Lusaka, Zambia, January 17, 2025 — Acting Auditor General Dr. Ron Mwambwa has unveiled the 2023 Constituency Development Funds (CDF) audit report, shedding light on both achievements and areas of concern in fund utilization across Zambia’s 156 constituencies in 116 districts. The report emphasizes strides in specific areas while calling for better monitoring and accountability to enhance development outcomes.
Key Findings
- Youth and Women Empowerment Grants and Loans
- High Absorption Rates: The grants saw a utilization rate of 96% (K320.8M out of K333.4M), and soft loans achieved an 89% utilization rate (K480.5M out of K539.3M).
- Challenges: Instances of unauthorized fund use, ineffective loan recovery, and lack of compliance enforcement were highlighted.
- Community Projects
- Low Utilization: Only 42% of allocated funds (K1.01B out of K2.41B) were used due to delays, weak monitoring, and poor contract management. Many projects from 2022 remain incomplete, creating a backlog for 2024.
- Education Bursaries
- Moderate Absorption: 56% of the allocated K881.5M was spent. Issues included unverified recipients, non-skills-related course payments, and lack of post-disbursement monitoring, undermining program objectives.
- Administrative Costs
- Efficiency: A commendable 98% of allocated funds (K215.6M out of K219.6M) were used, reflecting better fund management in administrative areas.
Recommendations for Improvement
Dr. Mwambwa proposed several measures to address challenges, including:
- Strengthening monitoring and accountability systems.
- Conducting regular audits and quality inspections.
- Training local authority staff on financial management and compliance.
- Enhancing loan recovery mechanisms and implementing stricter creditworthiness checks.
- Ensuring proper documentation and adherence to CDF guidelines.
The Way Forward
While the report acknowledges progress in youth and women empowerment programs, it stresses the importance of tackling inefficiencies in community projects and education bursaries. “If not addressed, these weaknesses could undermine the fund’s objective of delivering essential social and economic services,” stated Dr. Mwambwa.
The full report is available on the Auditor General’s website www.ago.gov.zm.
For more information, contact Ellen M. Chikale, Head of Public Relations, Auditor General’s Office.
