FINANCIAL IRREGULARITIES OF OVER $1.3 BILLION UNCOVERED IN ZAMBIA’S PETROLEUM PROCUREMENT AUDIT
A special audit report on Zambia’s procurement of petroleum products, covering the period between 2019 and 2022, has revealed significant financial irregularities amounting to over $1.3 billion. The report exposes potential fraud through irregular payments and wasteful expenditure, raising concerns about the transparency and accountability of the procurement process.
One of the key findings in the report is the discovery of irregular payments totaling over $36 million to suppliers, resulting from inflated invoices. These questionable payments raise serious concerns about possible fraud and highlight the need for stricter oversight in the procurement of petroleum products.
Furthermore, the audit report identified wasteful expenditure exceeding $40 million, which was attributed to legal and arbitration fees incurred due to questionable decisions made by former government officials. These expenditures raise questions about the financial prudence and accountability of those responsible for the procurement process during the stated period.
Another alarming finding of the audit report was the failure to pay suppliers of petroleum products, resulting in outstanding amounts exceeding $898 million. This failure to fulfill financial obligations raises concerns about the impact on suppliers and the stability of the petroleum supply in the country.
Ellen Chikale, Head of Public Relations at the office of the Auditor-General, disclosed these findings in a statement. The acting Auditor-General, Ron Mwambwa, has advised the Ministry of Energy to adhere to the Public Procurement Act and submit petroleum procurement plans to the Zambia Public Procurement Authority. This recommendation aims to ensure a competitive and transparent procurement process that avoids emergency procurements and ensures fair treatment for all suppliers.
The public awaits further actions and clarifications from government regarding these financial irregularities. It is essential for the authorities to address the issues raised in the audit report promptly and take appropriate measures to ensure transparency, accountability, and fair practices in the procurement of petroleum products in Zambia.
SPICE FM