HOW MOF K500M LOOT WAS SHARED
By Ernest Chanda
SOME names of people have come out in the investigation involving the sharing of about K533 million from the Ministry of Finance.
On January 7, 2022, The Mast published a story in which new information had 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 in August 2022.
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.
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.
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.
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 Bank of Zambia treasury bills through deposit accounts in order to conceal its nature and origin.
“The matrix was that apart from receiving monies directly, Yamba, Musonda, Mulonda and Kajokoto would receive monies which on IFMIS showed junior officers’ names, but information technology was manipulated to pull funds into Yamba, Mulonda, Musonda and Kajokoto’s bank accounts,” the sources narrated. “When the junior officers were interviewed by investigative wings, they were like, ‘I’m not aware I had monies raised in my name’.”
The sources disclosed that money drawn would have a description, “security and audit operations”, which made IFMIS operators believe the money was meant for high level state security operations.
The sources further said the Anti-Corruption Commission (ACC) in their investigations searched the above named MoF senior staff and discovered that Yamba in one year obtained sitting and daily subsistence allowances estimated to be K100 million and later shared over K300 million.
After investigation, the ACC established a case of defrauding government with double payment of gratuity.
According to the public finance management Act of 2018, even officers who processed such payments are liable.
The investigation further revealed that Mulonda obtained over K100 million, while Kajokoto obtained over K50 million.
On the other hand, Musonda obtained about K69 million from the transactions.
Another source revealed that by July 2022, there were only two months before the restrictions on the money in the Bank of Zambia treasury bills could expire.
The ACC had earlier placed restrictions on Chibwe, Musonda, Kajokoto, and Yamba’s bank account and BoZ treasury bills.
However, despite all the evidence linking the investments in treasury bills to the allowances that were siphoned from MoF, the ACC has been dragging its feet for unknown reasons.
The sources said then ACC director general Gilbert Phiri had a full report on the same but they wondered why he could not effect arrests and take the matter to court.
“This was quite frustrating to the officers that were carrying out the investigations because their superior did not seem to be interested in this public matter,” the sources said.
They disclosed that trends in allowances on Yamba together with Kennedy Musonda, and Mulonda would be on all trips to North-Western Province, Western Province, and the Copperbelt Province – “all happening either the same day or same week”.
The sources also revealed that in some instances, these officers never even travelled.
The sources said around September 2021, controller of internal Audit Chibwe Mulonda issued a circular to the effect that no internal auditor outside MoF would view the Integrated Financial Management System (IFMIS) transactions of MoF.
The sources said this was against the original design of the IFMIS where an internal auditor of any ministry or government terminal could view transactions of any government ministry.
They said the restriction was met with an uproar from internal auditors countrywide.
And the sources said in August 2021, Bhaitonie Namwaanga, one of the first staff to train and implement IFMIS, wrote to Yamba expressing concern that internal auditors’ roles in the system were deleted.
They explained that shortly after receiving the report from Namwaanga, Yamba was caught up with other issues and was relieved of his duties by President Hakainde Hichilema.
The sources said the biggest concern was that critical information and transactions were deleted from the system.
They said IFMIS was designed to keep logs on time to show who logged in and what they did in the system.
The sources said ACC later received reports on this sabotage from the Ministry of Finance, but the Commission still failed to act.
They further explained that on the other hand, when current secretary to the treasury Felix Nkulukusa received the same report from Namwaanga, he despised the officer, saying the man knew nothing.-Koswe