controlling officer shall not invest public funds without the written approval of the Secretary to the Treasury and details of all investments made from public funds shall be copied to the Auditor General.
Article 15 (4) Any officer who without reasonable cause fails to deposit moneys received as provided under subsection (1) commits an offence and shall be liable on conviction to a fine not exceeding ten thousand penalty units or to imprisonment for a period not exceeding two years, or to both.
Conclusion
From the legislation reviewed, it is evident that the claim made in Parliament by Minister of Lands and Natural Resources, Hon Jean Kapata that government did not break any laws by diverting proceeds from the sale of Mukula logs directly to Kawambwa Tea Plantation is FALSE. Article 200 of the constitution of Zambia which establishes the consolidated funds clearly states that all revenue shall be credit to the account. Further, financial regulations also emphasis that all revenue shall be deposited into the treasury account before any use.
Therefore, we find the statement by Hon. Jean Kapata that government can divert money without depositing it into the Treasury account (control 99) to be misleading and False!
ACA Fact Checking Unit: Building a Questioning Public.
The ACA Fact-Checking Unit is part of the EU funded ‘Speak up Zambia Project’ implemented in collaboration with the Freepress Unlimited and the House of Consciousness.