Audit Uncovers COVID-19 Fund Irregularities

An interim report released by the Office of the Auditor General on Monday has revealed financial irregularities in relation to the handling of COVID-19 funds. 

The report covers the period 1 February until 31 July 2020. It was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). 

Commenting on the report Auditor General Dick Chellah Sichembe was quoted as stating, “The interim report has highlighted financial irregularities in the utilisation of COVID-19 resources with the highest being over-commitment of K652 million.” 

In addition, the report points to the questionable awarding of contracts worth K384 million. In some cases supplies were delivered before a signed contract was in place. This appears to have resulted in the procurement of contracts worth K194 million without competition. 

“The Ministry of Health also engaged in uncompetitive procurement through cover bidding in respect of four contracts amounting to K10 million. Cover bidding occurs when a competitor submits bids that are intended to be unsuccessful so that another conspirator can win the contract thereby giving an unfair advantage to a specific supplier,” Dr Sichembe revealed. 

The audit also revealed the irregular transfer of government funds to commercial bank totalling K60 million and the irregular withdrawal of cash amounting to K3 million.” 

As part of the audit process the AG’s office coordinate with the Ministry of Health, the Disaster Management and Mitigation Unit (DMMU) and the Ministry of Finance, which all had the opportunity to clarify discrepancies and resolve queries ahead of the sharing of the report.  

On release of the report the Auditor General has recommended that the national disaster relief trust fund should be immediately operationalised. He noted that the purpose of the interim report is to prevent and reduce financial losses and support remedial action.

Open ZambiaComment