By Charles Mafa
The Anti-Corruption Commission (ACC) continues to delay prosecution in what appears to be a cover-up involving officials who escaped arrest in the theft of over a billion kwacha in public funds at the Ministry of Finance. In the meantime, the whistleblower, Grandy Ntumbo, remains a target of ongoing victimisation.
A 2019 special audit into the Ministry of General Education, led by Ntumbo, a Principal Internal Auditor in the Ministry of Finance, uncovered a five-year payroll fraud scheme worth over K2 million within the Zambia Educational Projects Implementation Unit (ZEPIU), along with other major financial irregularities.
The audit also revealed the misuse of K500,000 from the World Bank-funded Zambia Education Enhancement Project (ZEEP) and overwhelming evidence from the Treasury Single Account (TSA) and the Integrated Financial Management System (IFMIS), pointing to widespread financial misconduct in both ZEEP and the Keeping Girls in School (KGS) initiative. Numerous staff members received irregular allowances.
Further investigations revealed unauthorised withdrawals from government accounts and breaches of a presidential directive prohibiting travel by directors, ministers, and permanent secretaries without Cabinet approval.
As Ntumbo pursued the case and engaged with the ACC, deeper inquiries exposed a far-reaching corruption and money laundering network rooted in the Ministry of Finance. The scheme extended to the Auditor General’s Office and key institutions, including the Drug Enforcement Commission (DEC).
For example, over a span of 30 years, more than 200 government officials participated in systematic embezzlement, siphoning funds daily and weekly through treasury accounts and government loan and investment accounts.
The financial misconduct within the finance ministry involved the embezzlement of over K1 billion from the state treasury through fictitious allowances and a five-year payroll fraud.
Despite multiple requests by MakanDay, the ACC has yet to provide an update on the arrests of 18 officials, including the Permanent Secretary at the Ministry of Finance, the Accountant General, and the Controller of Internal Audit.
However, in a rare statement during its third-quarter media briefing on October 25, 2023, the ACC said that “investigations into allegations of corruption against Ministry of Finance officials are almost concluded, and the Commission will advise on the next course of action.”
MakanDay Centre for Investigative Journalism takes a closer look at this large-scale theft and the ongoing victimisation of whistleblower, Ntumbo. His efforts to expose corruption have led to severe reprisals, including suspension and removal from the payroll. Since 2021, he has faced persistent persecution from ministry officials who have evaded arrest.
Timeline of Key Events
December 2019
- Joyce Sundano Phiri, the Controller of Internal Audit, forms a team of Forensic Internal Auditors to investigate allegations of large-scale money laundering and corruption at the Ministry of General Education (MoGE) following intelligence reports about significant theft of public funds, corruption, and money laundering activities.
- The probe focuses on the Treasury Single Account (TSA) and donor funds from the World Bank, particularly within the Zambia Education Enhancement Project, Keeping Girls in School, and the Zambia Educational Projects Implementation Unit.
- Audit verification begins in Central Province Provincial Education Office.
February/March 2020
- Ms Phiri, appoints Ntumbo as the team leader of the forensic internal auditors.
May 2020
- Controller of Internal Audit, Phiri, is replaced by Chibwe Mulonda.
June 20, 2020
- Ntumbo is offered a bribe.
- State security agencies gather crucial evidence of the bribe related to falsifying the audit report, secure the evidence, and obtain a statement regarding the bribe and the audit findings.
- Ntumbo reports the bribery attempt to his superiors—Assistant Director of the Specialised Audit Department David Kajokoto, Assistant Director Ndalama Chilumba, Director of the Specialised Audit Department Nora Mwila Sichilongo, and Controller of Internal Audit Chibwe Mulonda—as well as to the Anti-Corruption Commission (ACC).
September 2020: Attempts to Recover Seized Evidence
- The ACC seizes the K5,000 bribe in Ntumbo’s account.
- A Ministry of General Education official from the Provincial Education Office in Kabwe, who had deposited the bribe into Ntumbo’s account, calls him, attempting to retrieve the documents that were seized by the ACC along with the bribe money.
- The Permanent Secretary in the Ministry of Finance writes to the Controller of Internal Audit, requesting access to the documents Ntumbo had signed for as forensic evidence.
December 2020: ACC contacts Ntumbo and instructs him to surrender documents to ACC.
- Ntumbo responds in writing, stating that accepting the bribe would have been a criminal offence and that the documents were seized by the ACC as evidence in an ongoing investigation.
- Victimisation of Ntumbo by superiors at the Ministry of Finance begins. This included various actions, such as withholding work assignments, transferring him from the Forensic Audit Unit to the Revenue Audit Unit, and assigning him junior officers to supervise.
- The ACC begins collaborating with the Ministry to safeguard Ntumbo.
February 2021: ACC Attempts to Retrieve Key Documents
- An ACC Officer approaches Controller of Internal Audit, with a search warrant to seize documents obtained by Ntumbo from the MOGE Provincial Education Office and the Forensic Audit Report for the 2019 investigation.
- The attempt to seize the documents fails.
- ACC arranges for Ntumbo to voluntarily surrender the documents he obtained from MOGE PEO in Kabwe.
- Ntumbo complies, and the ACC issues an acknowledgment.
- Despite the ACC issuing a caveat to protect Ntumbo, the Ministry of Finance refuses to allow him to operate from its offices.
May/June 2021: ACC Investigates Ntumbo’s Victimisation
- Overwhelmed by Controller of Internal Audit’s persistent attempts to retrieve the seized documents, the ACC summons Ntumbo for an interview to establish the extent of the victimisation.
- During the interview, Ntumbo discloses to the ACC the presence of a cartel within the Ministry of Finance involved in a 30-year-old money laundering scheme, which he said is even more widespread than the one at the Ministry of General Education.
- He further discloses that K110,000 was deposited into his account as an attempt to recruit him into the cartel. To substantiate his claims, Ntumbo prints out records from the Integrated Financial Management System (IFMIS).
- Despite this evidence, the state fails to seize the illicit funds deposited into his account.
July 2021: ACC Issues Protection Order for Ntumbo as Victimisation Heightens.
- The ACC formally writes to Assistant Director of Specialised Audit, instructing that Ntumbo should not be transferred until criminal investigations are concluded.
- However, while the ACC was still building its case on victimisation, Assistant Director of the Specialised Audit Department transfers Ntumbo from the Forensic Audit Section to the Revenue Audit Section.
- July 21, 2021:Ntumbo is transferred to Mongu, Western Province, which he appeals on grounds of victimisation.
- ACC warns Ministry of Finance officials for harassing Ntumbo and obstructing the ongoing investigations.
- The Controller of Internal Audit arranges for Ntumbo to be placed on the Western Province payroll without following government procedures, which require an arrival advice form before such placement.
August 2021: ACC Warns Against Interference in Investigations
- Assistant Director instructs Ntumbo to re-audit MOGE.
- The ACC cautions Assistant Director against this directive, stating that MOGE was under investigation.
- Ntumbo resumes reporting to the Ministry of Finance.
- August 3, 2021:Ntumbo formally writes to key authorities—including the Secretary of the Civil Service Commission, the Secretary to the Cabinet, the Permanent Secretary (Financial Management and Administration) at the Ministry of Finance, the Director General of the ACC, and the Director of Human Resources—appealing his transfer on the grounds of victimisation.
September 2021: Escalation of Victimisation
- The Director of Human Resources at the Ministry of Finance writes to Ntumbo, giving him 48 hours to explain why he had not reported to Mongu.
- September 7, 2021: Ntumbo is asked to collect an exculpatory letter from the Ministry of Finance.
- September 23, 2021: Ntumbo responds to the Ministry, explaining that he had appealed to the Secretary to the Director of Human Resources and the Civil Service Commission, citing documented evidence of victimisation.
October 2021: ACC Intervenes
- The ACC phones the Controller of Internal Audit and the Director of Human Resources at the Ministry of Finance to caution them over their continued victimisation of Ntumbo.
- ACC officer summons Ntumbo to his office, urging him to reconcile with his superiors and drop the corruption cases against Ministry of Finance officials.
- Later that month, Ntumbo personally reports life-threatening attacks to Deputy Inspector General of Police, and submits a written complaint to Inspector General of Police.
- However, after the initial interview and submission of evidence, Deputy Inspector General of Police stops taking Ntumbo’s calls.
November 2021 – May 2022: Internal Audit and Further Retaliation
- Ntumbo is assigned to lead the internal audit verification of pharmaceutical drugs in Southern Province.
- November 3, 2021: Ministry of Finance Targets Ntumbo
- The Permanent Secretary of Economic Management and Finance informs the ACC that Ntumbo was charged in June 2021 for the loss of a government laptop, as flagged in an audit query by the Office of the Auditor General.
- The Ministry claims that Ntumbo’s transfer to Western Province was routine, but acknowledges that he never reported to the new station, citing victimisation.
December 2021: Threats and Expulsion from Office
- December 5, 2021: Ntumbo reports for work at the Ministry of Finance but is forcibly removed from the premises by Director of Internal Audit Operations, Human Resource Officer, and Director of the Specialised Audit Department.
- In response, Ntumbo files an email complaint with Controller of Internal Audit, Director of Audit Operations, and Director of the Specialised Audit Department.
- December 6, 2021: Secretary to the Treasury summons Ntumbo and threatens him, accusing him of pretending to be an ACC whistleblower.
- Secretary to the Treasury also claims that Ntumbo exposed an irregular K950,000 loan he obtained from the Ministry of Finance and National Planning.
- He warns that if Ntumbo fails to report to Mongu within 10 days, he will be retired in the “national interest.”
- December 20, 2021: ACC Issues Legal Protection for Ntumbo
- The ACC writes a caveat letter to the Secretary to the Treasury, copying the Secretary to the Cabinet.
- The letter officially legally protects Ntumbo from further retaliation.
- It confirms that Ntumbo has suffered workplace victimisation at the hands of Assistant Director of Treasury and other senior Ministry of Finance officials
February 2022
- Ntumbo writes to President Hichilema requesting intervention but receives no response.
- He meets then DEC Director General, submitting a parallel complaint and requesting an assessment of his security situation,
- He provides her with evidence of economic plunder involving four aircraft (two ATRs and two Boeings) by the previous government.
- Documents reveal a $3 million transfer by the government, but the aircraft were never delivered.
- Reports indicate that money was collected using the Presidential Challenger aircraft.
- DEC provides Ntumbo with state security and a safe house within seven days.
- Ntumbo informs the ACC Director General that his office space has been overcrowded, making work difficult.
- The ACC DG does not act, citing instructions not to arrest Ministry of Finance officials due to ongoing IMF negotiations.
- The restriction on the K5,000 bribe in Ntumbo’s bank account expires, and he informs the ACC. No action is taken until Ntumbo requests a progress report in October 2022.
March 2022
- The Civil Service Commission acknowledges Ntumbo’s appeal against his transfer to Mongu, stating discussions with the Ministry of Finance are ongoing.
- The Civil Service Commission transfers several directors from the Ministry of Finance to the Cabinet Office.
June 2022
- Ntumbo contacts new ACC DG Gilbert Phiri regarding the Ministry of Finance’s failure to comply with protective measures.
- Ntumbo seeks a meeting with DEC DG Chirwa regarding the promised arrests of Ministry of Finance officials.
- Chirwa declines, referring him to Assistant Director of Money Laundering, Mukelabai Kwaleyela.
- Ntumbo insists on the DG’s attention.
- Three hours later, a DEC official calls, questioning why Ntumbo is still in the safe house, suggesting his stay was only meant to be temporary.
August 9, 2022
- Civil Service Commission advises the Ministry of Finance that Ntumbo was absent without valid authorisation and recommends disciplinary action. The Commission never communicates this to Ntumbo.
October 2022
- Additional intelligence reveals the Ministry of Finance theft amounts to K533 million, far exceeding initial estimates.
- Ntumbo informs DEC DG. She offers a meeting, but Ntumbo declines, opting for private prosecution.
- Ntumbo writes to ACC DG requesting progress reports on the MOGE and Ministry of Finance cases. He also inquires if the ACC has abandoned the MOGE bribe case, as the K5,000 remains in his account since February 2022. ACC fails to respond but reimposes the restriction on the K5,000 without informing him.
December 22, 2022
- Ntumbo reports to the Ministry of Finance as usual. A Senior Internal Auditor calls, questioning his presence.
January 2023
- Ministry of Finance removes Ntumbo from payroll.
- Ntumbo believes ACC insiders shielding corruption are behind attacks on his life and salary suspension.
- Former Internal Audit Controller (among those arrested) removes Ntumbo from the payroll.
- January 27, 2023: Ntumbo’s lawyers (LCK Chambers) write to the ACC DG citing reprisals against him and requesting a progress report within seven days.
- They also write to the Attorney General demanding his reinstatement and protection from further reprisals.
- January 31, 2023: Ntumbo receives a charge sheet from the Ministry for absenteeism since September 2021.
- He responds the same day but receives no reply.
- Charges include absenteeism and the loss of a government laptop, which he previously reported stolen.
February 2023
- Senior officials at the Ministry of Finance and Auditor General’s Office are transferred as investigations continue.
March 2023
- Under new DG Tom Shamakamba, ACC arrests 18 senior Ministry of Finance officials for theft and fictitious payments.
- An unnamed person claims to relay a message from the President, requesting evidence of the looting at the Ministry of Finance.
- March 23: Ntumbo writes to ACC summarising his victimisation and transfer.
- March 30: Ntumbo’s lawyers requests a meeting with the ACC DG regarding legal action.
April 20, 2023
- Ministry of Justice responds to LCK Chambers’ February 24 letter, stating that Ntumbo was transferred in July 2021 but failed to report to his new post.
- Citing Section 60(b) of Public Service Terms, the Ministry states his salary is withheld due to absence, though he was not officially removed from payroll.
May 11, 2023
- Ntumbo writes to ACC DG, copying LCK Chambers, expressing concerns over his reinstatement and safety.
- He alleges that Secretary to the Treasury Felix Nkulukusa is blocking his return to payroll.
- He requests state protection.
- ACC issues a restriction order on properties belonging to Assistant Director and Assistant Director of the Specialised Audit Department. Assistant Director had issued clean Internal Audit Reports for MOGE until December 2019, particularly regarding the Zambia Education Project Implementation Unit.
- May 24, 2023:Transparency International Zambia releases a statement on ACC’s suspect refund negotiations.
September 06, 2023
- DEC orders Ntumbo to vacate safe house.
- Ntumbo writes to the DEC Director General, seeking an update on his disclosures regarding the US$3 million and K5 billion Ministry scandal, reminding them of their promise to dismantle the cartel within two weeks.
- September 2023 – Ntumbo files for judicial review in the High Court.
December 13, 2023 – Court of Appeal ruling.
January 2024 – Attempts made to settle the matter out of court.
May 15, 2024 – Case returns to court after failed out-of-court settlement. The Ministry of Finance insisted they would only pay Ntumbo upon written confirmation from the ACC that he had been staying in a safe house.
January 9, 2025 – Three church mother bodies meet with Honourable Musokotwane, Minister of Finance.
February 22, 2025 – Ringo Zulu, Controller of Internal Audit, is fired.
For further details on this ongoing case, read our related reports:
1. Controversial Appointment in the Ministry of Finance Sparks questions
2. President Hichilema Terminates Contracts of Official Linked to Billion Kwacha Scandal Amid Whistleblower Victimisation
3. Whistleblower’s Landmark Case Against Ministry of Finance, ACC & DEC in Appeals Court Fails to Proceed
4. Whistleblower takes on Ministry of Finance, ACC & DEC in Landmark Appeals Court Case
5. Whistleblower in The Ministry of Finance’s Financial Theft Case in Jeopardy
6. Personal Cost of the Whistleblower
7. Zambian Government Defies Court Order
8. Appeals Court Overturns Transfer and Backs Auditor Amid Legal Showdown
9. Status of the Ministry of Finance Officials’ Theft Case https://makanday.org/status-of-the-ministry-of-finance-officials-theft-case/
10. A Crucial Measure of Zambia’s Leadership
11. Auditor Takes Legal Action Against Ministry of Finance and security Agencies
#Accountability #Corruption#FinanceScandal #InvestigativeJournalism #Zambia
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