Auditor General Scrutinises 2020 Financial Year

The Office of the Auditor General is now auditing accounts for the financial year ending 31st December 2020. 

Auditor General Dr Dick Sichembe has confirmed that the office will not suspend any audits this year due to the COVID-19 pandemic. Dr Sichembe has also warned that he will not entertain any auditees who fail to provide the necessary information and issued a reminder that it is a requirement by law that auditees provide information to auditors within given timelines in line with the Public Finance Management Act of 2018. 

According to the Alliance for Community Action (ACA) past Auditor General reports have revealed a total amount of over K75 million lost in the last 10 years.  

Last year an interim report released by the Office of the Auditor General revealed financial irregularities in relation to the handling of COVID-19 funds.  

The report covered 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 pointed to the questionable awarding of contracts worth K384 million. In some cases supplies were delivered before a signed contract was in place. This appeared 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 at the time.  

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.