LAZ says there NOTHING ILLEGAL about GRANT THORNTON or other EXTERNAL AUDITORS to audit the Zambian Military, provided prior SECURITY CLEARANCES and PERMISSION are sought.
THE Law Association of Zambia (LAZ) says the Auditor General has powers to appoint external auditors under section 10 of the Public Audit Act, No.29 of 2016 to audit any state organs and state bodies.
This follows a public discourse on the private audit of Defence Forces.
Last week, some opposition members of Parliament walked out of the National Assembly during a question and answer session accusing Vice President Mutale Nalumango of having failed to give an answer regarding the decision to engage private firms to audit the Ministry of Defence and National Security Services.
Leader of opposition, Brian Mundubile asked Vice President Mutale Nalumango on why three different positions on private auditing companies have been engaged to audit the Ministry of defence and and NationalSecurity Services.
Mr Mundubile stated that the Public Audit Act Section 24(3) prohibits consultants, agents and private auditors from accessing books, records and documents or entering the premises of the Defence and National Security Services.
He demanded evidence to show that Part VII section 73(3) of the Public Finance Management Act No. 1 of 2018 was complied with.
However, LAZ president Lungizani Zulu says despite the general power to appoint external auditors, the Auditor General’s authority to subcontract the audit of the Defence Forces is limited by the provisions of section 24(3) of the said Public Audit Act, No. 29 of 2016.
He said the provisions expressly enjoins the Auditor General not to permit any authorised person, agent or specialist consultant to have access to any book, record, returns report or other document, or to enter the premises of any component of the defence force, national security services or a law enforcement agency.
Mr Zulu said the restriction on access to records of the Defence Force is re-echoed under the provisions of section 73(2) of the Public Finance Management Act, No. 1 of 2018.
“These provisions are aimed at ensuring that the security of the nation is not compromised.
However, the Auditor General can only appoint external auditors to audit the defence forces where circumstances of an audit justify such subcontracting, and additionally, the prior written consent of the President, authorizing access by external auditors is obtained.
This is provided under section 73(3) of the Public Finance Management Act, No. 1 of 2018 and the preconditions are meant to safeguard national security,” Mr Zulu said.
He said it is LAZ’s considered position that the subcontracting of the external auditors to audit the defence forces is legal if it was done by the Auditor General following the President’s prior written consent.
Mr Zulu said the Auditor General is required to satisfy the President that national security would not be compromised by the access, before the President can grant such written consent.
“This press release has been issued on a matter of public interest regarding the security of the nation, compliance with relevant public finance management laws as well as the observance of rule of law for the greater good of the Nation in furtherance of the LAZ’s mandate under Section 4 of the Law Association of Zambia Act,Chapter 31 of the Laws of Zambia,” he said.
(Mwebantu)
