Power, Politics, and Procurement: How ZAMMSA Lost Its Independence

This two-part investigation by MakanDay exposes how Zambia’s central medical supply agency, ZAMMSA, descended into chaos, from political capture and procurement manipulation to a multimillion-kwacha drug scandal that has left the country’s healthcare system vulnerable.

Part I

By Charles Mafa | MakanDay Investigates

• The Zambia Medicines and Medical Supplies Agency (ZAMMSA) has become a hub of kickbacks and political patronage, with procurement authority increasingly diverted from the agency to the Ministry of Health, and in some cases, even to State House.

• Insiders suggest that ZAMMSA’s apparent “failures” may be strategic. By portraying the agency as ineffective, procurement functions could be deliberately shifted back to the Ministry, creating yet another layer of political opportunity and control.

ZAMMSA, the country’s central agency for procuring, storing and distributing essential drugs and medical supplies, has seen eight Director Generals (DGs) in just four years, including several in acting capacities. This revolving door at the top reflects deep institutional instability and the absence of continuity in leadership.

The list of former Director Generals includes Billy Mweetwa, who served for one year from August 2022 to August 2023, and Victor Nyasulu, who held the position from November 2023 until July 2024, when he was suspended following a scandal involving 61 trucks marooned at Chirundu border. Others who have since acted in the role include Chipopa Kazuma (who acted after Chikuta Mbewe was fired in 2021), Dr Peter Mwaba, Luke Alutuli, Nalishebo Siyandi, Dr. John Kachimba, and the current acting Director General, Jane Banda Chisanga.

By law, the Ministry of Health’s role ends with the appointment of the ZAMMSA board, which is then responsible for hiring the DG. The failure to appoint a functional board creates a governance vacuum that effectively hands power to the Ministry of Health.

Without a board, the Ministry acts as both regulator and implementer, bypassing normal checks and balances. This arrangement ensures that key decisions, including DG appointments and dismissals, remain politically driven.

According to a key insider, the Ministry of Health, working closely with powerful officials at State House, continues to maintain direct control over senior appointments and procurement processes, undermining the agency’s independence.

“When there is no board in place, the Minister (of Health) effectively becomes the board,” said one of the sources, a former Director General.

The Ministry of Health has not yet responded to MakanDay’s request for comment, including questions on when the ZAMMSA board will be appointed.

“ZAMMSA is where the money is and where there’s money, there’s opportunity for kickbacks,” a source close to the agency disclosed under condition of anonymity.

So, at the moment, a lot of issues are pending due to the governance gaps, he added.

MakanDay’s investigation, based on insider interviews and access to documents, has found that part of the crises leading to recent sackings and arrests can be traced back to 11 December 2023. On that date, the agency launched a “mop-up” procurement exercise to address drug shortages by purchasing ex-stock medicines.

“Mop-up procurement exercise” means that the agency conducted a rapid, unscheduled purchase of medicines (ex-stock), likely to cover shortages or spend leftover funds, which may have opened opportunities for irregularities or corruption.

Officially, the exercise aimed to stabilise supply chains disrupted by the Patriotic Front (PF)’s era of drug debt and scandals such as Honeybee’s expired and substandard medical supplies. However, concerns soon emerged such as altered documents, inconsistencies in the number of bidders, doubts about suppliers’ actual stock availability and shelf life, as well as signs of collusion among suppliers.

According to ZAMMSA’s records seen by MakanDay, contracts worth K700 million were awarded to 24 companies. But insiders claim the real figure was K685 million, while other documents show inflated totals of up to K1.4 billion.

The record show that the Zambia Public Procurement Authority (ZPPA) reportedly advised ZAMMSA to issue a brief national call advertised for only seven days targeting suppliers and manufacturers holding ex-stock. Respondents were required to submit basic information, including product description, total quantities available and expiry dates.

Priority was to be given to products with high public health impact and a remaining shelf life of at least 80%.

Notably, the procurement was executed under the Limited Bidding method, using a prequalified shortlist of bidders, in accordance with the Public Procurement Act No. 8 of 2020.

While the initiative was intended to fast-track the availability of medicines, concerns remain about the transparency, fairness, and integrity of the process.

On Wednesday, 20 December 2023, ZAMMSA issued enquiries to prequalified bidders for the supply and delivery of essential medicines, medical supplies, anti-cancer medicines, adjuvants, and reproductive health commodities. From the initial call for bids, 31 companies were shortlisted.

According to the original mop-up exercise document seen by MakanDay, Maz Pharmaceuticals Limited, Lab Galore Limited, Inter Med Pharmaceuticals Limited, and Lumumba Pharmaceuticals did not submit their bids. Consequently, only 27 bidders participated in the final stage of the process.

The document further indicates that the Management Procurement Committee recommended that Director of Supply Planning, be granted authority to award and negotiate contracts for products whose prices exceeded the 10% threshold.

The director was also directed to retender contracts for essential and overpriced medical commodities, including anti-cancer medicines and reproductive health products. The recommendation was subsequently forwarded to ZAMMSA management for action.

The total value of the procurement was estimated at over K1.1 billion (K1,121,025,619.09), with a stipulated delivery period ranging from ex-stock to a maximum of six weeks, following completion of the mop up exercise.

After the exercise was concluded, the report was submitted to ZAMMSA. At the request of the then Director General, Victor Nyasulu, the agency’s Internal Audit Department conducted a further due diligence review of the K1.2 billion mop-up procurement.

Findings from ZAMMSA’s due diligence report

MakanDay has established that the due diligence report analysed by ZAMMSA’s Internal Audit Department, which aimed to verify the 27 companies shortlisted for contract awards through checks on stock availability, shelf life, and other compliance factors, also included Lumumba Pharmaceuticals, bringing the total number of companies assessed to 28.

However, Lumumba Pharmaceuticals was not among the officially shortlisted companies, as it did not submit a bid during the mop-up exercise.

According to the report, out of about K730 million (K729,508,077.67) worth of stock assessed, only K384 million (K384,091,808.42) worth of medicines and medical supplies had a shelf life above 80%.

The exercise further revealed indications of possible supplier collusion and coercive practices, as several suppliers reported that portions of their stock were being kept at other premises or by sister companies. This pattern was particularly common among smaller suppliers. However, the report noted that no evidence was provided to confirm ownership of the stock allegedly stored at these alternative locations.

In some cases, suppliers claimed their stock was held at premises belonging to companies that had also participated in the same tender process.

Publicly available information on ZAMMSA’s official website shows that the agency awarded contracts worth approximately K700 million to 24 local suppliers under the mop-up initiative, which was aimed at urgently addressing shortages of essential medicines and medical supplies at secondary and tertiary health facilities across the country.

Yet, behind the official numbers lie questions about altered documents, inflated figures, and opaque decision-making. The audit findings, internal memos, and accounts from insiders all point to a procurement system vulnerable to political interference and manipulation.

In Part II, MakanDay digs deeper into the politics behind the procurement chaos — how ministerial interference, favoured suppliers, and a mysterious truck scandal combined to topple ZAMMSA’s leadership and expose systemic rot at the heart of Zambia’s drug supply chain.