The Parliamentary Committee on Public Accounts (Pac) has said it continues to observe major challenges in expenditure management in local authorities.
Presenting its report upon considering and scrutinising a Report of the Auditor General on the Accounts of the Local Authorities for the Year Ended March 31 2022, Pac Chairperson Mark Botomani said most councils failed to manage expenditure in accordance with provisions of the Public Finance Management Act of 2022 and other financial regulations such as Treasury Instructions, Desk Instructions, CDF Guidelines and DDF guidelines.
Botomani told Parliament that the audit report revealed such expenditure management shortfalls as expenditure not properly evidenced, expenditures made without following procedures, misallocation of funds, payments made to uncompleted and substandard projects, unjustified over-payments as well as improper management of deceased estates.
“For instance, payments totalling K143.9 million were made for uncompleted works in Mangochi District Council. The committee was generally worried because these irregularities on expenditure management were recurring year in, year out.
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“The committee noted that such irregularities divert resources away from planned activities, undermine budgetary integrity and lead to the collapse of vital services such as health and education. These irregularities also erode public trust in the government’s ability to deliver on its promises,” Botomani said.
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On his part, Local Government Minister Richard Chimwendo Banda said it was satisfying to see the level of interest lawmakers exhibited towards the report.
He added that it was equally satisfying to note that a lot of resources were trickling to local councils.
“It is encouraging that local councils continue to register improvements in the way they manage resources,” he said.
Chimwendo Banda said in 2019, all 28 district councils failed in financial management and that in 2020, only four were successful.
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He, however, said after looking at the challenges and rectifying them, a total of 21 district councils have passed the financial management test this year, meaning that only seven councils are now remaining.
