This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/world-africa-45560404

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
UK freezes aid to Zambia over corruption concerns UK freezes aid to Zambia over corruption concerns
(35 minutes later)
The UK government has frozen direct financial aid to the Zambian government over concerns about corruption. The UK government has frozen direct financial aid to the Zambian government after concerns about widespread corruption.
The alleged multi-million dollar fraud involves the creation of shell companies and the diversion of money meant for poorer families, the journal Africa Confidential reports. A Zambian government spokesman admitted to the BBC that $4.3m (£3.3m) meant for poor families had gone missing.
The government is committed to taking action but needs to wait for the final results of its four-month audit, the spokesman added.
Ireland, Finland and Sweden have also suspended aid.Ireland, Finland and Sweden have also suspended aid.
The freeze comes at a time when President Edgar Lungu's government is under increasing financial pressure.The freeze comes at a time when President Edgar Lungu's government is under increasing financial pressure.
The British High Commissioner to Zambia, Fergus Cochrane-Dyet, confirmed the aid freeze in a tweet. saying that the UK government has a "zero-tolerance approach to fraud & corruption". The British High Commissioner to Zambia, Fergus Cochrane-Dyet, confirmed the aid freeze in a tweet, saying that the UK government has a "zero-tolerance approach to fraud & corruption".
He also indicated that there is an investigation into the alleged corruption and the government will decide on its next move once this has been completed. The UK government will decide on its next move once this has been completed, he added.
President Lungu's spokesperson Amos Chanda told BBC Focus on Africa that a government investigation had uncovered the corruption.
The money had gone missing from the Social Cash Transfer programme, which allocates money that is paid directly to the poorest in Zambia, he said.
"The president wants answers within a week," Mr Chanda added.
'Shell companies formed to divert money'
A statement from the Swedish government's aid agency, Sida, said that there had been "strong suspicions of irregularities".A statement from the Swedish government's aid agency, Sida, said that there had been "strong suspicions of irregularities".
It also said that Finland and Ireland had joined Sweden and the UK in the aid freeze.
More than 50% of Zambia's 17 million people live below the poverty line, the World Bank says.More than 50% of Zambia's 17 million people live below the poverty line, the World Bank says.
Funds diverted The corruption has also affected Zambia's health and education ministries, the UK-based journal, Africa Confidential, reports.
The alleged corruption has affected Zambia's health, education and local government ministries, African Confidential reports.
It says that a report by Zambia's auditor general highlighted that people in the ministry of education established shell companies to divert funds.It says that a report by Zambia's auditor general highlighted that people in the ministry of education established shell companies to divert funds.
A scheme to provide poorer families with direct grants has also been affected, as the money was used to buy expensive vehicles, Africa Confidential adds. Money from the Social Cash Transfer programme was used to buy expensive vehicles, Africa Confidential adds.
The UK government has not confirmed the amount of aid that has been affected. The UK government has not confirmed the amount of aid that has been affected, but has said that it has suspended aid "to the education, social cash transfers, health and nutrition sectors".
The aid suspension comes as Zambia's debt levels are coming under increasing scrutiny.The aid suspension comes as Zambia's debt levels are coming under increasing scrutiny.
The International Monetary Fund has said that it has suspended lending to the country as it is worried that its debt is unsustainable.The International Monetary Fund has said that it has suspended lending to the country as it is worried that its debt is unsustainable.