• The audit was undertaken by the Internal Audit Division and it covered the period 1st January 2022 to 30th June 2023.
• If the same percentages were to be applied on the total funding to the total number of schools, it could be concluded that a sum of K356, 040, 228.
• The audit established that cases relating to management failure totaled K62,884,168.78.

An audit recently conducted by Ministry of Finance and National Planning to review utilization of grants in all the 182 schools countrywide has established abuse of public funds amounting to K356, 040, 228.

According to Secretary to the Treasury Felix Nkulukusa, the audit was undertaken by the Internal Audit Division and it covered the period 1st January 2022 to 30th June 2023.

The audit established that cases relating to management failure totaled K62,884,168.78, accounting for 17% and 78% of the total funding respectively, which was K80,485,201.96 for the period under review.

Mr. Nkulukusa added that of these funds, findings with elements of abuse amounted to K13, 356, 459.47.

In a statement, Mr. Nkulukusa said according to the data submitted at the time of review, the Ministry of Education has a total of 12,275 schools and about K2 billion was funded to all schools during the period 1st January 2022 to 30th June 2023.

“The audit was conducted at three schools per district i.e. two 2 primary and one secondary per district, in six selected districts per province. The findings of the review highlighted in the reports are classified in two broad categories, as follows: Findings depicting elements of abuse; and, findings indicative of school administrators’ failure to manage funds in line with relevant laws, regulations, and guidelines.”

“If the same percentages were to be applied on the total funding to the total number of schools, it could be concluded that a sum of K356,040,228.12 was abused while K1,676,289,577.16 was not managed in line with the laid down standards,” The Ministry revealed.

It observed elements of abuse, irregular transfer of funds and contributions by schools to higher offices such as district education boards secretary (DEB’s) offices, Provincial Education Offices, Head Teachers Association, and District Resource Centers for various activities.

Other elements of abuse include irregular payment of allowances and procurements above head teacher’s authorization limit, splitting of tenders or procurement to avoid authorization thresholds, Administrative lapses, management failures, High administrative costs to attend called-up meetings.

“Failure to account for funds, misapplication of funds, Unapproved and unauthorized expenditure, inadequately supported payments, missing payment vouchers, Unaccounted for revenue or unbanked revenue.”

“Unaccounted for stores or lack of disposal details, payment of wages to general workers below the statutory minimum wage or underpayment, unretired imprest and lack of activity reports. “

Mr. Nkulukusa called for an immediate stop to the movement of school grants to Provincial Education Offices (PEOs), District Education Board Secretaries (DEBs) and other entities without authority.

He further guided the Ministry of Education to take remedial action as prescribed by the Public Finance Management Act No.1 of 2018 and the disciplinary code and procedures for handling offences in the public sector and local government service where school grants have been abused or responsible officers have failed to follow laid down procedures.

“The Ministry of Education is expected to facilitate financial management training for non-financial managers, targeting officers responsible for managing public funds such as PEO’s, DEB’s’ and Head teachers.”

“All school grants should be spent in line with approved budgets. In this regard, public officials should desist from calling for unplanned for meetings which tend to increase school administrative costs, unless absolutely necessary. School administrators should ensure that all school assets are safeguarded from loss, as required by the law. Schools must maintain all records required in the management of public funds. Such records should be up to date at all times,” Mr. Nkulukusa added.