A CLOSED door meeting was yesterday held between the donors and Zambia National Farmers’ Union (ZNFU) board and management.
Inspite of adjustments made to the draft report of over K34 million allegedly misappropriated by the institution, donors have maintained their stance to have ZNFU president Evelyn Nguleka and executive director Ndambo Ndambo removed and the misappropriated money returned and have given management two weeks in which to respond to the issues in contention.
And in a dramatic turn of events, one of the ZNFU directors has resigned following the revelation of gross financial irregularities which have engulfed the ZNFU as donors have threatened to pull out, with stakeholders calling for the disbandment of the organisation.
The meeting was aimed at ironing out the allegations as contained in the EMM Corporate Partners’ audit report and ZNFU’s subsequent decision to discredit the report and its desperate manoeuvres to lure the Zambia Institute of Chartered Accountants (ZICA) to step in the case with a view to save ZNFU’s face.
A source close to the development told the Daily Nation that the donors have however maintained that there was still need for a thorough audit of the accounts department to rid the system of any dubious activities by effecting discipline on all those found wanting.
The source said the donors have also maintained that the money in question should be paid back to the institution by those who allegedly benefited from the well-orchestrated plunder scheme by senior officers. The source said the donors were disappointed by the development and wanted all the loopholes that allowed senior management, working with some accountants to abuse their positions by engaging in corrupt activities, sealed. Meanwhile, the Drug Enforcement Commission (ECZ) has officially written to ZNFU to answer to issues raised in the audit report.
Massive misappropriation of donor funds totalling to more than K34 billion in activities bordering on fraud, tax evasion and sheer abuse of authority was unearthed at ZNFU three weeks ago.
According to a preliminary draft financial report compiled by the Swedish International Development Agency obtained by the Daily Nation, the ZNFU top management compromised presidents of the organisation and boards which were supposed to provide oversight to avoid fraud, theft and abuse of funds.
The report cites a case where close to K1 billion of donor funds were used to pay a contractor for vehicle tracking when in fact the owners of the company were a senior ZNFU official and his wife.
Apart from contracting his own company ZNFU was overbilled for the use of the tracking system for vehicles, some of which did not belong to ZNFU.
The named official also allegedly incurred more than K4 billion in several allowances including gratuity, unretired imprest and many other expenses that could not be justified in the audit.
After the report was released, ZNFU board convened a meeting in a bid to discredit the audit report where it was resolved to, among other things, compel ZICA to review the entire audit process and findings of the EMM Corporate Partners with a view to appoint an independent auditor to be agreed upon between the cooperating partners and ZNFU.
But ZICA immediately refused to be dragged into the matter through the media because it was a professional body that followed procedure, adding that ZNFU had put it in an awkward position because it was in the dark concerning the audit that had raised the concerns.
The way public money is misappropriated with impunity in Zambia is a source of worry. What is even more disappointing is that those involved in such scourge are highly educated individuals and always get away with it.
What will they do to those employees who bought mansion with 1-2 years of employment?
Like Mulenga Sata?????
THE PEOPLE OF ZAMBIA WANT THE WHOLE OF PF OUT AND ALL THE MONEY THEY HAVE STOLEN RETURNED!
Satas PF has infected the whole country with this disease of corruption and impunity that is killing us all. The LIAR that claimed he was “allergic” to CORRUPTION while holding a Bible in his hand!
His Ten Commandments forgot the “NOT” in thou shall not steal!
Zambians need to stop stealing. this attitude of plundering the Economy should be stopped. Lock them up so that others learn as well.
Mulenga Sata – WHAT HIGHER EDUCATION??? Dog catching/Breeding ka???
Ok I hear someone murmuring Engineering te?? I just need to see some evidence of this engineering – i.e. practical stuff not some Crumpled, Faded, & Needing MAGNIFYING GLASS to discern the Hieroglyphics on the so called certificate!!
Why such a woman for important institution when former Agriculture ministers, and UPND MPs can do a better job?
Ba Nostra please don’t exhibit ignorance – ZNFU is Private organisation or a club in a sense, its office bearers are elected by members- i.e. democratically – so why talk about former ministers & other useless chaps that have ruined this country??? IT IS A NON-POLITICAL ORGANISATION!!
Learn to live with the FACT that women are HERE TO STAY IN PARTICIPATING IN PUBLIC LIFE & OTHER HUMAN ENDEAVORS!!
Arrest and charge them.
Who?
The whole PF Government?
Good idea! Let us see some justice and thieving bastards behind bars. Not having them promoted to Ministerial positions!
They thought it was GRZ funds where the toothless Auditor General issues reports about misappropriation where no action is taken…please sort them out if they are guilty where is ACC??
K34 Million or K34 Billion?
Anyway, that’s just disgusting, people should be afraid, why aren’t people afraid stealing such huge amounts of money?
Because Lungu and his PF are so busy stealing themselves, they don’t care!
For them it is NORMAL!
Hogwash. You truly are hog poo. Most of those senior managers have been there during the MMD times. Remove your head from your behind and do some research before you post anything
The problem with Zambia is turning those who have stollen our money into heros. Potentila prisoners are today’s heros. How do you expect pipo to stop stealing?
@2 UPND Hero sold our companies and pocketed our money. Eba patron bampupu
@Timoth: if you and Sata were aware of the privatisation fraud, it says much about how dull you are that you could not find enough evidence in 5 years of running govt to lock up the culprit. What have you Bemba thieves been doing all this time instead of locking up those who plundered the mines? Think! The answer is stealing the Eurobonds.
#ChagwaMustFall
It’s only in Zambia where people can steal from the their own and become political leaders and end up being worship as the richest in Zambia. How do you justify a person who becomes a billionaire within 2 years of participating in a fraudlous privatisation process. Sure ba Zambia you need deserve the best of the answers.
Blah blah blah. This is sad, though some people got away with it before and are now insulting us because they say are smart. That is one reason why I will never waste my vote on any suspected plundered. Viva Chagwa Lungu, you are much cleaner than all these opposition leaders.
The person who privatised Intercontinental hotel to Sun also became it’s shareholder and boarder leader. It is only in Zambia where such dudes are called heroes and smart.
This Chagwa is the only convicted criminal of those aspiring to be president of Zambia after August. Wait a minute, this is the same dude who is an incumbent president! Only in Zambia!!
John Chinena you are dull and foolish. HH was never in government and Zambia Privatisation Agency to have privatised any company in Zambia. He only rendered a service through Grant Thornton and was handsomely paid. Whilst your chakolwa Lungu chewed a clients money.
Dr Nguleka and Ndambo Ndambo please resign.DEC should quickly move in and nail the culprits.In the meantime, the donor should suspend aid to this stupid and pointless organization which is an extension of the PF gravy train.