Local Government Minister Ben Phiri has warned councils against misusing K5 billion in Constituency Development Fund (CDF) allocations, urging finance directors and auditors to ensure strict accountability and transparency in handling public money.
Phiri made the remarks on Thursday during the opening of the Local Authority Financial Management Symposium in Salima, which brought together finance directors and auditors from councils across the country.
He said the symposium was necessary because councils are now managing significantly larger amounts of public money following the increase in CDF allocations to K5 billion per constituency.
“This is very important when you consider the huge resources that have been channelled to councils for the first time,” said Phiri.
He noted that although finance directors have experience managing council finances, most have previously handled smaller project budgets.
“This time around the amounts are huge. It is important for them to meet and agree on best practices, reflect on where we are coming from, what we have done well, where we have slipped and how best we can improve,” he said.
Phiri said the government expects councils to deliver development projects efficiently and within set timelines.
“We are no longer doing business as usual. We are doing business unusual,” he said.
The minister stressed that accountability and integrity should remain at the centre of public financial management because the resources belong to taxpayers.
“The owners of the money are Malawians. Therefore, it is important that we adhere to accountability, transparency and use resources effectively,” he said.
He also warned that councils that fail to use public funds responsibly would face legal consequences.
Secretary for Local Government and Rural Development Moses Chimphepo said the ministry was making progress in promoting financial discipline in district councils.
According to Chimphepo, the symposium was organised to provide an opportunity for finance officers and auditors to reflect on challenges affecting financial management in local authorities and identify ways to strengthen financial controls.
Annie Chivunde from the Auditor General’s Office said the meeting comes at a time when concerns remain over recurring audit findings in councils.
“We have experienced a number of recurring audit findings. You find the same issues this year, next year and even in previous years,” she said.
Chivunde said the symposium would help finance directors, accountants and internal auditors strengthen their capacity and reduce repeated financial management weaknesses.
“It will be our pleasure to see fewer audit findings, especially those that keep recurring, such as unsupported payments and missing accounting documents,” she said.
She added that the discussions would equip council officials with the knowledge required to manage the increased CDF allocations effectively.
Lilongwe District Council Chief Finance Officer Ellium Banda said the symposium will help finance officers prepare for challenges they may encounter while implementing projects funded through the expanded CDF programme.
The symposium comes as councils prepare to manage unprecedented levels of CDF funding, placing greater emphasis on financial discipline, transparency and accountability in the delivery of development projects at community level.
