Parliamentarians yesterday expressed concern with revelations of financial mess in district councils and have called on Minister of Local Government, Unity and Culture to act on errant officers.
Public Accounts Committee (PAC) chairperson Mark Botomani, presenting a report following a review of the Auditor General’s Financial Report on district councils for the financial year ended March 31 2022, highlighted deficiencies across six critical governance and operational categories.
He said his committee noted that expenditure management, financial reporting, procurement management, project management, records management and revenue collection were weak in all councils.
Said Botomani: “These irregularities not only undermine the principles of accountability, transparency and good governance, but also impede socio-economic development.”
He said the audit report revealed that expenditure management shortfalls are not properly evidenced, expenditures are made without following procedures, misallocation of funds and payments made to uncompleted and substandard projects.
Said Botomani: “For instance, payments totalling K143 923 002 were made for uncompleted works in Mangochi District Council.
“There are also unjustified over-payments, failure to remit pay-as-you-earn taxes to Malawi Revenue Authority, failure to process transactions through Integrated Financial Management Information System and improper management of deceased estates.”
Reacting to the report, Lilongwe Mpenu legislator Eisenhower Mkaka (Malawi Congress Party) said there is need to ensure that discipline is instituted to safeguard public resources.
“The issue of mismanagement of public resources is not a simple matter, we need to act fast. The report has revealed many issues and it shows how finances are being mishandled in the councils,” he said.
Minister of Local Government, Unity and Culture Richard Chimwendo Banda, in his response, said councils are slowly improving on financial management.
He said: “In 2018 and 2019 no council had a clean record, but in the past two years, there have been improvements. Some districts are performing well and have qualified accountants.”
Botomani told Parliament that PAC has recommended that all councils should have internal auditors and that they adopt electronic funds and revenue management systems to curb pilferage.
