LILONGWE-(MaraviPost)-About half a billion kwacha has been mismanaged in one year at the government-run Tobacco Commission, an internal audit report covering a period from April 1, 2022, to March 31, 2023 has found.
According to the audit report we have seen, the money was mismanaged through different activities.
For example, the budget for enforcement of liaison, monitoring, and evaluation was overspent by MK22.1 million.
The initial budget was MK6.2 million.
Under this, the biggest share of over expenditure was on purchase billboards which contributed 89 percent where the commission purchased nine billboards at a price of MK25.4 million.
The budget for international travel market promotion was bloated by MK187.3 million by incorporating money amounting to MK126.3 million for a trip to China which was not budgeted for during the commission’s 2022-23 financial year.
The biggest share of this part was air tickets which cost MK115.3 million which contributed 47 percent among others officials flew in business class against the government’s direction that those traveling within the African region should be using economy class.
The commission also overspent MK5.9 million on international travel conventions as it exceeded the three international trips per year government directive and flew business class with the African region against the budget direct of flying economy class.
The tobacco industry regulator also overspent MK30.3 million on tobacco media publicity and signed a contract with Malawi Broadcasting Corporation amounting to MK163 million which was not budgeted for during the financial year and allowances for media personnel MK1.1 million were not properly reconciled.
The Commission also overspent MK51 million on tobacco consultative meetings to sensitize the public to the new bill (Tobacco Industry Act).
On motor vehicle running cost maintenance, the commission overspent K22.8 million through servicing of motor vehicles at a private garage instead of authorized dealers, servicing cars that were marked for disposal contrary to Procurement and Disposal of Asset Policy of the Commission and purchase of car tracking system at K5.1 million which was not budgeted for.
It also overspent on fuel for motor vehicles by K13.4 million and running gen-sets, an exercise which was not budgeted for, and also overused K14.3 million on internet and VPN where MK10 million was not budgeted for.
On afforestation, the audit report indicates that out of the K173.3 million afforestation levy which the commission collected on behalf of the government, K105 million was committed to planting trees but only K4.4 million was used to purchase seedlings.
The Commission also overspent K6.6 million on functional review activity which was not budgeted for and there was no evaluation made on various procurements of goods and services and procuring goods that are over MK80 million to suppliers that are registered by PPDA contrary to the dictates of procurement.
The audit report adds that 40 of the 72 total votes cast by the commission were spent in excess of 56 percent in violation of Treasury regulations and the Public Finance Management Act.
Asked about allegations that some officials have been suspended on account of the findings of the audit, Board Chairperson Godfrey Chapola refuted the news.
“It is an internal matter and we do not have to tell you what is going to be done and if you want to find out if there were over expenditures, go and read the report,” Chapola told the Daily Times.
Eventually, the board suspended the TC Chief Executive Office (CEO) Joseph Chidanti Malunga over abuse of office
Malunga has been suspended together with TC Director of Finance Andrew Mfune.
The two are accused of tampering with the TC dollar account.
The decision was made during the Tobacco Commission’s extraordinary meeting held this week, according to inside sources.
The Tobacco Commission was established by an act of parliament to regulate the growing and sale of tobacco, Malawi’s made cash crop.
The cash crop is dwindling due to anti-smoking campaign globally.
