Malawi suspends disbursement of development funds to councils

Capital Hill, the seat of government in Lilongwe has suspended disbursement of development funds to all councils that failed to submit expenditure returns.

Nations Msowoya, spokesperson for finance ministry and treasury said the government forewarned councils and all government departments that failure to submit the returns would result in the freeze of funding which would only resume after all relevant documents are submitted to the ministry on time.

“We are exercising financial prudence therefore our financial management systems must be adhered to,” he said.

However it is not known how much has been frozen but reports indicate that out of the K149 million Dedza District Council was supposed to get, it has only received K88 million.

Chairman of the council Osias Chidovu said this has stalled development projects some of whom were due to finish.

In Ntcheu, out of a budget of K104 million, the council has received K101 million and council chair Simita Duncan Njobvu is pressing on Capital Hill to release the remaining money so that development projects can continue.