Melo News | Tuesday, April 23, 2024 | Lusaka
In October 27, 2017, the Ministry of Education made an agreement with Mikalile Trading Company, a company based in Hong Kong, to supply and install school materials and equipment. The total value of the contract was a staggering $401,838,720, reflecting the significant investment being made in education.
Unfortunately, Mikalile Trading Company became embroiled in an audit that scrutinized a separate contract worth $402 million. This audit uncovered an alarming overpricing of $60 million, raising concerns about the company’s business practices.
The audit further revealed that the contract in question had been inflated by a substantial amount. The contract’s value was found to be overstated by $59,823,026.16, with the interest incorrectly stated at $138,698,964 instead of the actual amount of $78,875,937.84. This discrepancy represented a staggering 53.5% of the principal amount, which was $259,250,400.
Overall, these findings shed light on the need for transparency and accountability in government contracts, emphasizing the importance of thorough audits to ensure fair and reasonable pricing.
Get your hands on the comprehensive report by clicking on the link https://www.ago.gov.zm/?wpfb_dl=300 and downloading it.
