Sweden and Finland donors have asked for a refund of the K 34 million allegedly misappropriated by the Zambia National Farmers Union (ZNFU).
Embassy of Sweden Deputy Head of Mission David Wiking said although the official process has not yet commenced, but the two embassies have legal grounds to reclaim the funds.
Wiking, who is also Head of Bilateral Development Cooperation, disclosed that his country and Finland will not continue funding ZNFU under the existing agreements with the union.
He said the two countries have taken the bold decision of claiming a refund following the recent two corrective financial reviews carried out by KPMG of Finland.
Wiking was speaking at a press briefing in Lusaka yesterday and was flanked by Swedish and Finnish Ambassadors to Zambia, Hendrik Cederin and Timo Olkkonen.
Wiking also said the embassies of Sweden and Finland will continue to carry out regular and special audits on all its funded projects in Zambia to prevent further misappropriation of funds.
Transparent International Zambia (TIZ) has welcomed the decision by Finland and Sweden to seek for a refund from ZNFU for the alleged misappropriated K34 million.
In related matter, Transparency International Zambian – TIZ Executive Director Goodwell Lungu said there was need for all funding organisations in the country to keep check of funds meant to benefit the people in the country especially the vulnerable.
Lungu said his organisation was deeply saddened with reports of misappropriation of donor funds.
He has advisd for stern action against all perpetrators.
