Wednesday, January 20, 2010

IFMIS will curb pilferage of public funds, says Ndalamei

IFMIS will curb pilferage of public funds, says Ndalamei
By Chiwoyu Sinyangwe
Wed 20 Jan. 2010, 04:00 CAT

Secretary to the Treasury Likolo Ndalamei says the reforms being implemented by the government such as the creation of the single Treasury Account and the Integrated Financial Management Information System (IFMIS) would help to curb rampant pilferage of public funds by civil servants and other persons in government spending agencies.

Ndalamei (below) told internal auditors for government ministries and other spending agency that weak internal auditing mechanisms allowed civil servants to siphon about K30 billion from the ministry of health, a scum that was exposed last year.

Ndalamei said it was important for government internal auditors to improve their qualifications and also align themselves with professional accounting bodies so as to ensure that their practice could also be regulated professionally through bodies like Zambia Institute of Chartered Certified Accountants.

Ndalamei said 2009 would go down as the year with a large-scale scam that brought the integrity of the civil service in disrepute.

Ndalamei, however, refused to comment further on some of the weak links the government had discovered, saying the move would prejudice the cases where some suspects were currently before the courts of law.

“2009 will go down as the year when there was large-scale scam which brought the integrity of the civil service in disrepute,” Ndalamei said. “…But now, because this is just the official opening and there are journalists, I won't say much but I will come on Thursday and that is when I will go into the details as to what happened at the Ministry of Health.”

And controller of government internal audit department, Joyce Sundano regretted that some internal audit units had not been submitting audit reports, a sign that work was not taking place.

“Since I took over office at the end of November last year, I have learnt with sadness that some internal audit units have not been submitting audits reports, a sign that work is not taking place,” Sundano said. “I want to assure you that this will not be condoned and as such, a mechanism has been designed of tracking and monitoring the work that everyone is doing.”
Sundano said the report would be ending with the office of the Secretary to the Treasury.

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Thursday, May 14, 2009

IFMIS funding partners reserve comments on Dr Lewanika probe

IFMIS funding partners reserve comments on Dr Lewanika probe
Written by Kabanda Chulu and Masuzyo Chakwe
Thursday, May 14, 2009 3:55:12 PM

COOPERATING Partners to Zambia who are funding the US $24 million-IFMIS project yesterday asked for more time to comment on the matter involving ACC investigations on newly-appointed Ambassador to Japan Dr Mbikusita Lewanika.

The Anti-Corruption Commission (ACC) is investigating former finance ministry permanent secretary Dr Lewanika over his appointing of managers to implement the Integrated Financial Management Information System (IFMIS) contrary to the memorandum of understanding (MoU) signed between the government of Zambia and cooperating partners.

But ACC public relations manager Timothy Moono said the Commission was not investigating Dr Lewanika but the IFMIS management of the project

When asked for a comment on the matter, Finland Ambassador to Zambia Sinikka Antila said IFMIS was a good programme that should be quickly implemented to ensure public financial management and accountability.

"This is an important project for the country and it should be quickly and fully implemented to enhance public sector financial management and accountability but on the investigations I do not have enough details since our economic team handles that and the person in charge is away in Finland hence we can comment next week when he is back," Ambassador Antila said.

Swedish Ambassador to Zambia Lars Ronnas asked for more time to understand what was happening relating to the project.

"Right now, I cannot comment because I have to learn more especially the new revelations about the project and what it will entail for us but get in touch later," Ambassador Ronnas said.

However, Netherlands Ambassador to Zambia Harry Molennar said the government of Zambia and the team leader for cooperating partners was responsible for the project.

"We have provided funding, yes, but I have no comment and the government should do that, also the team leader for cooperating partners can also make some comments," Ambassador Molennar said.

Efforts to get comment from Secretary to the Treasury Likolo Ndalamei and Public Expenditure Management and Financial Accountability (PEMFA) programme director, Haggai Kamwenda, proved futile as they were reportedly in a meeting at the Ministry of Finance.

The ACC are investing Dr Lewanika for appointing civil servants Joel Ukwimi, Innocent Mututa and Francis Mwale, as IFMIS managers without following guidelines such as advertising for the vacancies and informing the cooperating partners, who are supposed to issue a notice of objection or no objection when IFMIS managers were recruited.

Speaking in Lusaka yesterday, Moono denied that the ACC was investigating Dr Lewanika but the management of the project and also refuted that ACC acting director general Rosewin Wandi confirmed the investigations.

But during the ACC media briefing last month, when asked about progress on investigations involving Dr Lewanika's activities at IFMIS project, Wandi confirmed the investigations.

"But I do not think it is fair to divulge further details because that will jeopardise the inquiry, but the inquiry is open and on going," said Wandi.

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Wednesday, May 13, 2009

ACC probes new envoy to Japan

ACC probes new envoy to Japan
Written by Kabanda Chulu
Wednesday, May 13, 2009 3:41:46 PM

THE Anti Corruption Commission (ACC) is investigating newly-appointed Ambassador to Japan for alleged abuse of office and corrupt practices. According to government sources, Dr Lewanika is being investigated over his appointing of managers to implement the US $24 million donor-funded Integrated Financial Management Information Systems (IFMIS) project contrary to the memorandum of understanding (MoU) signed between the government of Zambia and cooperating partners [donors].
ACC acting director general Rosewin Wandi confirmed the investigations.

"But I don't think it is fair to divulge further details because that will jeopardise the inquiry, but the inquiry is open and ongoing," Wandi said.

According to the MoU signed between the government of Zambia and cooperating partners [donors], adequate and qualified IFMIS managers must be competitively recruited originally and that they should not be civil servants.

But Dr Lewanika last year, during the time he served as permanent secretary in the Ministry of Finance, removed the managers that were competitively recruited and replaced them with civil servants without following guidelines such as advertising for the vacancies and informing the cooperating partners, who are supposed to issue a notice of objection or no objection when IFMIS managers were recruited.

But last week when contacted for comment, Dr Lewanika referred all queries to Secretary to the Treasury, Likolo Ndalamei.

"Basically I have no comment, as you know I am no longer PS [permanent secretary] but ask the ST [secretary to the treasury], anyway there is nothing new with this matter [allegations], maybe The Post newspapers have friends at IFMIS who are telling you lies, but to me the nation is more important than individuals, so just do your homework and research properly," said Dr Lewanika.

The overall objective of the IFMIS project was to contribute to the efforts of the government in improving capacity to effectively and efficiently mobilise and utilise public resources [improve public expenditure management] and to strengthen overall financial accountability.

This development would have entailed the ministry of finance headquarters and the office of the Auditor General to be able to monitor all accounting procedures in ministries and government departments around the country.

And phase one of the project was to commence ‘go live’ in April 2008 on a pilot basis involving eight sites, that is five ministries, two provinces and one spending agency.

However, Dr Lewanika decided without following procedures to terminate the contracts of three key and competitively recruited IFMIS managers namely, Dr Douglas Kunda, Christopher Kasaro and Harry Pelekelo and replaced them with civil servants, against the MoU [signed with donors] and the 2003 Cabinet circular on terms and conditions of service for seconded government officers.

"This development affected and to date has affected IFMIS project implementation, since the appointment of new managers Joel Ukwimi, Innocent Mututa and Francis Mwale, delayed the commencement because they were new people and the learning process had to start all over again hence delaying the project that had reached advanced stages with a two months to ‘go live’ and this learning process is continuing and no specific date of implementation has been set," the source said.

The sources said Dr Lewanika's appointment of Ukwimi, Mututa and Mwale was not advertised and the donors were not informed, therefore the trio, who are still civil servants, were not competitively recruited.

The sources further accused Dr Lewanika of not obtaining approval from the Public Service Management Division when appointing civil servants to projects outside their job description.

"The MoU and the 2003 Cabinet circular on secondment were not followed when appointing these people, since these positions were supposed to be advertised, people competitively apply and be interviewed and a no objection be issued by the cooperating partners funding the IFMIS project and the people taking these positions were supposed to be highly qualified," said the source.

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