Minister of Finance breached the law by contracting sensitive audit, Kateka

The New Heritage Party (NHP) President Chishala Kateka says the hiring of private audit firms to audit defense and security wings of government by the Minister of Finance Dr Situmbeko Musokotwane is a dangerous precedent and breach of the law

In a lengthy statement, Kateka said her party received the explanation by Dr Musokotwane, concerning the decision to contract private audit firms to audit the Zambian defense and security wings of government, with great misgivings and concern.

“We are concerned, that Musokotwane, in the wake of justifiable public disquiet about the manner he has gone about contracting this sensitive audit, has infact broken the law; specifically The Public Finance Management Act. Cap. 7 Subsection 3.

“This is the part of the law that states clearly that when it becomes necessary to seek the service of private firms or any other such entities to carry out an audit of the defense and security agencies, it is the Auditor General and not any other person, not even the Minister of Finance, who should make this request to the President of the Republic of Zambia.

“The President in turn should give written authorisation to the AG for such a contraction to be legitimate and legal,” she said.

Kateka charged that Dr Musokotwane has not addressed this key legal requirement, as to whether this law was complied with, and that the paper trail from the AG to the republican President and back to the Auditor General does exists.

The NHP, therefore demands that the Dr Musokotwane avail this nation (with) evidence of the government’s compliance to the law, as a government that constantly boasts about being one predicated on the rule of law.

“Merely waxing lyrical on the incapacity of the AG’s office without addressing the real question that the citizens are asking will not do,” she said.

“In addition, the Public Audit Act No. 26 of 2016 states:

“(3) Despite the provisions of subsection (1), the Auditor- General shall not permit any authorised person, agent or specialist consultant to have access to any book, record, returns report or other document, or to enter;

“(a) the premises of any component of the Defence Force, national security services or a law enforcement agency; or
(b) premises other than those mentioned in paragraph (a) if such access or entry is likely to;

“(i) prejudice the security, defence or international relations of the Republic or the investigation or detection of offences; or

“(ii) involve the disclosure of any matters or deliberations of a secret or confidential nature of the Cabinet or any committee of the Cabinet,” Kateka said.

However, Kateka said their concern as a party is particularly heightened by the fact that most of those auditors are international firms and are subject to their internal international reviews.

“This not only exposes but also compromises the records of our Defense Force, National Security of Law Enforcement Agency,” she said.

“NHP whilst supporting all efforts to ensure that corrupt acts that were committed in previous administrations are unearthed and punished, are not going to support illegality and corruption by this new dawn government either,” Kateka said.

“So once again, we demand full and public disclosure by the Minister of Finance, of the legal paper trail of this deal given to these private audit firms.

“All this, is not withstanding our serious concerns about the national security implications of the audit by these private entities, even though the minister and his colleagues in government have robustly tried to downplay the inherent danger to the can and security of our defense and security forces and the nation,” she said.