UK halts aid programme as millions looted in mail

Britain has frozen its entire funding programme to Zambia amid allegations that state officials looted millions of pounds of aid to set up shell companies and buy expensive cars.

The Department for International Development (Dfid) demanded a forensic audit of Zambian government spending after evidence emerged suggesting that aid had been embezzled on a significant scale since 2012.

While allegations of fraud have been levelled at a series of government departments, perhaps the most shocking involves the suspected plunder of a British-funded programme that sees small quantities of cash – often just £10 (NZ$19.9) a month – disbursed to Zambia’s poorest families.

The money was supposed to be transferred by post, but instead is believed to have been pocketed by senior officials in the postal service, who allegedly used the cash to buy expensive vehicles.

Dfid suspended funding to the cash transfer programme in June but chose not to disclose the freeze. The allegations and freeze on aid come at a difficult moment for the British government. Prime Minister Theresa May visited the continent last month and pledged to increase UK investment in Africa.

The difficulties in Zambia will play into the hands of critics who argue Britain’s aid budget, at 0.7 per cent of GDP, is too generous. – Telegraph Group