The controversial K4 billion initially earmarked for development in 86 constituencies and was agreed by Parliament to be shared to all 193, has not been disbursed and that it awaits Malawi Revenue Authority (MRA) to collect enough money through taxes to finance the quick grant projects, eMinister of Finance, Economic Planning and Development Goodall Gondwe has clarified.
Gondwe said the K4 billion funding remains “an intention” when funds are collected so that every constituency will get K20.7 million.
“The money has not been paid out,” explained Gondwe who has been facing calls for resignation as some civil society organisations and are claiming he had breached the law.
But Gondwe said : “K4 billion is not there. It has not been collected yet by MRA and from grants. They remain intentions.”
The Ministry of Local Government and Rural Development, under Vote 120, had an approved K11.4 billion in the approved recurrent budget for which Gondwe is seeking an increment of K2.2 billion. However, the K4 billion is not part of the increment.
Gondwe said it is possible all the money for quick grant projects may not be collected and that “its intended expenditures will not be done.”
He said: “The fact that I said one of the intentions for the K4 billion would be to spend it on Rural development micro-projects does not mean that it will be done in any circumstances.”
Gondwe said it will be done if the money is collected as it was estimated.
Minister of Local Government and Rural Development Kondwani Nankhumwa also said the money would only be distributed after legislators submit proposals or outlines of projects the money will be used for in their constituencies.Follow and Subscribe Nyasa TV :