GOVT URGED TO HALT CDF INCREMENTS

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…as Auditor General’s report reveals significant financial irregularities
By Francis Chipalo
Government has been called upon to halt increasing Constituency Development Fund (CDF) not until when loopholes in the mismanagement of the funds are addressed.
This follows concerning revelations in the 2023 Auditor General’s report on CDF which disclosed significant financial irregularities, limited capacity by local authorities in managing the increased funds, governance weaknesses as well as underperformance of constituencies in utilizing CDF funds.
The 2023 CDF Audit identifies three main categories of financial irregularities in the management of CDF programme. These include the change of projects without approval, failure to account for funds and failure to recover loans.
In 2023, the constituencies only utilised 41.9% of the funds available for community projects, while at the same time, the utilisation of the funds allocated to administration was at 98.2%.
Further, the report reveals that there is a lack of capacity among councils and constituencies in implementing the CDF programme, thereby putting into question whether and when the objective behind the annual successive increase in budget allocations will yield desired results.
Speaking during the 2025 first quarter media briefing, Wednesday morning on national matters, Zambia Institute of Chartered Accountants (ZICA) President Yande Mwenye says not until when proper systems are put in place, CDF should not be increased.
“ZICA reiterates that trained accountants must be embedded in CDF management to uphold accountability,” Mwenye said.
Mwenye however stated that the under – utilisation of (41.9% of projects funds) and over – utilisation of (98.2%) of administration budgets reveal governance concerns.
The accountant’s boss has since emphasized that government halts increasing CDF which is currently at K36.1 million per constituency to safeguard the funds.
CDF was in 2021 at K1.6 million per constituency then increased to K25.7 million in 2022 with each constituency getting K28.3 million in 2023 and K30.6 million in 2024 respectively.

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