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Zambia: Auditor-General’s 2024 report reveals billions lost to irregularities in public accounts

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The Auditor General’s Report for the financial year ended December 31, 2024, has uncovered widespread financial irregularities and unchecked risks to public funds across several ministries and public institutions.

Presenting the report to Parliament in Lusaka on Thursday, Acting Auditor General Dr. Ron Mwambwa revealed that K4.39 billion in tax liabilities remained unpaid to the Zambia Revenue Authority (ZRA), while K10.9 million in transit taxes were at risk due to poor monitoring of goods exiting the country.

The report further highlighted that the Ministry of Lands and Natural Resources had K1.32 billion in outstanding ground rent, some dating back more than a decade, while K177.9 million in revenue arrears had not been collected.

At the Ministry of Finance, a failure to adhere to contractual agreements led to a loss of US$3.66 million, which has since been reported to the Drug Enforcement Commission (DEC) for remedial action.

In the Ministry of Community Development and Social Services, farming inputs worth K25.7 million intended for the 2024/2025 farming season remained undelivered as at August 31, 2025, undermining the purpose of the allocation.

“The Sustainable Agriculture Financing Facility (SAFF) also has approximately K12.96 million in outstanding loan recoveries, despite the agreed terms requiring repayment by June 2024,” Mwambwa said.

He further disclosed that insurance claims amounting to K113.1 million for 88,602 farmers under the Farmer Input Support Programme (FISP) remained unpaid, a situation he said reflected weak oversight and poor contract management.

The Ministry of Fisheries and Livestock was cited for failing to utilise K30.7 million allocated for animal health programmes, which was later returned unspent.

Similarly, the Ministry of Water Development and Sanitation terminated contracts worth K48.4 million, of which K15.4 million in advance payments remain unrecovered.

Under the Ministry of Education, auditors flagged the irregular engagement of a private firm, Alliance Procurement and Capacity Building Limited, to collect K2.8 million from schools without following procurement procedures or providing supporting documentation.

The Ministry of Health was also cited for questionable contract extensions and duplicate works worth K24 million, as well as the irregular verbal extension of a customs clearing contract with Primetime Freight and Customs Brokers, which had expired in 2020.

“It was observed that the contract, which expired in 2020, was verbally extended without formal documentation,” Mwambwa said, warning that such breaches exposed public funds to misuse and increased the risk of fraud.

Read More: Auditor-General’s report reveals reduction in financial irregularities, unauthorized salary payments

The Ministry of Transport and Logistics was cited for paying US$1.53 million in port rental arrears on behalf of a private concessionaire under the Walvis Bay Port agreement. Despite recovery efforts, US$1.43 million remained unrecovered as at August 31, 2025.

“The State continues to bear financial burdens from poorly managed concession agreements, leading to potential long-term liabilities,” Mwambwa said.

To address the irregularities, the Auditor General called for stronger revenue collection systems, tighter procurement oversight, and improved contract management.

He recommended digitisation of records, regular internal audits, timely sanctions for non-compliance, and stricter enforcement of financial regulations.

“Strengthening the implementation of audit recommendations remains a top priority to ensure accountability and good governance,” Mwambwa concluded.

The 2024 report covers 33 critical audit findings that remained unresolved as of September 30, 2025, raising serious concerns over accountability, financial discipline, and service delivery across government institutions.

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