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Govt cautious as donors poised to fund CDF

Planning and Decentralisation Joseph Mwanamvekha has said donors will fund the K5 billion Constituency Development Fund (CDF) beginning April, but warns that lack of transparency could frustrate development partners.

He was speaking on the sidelines of pre-budget consultations yesterday in Mzuzu where he emphasised that there is no reason for members of Parliament (MPs) and councillors to fight for ownership of the fund.

Following President Peter Mutharika’s decision to defer the signing of the CDF Bill into law, ministries of Finance and Justice are developing guidelines on how the fund will be operated.

However, Mwanamvekha said government wants to make sure that constituents determine which projects they want.

“I also want to tell my fellow councillors and MPs, if you are not careful, you are going to lose that money. Because the donors say, yes, we will give you the money on condition that there is transparency and accountability. It’s not money to share.

“I think you will regret and it will be unfortunate for the people in the village to deny them development just because they want to see who is more powerful than the other. It’s not helpful at all,” he said.

Mwanamv ek ha sa id Mutharika wants people to know how much has been spent on a particular project.

He added: “President Peter Mutharika wants to make sure that there is transparency and accountability and that money should go where it is intended to go.

“But in terms of how we are going to do it, I am sure I will be engaging, because my ministry and the Ministry of Justice have been tasked to come up with that. I think we need to tread carefully.”

Meanwhile, former minister of Justice Fahad Assani has said the proposed CDF guidelines stress that projects shall be selected and implemented based on decisions made at the lowest feasible community level.

He also calls for full and inclusive community involvement, open access to all information, clear lines of responsibility, fair distribution of resources within the constituency and that projects must be economically, socially and environmentally sustainable.

“The annual CDF allocation per constituency shall be a formula-based amount determined by Parliament and published in the national budget. Funds shall be transferred directly from the Treasury to a dedicated CDF Constituency Account.

“The account shall be a joint signatory account requiring three signatures out of four mandated signatories [CDF] chairperson, district council

Minister calls for transparency on CDF  secretary, MP and a community representative. The MP cannot be a sole signatory,” reads part of Assani’s suggested guidelines.

Earlier, a consortium of civil society organisations led by the National Advocacy Platform (NAP) urged government to ensure that the proposed guidelines must be law-based, transparent, inclusive and aligned with the country’s Constitution, public finance and procurement laws and decentralisation principles.

In a statement, NAP cha i rper son Benedi c to Kondowe said the development of a clear and comprehensive legal framework beyond policy or administrative guidelines should be seriously and positively considered.

“ L o c a l gov e rnment authorities must retain administrative and financial control of the CDF, supported by strong oversight and meaningful citizen participation,” he said.

In June last year, the High Court of Malawi sitting as a Constitutional Court delivered a judgement in the Registered Trustees of Malawi Local Government Association vs. Attorney General, declaring that the involvement of MPs in the management, prioritisation and implementation of CDF and Water Resources Fund violated the doctrine of separation of powers under sections 7, 8 and 9 of the Constitution and improperly intruded into the core functions of the Executive.

Later in November last year, Mzimba South legislator Emmanuel Chambulanyina Jere moved a private member’s motion proposing the development of legislation to govern CDF.

Parliament passed the Bill, but Mutharika, a fortnight ago, vetoed it.

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