A forensic audit of the Zambia Medicines and Medical Supplies Agency (ZAMMSA) has uncovered procurement irregularities involving contracts worth K1.4 billion, missing stock records and weaknesses in internal controls, Parliament heard on Friday.
Minister of Health Professor, Roma Chilengi, said the audit found that contracts worth K1.4 billion were awarded despite objections from internal auditors, while some prices were inflated by as much as 1,613 percent.
Presenting a ministerial statement in Parliament, Chilengi said 4,996 shipments had disappeared from the Agency’s system, while 3.34 million units of medicines and medical supplies valued at approximately K290 million could not be verified.
The audit also revealed K42 million in unexplained distribution discrepancies and a K16.1 million contract awarded to an unregistered supplier.
Chilengi said the findings exposed significant weaknesses in governance, management, procurement and recordkeeping, raising concerns about the availability of medicines in public health facilities.
He said the Government had dissolved ZAMMSA’s board and removed its chief executive and other directors, while law enforcement agencies had launched investigations that had resulted in some arrests.
“The Government was implementing a comprehensive overhaul of ZAMMSA aimed at improving accountability, transparency and efficiency throughout the medicines supply chain,” Chilengi stated.
He said Government funding for medicines and medical supplies had increased from K1.6 billion in 2021 to K6.4 billion in 2026.
Despite the increased funding, Chilengi said the Agency continued to face serious operational challenges, including weak management controls, poor recordkeeping and the theft of medicines and medical supplies.
He said the audit also found evidence of deliberate deletion of electronic records and persistent difficulties in maintaining the availability of essential commodities in health facilities.
“Despite increased financial allocation to medicines and medical supplies from K1.6 billion in 2021 to K6.4 billion in 2026, ZAMMSA faced challenges including a wider mandate than its forerunner Medical Stores Limited, weak management controls and theft that drew complaints from donors and cooperating partners,” he said.
Chilengi said President Hakainde Hichilema had called for the forensic audit in late 2024 following concerns about the Agency’s performance and execution of its mandate.
He said the findings highlighted the need to restore public confidence in ZAMMSA through comprehensive institutional reforms.
“The firm recommendation of the audit was that Government must completely overhaul and reset ZAMMSA. Government is implementing a comprehensive overhaul aimed at improving efficiency, accountability and transparency throughout the medicines supply chain from forecasting and quantification to procurement, storage and distribution to the last mile,” Chilengi stated.
He added that the reforms were being undertaken through the Ministries of Health, Finance and National Planning, Labour and Social Security, together with the newly constituted ZAMMSA board.
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Chilengi said a new organisational structure had been completed, while the separation of 481 employees was ongoing.
He disclosed that the Treasury had set aside approximately K100 million for the affected employees.
The reform process also includes phased recruitment of new staff, beginning with senior management, the integration of procurement and electronic logistics management systems to enable end-to-end tracking, and a review of the legislation governing the Agency.
“Government has instituted measures to maintain operational continuity throughout the reset and restore public confidence, with expected outcomes including accurate forecasting that eliminates stock outs, overstocking and expiries,” he said.
Chilengi said the reforms would also introduce a procurement system guided by the principles of quality, price and timeliness outlined by President Hichilema.
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