Cash- strapped Malawi government has warned it will from this month effect withholding of money to its departments and ministries whose heads failed to submit returning reports to ministry of Finance by February 14.
In a statement, the ministry of Finance says departmental heads were sensitized on this in December trough meetings and memos.
The statement says this is part of the financial reforms that the government has embarked on.
According to the statement, the monthly summary of the financial transactions will help government in its financial prudence exercise.
Controlling officers, the statement said, are supposed to submit revenue returns, expenditure returns, commitment returns, payroll returns and bank reconciliation reports.
The statement says withheld funds would be released in March upon submission of the reports on time and no funding would be forfeited.
Earlier this week, US ambassodor to Malawi Virginia Palmer saluted the government for the financial reforms it has taken for the last six months including the compulsory submissions of the financial reports by the controlling officers.
Palmer said this is sowing trust in donors, including the US government.
She said if the government continues on this path, the economy would improve in the next few months.
Ministry of Finance spokesperson Nations Msowoya said apart from stepping up security on integrated financial management system (ifmis) and the subsquent employment of a cyber security officer for Ifmis as part of the financial reforms to curb theft of public money, the government has drastically reduced borrowing from the Reserve Bank of Malawi which he said shoud see a drop in inflation which will also force the drop in cost of living.