[Zambia] Non-profit’s accountant sued for diverting funds to his own accounts

The child welfare non-profit SOS Children’s Villages Zambia’s national accountant has been sued for allegedly diverting over K21 million, due to be remitted to the Zambia Revenue Authority (ZRA), into his personal accounts, Zambia Daily Mail reports.

SOS cares for vulnerable and abandoned children. The organisation is asking the accountant, Brian Mutonga, to pay the K21,949,584 PAYE that he failed to remit.

In addition, SOS reportedly wants Mr Mutonga to pay K5,385,486.67 in special damages in the form of income tax and penalties it accumulated to the Zambia Revenue Authority (ZRA). 

It says the penalties were accrued because Mr Mutonga breached his employment contract.

The organisation is also seeking payment of exemplary and punitive damages and compensation for breach of expressed and implied terms.

In a statement of claim before the Lusaka High Court, SOS said Mr Mutonga was employed on contract as its national office accountant.

It submits that the defendant’s role involved ensuring the preparation of the payroll schedule in relation to the plaintiff’s employees.

“…and ensuring that all statutory returns are effected to and submitted or paid on time.”

Sometime in 2021, SOS reportedly discovered that, from June 2015 to June 2021, in conducting his role of preparing payroll schedules, the defendant correctly input the details of respective employees into the payroll system.

“However, he fraudulently, and in clear breach of his conditions of employment, in respect of remittance of income tax, [and] PAYE to the ZRA, the defendant would input his bank account number instead of that of the ZRA,” the court document stated.

“Consequently, the PAYE funds would be remitted to his personal bank account.”

SOS reportedly submits that it received a false representation about PAYE, which was supposed to be remitted to ZRA from 2014 to 2021.

Following internal investigations, SOS asked ZRA to undertake its own inquiries through a comprehensive audit, from January 2014 to August 2021, to establish the plaintiff’s PAYE tax compliance.

Source: Zambia Daily Mail

(Quotes via original reporting)

The child welfare non-profit SOS Children’s Villages Zambia’s national accountant has been sued for allegedly diverting over K21 million, due to be remitted to the Zambia Revenue Authority (ZRA), into his personal accounts, Zambia Daily Mail reports.

SOS cares for vulnerable and abandoned children. The organisation is asking the accountant, Brian Mutonga, to pay the K21,949,584 PAYE that he failed to remit.

In addition, SOS reportedly wants Mr Mutonga to pay K5,385,486.67 in special damages in the form of income tax and penalties it accumulated to the Zambia Revenue Authority (ZRA). 

It says the penalties were accrued because Mr Mutonga breached his employment contract.

The organisation is also seeking payment of exemplary and punitive damages and compensation for breach of expressed and implied terms.

In a statement of claim before the Lusaka High Court, SOS said Mr Mutonga was employed on contract as its national office accountant.

It submits that the defendant’s role involved ensuring the preparation of the payroll schedule in relation to the plaintiff’s employees.

“…and ensuring that all statutory returns are effected to and submitted or paid on time.”

Sometime in 2021, SOS reportedly discovered that, from June 2015 to June 2021, in conducting his role of preparing payroll schedules, the defendant correctly input the details of respective employees into the payroll system.

“However, he fraudulently, and in clear breach of his conditions of employment, in respect of remittance of income tax, [and] PAYE to the ZRA, the defendant would input his bank account number instead of that of the ZRA,” the court document stated.

“Consequently, the PAYE funds would be remitted to his personal bank account.”

SOS reportedly submits that it received a false representation about PAYE, which was supposed to be remitted to ZRA from 2014 to 2021.

Following internal investigations, SOS asked ZRA to undertake its own inquiries through a comprehensive audit, from January 2014 to August 2021, to establish the plaintiff’s PAYE tax compliance.

Source: Zambia Daily Mail

(Quotes via original reporting)