The Law Association of Zambia says the Auditor General can only appoint external auditors to audit the defence forces where circumstances of an audit justify such subcontracting. and with the prior written consent of the President, authorizing access by external auditors.
LAZ President Lungisani Lungu says this is provided under section 73(3) of the Public Finance Management Act, No.1 of 2018 and the preconditions are meant to safeguard national security.
In a statement, Mr Lungu says it is LAZ’s considered position that the subcontracting of external auditors to audit the defence forces is legal if it was done by the Auditor General following the President’s prior written consent.
He said the Auditor General is required to satisfy the President that national security would not be compromised by the access, before the President can grant such written consent.
The government has engaged six private audit firms to audit its domestic debt.
Below is the full statement