THE United States government has announced that it has cut K1.4 billion approximately $50 million in annual funding for malaria, HIV, and TB medications due to government’s failure to address widespread theft of donated medical supplies.
Speaking at a media briefing, US Ambassador to Zambia Michael Gonzales said that since 2021, the US uncovered systemic theft of life-saving medicines including antiretroviral drugs (ARVs) intended for free distribution to the public.
He said following the discovery of widespread theft in late 2021, the US Embassy informed the Zambian government and initiated an on-the-ground assessment of private pharmacies nationwide.
“Between 2021 and 2023, buyers visited over 2,000 pharmacies across Zambia. Shockingly, 95 percent of those selling products the US provides were also selling stolen goods,” Ambassador Gonzales revealed.
He added that 45 percent of those pharmacies were selling medicines donated by the United States.
“Across all ten provinces, nearly half of the pharmacies selling US-donated medicines and supplies were dealing in stolen stock,” he said.
“The remainder were selling medicines stolen from supplies purchased by the Zambian government, the Global Fund, and other donor partners.”
Ambassador Gonzales said on April 3, 2024, he presented the alarming findings to senior government officials, including representatives from multiple ministries, law enforcement, and the executive branch.
“I asked them to act in two areas: stop further theft and hold high-level perpetrators accountable,” he said.
Ambassador Gonzales said despite more than 33 high-level meetings over 12 months including with Permanent Secretaries and senior US officials, the Zambian government has failed to take sufficient action.
He said the US even offered technical support in supply chain management and law enforcement, but results have been disappointing.
“Instead of targeting masterminds behind the theft, enforcement efforts focused on low-level actors, resulting in only a few arrests of mid-level officials,” he said.
Ambassador Gonzales further added that more than six months into a forensic audit of the Zambia Medicines and Medical Supplies Agency (ZAMMSA), no public report has been released, nor has any been shared with the US.
“Since October, I have made it clear to senior government officials that I am obligated to safeguard American taxpayers’ resources in light of gross theft and mismanagement,” he said.
Ambassador Gonzales said the US has made the difficult decision to cut $50 million approximately K1.4 billion from its annual health assistance to Zambia.
He said the specifics of the reduction are yet to be finalized, but discussions with the Zambian government remain open.
Ambassador Gonzales said he recommended continued procurement and delivery of critical medicines until January 2026 to allow the government time to develop a transition plan, allocate a budget, and secure new procurement channels to avoid stockouts.
He said the US Embassy will also provide technical and logistical support for humanitarian purposes and to prevent drug resistance and disease transmission.
Ambassador Gonzales however said the funding cut is separate from the broader review of US foreign assistance currently underway under the Trump Administration.
He further said while the US remains committed to Zambia’s development, it will no longer fund systems that enable corruption.
“We cannot continue to underwrite the personal enrichment of fraudsters while patients go without life-saving medicines we provide for free, and the Zambian government fails to enforce accountability or introduce necessary reforms,” he said.
