Looting of Public Funds Persists Despite Audit Warnings
By Kumwesu Newsroom | October 4, 2025
Zambia’s public purse remains vulnerable to mismanagement and outright losses despite repeated warnings from state auditors, the latest Auditor General’s Report shows.
Acting Auditor General Dr. Ron Mwambwa tabled before Parliament on Thursday the Report on the Accounts of the Republic for the year ending December 31, 2024, exposing 33 critical audit findings that remained unresolved by September 30, 2025. The revelations underscore persistent governance failures in revenue collection, procurement, and financial oversight across ministries raising alarms for service delivery and fiscal stability.
Tax Gaps and Revenue Leakages
The Zambia Revenue Authority is sitting on K4.39 billion in unpaid tax liabilities, while weak controls on transit goods exposed an additional K10.9 million in taxes. At the Ministry of Lands, K1.32 billion in ground rent arrears — some more than a decade old — remain unpaid, alongside K177.9 million in other arrears.
“These gaps in revenue collection not only erode the fiscal base but also undermine public trust,” the report warned.
Losses, Mismanagement, and Unkept Promises
The Ministry of Finance alone lost US$3.66 million after failing to honor contractual terms, a case now sitting with the Drug Enforcement Commission.
Meanwhile, K25.7 million worth of farming inputs under the Ministry of Community Development and Social Services failed to reach farmers ahead of the 2024/2025 season. The Sustainable Agriculture Financing Facility (SAFF) remains owed K12.96 million, while insurance claims worth K113.1 million under FISP remain unpaid a situation leaving tens of thousands of farmers exposed.
Funds Returned, Advances Unrecovered
The Ministry of Fisheries and Livestock returned K30.7 million in unspent funds earmarked for animal health programs. At the Ministry of Water Development and Sanitation, K48.4 million in terminated contracts included K15.4 million in unrecovered advance payments.
Such reversals reflect not just inefficiency, but a breakdown in project execution where budgetary allocations fail to translate into services.
Procurement Red Flags
The Ministry of Education engaged Alliance Procurement and Capacity Building Ltd. to collect K2.8 million from schools without following tender procedures.
At the Ministry of Health, duplicate works and questionable extensions worth K24 million were flagged. Worse still, a contract with Primetime Freight and Customs Brokers, which expired in 2020, was verbally extended, allowing payments to continue without invoices or interest computations.
“These breaches in procurement law heighten the risk of fraud and misuse of public resources,” the Auditor General cautioned.
Failed Infrastructure and Lingering Liabilities
The Ministry of Transport and Logistics paid US$1.53 million in port rental arrears on behalf of a private concessionaire under a 25-year Walvis Bay Port agreement signed in 2009. Of this, US$1.43 million remains unrecovered.
The report signals that Zambia’s concession model, designed to ease fiscal pressures, may instead be shifting private liabilities onto taxpayers.
The Bigger Picture
Zambia’s public debt has already ballooned to US$21.6 billion by end-2024. The Auditor General’s findings expose how weak governance and poor contract management are compounding fiscal stress.
For a government navigating tight IMF-backed reforms, the failure to plug these leaks threatens not just program credibility but the livelihoods of citizens reliant on efficient public services.
As one analyst put it: “Every kwacha lost to mismanagement is a kwacha denied to hospitals, schools, and farmers.”
Kumwesu Analysis: The audit paints a picture of a state apparatus struggling to enforce discipline over its finances. Without urgent reform in revenue collection, contract management, and procurement oversight, Zambia risks sinking deeper into a cycle of rising debt, missed opportunities, and public disillusionment.