Answer to Question #164946 in Economics for ken

Question

The Ministry of Health in Zambia has in the recent past been rocked by scandals that have brought to light weaknesses in public sector governance, accountability and financial management.

“In June 2020, Zambian investigative journalists broke a story about alleged irregularities in a US$17 million procurement of health kits the year before. Journalists found that the winning company, Honey Bee Pharmacy Limited, was not even registered at the time of contract’s award. Previously, our analysis had shown that the gaps existing in the Ministry of Health’s handling of the COVID-19 donations were a potential conduit for corruption. Perturbed by new revelations surrounding the same Ministry, Transparency International Zambia called upon the Auditor General to investigate possible misconduct. Since then, more evidence has come to light, as the Auditor General and the Anti-Corruption Commission have pursued journalists’ findings…..The Ministry of Health scandal is symptomatic of the endemic nature of corruption in today’s Zambia – particularly in the area of public procurement – and of the devastating dangers it poses not just to the growth of the economy but to the very lives of citizens.” Transparency international. https://www.transparency.org/

A) Assess the governance arrangement in the public sector in Zambia. Your answer should include detailed arrangements at the Ministry of Health. (50 marks)

B) Provide PRACTICAL recommendations aimed at enhancing governance and accountability in the Ministry of Health. (50 Marks)

Answer 1

A) Zambia is a nation which has experienced relative political calm and which has an abundance of natural resources – but where corporate governance failures have been blamed directly for economic difficulties. Understanding of corporate governance is at an embryonic stage in Zambia, but embedded corruption is likely to require addressing before any meaningful change is likely.

B) Root and branch change in structures and attitudes is a necessity if improvements are to be forthcoming.

Despite Zambia’s idiosyncrasies, the evidence suggests that a pan-African picture is emerging, with growing awareness of the potential benefits of improved corporate behaviour – but deep cynicism exists about the likelihood of these arising given corruption in reward structures.