Seven arrested over Global Funds Medical Store theft-Health Minister

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Health Minister Dr Chitalu Chilufya
Health Minister Dr Chitalu Chilufya

Health Minister Dr Chitalu Chilufya has revealed that seven suspects have been arrested over the theft of drugs and medical supplies at Medical Stores valued at US$ 1 million.

And Dr Chilufya has lashed out at social media bloggers who have criticized government over the scandal and described them as rumour mongers who lack effort in finding out the truth.

Addressing a media briefing in Lusaka yesterday, Dr Chilufya said seven suspects have been apprehended, some of whom where employees of Medical Stores Limited over the scandal.

Dr Chilufya said a further two Congolese nationals, have also been arrested and that they are appearing in the courts of law.

The Health Minister also disclosed that existing security contractor was terminated and a new one engaged and that the Zambian Police Service has been deployed at all Medical Stores Limited Warehouses in Lusaka.

He said all high value products are under kept under stringent lock and key and retained in severely restricted areas.

Below is Dr Chilufya’s full statement

Press Briefing Statement On The Collaborative Initiative Between The Ministry Of Health And Global Fund, To Provide Enhanced Security Of Commodities At Medical Stores Limited.

10th May 2018

Minister of Health Hon. Dr. Chitalu Chilufya MP. MCC

Members of the Press, Ladies and Gentlemen,

Welcome to this press briefing

The purpose of this briefing is to inform you, and through you, the great nation of Zambian, about our ongoing health systems strengthening collaboration, with our Partner, the Global Fund.

The social media has in the recent past days been awash with inflammatory stories purporting that the Ministry of Health has been discovered to have been responsible for massive thefts and losses of Global Fund supported commodities at Medical Stores Limited (MSL). This is an old story that has been very decisively dealt with proactively, both at Government and Institutional level.

The social media that is not informed and alert has noted a recent publication of an old activity that covered the period 2014-2016 and amplified it as “Breaking News”. This is simplistic rumour mongering that reflects a lack of effort in finding out the truth.

The Global Fund is a very strategic partner for the Government of the Republic of Zambia in public health investments to end epidemics in HIV/AIDs, TB and Malaria. Programmes supported by the Global Fund have contributed to a radical reduction of malaria deaths of up to 70% between 2010 and 2015 period.

Further it is appreciated that Global Fund investments in HIV/AIDS have contributed to reducing HIV Prevalence to the current 11.6%. Through the support of Global Funds, PEPFAR and other key partners Zambia has built one of the largest public health supply chains in Africa that has contributed to increased availability and access to key public health commodities.
Investments in commodities and supply chain for HIV/AIDS, Malaria and TB are now in excess of US$140 million.

Much of the supply chain of the commodities is handled by Medical Stores Limited, which is a key public health institution responsible for equitable distribution of Essential Medicines to the Zambia people.

Distinguished members of the press, Ladies and Gentlemen

In October 2016, as part of collaborative transparency with Global Fund in the management of supplies, The Government through Ministry of Health commissioned a surgical investigation following intelligence reports of a highly organised crime cartel involving a few MSL employees and Congolese nationals in the diversion of public health commodities from the supply system.

This information was shared with the Global Fund which in the true spirit of partnership availed an external, conflict of interest free and objective forensic audit covering the period 2014 to 2016 to assist quantify the risk, as well as identify the suspected losses in the supply chain system.

Ladies and gentlemen findings from Global Fund forensic audit that Government proactively initiated, covering 2014 and 2017 have uncovered losses that include:

Finding 1. 5,790 HIV test kits valued at US$416,379 (7.5% of total Global Fund-financed kits delivered between 2014 and 2016)

Finding 2. 67,967 bottles of antiretrovirals (ARVs) valued at US$423,209 (2.6% of total Global Fund-financed ARVs delivered between 2014 and 2016)

Finding 3. 11,442 artemisinin-based combination therapy packs (ACTs) valued at US$214,486 (2.4% of total Global Fund-financed ACTs delivered between 2014 and 2016)

Finding 4. 2,521 malaria rapid diagnostic test kits (MRDTs) valued at US$10,714 (1.7% of total Global Fund-financed kits delivered between 2014 and 2016)

Finding 5. Weak internal controls in systems at MSL that put products at risk of diversion.

Members of the Press, ladies and Gentlemen

Allow me to remind the nation that His Excellence the President of Republic of Zambia Mr. Edgar Chagwa Lungu has set a tone for zero tolerance to thefts and diversion in the public health supply chain system. The Head of State has issued severe warnings to Health Workers and he has been consistent at different for a on the need to uphold values of integrity and being upright in the discharge of Public service.

Investments in health come at huge sacrifice by taxpayers, both local, and those from the brotherly nations and institutions that give a helping hand, and cooperate with us as partners and therefore as a responsible Government, we could not sit idle when there was evidence of unscrupulous behaviour resulting in loss of resources.

Members of the Press, fellow citizens

Ladies and Gentlemen, arising from these findings, And in the spirit of the Directives Given by His Excellency the President, Government swiftly made a decision and instituted disciplinary removal of the leadership and Management at MSL. Seven suspects have been apprehended, some of whom where employees of MSL. A further two Congolese nationals, have also been arrested and are appearing in the courts of law. Further decisive action has included the following:

1. The existing security contractor was terminated and a new one engaged; additionally, the Zambian Police Service has been deployed at all MSL Warehouses in Lusaka. All high value products are under kept under stringent lock and key and retained in severely restricted areas.

2. The Ministry of Health, with all its supply chain stakeholders conduct joint weekly cycle count activities to improve transparency and visibility of the system

3. Government, working through the New MSL Management has developed a Whistle Blower Policy and revised the MSL Human Resource Handbook that strictly guides staff behaviour and practices. In this vein, the Zambian Public are being requested to report any unauthorised activities to the leadership at MSL and The Ministry of Health.

4. All new MSL trucks have a warning that states “This truck is carrying medicines for the people of Zambia. Report any suspicious activities on the this truck to MSL”

5. Government has included the Drug Enforcement Commission, ZAMRA and Police in safeguarding stewardship at MSL. A dedicated task force to investigate corruption and theft at MSL has been established that acts on inter border diversion activities.

Country men and women, members of the press, as a result of the reforms the Ministry of Health has instituted at MSL, wastage of supplies has reduced by more than 95% and indeed for the first time in MSL history there is Zero expiry of ARVs in 2018.

I wish to clearly state that the Government investigations instituted at MSL will continue until all culprits to this crime are brought to book.

There will be no sacred cows in this process as we create a clean and credible MSL as part of the Health Service Deliver pillars in Zambia. I wish to call on the Public to protect what is theirs by taking advantage of the Whistle Blower policy in place to report any suspicious activities in the supply chain to relevant authorities.

Ladies and Gentlemen

The emphatic and decisive actions and reforms implemented by the Government at MSL have been hailed by the Global Fund through a statement from their Executive Director who in the Global Fund Audit Report has stated and I quote “After discovering the problem, Zambia’s response to the losses at MSL has been exemplary.

Since this issue came to light, MSL changed its senior management and co-operated fully with the OIG investigation. It implemented enhanced stock controls and security arrangements. New management also strengthened its internal audits and developed a whistle-blower policy.

The Global Fund initiated support to a multi-agency national task team, which conducted high-profile investigations and enforcement operations that led to arrests associated with an organized cross-border crime network targeting MSL.

Seven people, including former employees of MSL and two foreign nationals, have been taken to court.

The Zambian authorities continue to investigate. The Global Fund is working with stakeholders in Zambia to review and strengthen physical security systems at MSL and its regional hubs and has agreed with MSL and the Principal Recipient, the Ministry of Health, on specific management actions to address gaps identified during the investigation”.

This information is widely accessible on the Global Fund Website, and I therefore urge all Zambians, to maintain patriotic values, and not shoot from hip, on issues that may injure our relationships with strategic partners such as the Global Fund. What gains does amateurish reporting and writing and commentary will it benefit any Zambian, when we put lives at risk by tarnishing our own image? Let us all be serious.

As I conclude, I want to assure the Zambian people that the supply chain for Malaria, TB and HIV commodities is intact, and all our Partners are solidly with us in their steadfast support. We shall continue as Government to provide the steady hand on our stewardship role, to ensure that the health of all Zambians is not only maintained, but enhanced in order for us to build a nation of productive and healthy citizens, that shall see the fulfilment of the vision Zambia 2030.

The results of what happen, when we work together, are abundantly manifest, and in this I must thank the whole fabric of our society, for coming together to this day, when we are reporting zero cases of Cholera, from the epidemic that recently confronted us.

I thank you.

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75 COMMENTS

    • Radio Phoenix, could you seriously look into the breaking reception every time there is “Let The, People Talk”. It can’t be a coincidence, other programs run smoothly.

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    • There is a lot of self preservation in the government Bwana Minister you dont have to be the thief yourself but this happened under your watch for over 2 years …and for you to say this is an old issue that has already been dealt with shows how much you desperately want to make it a non issue now. You cannot expect citizens to take this lightly and u need to appreciate when the “blow” it out of proportion in the media 🙁

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    • Robbing your own house is the most sick and vile of acts. Only Africans can engage in this sort of behavior. Forever cursed to a mediocre and self sabotage puny existence.

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    • I remember when people found out that FTJ was stealing, everyone with access to money or valuable goods would loot & flee with entire family to USA or RSA. Bank tellers, Supreme furnishers, Shoprite workers stole millions due to having a thief in State House.

      This is what is currently happening. Everyone knows Lungu & those close to him are stealing through Chinese loans/contracts. During run up to 2016 elections, over $2 Billion was borrowed but was never declared to Treasury. That’s why today Govt can’t reveal Zambia’s real debt. But nothing stays hidden on this earth.

      – Malawian drunkard is stealing
      – His daughter is now the richest zambian woman from corrupt activities
      – ministers are stealing
      – Civil servants are stealing
      – Even judges are corrupt, selling cases to…

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    • CLOSING THE STABLES AFTER THE HORSES HAVE BOLTED?
      MINISTER WHERE WERE THE SYSTEMS?

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  1. No mention of how we’ll pay back the $1m? From Tax payer’s or recovered assets of the thieves once convicted? I find the tone of this Chilufya so condescending. Citizens have every right to point out wrong things especially when they stand to pay back money stolen by a few. In any case, if you are on top of things, why didn’t you inform the nation when theft initially took place?

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    • I absolutely agree with you boss. Plus I find this minister absolutely dull and always misleading people with things that don’t matter.
      In this straight forward issue, Chilufya is deliberately trying to confuse people and the donors with a lengthy policy statement which shows how ignorant he is even if he is the minister in charge.
      First of all, he can’t even quote the cases or case which in court regarding this theft – fair to say there is none and this a song for calming down donors and is going nowhere.
      Secondly, there has not been an overhaul of the management staff at MSL and I know this for a fact. The Directors and middle management staff are all still. Only a few people that have left for other jobs or green pastures have left – again the point is to cover wool on the eyes of…

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    • Contd…..
      Thirdly and sadly, Chilufya is one of the main people implicated in this theft t so he is trying to cover up everything. That theft is in millions and is not a low level but top level theft.
      Fourthly, this theft only covers drugs and products funded by the Global Fund but even more products and drugs funded by Govt have stolen. Chilufya doesn’t mention them because he is covering th3se easily since donors don’t need to know about them. Chilufya is a big big thief and has built mansions from the stolen money. Nobody pays attention to drugs but they are highly valuable. The only way to end thieving is to move Chilufya or fire him but Lungu wouldn’t do that.

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    • Because he thinks he is working in his grand father’s farm and rightly so because nothing will happen to him. He knows that Zambians just talk and take no action. The Auditors General’s office also has to be queried for allowing the scam to go on for too long.

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    • He will side with the minister and herein lies the problem in some serious country this chilufya guy would be in serious Schiit

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    • The president (Lungu) not too long ago encouraged public workers to steal with impunity, “ubomba mwibala alya mwibala. Lungu always defends thieving ministers and this idi0t Chilufya is trying hard to make a no issue of this an acceptable abuse and theft of public resources. What a country!

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  2. The biggest problem is finding 5. Weak control systems. It is a huge problem in GRZ. When controls are weak, anything is possible:abuse of govt. vehicles, employing unqualified teachers, ghost workers etc.

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    • There is dire need to bring in expatriate workers in the civil and quasi government service. There is a growing tendency of monkeys-in-the field in Zambia today- this business of find-evidence-first has ruined everything! Mr Lungu for once can’t you be ruthless enough and start whipping these chaps!

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  3. Thank you Honourable for having arrested some suspects so far and for having replaced management at MSL. The question is, supposing GF did not bring out this, were the latest development like replacement of management going to take place? Of course not. It has to take the owners of money to complain for you and your team to take action. This is the same thing with Kapoko issue, Sweden had to threaten us by stopping funding your ministry and that is when you reacted. Finland also complained the way ZNFU abused the money (over $40m) which later led to losing some senior officers some are even dead now. What is wrong with us? GF has demanded full refund bcoz of this carelessness. The social media did not start it, it is the same GF and people took advantage of social media to make comments…

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    • Read this part again “In October 2016, as part of collaborative transparency with Global Fund in the management of supplies, The Government through Ministry of Health commissioned a surgical investigation following intelligence reports of a highly organised crime cartel involving a few MSL employees and Congolese nationals in the diversion of public health commodities from the supply system.

      This information was shared with the Global Fund which in the true spirit of partnership availed an external, conflict of interest free and objective forensic audit covering the period 2014 to 2016 to assist quantify the risk, as well as identify the suspected losses in the supply chain system.”

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  4. It would appear one of the weak points identified is when the products are in transit on the trucks, but the solution implemented on the trucks with the warning stickers sounds too simplistic. Why not use tracking devices with gps and temper proof seals on the doors replaced after every designated approved dropped off?

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  5. And we have to pay more Taxes through Natiinal Health Insurance Scheme to fund your theiving appetite! NHI should be repealed.

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  6. All thefts and planned thefts are part of the armaggedon being executed by a certain opposition party. I have told you before that even the the corruption in government, 75% of the culprits are the same armaggedon group. They dont just specialise in tribalism but a whole menu of destructive tactics, and they srand on anthills and pontificate. Even the ambulances fire engunes, just check the names and political affiliation of the controlling officers!!

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    • Please give us a few examples, it sounds interesting. it could be organised crime with an ingredient of sabotage if your allegations can be proved.

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  7. The Minister’s tone in this address is weak. It is a defensive tone and one that slyly supports theft. The first few paragraphs of the address give the impression that Minister sympathises with the thieves/theft. “Nchenzi inanva mau oyamba”, a Nyanja proverb which says that the inclination of a person are in the first few words they say.
    None of the measures taken address white collar crime, apart from removal of top management and a few employees. Changing the security company and police presence do not address white collar crime. Labeling the trucks sounds like a cosmetic measure, which has got very little meaning in the context of the problem.

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  8. A friend wrote that until he saw the sticker on the car that the driver of the car in front of his was actually a disabled person, he had been hooting annoyingly for him/her to give way. Equally in people there are invisible stickers of various types which we can only see when we are patient and not rush in our quest to know them. Once known, one has all the support of findings to act accordingly. A job well executed I must say. Foolishly like the alarm was raised by these prophets of hate some are still posing unnecessary questions.

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  9. Sorry if the language is hardened and can only add to say do not rush into spreading what you might think is news until you have checked the facts. The damage done may be so costly to reverse.

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  10. Congolese were involved? I’m not surprised. …very good market in the DRC for Zambian products.

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  11. Ministries of Agriculture, Education and Health are reported (by Auditor-General) as the worst ministries in terms of utilization of public resources. The fact that Kapoko’s case is not even conclusively dealt with, means that no preventive action (against other potential thieves) has been taken. People are being deprived of affordable medical care because of these thieves who make a kill out of the suffering masses. Let us be seen to be caging such thieves decisively so that lessons are learnt.

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  12. We cannot be seen to downplay the magnitude of the impact of such a scandal which involves human lives, local and international tax payers.
    The media should continue to uncover such scandals. Whilst the minister implied that the media should seek correct details first, the fact remains that we did not know until recently of what exactly transpired. Not until the media reported to the public. The Minister’s first words seemed to take a swipe on the media. I think the first sentence should have thanked the media, perhaps with a little caution on the need for reporting accurately.

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  13. We no longer have a civil service, if they are not partisan and leaking govt information to the politicians they support, then they’re stealing. They are lucky because the delayed 2nd coming of Jesus Christ accords them chance to repent their sins and change their ways. It will be embarrassing on the day of judgment to discover that no Christian from the Christian gets into paradise because of theft of public funds and resources, and in bracket of those destined for gehena will be included the people that proclaimed Zambia a Christian nation

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    • It sounds like they are doing both. They are stealing and at the same time leaking govt information to the politicians they support.

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  14. it’s are shame to know that we have being getting expired drugs without the leader we choose protecting us.

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  15. I hope such an offence which directly relate to threats on human life are non-bailable

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  16. upnd cadre – For once be objective. If there are opposition people sabortaging, why hasn’t your minister reported that? Instead he is just saying that they have arrested seven people. Who are those seven people? You are just making your party look very foolish and disorganised by coming up with such allegations. What about those Congolese being mentioned are they also opposition. Very dull.
    Mr. Minister arrest those chaps and wait for turn over those over priced ambulances.

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  17. It’s a free for all under lungu……hell , lungu himself does not even deny that he is a corrupt theif…..monkey see monkey do….

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  18. Well spoken Mr Minister.As citizens of our beloved country regardles of our political affiliation , we must be alert to such vices.it is equally our responsibility to safe guard our national assets.we dont need to be armchair critics but work together and offer sensible solutions to the effort of the Government. Finger pointibg and blaming others will not help anyone.i send my peace and love to all zambians ,within and outside the country.To the whole of Africa i send peace and love .Lastly to the whole world and the human race.stau positive.love you all.

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  19. So it had to take outsiders to raise the alarm for the government to act?This chilufya guy is an ***** and so is the entire government.There is no policy direction,they just wake up to the tune of the day.
    CRY MY BELOVED COUNTRY.AFRICA TWASEBANA!

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  20. It has to take a funder to raise the issue for there to be ‘action’? When the auditor-general’s office has raised numerous misappropriation of funds over the years, (as someone pointed out above) hardly anyone has been arrested for the same. This case is a tip of the ice-berg.

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  21. In a christian nation, why under lock and key. We should have been leaving in houses with no burglar bars and the cops should have just been symbolic. It is like we Zambian are bent on stealing.

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  22. Had it been not for the media to reveal this issue, the matter would have been concealed time indefinitely. Iam compelled to ask therefore.Are we having a kakistocracy kind of Government?Are our leaders myopic not to see the dangers unfolding.Measures would have been put in place a long time to prevent this pilferage from occurring.Our leaders have the propensity and proclivity for being reactive rather than being pro-active.Police has since been deployed now after the loss .I think this is a counterintuitive response.Let our leaders and those in relative authority have foresight to prevent such incidents from happening .Scandals at Medical stores are now ad nauseam ’cause this is not the first time.This is a malady that needs an euthanasia before it exacerbates at the institution.I hope…

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  23. Its the President to blame why does he keep such ministers? Fish rots from the head.

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  24. Very disheartening to read some comments from some bloggers who have a tendercy to politice everything.
    The civil servants involved in this theft are not politicians but exparts in their field involved in the day to day running of their departments.Of course we are all aware that these ministries are headed by goverment heads.But does this necessarily mean that their theft is a gvt theft?It is possible but not necesariry!
    In most cases it is individual civil servants involved in these shoddy deals to take advantage of their position enriching themselves at expense of masses.
    This has been a very common concept in Zambia for very long,long time.
    So lets be real and stop blaming the goverment of the day of everything.individual heads of goverment can not competently
    monitor each civil…

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    • GRZ should lead by example…….for those in power , being accused of being a corrupt theif should be taken as a joke.

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  25. Continued!!
    Individual heads of the goverment can no competently monitor these civil servanta who exparts in theri fields.It can not be done and will never be done competently.They can very easily falsify, cover etc their tracts.
    Some bloggers who see everything through the political critical eye risk to be
    become irrelevant,childish and foolish.
    Let us call a spade ,a spade.
    Stealing by workers happens every where in the world where workers succumb to the lust of the eye.
    And if its not stealing its people asking for sexual favours etc in their position to vulnerable people/etc as we have seen in the western world where whole institutions have collapsed after exposure.

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  26. There should be strictly security measures at each point in the supply chain , lack of transparency and accountability , This shouldnt be happening at all.

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  27. You can introduce as much security as possible and that is critically important.It may or may not minimise any theft.The exparts will always find a way of getting round things.Inside theft is very difficult to deal with.Anything that involves a greedy human heart is impossible to diligently stop.But at end of the day intergrity is the most important safe guard.
    A wife/husband/child can be under guard 24hrs but if any is bent on doing evil they will find a way.So YES theres need for security to improve but you cant beat INTERGRITY.
    We need people people of intergrity to run these institutions from cleaner to the top.
    Good luck if that can be achieved.
    That is why we need to be objective rather than political when discussing such srnsitive matters.

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  28. In zambia, if you dont steal you are labelled a fool. The people tjat stole those thing were the keeper of the key to the safe, in colaboration with those in charge of security. The head of state says eat from where you work. And you fantacise that the thefts will end?

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    • It is not a matter of showing power but the minister taking responsibility for the scam by resigning. Chilufya should have been fired or resigned a long time ago. What is he still hanging around for if he cant resolve the problem even after 2 years since?

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    • They are only showing power for fear of losing free donations……if it was tax payers money they would not care..

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  29. #31.1 Spaka lilo, I hope you know that by saying “those in power” you actually mean the controlling officers in government. As you are aware Zambian government is not President Lungu or Chitalu Chilufya, it also includes the majority who are upnd, PF, and a bit of others. And upnd civil servants have an extra incentives to steal, i.e. to embarrass the government which they call “PF”, to the benefit of their god, but that god will burn in hell like pig fat when the time comes for him soon.

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  30. Ba upnd, you will go down disastrously with what you are trying to do to this country which belongs to Zambians. All for selfish individuals holding their blind followers to ransom? Threatening even their people with armaggedon, the way they did to Mukata!!

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  31. As fate would have it, the beginning of the end for upnd has started in chilanga cement!! Do their leaders know what damage they have caused to the trust that their supporters had in them? Irreparable and irreversible, Spaka lilo just watch the self destruction.

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  32. UPND knows how to sacrifice! They sacrifice a lot! I mean they work very hard! HH has a new bodyguard too.

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  33. Let us watch these quacks parading like they are PF supporters. They have turnished the name of the party in power by bad devices. They are trading around DCs’, and ministers’ offices reporting people with integrity that they are sympathizers of opposition party so that they are sidelined. When they remain with people without morals, its a scandal. Last year it was Ministry of Education, where almost 3 million kwacha meant for schools ended up in the hands of a few. Today, its Ministry of Health in millions of dollars theft. What is happening to our integrity. No number of security measures can stop these apart from upholding our integrity. And let us respect state house. Why should the president leave state house to come and guard medical stores? What are the systems doing? Stop…

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  34. This minister is the wrong chap to talk about corruption! We have seen a lot of indiscipline in the ministry under his watch. He needs to quit on moral grounds! He procured Ambulances at $288,000 that cost $54,000, He procured Expired Drugs worth over $10million and we have not heard a thing concerning that obscene squander of our tax money, he single sourced Mutati’s Dubai based Lilypeck to supply medical equipment at inflated prices to defraud us the heavily taxed. Chilufyanya is unclean! He must go! We can’t entrust our lives in a cr00cked fellow’s hands. Doctors are expected to be truthful!

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  35. This minister is the wrong chap to talk about corruption! We have seen a lot of indiscipline in the ministry under his watch. He needs to quit on moral grounds! He procured Ambulances at $288,000 that cost $54,000, He procured Expired Drugs worth over $10million and we have not heard a thing concerning that obscene squander of our tax money, he single sourced Mutati’s Dubai based Lilypeck to supply medical equipment at inflated prices to defraud us the heavily taxed. Chilufyanya is unclean! He must go! We can’t entrust our lives in a cr00cked fellow’s hands. Doctors are expected to be truthful!!!!!!

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  36. Dr Chilufya is involved in it. He should be investigated also. If it was in US or UK, chilufya should have resigned for moral grounds. We demand resign, he has failed to perform except building mansions.

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    • Zambia has become too corrupt to be economically viable. Godfridah Sumaili says it’s a Christian country , well may be too Christian to be clean.

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  37. Leaves much to be desired. Why are we zambians so selfish. I think its time we brought draconian rules so that others can learn from theft. Like they do in china and north korea. This is just a tip of the iceberg.

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