The Globe Newspaper

DONORS MAY COMPEL THE ZAMBIAN GOVERNMENT TO PAY BACK FUNDS

By The Globe Reporter

AFTER pouring a joint staggering grant of about US$ 11 million (estimated at K54 billion) into the coffers of Zambia’s Office of the Auditor General for renewed Technical and Financial Support, donors involved have warned that any misapplication of the funds will make them compel the Zambian Government to pay back.

Speaking exclusively to The Globe newspaper in Lusaka, Norwegian ambassador to Zambia, Tore Gjos said his Government as a Lead Donor and that of the Netherlands as a Co-Donor has put in place strict measures in monitoring the utilization of the money given to the Office of the Auditor General.

“If the money (US$ 11million grant) is mismanaged at the Office of the Auditor General, the Zambian Government has to pay back our money. We are sensitive in following up the usage of our money. We have independent audit reports though. Though we do not feel the money will be stolen, we have some confidence in the Office of the Auditor General,” Mr. Gjos said.

The grant that was given by the Royal Norwegian and the Netherlands Governments signed by Zambia’s Minister of Finance and National Planning, Dr Situmbeko Musokotwane is meant to run from 2010 to the year 2014.

Mr. Gjos said reducing irregularities in public expenditure and increasing the value for money of the same, is the underlying goal of the new agreement. “Success in this area will in turn make Zambia less dependent on foreign aid and increase independence and domestic accountability towards the citizens of the country,” he said, adding that this support is expected to be the final large grant arrangement, bringing the total period of donor support to up to 17 years.

It is said that under the new agreement, the disbursements to the programme will be made semi-annually depending on the progress and performance to date and the liquidity needs of the programme in the coming period of six months.

Each disbursement requested by the Zambian Government would be shared by the two donors in the ratio of approximately 60 per cent to be disbursed by the Lead Donor (the Norwegian Government) and the remaining potion to be footed by the Co-Donor (the Netherlands Government).

Earlier in a joint statement, the Norwegian and Netherlands embassies in Zambia said the new support is aimed at assisting the Office of the Auditor General implement its strategic plan and that the expected outcome of the support is increased coverage and quality of audits of public expenditure and revenues.

In addition to improved audit quality and efficiency, it is hoped that the support will enable the Office of the Auditor General to undertake specialized audits and revenue audits and that this will be made possible through increased capacity and skills in the Office of the Auditor General.

Emphasizing on the importance of prudent management of public funds, the Netherlands charge d’ affaires Mr Robert van den Dool said the scrutiny of public expenditure and revenue is an important element of Government’s fight against corruption.

“It also helps ensuring that domestic and foreign funding managed by the public sector, delivers the intended services and the expected development and poverty reduction,” Mr. van den Dool said.

Recently, sources alleged that there was mismanagement of resources at the Office of Auditor General where high ranking officials apportion themselves huge allowances even when off duty. The other cited activity used to siphon funds in some public institutions is arranging of unnecessary workshops.

Meanwhile, marking the Norwegian Constitutional Day that falls on May 17^th, Norwegian ambassador to Zambia Mr Gjos observed that though Zambia was endowed with abundant natural resources, the benefits of utilization of resources did not accrue or trickle down to ordinary people.

He said in trying to assist Zambia get out of this quagmire, Norway has in the last few years been engaged in support to reforming the fiscal regime and the government capacity through mining tax modeling and pilot audits of the largest mining companies in Zambia.

“It is expected that further capacity development support will be provided through a long term agreement,” ambassador Gjos said.

Representing the Zambian Government at the commemoration of the Norwegian Constitutional Day, chief government spokesperson Lieutenant General Ronnie Shikapwasha hailed the Norwegian government for its developmental support rendered to Zambia over the years.

Shikapwasha, who is also Minister of Information and Broadcasting Services, said the longevity of the Norwegian Constitutions that has spanned many decades was an inspiration to young democracies like Zambia.

“In this respect, the Zambian Government endeavors to ensure that our Constitution enshrines all the principles of democratic governance to lay down the necessary legal foundation on which the country can be better governed. That is the reason why we have embarked upon a constitution-making process, which may have turned out to be long and costly. But we strongly believe that no price is too high for charting a better tomorrow,” said Shikapwasha. Zambia’s new constitutional making process through the National Constitutional Conference NCC with over 500 delegates is expected to conclude by the end of August 2010.