K29m fraud exposed at Karonga District Council

A National Audit Office audit report for Karonga District Council has found that K29 261 010 was lost through fraud in the fiscal years 2020 to 2022.

The fraud is blamed on systems of internal controls for local revenue which are said to be weak resulting in lapses in the financial management of funds, according to the report.

It said sources of the losses are from revenue collected from business premises and liquor licences not accounted for, scrutiny fees collected but not remitted to the council and market fees not accounted for, especially for Chilumba Zone.

Reads the report in part: “A review of ticket books issued and signed for by market masters against revenue remitted to the council from ticket sales disclosed that revenue amounting to K8 863 200 was not recorded in the books of the council.”

It further shows that a review of business licence duplicates at the council, general receipts duplicates compared with the originals from the clients in various revenue collection points had revenue  amounting to K18 101 470 defrauded by those teams responsible for collection.

In an interview, Mlare Ward councillor Bellium Msukwa (Malawi Congress Party), who chairs the council’s finance committee, said they will deliberate on the report before presenting it to the full council meeting.

He said he was the council chairperson at the time the audit was instituted, and 11 workers remain interdicted over the same.

Karonga district commissioner Paul Kalilombe yesterday did not pick up calls, but incumbent council chairperson Isaac Kalambo of Zgewa Ward (Democratic Progressive Party) confirmed that the report will come before them next week.

The development comes amid revelations that councils are still using the outdated Integrated Financial Management and Information System from 2020.