Ministry in K467 million fraud


An audit report by the office of the Auditor General (AG) has revealed that the Ministry of Local Government and Rural Development misappropriated funds amounting to over K467 million in the 2016/17 financial year.

Among several issues, the report details how the ministry used funds in shady arrangements without following proper procedures.

For instance, an examination of procurement records revealed that the ministry acquired services valued at K298 million from Wisdom Construction Limited for the construction of Nsanje Boma structures. This was after another bidder, Ziuya Building Contractor, was awarded the contract during open tendering.


The ministry’s action was contrary to the Public Procurement Act, Section 30 (11), which stipulates that the use of a single-source method of procurement is subject to approval by the Office of the Director of Public Procurement (ODPP).

In addition, the report shows that payments totalling K86.4 million were paid to beneficiaries without duly stamped ‘PAID’ documents or acknowledgement of receipt by the beneficiaries.

Other weaknesses exposed in the report include payment of subsistence allowances amounting to K8.4million without approved “To Leave Duty Forms”, purchase of unaccounted for fuel worth K48.2 million, purchase of airtime worth K3.5 million, unaccounted for stores items worth K.6.8million and missing fuel payment vouchers of money amounting to K7.5 million.


When quizzed to comment on the findings in the audit, Minister of Local Government and Rural Development, Kondwani Nankhumwa, said he was yet to see the report.

“I haven’t seen the report. I can only comment when I see it,” Nankhumwa said.

Earlier, the audit report also implicated 20 Members of Parliament for abuse of money amounting to K80 million out of K3 billion which was meant for Constituency Development Fund (CDF) and District Development Fund (DDF).

Speaker of the National Assembly, Richard Msowoya, has since ordered the Public Accounts Committee of Parliament to investigate legislators suspected of abusing the funds.

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