The Witchhunt Against Mikalile Trading and Selective Auditing

The Witchhunt Against Mikalile Trading and Selective Auditing

By Daimone Siulapwa

In the murky waters of governmental debt negotiations and restructuring, one name stands out amidst a sea of questionable practices: Mikalile Trading.

As the Ministry of Finance wraps up negotiations with various creditors, including China and the Paris Club, the spotlight intensifies on this Hong Kong-based company, particularly due to its involvement in supplier credit agreements with the Zambian government and for a simple reason that one shareholder is Zambian.

However, the glaring question remains: why the laser focus on Mikalile Trading while larger, potentially more dubious loans remain unscathed?

*1. Unbalanced Auditing Practices*

The Ministry of Finance’s penchant for singling out Mikalile Trading raises eyebrows when compared with its failure to subject the gargantuan Chinese loans, amounting to a staggering $6.3 billion, to the same scrutiny.

These loans, purportedly designated for critical infrastructural projects such as roads, bridges, schools, hospitals, airports, dams, and power stations, demand thorough examination given their monumental impact on Zambia’s economy and future generations.

Yet, the Auditor General’s silence on this front speaks volumes about the unequal treatment meted out to different creditors.

*2. Evasion of Euro Bond Scrutiny*

Similarly, the absence of audits on the Eurobond loans further underscores the Ministry’s selective approach to financial oversight.

Despite the revelation of questionable allocations, including the allocation of $120 million to Zambia Railways and certain State-Owned Enterprises, these loans evade the critical gaze of auditors.

This glaring omission raises legitimate concerns regarding the Ministry’s commitment to transparency and accountability in managing the country’s debt burden.

*3. Targeting Mikalile: A Disturbing Trend*

The special audit targeting Mikalile Trading smacks of a concerted effort to vilify a specific entity rather than address systemic issues within Zambia’s debt management framework.

The government’s decision to scrutinize Mikalile’s loans under Supplier Credit Agreements, totaling $470 million, reeks of a witch hunt disguised as a legitimate audit.

*Questionable Allegations Against Mikalile Trading*

Allegations of non-delivery and overpricing leveled against Mikalile Trading demand closer examination.

The company’s defense, asserting the delivery of goods to over 10,000 schools, raises doubts about the validity of these accusations.

Moreover, the failure to raise concerns regarding the quality and quantity of delivered goods within the stipulated contract period casts doubt on the veracity of the claims.

*Lack of Consistency in Audit Findings*

The discrepancy highlighted by Bloomberg, alleging a 600% overpricing of laptops, raises serious questions.
Furthermore, logic fails to fit in some accusations.

let us touch more on the story reported by Bloomberg claiming laptops were overpriced by 600%.

Even an Amature procurement thief can’t make such a grand error. For example, if a laptop on the market is $500, add 600% it gives you $3500 for each laptop.

Who in their right mind would approve such an order? Secondly, why didn’t the auditor’s report find such a huge discrepancy in the following year’s audit report?

Even if each laptop was $200, add 600% , and it gives you K1200. Which is around K35,000, at todays rate, which is still very high. There lies in the misinformation.

*A Call for Fair Treatment and Transparency*

As patriotic citizens, we unequivocally condemn all forms of corruption and malfeasance that undermine our nation’s development including overpricing and blatant theft.

However, our commitment to accountability should not come at the cost of unfairly targeting homegrown companies.

Mikalile Trading, like any other entity, deserves fair treatment and due process of the law as opposed to the public court of opinion which is full of pettiness and jealousy.

The current climate of suspicion and hostility only serves to stifle entrepreneurship and discourage investment in the Zambian economy by its own citizens.

Our conclusion is that the ongoing witch hunt against Mikalile Trading epitomizes the systemic flaws and inconsistencies within Zambia’s debt management and auditing processes. *Remember today it’s Mikalile and tomorrow it might be you*

As custodians of public trust and guardians of national resources, the government must uphold the principles of transparency, fairness, and accountability.

It’s time to redirect our focus towards addressing the root causes of our debt crisis and fostering an environment conducive to the growth and prosperity of indigenous businesses.

Anything short of this is a disservice to the Zambian people and our collective future.

*Writting as Chairman for SMEs Association of Zambia (SMEAZ)*

_*Advocating for the Empowerment of Citizens owned SMEs and the Reservation of some Business for Zambian citizens only*_

*For more Info. smeszambia@gmail.com*