As the 2022/23 financial year winds up, it has transpired that only 20 percent of District Development Fund (DDF) projects in councils have been completed.
This is contained in the 2023 Annual Economic Report of the Ministry of Finance and Economic Affairs which attributes the situation to the adverse effects of the kwacha devaluation.
In the 2022/23 National Budget, out of a K45.13 billion allocation under the development budget in local councils, K3.1 billion was for DDF.
Reads part of the report: “The delay in completion of most projects is attributed to insufficient forex and devaluation which have affected procurement processes in most local authorities.
Kambwandira: We have established
that there are cartels
“Consequently, the likelihood is that most projects will be carried over to the 2023/24 financial year.”
DDF was introduced as part of the devolution of small projects in local authorities. In such regard, local authorities implement numerous projects within their jurisdictions.
Some projects under DDF include the construction of bridges, boreholes, school blocks and houses for frontline extension workers and teachers.
To encourage councils to ensure that projects are completed within a financial year and improve on service delivery, government increased funds allocated to the DDF by 68 percent since the 2018/19 financial year.
This means the failure to complete projects under DDF t has affected citizens’ access to public services which are meant to be free.
The report states that under the DDF, there is a high demand for road networks and schools to be built in the district.
For instance, each local authority has a demand of at least 50 roads and bridges, 40 primary and community day secondary schools and teacher development centres, and 20 staff houses for teachers and health personnel.
However, the report has suggested that local authorities must prioritise works that can be accommodated within an approved budget.
“There still remains a need to complete outstanding works in all projects before embarking on new civil works.
“Otherwise the government is forced to spend more than the initial project total estimated cost over delays in settling outstanding payments and certificates due to devaluation,” further reads part of the report.
In the 2023/2024 National Budget which is estimated at K3.87 trillion, government plans to allocate K4.7 billion towards DDF.
Centre for Social Accountability and Transparency (Csat) executive director Willy Kambwandira in an interview yesterday described the situation as unfortunate.
He said they have been overwhelmed by complaints on such unfinished projects which councils have already spent money on.
Kambwandira said: “In worst cases, we have established that there are cartels between councils and contractors, where contractors are paid in full for works not completed
“There is serious need for meaningful citizen participation in the implementation of these projects. Sadly, local structures such as area development committees and project implementation committees are deliberately incapacitated so that they can be exploited.”
He further said it is high time citizens started demanding accountability including accessing expenditure reports from councils.
When contacted yesterday, Malawi Local Government Association executive director Hadrod Mkandawire requested for a questionnaire as he was reportedly driving to Lilongwe from Mangochi.
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