The latest audit report by the Auditor General (AG) has highlighted widespread financial mismanagement, weak accountability systems and serious violations of public finance laws in Malawi’s local authorities for the 2023- 24 financial year.
The report identified irregularities and losses totalling K5.98 billion across 30 local authorities.
The Office of the Auditor General said the audits assessed whether councils managed public resources properly, complied with laws and maintained reliable financial records.
However, the report states that audits cannot guarantee detection of every fraud or irregularity.
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Minister of Local Government Ben Phiri said government has strengthened safeguards to prevent further losses.
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“Let me assure Malawians that no money will be lost this time around because we have tightened security measures,” Phiri said.
National Platform Against Corruption coordinator Benedicto Kondowe described the findings as alarming, saying they reflected weak governance and poor financial controls in several councils.
“This report shows repeated violations of the Public Finance Management Act, the Public Audit Act and the Local Government Act,” Kondowe said.
Key issues included failure by controlling officers to provide supporting documents, poor record keeping, procurement irregularities, misuse of public funds and weak internal controls.
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Auditors also found that some Members of Parliament implemented Constituency Development Fund (CDF) projects without sufficient community involvement.
Other concerns included misuse of borehole funds, unaccounted-for fuel, missing construction materials and wasteful spending on projects such as the Jali bus depot.
Financial reporting weaknesses were also widespread, including unexplained cashbook differences, long outstanding debts and misstatements in cash and cash equivalent balances.
In procurement, councils were found to have flouted procedures by awarding contracts irregularly, using single sourcing for CDF projects, engaging unqualified contractors and making payments without approval from Internal Procurement and Disposal Committees.
The Auditor General recommended disciplinary action against responsible officers, investigations by law enforcement agencies and stricter enforcement of public finance laws.
Councils have also been directed to improve record keeping, strengthen financial reporting systems and comply with procurement and project management procedures.
Ministry of Finance spokesperson Williams Banda confirmed the ministry had received the report and submitted it to Parliament.
