MoH doesn’t have capacity to manage Global Fund grants
By George Chellah
Thu 14 Oct. 2010, 04:00 CAT
THE Ministry of Health (MoH) does not have capacity to effectively manage Global Fund grants, the latest Global Fund report has revealed. The Global Fund's Office of the Inspector General (OIG) disclosed its findings in the recent country audit report of Global Fund grants to Zambia issued on October 5, 2010.
"By way of background, from 2003 through 2006, Global Fund grants to Zambia were initially channeled through the Central Board of Health until it was absorbed by the Ministry of Health in 2006. In August 2006, the Country Coordinating Mechanism (CCM) appointed the MOH the Principal Recipient (PR), and in June, 2007, the MoH and the Global Fund formally signed a Grant Agreement.
During its tenure, the MoH accomplished some notable achievements with the government and other cooperating partners, including successful treatment of close to 90 percent of tuberculosis cases; providing ART to approximately 245,000 people; and providing at least 70 percent of households with at least one insecticidal treated bed net (ITN)," the report stated.
"Unfortunately, however, the audit exercise identified a number of major systematic problems that impacted upon the quality of health care, including inadequate human resources at the facility level and the lack of adequate funding of the District Health Management Teams (DHMTs) to execute its functions. In that regard, the requisite quota of quarterly visits to health facilities was found not to have been met.
"As a result of these deficiencies, the OIG has concluded that the Ministry of Health, as the lead in country-PR, does not have the capacity to effectively manage Global Fund grants. This conclusion is reached principally on the basis of serious shortcomings in financial management and the identification of episodes of fraud and losses of funds; misuse of grant funds; poor management of Sub Recipients (SRs) and procurement; and a significantly weak control environment that expose these entities to significant financial misappropriation risk that has materialized."
The report stated that in connection with MoH's financial management systems, the OIG identified serious weaknesses, including significant financial losses and significant financial mismanagement.
"In particular, the OIG auditors identified over ZMK20 billion (US $4,365,000) arising from unsupported costs i.e. unsupported expenditure, unretired advances, with some outstanding since 2007, unsupported procurements etc. The OIG also noted ineglible expenditure amounting to ZMK5.8 billion (US $1,659,000) arising from expenditure outside of the approved budget, overpayment of etc. In addition, instances of suspected fraud were identified," the report stated.
"In March, 2009, a whistle-blower reported a suspected fraud at the MoH involving grant funds and the Expanded Basket Fund - into which most donor health funding is channeled which triggered a forensic audit carried out by the Office of the Auditor General (OAG). In July, 2009 the OAG reported that over ZMK36 billion could not be accounted for, of which ZMK1.9 billion (US $413,000) was from Global Fund grant disbursements. As a result, a number of officials at the MoH were suspended, and a prosecution was recommended by the OAG.
"Separately, the Global Fund's OIG's Investigations Unit conducted in country investigation missions between July and September 2009 that identified instances of fraud in per diem allowances and other financial misappropriation by some senior MOH officials. Seeking to further these cases through referral to national law enforcement authorities, the OIG sought to engage with the Zambian Anti-Corruption Commission (ACC), with disappointing results."
The report stated that to date, the national authorities have not taken action on these matters, nor charged individuals with violations of the relevant national criminal laws, nor sought to recover losses.
"As such, the OIG is unable to report that the Zambian national authorities have the will to conduct timely and appropriate investigations of financial fraud in the government ministries that handled Global Fund grant monies, and who are entrusted in fiduciary capacities with implementing the grants. This fact further adds to the in-country risk to grant funds in that misappropriated funds, even when identified, may not be sought to be recovered by the responsible officials and the responsible individuals prosecuted. Thus, there is little deterrent to future financial misconduct. The OIG investigation is continuing nonetheless on these matters," the report further stated.
"Similarly, the OIG audit identified significant instances of the MoH's lack of compliance with grant agreement. The OIG audit noted several instances of expenditures made outside of the work-plan; the continuation of expenditures on expired grants after the closure date; undeclared and unaccounted for income from other sources; the use by some Provincial Health Offices (PHOs) and DHMTs of Global Fund grant funds to pay VAT; and the failure of MOH to collect and remit PAYE from Global Fund paid employees working at MOH."
The report also stated that significant deficiencies were also identified in the MoH's capacity assessment and management of Sub Recipients SRs.
"The MoH did not undertake comprehensive reviews of the SRs prior to selection, and the OIG noted that several provinces and districts expended funds on activities that were not in the work plan, and that some imprest payments to staff were not retired," the report stated.
"The MoH was found not to have a system for tracking advances made to SRs, and could not identify which SRs had, and had not, accounted for funds entrusted to it. Further, in many decisions concerning disbursements, documented criteria for disbursement determinations was absent, disbursements were not supported, and many appeared to have been made in an ad hoc manner i.e. they were not made against a work plan."
The audit also identified that the MoH lacks procurement and supply management capacity (PSM).
"This deficiency was noted through the lack of purchases of health products despite the fact that the MOH had attempted numerous interventions to strengthen the PSM function," stated the report.
Labels: DONORS, GRANTS, HEALTHCARE, MINISTRY OF HEALTH
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Kazonga justifies conditions for councils to access grants
By Agness Changala in Siavonga
Wed 03 Feb. 2010, 04:00 CAT
LOCAL government minister Dr Eustarckio Kazonga has advised councils not to view conditions attached to accessing grants as a punishment, but as a process of strengthening their ability to perform effectively.
Officiating at the Local Government Grant System (LGGS) consultative workshop with the media and NGOs in Siavonga on Monday, Dr Kazonga advised councils to critically look at the legal and regulatory framework and begin making amends where there were not in conformity with legal requirements so that they are responsive to the conditions that would enable them access grants.
“The conditions of access should not be viewed as punishment to councils that may not qualify, but should be seen as a process leading to strengthening council’s ability to perform effectively,” he said.
Dr Kazonga said the manual that provided guidelines for access to grants had been developed and failure to meet the minimum conditions may lead to withholding disbursement to the affected councils pending remedial action.
Dr Kazonga said the government had also restructured the LGGS by consolidating a myriad of grants as contained in the local government Act Cap 281 of the Laws of Zambia into three main grants.
“The objective of restructuring the grant is to ensure greater autonomy in the management and utilisation of financial resources by democratic institutions (councils),” Dr Kazonga said.
In addition to restructuring grants, Dr Kazonga said the government had introduced a formula based grants conditioned by performance.
Dr Kazonga said the restructured grant system needed supportive sub systems for it to be beneficial to the overall decentralisation reform programme.
Labels: EUSTARKIO KAZONGA, GRANTS, LOCAL GOVERNMENT
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US signs 7 agreements with local NGOs
By Masuzyo Chakwe
Sun 17 Jan. 2010, 04:00 CAT
UNITED States Ambassador to Zambia Donald Booth on Friday signed seven agreements totalling $65,000 in grants to Zambian organisations.
The self-help grants were awarded to community-based organisations for projects such as classrooms, libraries, irrigation equipment and boreholes. Funding comes from the American people through the US Ambassador's Special Self-Help Program.
During a signing ceremony, Ambassador Booth explained that Americans had been assisting communities and people throughout Africa since the programme's inception in 1964.
"The unique aspect of the Special Self-Help Program is that, unlike other aid programs, we work directly with people in their local communities," said Ambassador Booth. "Today in the room with us are teachers from Kasama, farmers from Mongu and environmentalists from Mpika. Small funding produces a large impact when the participants provide Zambian solutions to Zambian problems."
This year's grants will fund improved agricultural practices in Mpika and Mongu, construction of classrooms in Kasama and Livingstone, a library in Lusaka, toilet facilities in Kafue and a borehole for safe drinking water in Mpika.
Labels: DONALD BOOTH, GRANTS, NGOs
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Malawi farmers get US African Development Fund boost
By Nyasa Times
Published: August 18, 2009
The United States African Development Foundation has signed four grants that will support grassroots groups in Malawi. The grants will benefit Lilongwe South Smallholder Farmers Association (LLSSFA), Nkhatabay Coffee Cooperative (NBCGC), Misuku Coffee Growers Co-operative Society (MCGCS), and Coffee Growers Co-Operative Society (PCGCS).
Reflecting on the grants, USADF President Lloyd O. Pierson stated, “USADF funds groups at the grassroots level. These grants support farmers in Malawi to produce more goods to sell on markets, increasing their incomes and their quality of life.”
LLSSFA is located in the Lilongwe District in the Central Region of Malawi. An umbrella organization supported more than 6,000 farmers from three farmer associations, LLSSFA works to improve the livelihoods of farmers by providing technical assistance in production and marketing of crops such as soy, maize and beans.
The association takes an active approach to create awareness of gender, literacy, environmental, and HIV/AIDS issues. The four year grant will assist LLSSFA construct a warehouse, develop a business plan and marketing strategy, purchase a van, drill a borehole, and enhance working capital.
Misuku Co-op assists farmers to grow and market coffee in Chitipa district. With 727 members, the cooperative grows and raises Arabica coffee to improve the living standards of members and the local community.
The three year grant will fund processing equipment, training, a trip to visit organic coffee farms in Tanzania, enhance the revolving loan fund in an effort to increase incomes and create jobs.
With 300 members, NBCGC is a cooperative made up of 11 business centers which operate in four zones in Nkata Bay district. The cooperative grows and markets coffee and provides services and market access to farmers.
The four year grant will fund the purchase of processing equipment and a truck, training, and enhance the revolving loan fund.
Located in the Rumphi district of Mzuzu, PCGCS is a coffee cooperative with 534 members, 123 of whom are women. The cooperative seeks to increase the incomes and value of life for its farmer members, their families, and the surrounding communities by increasing the volume of coffee produced and improving the yield of specialty coffee.
The three year grant will finance construction of pulper houses and processing equipment, training in agronomic practices and good governance, a truck, and office equipment.
USADF established programming in Malawi in 2008 and began funding projects in 2009. USADF receives co-funding from the Government of Malawi. The country’s current portfolio stands at nine investment projects totaling more than $1.5 dollars.– USADF
Labels: GRANTS, MALAWI, UNITED STATES AFRICAN DEVELOPMENT FOUNDATION (US)
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Govt receives US$60m grant to support basic education
Written by Agness Changala
Saturday, February 14, 2009 4:18:40 AM
The government has received a US$60 million grant from co-operating partners to support basic education in the country over a period of two years.
Zambia National Education Coalition (ZANEC) executive director Mirriam Chinyama, in an interview, confirmed the development and commended the government and cooperating partners for Zambia’s qualification for the Fast Track Initiative (FTI) Catalytic Fund.
“We are aware that Zambia was admitted to the FTI through a concerted effort that saw Ministry of Education come up with a credible sector plan,” she said. “Although this comes seven years after the FTI was launched, it is an achievement worth commendation and recognition by stakeholders such as ourselves.”
And Chinyama has observed that the negative developments in the global and national economy, leading to high inflation rate and depreciation of the kwacha, were likely to have a negative effect on the implementation of this year’s budget.
She said commodity prices were expected to rise, thereby affecting the procurement of building and other requisite materials.
“In the same regard, given the 2008 year end inflation of 16.6 percent, the 2009 budget for education sector, in real terms, has only increased by about 4 percent despite the pronounced nominal growth figure of 24 percent,” she said.
Chinyama urged the government to seriously explore ways of dealing with the current economic challenges.
“The macroeconomic targets of five per cent and reduction of inflation to 10 per cent for this year by the government is a good start,” said Chinyama.
Labels: EDUCATION, GRANTS
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Germany gives Zambia 76.2 million euros
By KANGWA MULENGA
GERMANY has given Zambia 76.2 million euros as grant for the next three years. Zambia will receive an additional eight million euros grant from the German and Netherlands governments for support towards the education sector.
And Secretary to the Treasury Likolo Ndalamei has commended the German government for the grants that would go towards good governance, decentralisation, poverty reduction and water and sanitation sectors.
“I can assure you that these funds will only be used to achieve the objectives in the areas of cooperation that we have agreed upon. Above all, I would like to assure you that the funds will be utilised in a transparent and accountable manner as we are aware that they come from tax payers in Germany,” Mr Ndalamei said.
He was speaking in Lusaka yesterday at a signing ceremony held at the Ministry of Finance and National Planning following the conclusion of negotiations with a delegation from Germany.
Mr Ndalamei said the water sector would receive 32 million euros, good governance 5.2 million euros, poverty reduction 30 million euros while one million euros would go towards the decentralisation policy.
He said Government would use the eight million euros the education sector would receive from the two governments to develop human capital, which he said was important towards the attainment of the Vision 2030.
Head of delegation from the Ministry of Economic Cooperation and Development for Southern Africa, Ingolf Dietrich said Germany would continue supporting Zambia’s development.
“We are glad with the manner we concluded the negotiation. I must say I was impressed with the aid effectiveness Zambia has embarked on and with the explanations we got from the Zambian delegation,” Dr Dietrich said.
He commended Government for the manner it was accounting for development funds from the German government.
Dr Dietrich has pledged continued support to Zambia.
He said the despite the global economic crisis, Zambia still had potential in the mining sector.
Dr Dietrich also said it was not easy for the German government to give Zambia grants in the face of the global economic crisis.
Labels: EDUCATION, GERMANY, GRANTS
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Britain gives Zambia K8.9bn for parliamentary reforms
By Fridah Zinyama
Wednesday June 18, 2008 [04:00]
THE British and Zambian governments have signed an K8.9 billion bilateral arrangement meant for support to the National Assembly over a three-year period from 2008 to 2011. And Minister for Development, UK Department for International Development, Gillian Merron said the grant was meant to encourage more Zambian citizens' participation in the democratic process.
During the signing ceremony yesterday at the ministry of finance, finance minister N'gandu Magande (left) said the grant would go towards the capacity development component of the Parliamentary Reform Programme 111 (PRP).
"The overall objective of this programme is to have a Representative and Responsiveness, Efficient and Effective, Accountable and Accessible and Linked (REAL) Parliament," he said. "A REAL Parliament will enhance the independence and effectiveness of the National Assembly as a representative agent of oversight and achieve the objectiveness of the reform in the democratic governance system of Zambia."
Magande said the financial assistance would go a long way in addressing the capacity development of the PRP 111, which will be implemented as a distinct component.
"The major objective is to develop the institutional, human and operational capacities of the members of parliament and the staff of the National Assembly in order to improve member constituent relations, an improved legislative system and an improved committee system," he said.
Magande said the assistance which DFID had provided to Zambia was a fulfilment of the goals of the 'Ten-year partnership Arrangement (1007-2011) which was signed in June, 2007 in the UK.
"Under the ten-year arrangement, the UK has been providing bilateral assistance to Zambia at the indicative level of at least K255 billion," he said.
And Merron said good governance was at the heart of development.
"An effective state is the single most important factor in determining whether progress takes place," she said.
Merron said the PRP 111 programme was meant to improve the effectiveness and independence of Parliament.
"By holding their government to account, Zambians will help it to more effectively meet their needs," she noted. "This is particularly important at a time when the Zambian government's revenue is increasing significantly."
Merron said this additional money would present the government with an opportunity to invest in far reaching programmes that will improve people's lives.
Labels: GRANTS, PARLIAMENT, UK
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Japan gives Zambia K11bn.
By KASUBA MULENGA
JAPAN has given Zambia a grant of K11.6 billion (320 million yen) for the importation of 4,000 metric tonnes of fertiliser and 60 tractors and trailers to help the country increase food production in the 2008/09 farming season. Minister of Finance and National Planning, Ng’andu Magande, said this in Lusaka yesterday during a grant assistance agreement signing ceremony at the ministry.
“The tractors will be for sale to eligible small scale-farmers who are registered in accordance with Government’s regulations,” Mr Magande said.
The minister said the fertiliser (basal and top-dressing) would be used to boost the Fertiliser Support Programme (FSP) especially among small-scale farmers in Central Province.
Mr Magande said the Japanese grant was aimed at enabling small-scale farmers acquire inputs and machinery necessary to enhancing food production in the country.
He said the inability of small-scale farmers, particularly those in peri-urban areas to acquire agricultural equipment was a major constraint to enhancing food production.
“I therefore hope that the few farmers who will be able to acquire this equipment will use it productively to increase both yields and quantities,” Mr Magande said.
He said Zambians cherished their relationship with their Japanese counterparts.
As a result of this, Zambia had continued to receive support from Japan in such areas as construction of basic schools in Lusaka, various projects in the health sector including the improvement and rehabilitation of Lusaka roads.
He was happy that in its desire to deepen its economic cooperation with Zambia, Japan had chosen Zambia to be its first country in which to implement economic development and growth initiatives.
The initiatives that will be implemented under the Triangle of Hope as a private sector development intervention, was timely and appropriate.
Mr Magande said it was recognised that Zambia needed innovative ways of developing the economy for her to forge ahead with high broad based economic growth and wealth creation.
“It is not enough to speak of sustainable development. What we need is the transformation of our economy to a higher level of operation with a new mindset and work ethics,” he said.
The minister was convinced that this shift of people’s thinking coupled with Japanese support, would propel Zambia to a middle income country faster, just like it led to tremendous results in south Asian countries.
And Japanese charge d affaires to Zambia, Kotaro Suzuki, said the money his country had given Zambia would help in boosting food production, especially maize among the underprivileged farmers.
He said the money would assist Government with its continued efforts to develop the country.
Mr Suzuki said agriculture had continued to play a pivotal role in the Zambian economy and his country believed that increased agricultural productivity was critical for effective implementation of the Fifth National Development Plan.
The grant would enable the Zambian Government to acquire and distribute Urea and D Compound fertilisers to small-scale farmers through the FSP.
Mr Suzuki said the grant would also enable Government to procure and distribute agricultural machinery and equipment consisting tractors, ploughs, harrows, cultivators, reversible ploughs and trailers with power tillers.
He hoped that small-scale farmers would use the equipment to maximise their productivity and enhance food security and income generation at both household and national levels.
Mr Suzuki hoped that the assistance would go a long way in improving people’s quality of life and contributing to the country’s economic growth.
He said Japan continued being heavily burdened by serious fiscal strains that required his Government to earn public support by improving efficiency, effectiveness and transparency of its assistance programmes.
“In this view, I would like to request the Zambian Government to utilise this grant in a transparent, accountable, efficient and effective manner to enable us continue supporting Zambia on its course to economic and social development,” he said.
Mr Suzuki said Japan was ready to work with the Zambian Government in monitoring implementation efforts to ensure that the grant fully benefited targeted people.
Labels: GRANTS, MAGANDE, TRACTORISATION
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