About half a billion kwacha has been mismanaged in one year at the government-run Tobacco Commission, an internal audit report covering a period from April 1, 2022 to March 31, 2023 has found.
According to the audit report we have seen, the money was mismanaged through different activities.
For example, the budget for enforcement of liaison, monitoring, and evaluation was overspent by K22.1 million. The initial budget was K6.2 million.
Under this, the biggest share of over expenditure was on purchase billboards which contributed 89 percent where the commission purchased nine billboards at a price of K25.4 million.
The budget for international travel market promotion was bloated by K187.3 million by incorporating money amounting to K126.3 million for a trip to china which was not budgeted for during the commission’s 2022-23 financial year.
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The biggest share of this part was air tickets which cost K115.3 million which contributed 47 percent as among others officials flew in business class against the government direction that those traveling within the African region should be using the economy class.
The commission also overspent K5.9 million on international travel conventions as it exceeded the three international trips per year government directive and flew business class with the African region against the budget direct of flying economy class.
The tobacco industry regulator also overspent K30.3 million on tobacco media publicity and signed a contract with Malawi Broadcasting Corporation amounting to K163 million which was not budgeted for during the financial year and allowances for media personnel K1.1 million was not properly reconciled.
The Commission also overspent K51 million on tobacco consultative meetings to sensitise the public on the new bill (Tobacco Industry Act).
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On motor vehicle running cost maintenance, the commission overspent K22.8 million through servicing of motor vehicles at a private garage instead of authorised dealers, servicing cars that were marked for disposing contrary to Procurement and Disposal of Asset Policy of the Commission and purchase of car tracking system at K5.1 million which was not budgeted for.
It also overspent on fuel for motor vehicles by K13.4 million and running gensets, an exercise which was not budgeted for and also overused K14.3 million on internet and VPN where K10 million was not budgeted for.
On afforestation the audit report indicates that out of K173.3 million afforestation levy which the commission collected on behalf of government, K105 million was committed to planting trees but only K4.4 million was used to purchase seedlings.
Tobacco Commission also overspent K6.6 million on functional review activity which was not budgeted for and there was no evaluation made on various procurements of goods and services and procuring goods that are over K80 million to supplier that are registered by PPDA contrary to the dictates of procurement.
The audit report adds that 40 of the 72 total votes cast by Tobacco Commission were spent in excess or 56 percent in violation of Treasury regulations and the Public Finance Management Act.
Asked on allegations that some officials have been suspended on account of the findings of the audit, Board Chairperson Godfrey Chapola refuted the news.
“It is an internal matter and we do not have to tell you what is going to be done and if you want to find if there were over expenditures, go and read the report,” Chapola said.
Tobacco Commission was established by an act of parliament to regulate the growing and sale of tobacco, Malawi’s made cash crop.
