BLANTYRE-(MaraviPost)—Treasury, the institution entrusted with an incredible responsibility to keep government pulse and setting fiscal standards at the same time has an uphill task to defend its integrity following revelations that the institution abused World Bank funds.According to The Nation newspaper, World Bank has demanded a K400 million from Malawi government to be paid back over procurement scam.
The funds abused are under the World Bank funded financial reporting and oversight improvement project managed by Treasury.
Laura Kullenberg, World Bank Country Manager for Malawi, confirmed that the request for a refund was made for computers and a printer that the bank submitted to Malawi government under financial reporting and oversight improvement project totaled $519, 142 32 (about K400 million).
Kullenberg told the local paper that World Bank takes procurement issues seriously for countries to receive value for money from their funded projects.
“As part of our fiduciary responsibilities and oversight for World Bank Group [WBG] funded projects, we take procurement issues seriously in order to ensure client countries receive value for money from these projects.
“When our due diligence establishes a project expense as ineligible, we normally request a refund from government for those expenses. For example, when goods or services procured do not meet the specifications indicated in bidding documents, when required documentation is missing or when the procurement method used is at variance with what was originally cleared by the bank under its procurement policy,” Kullenberg said.
Treasury spokesman Nations Msowoya described the request for a refund by World Banda as “unfortunate.”
Msowoya said Treasury “has to look for money to pay back.”
Under the Treasury managed project, a printer and computers were bought to improve accountability, oversight and reporting of government finances.
