THEY’RE LOOTING OUR MONEY
…millions of kwacha stolen through abandoned contracts – Binwell
By George Zulu
GOVERNMENT is losing huge sums of money running into millions of kwacha on abandoned contracts awarded to politically exposed people (PEP), Nkana member of Parliament Binwell Mpundu has said.
Debating the Auditor General’s report in Parliament on Wednesday, Mpundu said millions of kwacha have been lost in abandoned contracts.
“Madam Speaker, the revelations in this report require that affirmative actions must be taken against all those who have been found wanting in misappropriating public resources,” he said.
He urged the police and other law enforcement agencies to take a keen interest in the revelations about how funds were taken away from the government without any works done.
“Oftentimes, we hear excuses that there’s no report to law enforcement agencies. Law enforcement agencies should move upon listening to these revelations. The mover highlights persistent irregularities, non-adherence to procurement rules, willful disregard for the rules that have been established,” he said.
Mpundu said the 2024-2025 report had grave issues that were supposed to be followed.
“…what has been noted throughout this report, from the auditor’s report up to the report that has been given by the committee, is a systematic practice. More of a syndicate, Madam Speaker, of contractors being given contracts, being given advance payments of 25%, they go on-site, abandon the projects, and nothing is done,” Mpundu said.
He said corruption and theft of government funds in ministries were done in a systematic way.
“Throughout this report, Madam Speaker, you will see a consistent pattern of contractors. Some of these contractors, move from one site, they are given a 25% down payment, they fail, the contract is terminated, they are given another contract in another area, again given a 25%, they abandon the project,” Mpundu said.
He said the corruption was sickening and must be fought, not by mere rhetoric but by action.
Mpundu cited irregularities and failure to recover advance payments on contracts that were terminated.
“An example of a company called GNM Projects Limited that was contracted to do the Mbaswa Dam. Advanced 25% advance payment of K3.3 million. Now this is not the only company. There’s a total sum of K12 million that was advanced to different companies whose contracts were terminated and monies were never recovered,” he said.
Mpundu said despite failure to deliver the project, the same GNM Projects was also awarded another contract to construct palaces.
He said the government advanced K759 000 from a contract sum of K3 million, a project which was later abandoned and the money was never recovered.
“It was also contracted to construct a palace in Chief Mwamba’s palace, a contract worth K3.3 million. It was advanced K1.48 million, abandoned the works, and these funds were not recovered. So these are all contained in the report of the Auditor General at page 201,” he said.
He said the looting was extended to the Ministry of Community Development under the Food Security Pack programme.
“Let me cite another issue, which you will find on page 101 in the audit report relating to the Ministry of Community Development. The Ministry contracted different suppliers, about 34 of them, a total of 1.469 billion kwacha for supplying different components of the food security pack. Here we are talking about seeds, we’re talking about fertiliser, and the like. 34 contractors were contracted under this food security pack programme,” he said.
Mpundu said Transseed, a company owned by a member of Parliament, benefited from the programme but never delivered after being paid.
“An example has been given of a company called Transseed Zambia Limited. Sadly, Madam Speaker, this is a report of a financial period from January 2024 into December 2024. Just to correct my friend, you know, from Zambezi who has not read anything. Madam Speaker, under this irregularity, out of a total of K1.4 billion, that was given to different companies, 34, a total of K923 million was given as advance payments to different contractors and suppliers.
Interestingly, Transseed Zambia, whose contract sum was K31 million, was given to supply but only and was also paid K9.7 million. And as at the close of 2025, nothing had been paid or delivered rather. Madam Speaker, K9.7 million advanced to Transseed. Unfortunately, Transseed, we are not allowed to discuss ourselves. I’ll leave those details, but belongs to a member of this other House,” he said.
