K43m abused on Sadc trips, gifts
Government used K43 million meant to uplift lives of the ultra-poor in Thyolo District on a Southern African Development Community (Sadc) meeting and gifts for the bloc’s ministers, it has emerged.
The amount is part of the K2.9 billion in irregular expenditures an audit report uncovered across 30 local authorities.
The misuse, highlighted in the Auditor General’s report on Local Authorities for the year ending March 2023, deprived about 5 000 households, our estimates show.
Analysing Thyolo District Council accounts, the recently published report states: “An inspection of payment vouchers and the Social Cash Transfer Programme (SCTP) cashbook revealed that K43 067 566, meant for Mtukula Pakhomo, was used for Sadc meetings, unrelated to the programme’s activities.”

The move contravened SCTP Financial Management Manual Section V (e) which restricts donor funds to cash transfers for beneficiaries, transfer delivery costs and implementation expenses.
Mtukula Pakhomo provides unconditional cash transfers to ultra-poor and labour-constrained households to reduce poverty and hunger and increase school enrolment.
Beneficiaries receive between K9 000 and K14 000 monthly, depending on family size.
The K43 million could have supported 5 000 households at the lowest funding bracket.
Thyolo district commissioner Hudson Kuphanga in an interview said the council had authorisation from the Ministry of Gender, Community Development and Social Welfare which has jurisdiction over the Mtukula Pakhomo programme.
He referred Nation on Sunday to a letter dated June 22 2022 where the ministry asked Thyolo District Council to cover budget lines for goods and services for the Sadc Ministers of Gender and Women Affairs meeting from 7 to 10 June 2022.
“We would like to request your office to support the ministry in making such payments to the service providers whose invoices are attached. The ministry commits to refund you in due course,” reads the letter in part.
Signed by the ministry’s Principal Secretary for administration Isaac Katopola, the letter did not explicitly ask for Mtukula Pakhomo funds.
Further, the requested financing was K28 million.
The invoice included K1.1 million for gifts for ministers that attended the meeting, K15 million for audio visual equipment, K2 million for fuel, K1.2 million for Internet bundles, K1.3 million for decoration and K1.6 million for accreditation materials.
Kuphanga could not immediately respond when asked to clarify how the other chunk of the K43 million was spent and if the ministry refunded the money.
Ministry of Gender, Community Development and Social Welfare had not responded to
questionnaire by press time at 4pm yesterday.
However, Malawi Economic Justice Network (Mejn) executive director Bertha Phiri described the transaction as insensitive.
“This shows we are not people-sensitive. The implementation of Mtukula Pakhomo lacks seriousness. The cost of living has been high and these safety nets are meant to cover the ultra-poor.
“That diversion means a couple of people meant to benefit have not benefited. It is uncalled for. The revelations that part of the money was spent on ministers’ gifts, means the poor funded the rich and that is a drawback as we try to close the gap between the poor and the rich,” she said in a phone interview yesterday.
In the report, Auditor General Thomas Makiwa highlighted the diversion as part of broader financial mismanagement in councils, including K2.9 billion in irregular expenditures across 30 local authorities.
These included non-remittance of pension funds, taxes and unauthorised payments outside the Integrated Financial Management Information System.
At Mchinji District Council, the audit report shows authorities misallocated funds amounting to K28.7 million without National Local Government Finance Committee’s approval.
The audit also established irregularities at Karonga District Council, including K80.6 million payments unsupported by invoices.
Project management irregularities across all the councils were pegged at K1.04 billion.
They included irregular engagement of contractors and Constituency Development Funds spent on unrelated activities.
“All irregular expenditures should be probed and responsible officers held accountable,” Makiwa said, urging a review of financial mismanagement and stronger corrective measures.
However, the Parliamentary Public Accounts Committee, responsible for scrutinising government spending, is yet to review the report.
Parliamentary Public Accounts Committee chairperson Mark Botomani said: “We have not received the report yet. Once reviewed, we will respond to the diversion of funds meant for the vulnerable