Auditor General Anna Chifungula says the extent of corruption in the mining industry requires serious intervention.

In an interview following a Millennium Development Goals (MDG) report which classified Zambian copper among three other African natural resources exploited in illicit financial flows amounting to a total of 57.9 per cent, Chifungula said illegality and high rates of illicit financial flows in the extractive industry need to be curbed.

“We were told at a meeting that I attended [recently] where Zambia was given one of the worst examples where we have really been exploited; in Zambia, you will find that even the bribes that those mining companies pay to government officials are regarded as ‘administrative expenses.’ Now, if administrative expenses are paid, we should know what type of administrative expenses they [mining entities] pay,” she said.

On Friday, Parliamentary Public Accounts Committee (PAC) chairperson Vincent Mwale called for involvement of the Auditor General’s office in the mining sector to validate reports they present to the government in a bid to enhance transparency.

But Chifungula said her office requires capacity and expertise to audit the mines.

“With the help of the Extractive Industries Transparency Initiative (EITI), a number of training interventions are taking place. I have around 22 officers in the revenue department who are learning how to carry out that process. Hopefully, around April 2015, we will definitely be competent and ready to start,” she said.

Chifungula said the involvement of her office in auditing mining houses will help reduce illegality in the sector.

The MDG report identified Zambia as one of four African countries whose natural resources remain continuously exploited through illicit financial flows that end up in some of the world’s top five destinations, including China and Saudi Arabia.

Meanwhile, PF chairman for mines, Wylbur Simuusa, said in a separate interview that the involvement of the Auditor General’s office in auditing mining houses is a progressive measure capable of receiving broad political support and acceptance.

“What is clear is that there is suspicion and counter-accusation, so for me, the only thing that can clear that is an audit of the mines,” said Simuusa who is also agriculture minister and Nchanga member of parliament.