The Zambia Postal Services Corporation (ZAMPOST) has suspended postmaster-general McPherson Chanda for six months to pave way for investigations into alleged misapplication of social cash transfer funds.  The ZAMPOST board has also suspended director of finance Best Mwachi, director of operations Isaac Kamwimba and assistant director of operations Moses Musonda.

Board chairman Musenga Musukwa said in a statement yesterday that Brighton Ngoma has been appointed Mr Musukwa said the board has also appointed Stanley Phiri as director of operations while Dorothy Mulenga is interim finance director. “All those appointed to act have been externally sourced,” he said. Mr Musukwa said the decision to suspend the four top managers was made yesterday during a special board meeting in Lusaka.

“The board of directors of the Zambia Postal Services Corporation met on Thursday [yesterday] to discuss the administration of the social cash transfer funds. “In order to pave way for investigations relating to the matter, the board resolved to suspend with immediate effect the officers in management for a period not exceeding six months from execution of official duties,” Mr Musukwa said.

The suspension of the four comes barely a day after the dismissal of former Minister of Community Development and Social Services Emerine Kabanshi by President Edgar Lungu.

On Wednesday, President Lungu fired Ms Kabanshi and replaced her with Nyimba Member of Parliament Olipa Phiri. Special assistant to the President for press and public relations Amos Chanda told journalists at State House on Wednesday that the head of State has ordered an inquiry into the misuse of US$4.3 million for the social cash transfer programme.

Mr Chanda said President Lungu, who has also directed Secretary to the Cabinet Roland Msiska to properly coordinate policy pronouncements across line ministries, wants all the funds meant for the poor accounted for. Meanwhile, the United Kingdom (UK) has withheld its financial assistance only to the social cash transfer programme and the education sector.

Minister of Finance Margaret Mwanakatwe told Parliament yesterday that the UK’s financial support to other sectors has not been affected. “Under the social protection programme, we have cases of misapplication of funds, underpayment of beneficiaries, and irregular payment of gratuities and non-adherence of Zampost to the signed memorandum of understanding. “In the education sector, the suspension is on account of cases of mismanagement of funds,” she said.

Mrs Mwanakatwe said there is no ‘gun smoke evidence’ as being suggested by some sections of society over the social cash transfer saga and urged the public to patiently wait for the outcome of ongoing investigations. She was responding to questions by Choma Central Member of Parliament (MP) Cornelius Mweetwa (UPND) who wanted to know if the UK has frozen all bilateral funding to Zambia.

Mr Mweetwa also wanted to know the immediate measures Government is taking to mitigate the impact of the frozen aid. Mrs Mwanakatwe said Government, through the controller of internal audits, conducted a risk-based and compliance audit in 60 districts where the programme is running. She said the payment and identification system will be re-evaluated to ensure that the right beneficiaries are paid. Mrs Mwanakatwe also said donors have not cut funding to the social cash transfer programme but have only put it on hold until Government takes appropriate measures to ensure that such a situation does not recur.

Mrs Mwanakatwe said once satisfactory corrective measures are put in place, it is expected that funding will resume. She was responding to a follow-up question by Luangeni MP Charles Zulu (PF) who wanted to know how Government will sustain the social cash transfer programme following the donors’ decision. Mrs Mwanakatwe said Government is reviewing the contract it signed with Zampost through the ongoing forensic audit to determine whether or not the company will continue disbursing the funds to beneficiaries.

Meanwhile, State House says donors should objectively evaluate the social cash transfer project and consider continuing funding the pro-poor scheme. Special assistant to the President for press and public relations, Amos Chanda, said Government does not have sufficient resources to run the programme, hence its decision to work with donors. Mr Chanda said the actions being undertaken by Government are intended to restore funding to the programme.

He was speaking yesterday on Hot FM radio breakfast show. “It is our view that the donors will return to funding the programme soon. Their goal is to ensure that the money reaches the intended beneficiaries and not to fight Government,” he said. Mr Chanda said preliminary investigations have revealed that the US$4.3 million was misdirected to pay retirees and for rehabilitation of infrastructure and, therefore, it did not reach intended beneficiaries.

Mr Chanda also said President Edgar Lungu’s decision to dismiss former Minister of Community Development and Social Services Emerine Kabanshi was not influenced by media reports.