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 2 Version 3
UK freezes aid to Zambia over corruption concerns Zambia aid: UK suspends funding over corruption fears
(about 3 hours later)
The UK government has frozen direct financial aid to the Zambian government after concerns about widespread corruption. The UK has frozen aid funding to Zambia, after its government admitted that $4.3m (£3.3m) meant for poor families had gone missing.
A Zambian government spokesman admitted to the BBC that $4.3m (£3.3m) meant for poor families had gone missing. The move follows allegations of corruption within President Edgar Lungu's administration.
The government is committed to taking action but needs to wait for the final results of its four-month audit, the spokesman added. The UK takes a "zero-tolerance approach to fraud and corruption", the UK's Department for International Development (DfID) said in a statement.
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 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 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".
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.
The aid freeze by the UK is believed to affect the education, health and nutrition sectors, as well as social cash transfers for the poorest Zambians.
An inquiry ordered by Zambia's President Edgar Lungu had uncovered the "misappropriation" of $4.3m, his spokesman Amos Chanda told BBC Focus on Africa.
The money had gone missing from the Social Cash Transfer programme, which allocates money that is paid directly to the poorest, Mr Chanda confirmed.
The government was committed to taking action but was still awaiting the final results of its four-month audit, Mr Chanda said.
"The president wants answers within a week," he added.
'Expensive vehicles bought with diverted money'
DfID said it had put direct financial support to the Zambian government on hold while investigations continued.
"There is no evidence that confirms any loss of UK taxpayers' money," it added.
A statement from the Swedish government's aid agency, Sida, said there had been "strong suspicions of irregularities".
The corruption has also affected Zambia's health and education ministries, the UK-based journal, Africa Confidential, reports.The corruption has also affected Zambia's health and education ministries, the UK-based journal, Africa 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.
Money from the Social Cash Transfer programme 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, but has said that it has suspended aid "to the education, social cash transfers, health and nutrition sectors". The UK government has not confirmed the amount of aid that has been affected.
The aid suspension comes as Zambia's debt levels are coming under increasing scrutiny. The aid suspension comes as Zambia's debt levels face 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 said it has suspended lending to the country as it is worried that its debt is unsustainable.