The Public Accounts Committee (PAC) of Parliament has said weak controls and poor enforcement of legal statutes that govern public service delivery are the reasons why annual audit reports keep registering the same problems.
PAC chairperson Mark Botomani said this in Parliament on Thursday when presenting the committee’s report following an analysis of the Auditor General’s report on government accounts for the 2021/22 Financial Year.
He said the report reveals persistent challenges, including weaknesses in financial management and accountability, debt sustainability and underutilisation of budget, asset mismanagement, procurement irregularities, and contract failures.
Said Botomani: “The findings of the 2022 audit underscore the urgent need for reform in Malawi’s public financial management systems.
“Persistent issues such as financial mismanagement, asset misallocation, and procurement irregularities point to a breakdown in accountability and efficiency within MDAs.”
Other findings are misallocation, over-funding and over-expenditure of government resources, as well as miscellaneous irregularities, like the case of the Department of Disaster Management Affairs (Dodma) where donated relief items, including 369 bags of beans and 105 bags of rice, got spoiled due to poor storage and delayed distribution.
The committee chairperson said these issues not only contravene legal requirements, but also erode public trust and hinder the country’s developmental objectives.
He said for Malawi to move forward, government institutions must implement reforms recommended by the committee to ensure proper use of public funds, reduce corruption, and foster an environment of transparency and accountability.
Said Botomani: “The time for action is now if the nation is to secure a sustainable economic future and provide essential services to its citizens.”
The legal statutes which the committee was referring to include the Public Audit Act, the Public Procurement and Disposal of Assets Act, the Public Finance Management Act (PFMA) and the Treasury Instructions.
The report further recommends that all controlling officers, chief executive officers, and other relevant public officers in government ministries, departments and agencies (MDAs) should abide by the stipulations in all the legal instruments that govern the management of public resources.
Commenting on the report, Zomba Lisanjala parliamentarian William Susuwele Banda said there is need to bring the culprits to light, adding that they keep repeating the irregularities because they are shielded.
Zomba Malosa legislator Grace Kwelepeta said government should be serious on asset management which is a critical area where public funds are drained.
“In some public institutions, you find assets such as vehicles and motorcycles parked for years gathering dust when they have a very minor problem. If these were fixed, government would not be tasked to buy new ones and funds would be saved,” she said.
Government adopted a new PFMA in March 2022, and during the presentation of the 2024/25 National Budget in Parliament in February, Minister of Finance and Economic Affairs Simplex Chithyola Banda said his ministry had fully made the PFMA 2022 operational by gazetting regulations.
Section 110 of the PFMA indicates that all controlling officers who flout the law are liable to a penalty of K50 million or the financial gain derived from the offence and 12 years imprisonment.
