The Public Accounts Committee (Pac) of Parliament has questioned the Ministry of Foreign Affairs about why 12 embassies overspent by a total of K2.6 billion for the year ending March 31, 2022.
The ministry, led by Secretary for Foreign Affairs Benard Sande, appeared before the committee to address nine audit queries for the period in question.
Lilongwe City South East Member of Parliament (MP) Ulemu Msungama wondered why the overspending had been done without Treasury’s authorisation.
“And could the Controlling Officer [Sande] clarify how five embassies secured funds totalling K781,544,725 without any approvals from the Treasury being produced at the time of the audit?” Msungama asked.
In his response, Sande explained that the over-expenditure resulted from funding for postings and recalls, which amounted to approximately K745,302,375.
He added that payments for unbudgeted expenditures, including foreign service allowances, arrears, staff bonuses and gratuities and furniture loans amounting to $900,369.64, also contributed to the overspend.
“Deployment of diplomats to fill previously vacant positions, which were not budgeted for, had an adverse impact on the budget.
“Currency fluctuations also played a role. As you may be aware, foreign service allowances are paid in United States dollars. Any fluctuation in the value of the Malawi Kwacha affects the budget.
“The Malawi Kwacha did not maintain its value that year. The exchange rates used to prepare budget estimates were not the same as those used to disburse funds to Malawi missions abroad,” Sande said.
Machinga North East MP Ajilu Kalitendere then proposed that the matter be noted, a proposal which was seconded by Blantyre City Central MP Chipiliro Mpinganjira.
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