Report of the Public Accounts Committee

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cvarvois

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Inscription: Mar 1 Sep 2009 16:09

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Message Mer 6 Juil 2011 22:18

Report of the Public Accounts Committee

REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON THE REPORT OF THE AUDITOR-GENERAL FOR 2008 ON THE ACCOUNTS OF PARASTATAL BODIES FOR THE FIFTH SESSION OF THE TENTH NATIONAL ASSEMBLY APPOINTED BY THE RESOLUTION OF THE HOUSE ON 24 SEPTEMBER, 2010.

Document a priori mis en ligne le 28 juin.
Extraits. Pages 37 et 38

ZAMBIA CONSOLIDATED COPPER MINE INVESTMENTS HOLDINGS PLC (ZCCM – IH)

Review of Operations

15. A review of accounting and other records for the period July, 2005, to December, 2009, revealed the issues set out below.

a) Financial Statements

The Controlling Officer attributed the delay in the completion of the financial statements to the desire by Zambia Consolidated Copper Mine IH to present a more accurate reflection of the balance sheet. Following the change in the International Accounting Standards (IAS) regarding the investments in the financial statements ZCCM-IH, contracted Deloittee and Touche (D&T) to value the holdings of ZCCMIH in all of its investee companies. Unfortunately the ZCCM-IH’s external auditors, Price Water House Coopers (PWC), did not agree with the methodologies that D&T chose for the valuation. The auditors requested the Company to recommence the exercise using a valuation methodology acceptable to them. Specifically, the methodology of the valuation required had to incorporate the ore reserves of investee companies.

A further exercise was initiated to obtain this additional information from the investee companies, who, unfortunately, said the information was not maintained by them. The Board upon the advice of PWC, resolved to revert to reflecting the investments at costs rather than at fair value.

Notwithstanding the aforesaid, the Company through the Ministry of Mines and Minerals Development had requested the mining companies in which it had invested to start preparing this information so that it could be readily available.

Secondly, the audits for the three companies ZCCM-IH, Ndola Lime Company Limited (NLC) and Maamba Collieries Limited (MCL) were conducted separately.
The audit by PWC for the holding company ZCCM-IH for example, was concluded in September, 2008. Delays in the preparations for the consolidation of the financial statements for the year ended 2008, were as a result of delays in the conclusion of the audits for the other subsidiary companies, namely NLC and MCL.

However, all the Companies in the group had since presented the information requested by the external auditors and the group was currently waiting for PWC to complete the financial statements. Further, delays by PWC had prompted ZCCM-IH to involve Zambia Institute of Chartered Accountants (ZICA) the regulators of the profession to compel the auditors to complete the exercise.


Committee’s Observations and Recommendations

Your Committee notes with regret ZCCM IH’s failure to produce financial statements as prescribed in the Memorandum of Association and Articles of Association of the Company. While noting the explanation submitted by the Controlling Officer for the state of affairs, your Committee notes that with greater determination, the Company could have resolved the query. Your Committee urges the Controlling Officer to ensure that the statements in question are completed without further delay and avail them to the Office of the Auditor-General for verification after which the matter should close.

b) Income from Investments (Dividends Receivable)

The Controlling Officer explained that ZCCM IH did not receive any dividend from Mamba Collieries, Mopani Copper Mines, Luanshya Copper Mines, Lumwana Mine and Albidon Mines Limited, during the period under review because according to Section 84 of the Company’s Act no dividend shall be payable to the shareholders of a company except out of the profits arising or cumulated from the business of the company. As at 28th January, 2010, ZCCM-IH had accumulated negative reserves, and could not legally declare a dividend to GRZ or other minority shareholders.

Committee’s Observations and Recommendations

In noting the response by the Controlling Officer, your Committee resolves to close the matter subject to verification by the Office of the Auditor-General.

c) Recapitalisation and Rehabilitation Loans –Maamba Collieries

The Controlling Officer informed your Committee that production of coal was delayed due to the numerous challenges faced by the contract miner. Further,
processed coal could not find a ready market as the targeted customers had long term import supply contracts thus adversely affecting the Company’s liquid position which necessitated the continued provision of funding towards administrative expenses including salaries.

The loans obtained by Maamba Collieries Limited (MCL) were approved by both Boards of ZCCM-IH and MCL. At the time of the audit all were still outstanding, but a request to expedite repayments had been forwarded to the new management, under Nava Bharat (Singapore) Pte Lit, the majority shareholders.

Committee’s Observations and Recommendations

Your Committee while noting the explanation submitted by the Controlling Officer resolves to await a progress report from the Controlling Officer on the status of the loans given that the Mine is now under the new management.

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bingogo

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Inscription: Jeu 30 Juil 2009 16:48

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Message Mer 6 Juil 2011 23:24

Re: Report of the Public Accounts Committee

merci cvarvois

on a là, écrit noir sur blanc, ce qui nous a été dit maintes fois depuis plusieurs années maintenant...

Les on dit sont terminé, cette mise au point est salutaire pour bcp.

"your Committee notes that with greater determination, the Company could have resolved the query."


On vient d'avoir les 2005 2006 et 2007

on devrait avoir les 2008 et sans doute plus en moins d'un an...

Ne reste plus qu'à mettre d'accord les auditeurs externes pour que les comptes soient enfin aux normes IFRS... car là on verra bien la vraie valeur de ZCCM

certainement pas 3.42 € !...
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LesCrozes

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Inscription: Jeu 14 Mai 2009 16:23

Message Mer 6 Juil 2011 23:39

Re: Report of the Public Accounts Committee

Merci cvarvois. Ce document est très intéressant.

J'ai bien souri à la lecture de ce passage :

Committee’s Observations and Recommendations

Your Committee notes with regret ZCCM IH’s failure to produce financial statements as prescribed in the Memorandum of Association and Articles of Association of the Company. While noting the explanation submitted by the Controlling Officer for the state of affairs, your Committee notes that with greater determination, the Company could have resolved the query. Your Committee urges the Controlling Officer to ensure that the statements in question are completed without further delay and avail them to the Office of the Auditor-General for verification after which the matter should close.


Au delà des excuses et explications données à de nombreuses reprises, la commission note qu'avec une plus grande détermination ZCCM-IH aurait pu résoudre ce problème.

Autrement dit le binôme Lungu - Musama n'a pas été assez pugnace. Une pierre dans le jardin de l'homme qui n'était pas un lion ainsi que dans celui de son défenseur...
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU

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