Councils yet to get March funding

Delivery of social services in some district and town councils has ground to a halt because Treasury has not provided them with funding for two months now.

The Nation understands that government last released funding in February 2017, forcing councils to operate without funding in March and April 2017.

Some district commissioners (DCs) interviewed at random have expressed fear that further delays in releasing funding could force them to suspend delivery of social services to the people.

This is the second funding interruption in under six months after another one around October and November 2016.

At that time, ministries, departments and agencies (MDAs) were forced to suspend delivery of some of the social services to the people.

Treasury spokesperson Alfred Kutengule confirmed the development in an interview yesterday.

Spot checks with some DCs established that sectors such as health, water, sanitation and hygiene are among areas that have been greatly affected by lack of funding in the councils.

Lilongwe DC Charles Makanga yesterday confirmed the funding gap, adding that the problem has forced the council to suspend delivery of some social services.

He said: “We operated without funding from March 2017.”

But Makanga said the council planned ahead; hence, it is yet to start feeling the pinch.

“But should there be further delays, we will surely have to suspend delivering some services to the people as per our mandate,” he said.

Thyolo DC Charles Thombozi also said everything is running normally in the district.

However, the situation is different in Nkhata Bay where the council is facing challenges to meet its obligations on health, water and electricity sectors because of the funding gap.

Nkhata Bay DC Alex Mdooko said: “Of course, we always get funding very late. But in this case, health, water and electricity have been the most affected sectors in the district.”

However, Kutengule blamed the councils for failing to submit expenditure returns.

He said: “This is the reason for the delayed funding to the concerned/affected councils or government department and agencies because this is a requirement.”

However, Makanga dismissed Treasury’s explanation, saying: “No council has received funding for March and April 2017 in spite of submitting their expenditure returns. They [Treasury] just told us that funding will come late.”

Through a January 6 2016 statement, Ministry of Finance, Economic Planning and Development said the requirement to submit monthly expenditure reports was part of the Public Finance Management Act of 2003 which had been suspended following the introduction of the Integrated Financial Management Information System (Ifmis), government’s electronic payment system.

In demanding the expenditure returns, Treasury is enforcing Section 84(3) of the Public Finance Management Act which requires controlling officers to submit the reports before getting the next tranche of funding. n