More than K300 million in Constituency Development Fund (CDF) allocations remains unrecovered across several constituencies, the Auditor General has disclosed, raising concerns over accountability and fund management at local authority level.
According to the latest audit findings, the unrecovered funds relate to amounts disbursed to various beneficiaries and projects that had not been accounted for by the end of the review period.
The Auditor General’s report indicates that the outstanding amounts were identified during audits conducted in multiple constituencies, where documentation supporting utilisation and recovery of CDF resources was either incomplete or unavailable.
The report notes that failure to recover the funds undermines the objectives of the CDF programme, which is intended to support community-driven development initiatives and improve service delivery at constituency level.
The Auditor General said weaknesses in monitoring mechanisms and delays in enforcing recovery procedures contributed to the accumulation of outstanding balances.
According to the report, some local authorities did not provide evidence that beneficiaries had repaid funds issued under empowerment components of the CDF, while in other cases repayment schedules were either not enforced or not documented.
The audit further revealed that certain councils had not put in place effective controls to track disbursements and recoveries, increasing the risk of misuse of public resources.
The Auditor General recommended that controlling officers ensure timely recovery of outstanding funds and strengthen internal controls to safeguard public finances.
The report also urged councils to enhance record-keeping practices and ensure that all CDF transactions are supported by appropriate documentation.
The Ministry of Local Government and Rural Development was advised to intensify oversight of CDF implementation and take corrective action against institutions that fail to comply with financial regulations.
Government has previously emphasised that CDF resources must be used strictly for their intended purposes and recovered where applicable to sustain the revolving nature of the fund.
The Auditor General stated that unresolved recoveries compromise the effectiveness of the CDF as a tool for local development and citizen empowerment.
A high percentage of Zambians are basically DISHONEST.
The granting of loans via CDF should be STOPPED. The borrowers should be made to go to the banks. I bet you there will be zero defaults.
CDF should only be used for Government managed projects.
Our people have a a culture of consumption and not production. CDF loans must be stopped because the intended purpose will never be achieved due to dishonest from our people. They just never pay back.
No Surprise
CDF should be used to improve already established businesses that have a track record and need support to expand…….
You can’t rely on some one who was never a fisherman , never had a fish pond to be wanting CDF to form a fish company……..
FWD2031
Has anyone noticed how this so called ambassador Emmanuel Mwamba is so Bemba tribally bigoted! When GBM & Mumbai Phiri were exposing each other, he begged them to “stop washing dirty linen in public”. Now, this Mulenga girl brings an awesome BYD SUV from South Africa without proper documentation, ZRA rightfully denies entry into Zambia of what could be a “hot” auto, he starts an internet campaign to allow her into Zambia with the car. Just note, where ever there is a Bemba person involved in any sort of shenanigans, he is the self appointed lawyer! What a vile “refugee” tribal bigot, worse than what he is accusing HH of.
Every year the same thing. When are we going to see arrests and convictions?