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Inscription: Jeu 30 Juil 2009 16:48
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ZCCM-IH ANNUAL REPORTS
(a)when the Zambia Consolidated Copper Mines-Investments Holdings (ZCCM-IH) last produced its annual report;
(b)when the outstanding reports, if any, would be produced; and
(c)what had caused the delay, if any, in producing the annual reports timely.
The Deputy Minister of Mines and Minerals Development (Mr Nkhata): Mr Speaker, the ZCCM-IH last produced its report in 2007.
Mr Speaker, progress on the outstanding reports for 2008, 2009 and 2010 is as follows:
(i)2008 Annual Report – The audit work on the 2008 Annual Report is complete and it will be presented to the Annual General Meeting this month;
(i) 2009 Annual Report – KPMG have completed their audit work on the 2009 Annual Report and it is expected to be presented to the AGM this month; and
(ii)2010 Annual Report – The audit files for the 2010 Financial Year are complete and await commencement of the audit.
Mr Speaker, the delay in the production of the annual reports is as a result of the following factors:
(i)the need to fulfil the requirement of presenting investments in the balance sheet in a more accurate manner and also to comply with the changes to International Accounting Standard No. 39 (IAS39), in 2006 and the ZCCM-IH retained Deloitte and Touche to value ZCCM-IH investments in all companies in which it held shares.
The external auditors, Price Waterhouse Coopers (PWC), though initially agreeable to the valuation methodology and approach adopted by Deloitte and Touche, changed their position. This situation led to the delay in producing the 2006 and 2007 Annual Reports which were only completed in October, 2010.
(ii)the delay in producing the 2008 Annual Report is attributable, largely, to the PWC’s inability to complete their part of the process in time.
The ZCCM-IH has brought its concerns to PWC’s attention on many occasions. The continued delays on the part of the PWC necessitated ZCCM-IH’s involvement of the regulator of the Accounting Profession in Zambia, the Zambia Institute of Chartered Accountants (ZICA), in the matter to compel the external auditors to complete this exercise. This matter is still before the ZICA Disciplinary Committee.
Mr Speaker, I thank you.
The Deputy Chairperson: The hon. Member for Roan.
Mr Kambwili: Thank you, Mr Speaker …
The Deputy Chairperson: Sorry, I was calling upon the hon. Member for Nchanga.
Mr Kambwili: Ninjamba kale!
Laughter
The Deputy Chairperson: Order!
Mr Simuusa: Mr Speaker, in the absence of audited reports for ZCCM-IH, on what basis will the hon. Minister of Finance and National Planning or, indeed, the hon. Minister of Mines and Minerals Development determine the debts of ZCCM-IH from the proceeds of the sale of shares in Lumwana Mine after the deal with Barrick Gold? On what will the debts be determined?
The Minister of Mines and Minerals Development (Mr M. B. Mwale): Mr Speaker, what we know is that companies continue to operate with or without audit reports because management is in place and it takes stock of the debts that they may have. However, it is desirable that audit reports are updated so that the public is availed actual information.
I thank you, Sir.
Mr Kambwili: Mr Speaker, it is mandatory for all parastatal bodies to produce annual reports. May I know what action has been taken against the ZCCM-IH for failing to meet this obligation?
Mr M. B. Mwale: Mr Speaker, I hope the hon. Member did listen to the response we gave because we have been very categorical that the ZCCM-IH has even complained to the Zambia Institute of Chartered Accountants about the delay in producing the audit reports.
I thank you, Sir.
Mr Lumba (Solwezi Central): Mr Speaker, in his reply, the hon. Deputy Minister mentioned all the big three auditing and accounting firms, KPMG, Deloitte and Touche, and Price Waterhouse Coopers. May I know the auditors of the ZCCM-IH and who appointed them without even holding an AGM?
Hon. Opposition Member: Hear, hear!
Mr M. B. Mwale: Mr Speaker, we have clearly indicated that the ZCCM-IH has even gone to an extent of reporting the PWC to ZICA for the delay in producing the audit report, meaning that the PWC are the auditors of the ZCCM-IH.
I thank you, Sir.
Mr Mukanga: Mr Speaker, what action is taken against parastatal bodies which fail to comply with the law in as far as production of annual reports and audit reports is concerned?
Mr M. B. Mwale: Mr Speaker, if the hon. Member has issues with the management of the ZCCM-IH, he may take them there.
I thank you, Sir.