In the thick of the Covid pandemic between 2020 and 2021, the health sector was obviously burdened and at breaking point in Malawi. Thousands of people were hospitalised and hundreds died. Desperate measures and attempts were made in futility as the wave raged.
Among them was the K6.2 billion response package which the Central Government allocated to government ministries, departments, agencies and local authorities.
However, some people saw an opportunity to loot, mismanage and plunder the resources for reasons best known by themselves.
An investigative report on the usage and accountability of the K6.2 billion Covid funds disbursement exposed loopholes in public finance management that drained K720 million through procurement flaws, irregular allowances, dubious claims and poor planning.
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Two years later, Mzuzu City Council (MCC), which was also caught off-guard, says there are a lot of lessons drawn from the report, as far as procurement and management of public funds is concerned.
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According to the report, MCC used about K3.2 million Covid funds for an unintended purpose. This included procurement of cement, quarry stones, river sand and fuel for construction of Chiputula market.
Further, the report indicates that wages and allowances were also paid for labourers and supervisors on the construction of Katawa market, which was duly approved by MCC Chief Executive Officer Gomezgani Nyasulu.
In addition, the report found that money amounting to K6.2 million was unbudgeted for.
“The activity on which the funds were spent related to initial training of newly recruited health surveillance assistants (HSAs).
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“However, the audit team noted that the HSAs who attended these trainings were recruited about 10 years ago, defeating the objective of initial training,” the report reads.
Lastly, the audit report found that the council approved unjustified payment of risk allowance amounting to about K808,000.
The council received over K300 million for Covid response, money that came in four tranches.
Though the council says channelling of the money for the two markets was meant to decongest them, our investigations found that Katawa is one of the markets in Mzuzu City which is lowly patronised. As such, the need to decongest it was unfounded.
Commenting on whether there are any notable changes on transparency and accountability, Alice Msowoya from Mzuzu Youth Anti-Corruption Movement said there is still more work to be done.
Msowoya said the findings of the report should offer lessons for the future.
“I think more needs to be done because I feel like the council still lags behind, in terms of information dissemination, which leaves room for speculation. So, I will advise the council to be more vigilant, open and guard against corruption. That way, the city would develop,” she said.
Another Mzuzu-based social commentator, Gibson Chisale, said the issue of Lupaso clinic toilet, for example, is an indication of duty bearers’ failure to provide information in time to avoid speculation.
“When people demand information, it should be provided in time. In the case of Covid, things were happening fast and, no wonder, there were flaws, mis-procurements and corruption and citizens were not able to follow up on issues,” he said.
MCC spokesperson McDonald Gondwe said the report was a wake-up call for them to be transparent and accountable to the people the council serves.
“We really learnt a lot from the report; actually it caught us unawares. You may recall that, at that time, we were, in most cases, basing our expenditure on activities. And for the government to fund councils, it was basing on activities [listed]. These activities were approved by a full council. Somehow, we call ourselves a bit lucky because we were doing something that was guided by the laws. Much as we know that there were some issues we can, given some space to clarify, do so.
“I can also confirm that since that report [came out], even if you check on the National Construction and Industry Council page, all our projects are updated on monthly basis. Even on Mzinda online platform, Mzuzu City has monthly expenditures and projects that are being undertaken in the city.
This is to add on noticeboard notices we post monthly on, for instance, how much money we are able to collect from various markets and money we are spending on particular projects,” he said.
After the release of the report, the government took action. Over 60 officers were arrested and released on bail, 34 district commissioners and city council chief executive officers as well as 10 principal secretaries were interdicted and later reinstated, with assurance that those in the wrong would be answering the queries while in office.
