MOF PROBE MAY TAKE LONGER…I can’t tell when it’s going to finish – ACC
By Ernest Chanda
THE Anti-Corruption Commission says investigations into suspected abuse of public funds at the Ministry of Finance could take a bit longer, depending on the complexity of the matter.
On Tuesday, the Commission interviewed several senior staff at the ministry who were later suspended.
On August 24, 2022, The Mast published a story where a Transparency International – Zambia investigation revealed that a cartel at Ministry of Finance (MoF) siphoned money amounting to K100 million between 2019 and 2021 using fictitious events to draw allowances.
The newspaper followed up with another story published on January 7, 2022 in which new information emerged which revealed that about K533 million was looted from the Ministry of Finance and not K100 million as earlier reported by the same newspaper.
Corroborated evidence and information from whistleblowers within the ministry showed various names of officers in the Ministry of Finance.
At the time, names were withheld of people who had seemingly engaged in an intricate network of fictitious and organised activities.
According to the evidence, this loot seemed to be spreading tentacles to strategic ministries, commissions, and agencies.
And according to sources close to the investigation, MoF senior staff that included then secretary to the treasury Fredson Yamba, Accountant General Kennedy Musonda, controller of internal audit Chibwe Mulonda and assistant director internal audit David Kajokoto seemingly engaged in money laundering.
After The Mast published these names, Yamba, Musonda and Mulonda wrote demand letters through their lawyers, asking for retraction, apology and monetary compensation.
Yamba has gone further by suing The Mast in the Lusaka High Court over the same story.
At the time, the sources explained that once funds were obtained from MoF’s Treasury Single Account (TSA) loans and investments – a special account that is dedicated to the Government of the Republic of Zambia (GRZ’s) repayment of loans including the Eurobond and financing of investments, the funds were transferred to the respective individuals’ bank accounts through Real Time Gross Settlement (RTGS) system.
Once this money was pulled into these peoples’ accounts it was then laundered into BoZ treasury bills through deposit accounts in order to conceal its nature and origin.
Another investigation revealed that in fact more than K1 billion was stolen from the national treasury in the last four years.
Sources said the K500 million the ACC compiled was just a drop in the ocean and only related to a few individuals.
The sources said even the recoveries the ministry later instituted were just a cover up to hoodwink the public.
“More than K1 billion was looted from the Ministry of Finance between 2019 to date. The K533 million which the ACC has compiled only relates to seven senior staff…” said a source. “For the recoveries that MoF instituted, that was a stunt meant to hoodwink the public and investigators. Actually, more than 200 civil servants were receiving fictitious allowances and fuel drawn without travelling. This is where most of this accumulated total is coming from. The recoveries that MoF are doing only relate to selected junior staff.”
According to Ministry of Finance sources, Cabinet office issued suspension letters to directors, principal auditors and the other affected senior staff.
“Because of the stories The Mast was publishing, State House got interested and ordered a serious probe into the matter. Apparently, whenever questions were asked there was someone very senior at finance who was trivialising your stories. So the President got concerned and acted through other senior officers at Cabinet Office,” the source explained. “Mr Mulonda, Mr Kajokoto and all those you mentioned who are still serving have been suspended to pave way for further investigations by the ACC. The only one remaining to be thoroughly interviewed is the Accountant General Mr Musonda who is out of town. You may also wish to know that the ACC has warned and cautioned most of these people, so what is just remaining is to effect arrests.”
Another source at the ministry wondered why the ACC could not act at the time because there was still overwhelming evidence of financial misuse.
“When the ACC moved in last year we thought they would quickly effect some arrests. But we were disappointed that the matter seemed to have died until you people started writing about it,” the source said. “We expected the then DG at the ACC Mr Gilbert Phiri to quicken the process of investigations and make arrests, but that did not happen. In fact, these suspensions should have happened then at the recommendation of the ACC.”
Asked when arrests would be effected now that warn and caution statements have been recorded, ACC public relations manager Timothy Moono said the situation depended on the complexity of the matter.
“The position is still the same, we are investigating. The nature of investigations depends on the complexity of the matter. To give timelines it doesn’t work for us,” he said.
Asked if the matter is complicated, Moono responded: “No, no, no, we are investigating. I can’t tell when it’s going to finish. If it’s going to be straightforward it means that within a short time it will be done. If it will prove that there’s a lot more to be done, it will take a little bit longer. We’re investigating allegations of suspected abuse of public funds; that’s criminal.”
