Secretary to the Treasury Fredson K. Yamba’s Friday, 15 MAY 2020p Press Statement on covid 19 donations

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REPUBLIC OF ZAMBIA
MINISTRY OF FINANCE
www.mof.gov.zm

*STATEMENT ON COVID-19 DONATIONS*

Lusaka, Friday, 15 MAY 2020

Through the Office of the Accountant General and the Controller of Internal Audit, the Ministry has been collecting reports on Covid-19 donations from other Ministries, Provinces and Agencies. In this regard, we have compiled a consolidated report of donations made to the Government of the Republic of Zambia for the period 1st March 2020 to 30th April 2020.

The assessment of donations made towards the Covid-19 fight in Zambia has been done in accordance with the Public Financial Management Act, 2018, audit standards and the tenets of fiscal transparency.

Our intention is not only to comply with the provisions of the Public Financial Management Act but also to ensure that we do not betray the compassion of well-wishers and donors in our effort to fight and conquer the Covid-19 pandemic in the country.

As a Ministry, we keenly followed the public debates on Covid-19 donations and cannot agree more on the need to be transparent as that is what is demanded by the Public Finance Law and Public Finance Reforms.

To get our economy back on a growth trajectory after conquering Covid-19, we are cognizant of the need to continuously be at our best. To be at our best, we will continue to practice effectiveness and efficiency in the mobilisation, management and utilisation of our public resources; which in this regard, include donations towards the fight against Covid-19.

Today, we are once again calling on all Controlling Officers to continue exhibiting the highest level of fiscal accountability considering that our domestic revenue streams have severely been impacted by reduced economic activities, a situation that has been induced by Covid-19. The impact is not only domestic but has also emanated from the slow-down of economies of our key export partners – the consumers of our locally produced commodities such as copper and agriculture produce.

The donations made by well-wishers, therefore, will greatly help the Government to stay within the resource parameters approved by Cabinet for the fight against Covid-19.

At a time when some of our citizens are at home, because of the Covid-19 induced slowdown in economic activities, those who are still working should exert optimum productivity to ensure that the impact of the economic deceleration on our country remains reversible.

Covid-19 has amplified the importance of ICT in business processes. In this regard, I take this opportunity to commend SMART Zambia Institute for ensuring that the Integrated Financial Management System [IFMIS], the payroll system and other Government-wide ICT platforms remain fully functional. The continued alertness of SMART Zambia in ensuring that the government-wide ICT facilities remain operational is of extreme importance to economic resuscitation through provision of effective and efficient services to the public.

Without prejudice, I also take this opportunity to call on the banking and financial services sector to continue expanding their digital platforms and develop further, other services that minimize human to human contact as affirmative actions in upscaling their Financial Technology [FINTEC] outreach to help fight Covid-19.

As a Ministry, we have continued to pursue measures aimed at enhancing transparency and accountability in the utilization of resources allocated towards the Covid-19 Pandemic. In this regard, we issued Treasury and Financial Management Circulars No. 3 and 4, in April 2020. These circulars provide elaborate guidelines for the handling and management of donations received on behalf of the Government.

Further, in line with the Public Finance Management Act No 1 of 2018, the Minister of Finance has frequently reiterated the call by his Excellency the President of the Republic Dr EDGAR CHAGWA LUNGU, that all resources received towards supplementing our needs in the fight against Covid-19 be judiciously applied to intended purposes.

Over the last few weeks, we operationalised the President’s guidance and placed internal auditors on high alert in identifying internal-control weaknesses and providing practical recommendations in areas requiring transparency, accountability, and performance improvement.

To demonstrate our action, internal auditors in recipient Ministries, Provinces and Agencies have continuously played a proactive role in the broader system of controls – through the following interventions:

1) Mandatory pre-audits of all expenditure before disbursements are made;

2) Witnessing the receipt of donations to enhance transparency and accountability;

3) Conducting weekly reviews on all donations received, income and expenditure thereof, including financial disbursements from the Treasury; and,

4) Conducting snap checks on the disposal of donated and procured items. So far, we have conducted checks at Levy Mwanawasa Hospital, Chainama Hills Hospital, Lusaka District Health Office, and in the Western and Copperbelt Provinces.

The weekly reports from Ministries, Provinces and Agencies are meant to avail Controlling Officers with timely continuous guidance and assurance on the efficacy of our internal control processes, including those related to Covid-19 donations.

SUMMARY OF RECEIVED DONATIONS

In addition to copies that will be circulated by the Ministry online, the full details of the donations will be published in the Daily Nation, Daily Mail, and Times of Zambia Newspapers beginning Monday 18th May 2020.

The estimated total of cash and donations in kind is K78, 150, 914.30 million. This figure excludes pledges that have not been honoured and items whose value has not yet been communicated to us.

For the period 1st March 2020 to 30th April 2020, nineteen (19) individuals and organizations contributed K9.78 million cash.

I take this opportunity to request all cash donors to collect stamped Government receipts from room 36 in the Accountant General’s Division at the Ministry of Finance. This is in accordance with Financial Management Laws.

The total estimated value of donations-in-kind received from individuals, organizations, and other well-wishers, some of whom wish to remain anonymous, is currently estimated at K68, 370, 159.21 million.

Between 1st March 2020 to 30th April 2020, one-hundred-and-nine (109) individuals and organisations made donations in kind through the Ministry of Health. The estimated value of these donations is K66.2 million. The figures will continue to be updated as more pledges continue to be honored.

During the same period, the Disaster Management and Mitigation Unit received donations estimated at K1.55 million from twelve donors.

Ministry of Community Development received donations-in-kind estimated at K52, 500, Ministry of Finance K52, 750, and Muchinga Province K479, 586.

The donations-in-king comprise the following broad categories;

1. Personal protective equipment

2. Foodstuffs

3. Medical supplies

4. Covid-19 campaign, camping and lighting facilities

The verification exercise will continue, and the data will be updated monthly as new information which we may have missed in our current report, is received.

I wish to take this opportunity to appeal to all Ministries, Provinces and Agencies that may have received donations towards the Covid-19 fight but have not yet submitted information, to do so.

We intend to make our next publication for the period March to May 2020, in June 2020.

I thank you.

FREDSON K. YAMBA
SECRETARY TO THE TREASURY
MINISTRY OF FINANCE