Auditor General Dick Sichembe has called on citizens to stand up and begin to demand accountability in the utilization of public funds.
Speaking when he addressed the media in Lusaka, Dr. Sichembe said that while he acknowledges public perception that the Auditor General’s Report only arouses emotions by revealing gross misapplication of public funds without any action to deter the rot, citizens have the power to demand transparency on how public funds are utilized.
Dr. Sichembe said citizens should raise voices to ensure that people who are put in public office are able to protect their resources and ensure that they are applied in a manner that will benefit them such as alleviating poverty and enhanced service delivery.
Dr. Sichembe said that the misdirection of public funds has been happening for a long-time and added that the time has come for citizens to join the crusade in ensuring that public resources are protected.
Dr. Sichembe said that the Ministry of Finance has developed mechanisms that will focus more on the prevention of abuse of public resources.
Meanwhile, 34 entities were dubiously awarded 79 contracts by the Ministry of Health worth K1 billion to supply Covid-19 items, Auditor General Dick Sichembe has disclosed that and that there was no transparency in how the said entities were identified.
“15 months after the issuance of the ZPPA authority, the Ministry continued to procure Covid-19 related requirements such as face masks on an emergency basis. However, this was questionable in that the procurement of Covid-19 materials could no longer be taken as an emergency as waves of Covid-19 were foreseeable and could therefore be planned for,” he said.
“34 suppliers were awarded 79 contracts in amounts totalling K1 billion (K1, 324, 850, 970) through use of Requests for Quotations. However, there was no transparency in how they were identified as in most cases there was no evidence that the suppliers had supplied similar products to the Ministry before.”
The AG also disclosed that the Ministry invited requests for quotations from suppliers whose names and nature of business did not relate to medical supplies and there was no evidence that the suppliers had dealt with the Ministry before on similar products putting public resources at great risk.
He said the Ministry engaged in cover bidding resulting in unfair and uncompetitive procurements costing K136, 715, 000.
Dr Sichembe added that government lost K64, 839, 700 in dubious supply of face masks as suppliers supplied ‘Chinese masks’ instead of ‘American’ ones.
“Cover bidding occurs when a competitor submits bids that are intended to be unsuccessful so that another collaborator can be awarded the contract. The Ministry engaged in cover bidding resulting in unfair and uncompetitive procurements costing K136, 715, 000. Stores items costing K52, 872, 230 were not accounted for in that there were no receipt and disposal details,” he said.
“36 contracts for the supply and delivery of 2, 990, 000 N95 face masks at a total contract sum of K214, 339, 700 were awarded. However, suppliers delivered KN (Chinese Brand) face masks instead of the N95 (American Brand) that had been invoiced resulting in product substitution with an estimated loss to government of K64, 839, 700.”
Dr Sichembe said items worth K81, 300, 576 and US$203, 964 respectively had not been delivered resulting in delays ranging from 28 to 32 weeks.
“As at 31st October 2021, items worth K81, 300, 576 and US$203, 964 respectively had not been delivered resulting in delays ranging from 28 to 32 weeks. Further, there was evidence that the Ministry had taken any action against the suppliers some of whom did not submit performance bonds as required by the Public Procurement Act,” he said.
“On 21st April 2020, the Ministry, using direct bidding, engaged a supplier to supply specialised medical equipment as part of government response towards Covid-19 at a cost of K20, 750, 000. The use of direct bidding was on the basis that there was the need for continuity and standardisation of equipment as similar equipment had been procured from the same supplier previously. However, it was observed that at the time of procuring, there was no evidence that the supplier had previously supplied similar equipment.”
And the report of the Auditor General on the accounts of local authorities for the financial year ended 31st December 2020 has revealed an increase in irregularities in 67 local authorities from a total of K2 billion in 2019 to K3 billion in 2020 representing a 39.6 percent increment.
Auditor General Dick Sichembe explains that failure to remit statutory obligations increased from K1.6 billion in 2019 to KJ2.1 billion in 2020 while failure to collect revenue increased from K108 million in 2019 o K518 in 2020.
Dr. Sichembe further indicates that misapplication of funds increased from K17 million in 2019 to K18 million in 2020.
And on matters concerning land, Dr. Sichembe has highlighted illegal land allocation and failure to collect plot premiums amounting to over K2 million from civic leaders and council employees who were offered plots in Ndola and Kitwe among other irregularities.
But the Zambia United Local Authorities’ Workers Union (ZULAWU) has observed that the auditor general erred in placing the blame on filling up vacancies in local authorities.
Responding to irregularities cited by the Auditor General`s report on the issue of non-filling of vacant positions in the local authorities, ZULAWU President Emmanuel Mwinsa clarified that it is the responsibility of the local government service commission to appoint staff and pay emolument to officers.
This is yet another anomaly. How do you have an AG who has no powers? This needs correcting. However, the Constitution is a mess and needs removal and replacement with one that addresses all the areas weakening our democracy, as well as ability to develop culturally and intellectually. Revealing misappropriation without remedy? It’s ridiculous!
This man should be lobbying the President and his MPs to give him more powers to his office…he sounds like a toothless dog…People of Zambia already demanded for accountability by voting PF out of office. I am surprised that this man is still AG …how can one wake up in the morning during PF to go to the office and audit then remain quiet for fear of losing his job.
For now it’s a good call…
AG should be given powers to prosecute that’s when most of these type of contracts will come to an end.
All he’s saying is people should revolt and protest when their resources are put to waste by leaders they have entrusted to manage them
The role of the Auditor general is to report to the stakeholders (government and citizens) and it is the duty of government to take corrective measures so that the fraudulent use of public resources is stopped. It is not and cannot be the role of AG to prosecute.
However, this report clearly confirms that PF was a purely criminal enterprise, the amount of money that had been stolen is an unimaginable. If PF had been allowed to continue the economy would have collapsed, period.
How? Where? Politicians have parliament, Cabinet, State House where they have such opportunities. Can a citizen gatecrash these and say “I have come to stand up and begin to demand accountability in the utilization of public funds!” And they will allow me? They will say I ve just come to diturb them-in their theft party