Two Former Education Officials Charged Over $401m School Supplies Loan

The Anti-Corruption Commission has arrested and charged two former senior Ministry of Education officials over a school supplies contract that left Government carrying a loan obligation of US$401.8 million.

Former Permanent Secretary Henry Tukombe and former Head of Procurement and Supply Jacob Masatunya each face three counts of wilful failure to comply with applicable public procurement guidelines. Both have been released on bond and are expected to appear in court shortly.

ACC Head of Corporate Communications Joseph Mwenya said in a statement that the charges relate to a contract with Hong Kong-based Mikalile Trading Company Limited to supply school items across the country.

The structure of that obligation accounts for the headline figure. The principal stood at US$259.25 million. Interest of US$138.7 million and arrangement fees of US$3.89 million brought the total to US$401.84 million, meaning financing costs came to more than half the value of the goods themselves.

The Commission alleges that between January 2016 and December 2021 the two officers allowed the procurement to proceed without a request from the user department, without bid evaluation, and without the approvals required from the Ministerial Procurement Committee. If proven, that would mean the contract cleared none of the three safeguards designed to test whether a purchase is needed, competitively priced and properly authorised.

Neither man has entered a plea, and the allegations remain untested in court.