EXAMINING THE FINANCIAL RISK MANAGEMENT OF DONOR FUNDS: CASE OF MINISTRY OF HEALTH IN ZAMBIA

##article.authors##

  • Zeleniya Angela Banda Graduate School of Business, ZCAS University, Lusaka, Zambia
  • Richard Mulenga Faculty of Economics, ZCAS University, Lusaka, Zambia

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https://doi.org/10.46827/ejefr.v8i2.1679

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financial risk management##common.commaListSeparator## donor funds##common.commaListSeparator## whistle-blower##common.commaListSeparator## anti-corruption practices##common.commaListSeparator## cooperating partners

##article.abstract##

This study examines the financial risk management of donor funds using the Ministry of Health (MOH) in Zambia as a case study. The study employs an exploratory case study methodology on a sample of 224 MOH employees. Zambia, being a developing country, significantly relies on donor funds to support its healthcare sector. Prudent management of donor funds is crucial for the sustained delivery of quality healthcare services. However, there has been concerns regarding the financial risk management practices at the MOH in the efficient utilization and accountability of donor funds. From the literature review, it seems no study has been done regarding the financial risk management of donor funds focusing on the MOH in Zambia. Therefore, this study fills this gap. The study findings seem to show evidence of the misappropriation of donor funds exhibited by misallocation of donor funds to unplanned projects or activities. The misappropriations of donor funds seem to be amplified by a lack of strategic planning, lack of coordination, and the absence of effective monitoring and evaluation systems. Additionally, fraud and corruption posed significant risks to donor funds at MOH. Therefore, to mitigate the risks, the study recommends that robust anti-misappropriation measures, enforcement of due diligence on implementing partners, a thorough review of procurement processes, and regular monitoring and evaluation of donor-funded projects be strengthened at the MOH in Zambia. Whistleblower protection and reporting mechanisms should be promoted to help detect and deter fraudulent activities at this Ministry.

 

JEL: H51, I18, O23

 

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##submission.authorBiographies##

  • ##submission.authorWithAffiliation##

    Ms. Zeleniya Angela Banda holds a Professional Accountancy qualification from the Association of Chartered Accountants (ACCA), is a fellow of ACCA (FCCA) and a fellow of Zambia Institute of Chartered Accountants (FZICA). She is currently working with the Ministry of Health in Zambia (MOH) on a Ministry of Health /Centres for Disease Control and Prevention Cooperative Agreement (MoH/CDC CoAg) as a Financial Specialist. Ms Banda is a certified financial specialist with 15 years of work experience in the private and public sectors. At the time of this publication, Ms Banda was a graduate student in the Graduate School of Business preparing to defend her thesis for the award of a Master of Science (MSc.) degree in Financial Risk Management awarded by the ZCAS University. Ms Banda’s research interests include financial risk and analysis, corporate governance, and grants management, among others.

  • ##submission.authorWithAffiliation##

    Dr. Richard Mulenga holds a Doctorate degree in International Economics. He is currently a lecturer and researcher in the Department of Economics at ZCAS University, where he lectures graduate Econometrics, Economics and Public Finance, among others. Dr. Mulenga has more than 10 years of experience in the financial industry and more than 7 years as an independent and collaborative researcher with extensive publications of peer-reviewed articles and book chapters in reputable journals such as the American Journal of Economics (AJE). Dr. Mulenga’s research interests include the digital economy, carbon markets, international trade, and financial inclusion. Details of Dr. Mulenga’s publications can be found at the following academic networks:

    Google Scholar, Academia.edu

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2024-04-12

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##issue.vol## 8 ##issue.no## 2 (2024)

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