Utilisation of Constituency Development Fund rated below 10%, government urged to act

The Zambian government should promote transparency, accountability, and continue strengthening of internal controls in the utilisation of Constituency Development Fund (CDF).

This is so because the constituencies would now have lot of funds to manage starting in 2023, which is a big risk, Zambia Institute of Chartered Accountants (ZICA) president Cecilia Zimba said.

Zimba said this when she addressed journalists in Zambia’s capital Lusaka on Tuesday, December 13, 2022.

So far, the government released about 75 percent representing K19.3 million as at November 8, 2022 of the total allocated amount per constituency.

However, she said the utilisation of these funds by Constituencies had been unsatisfactorily low, less than 10 percent of the released amount

The under utilisation had been caused by administrative challenges such as highly centralised approval processes required under the law (Constituency Development Fund Act),cumbersome procurement procedures and limited capacity in project proposal preparations, among others.

Zimba said it was important for government to expedite the amendment of the CDF Act No. 11 of 2018 to streamline the approvals and give more decision making powers to the local communities.

‘We have observed that while funds allocation has been decentralised, government has not decentralise decision making processes,” she says.

Zimba indicated that all the guidelines relating to the management of the CDF funds would need to be simplified while capacity building in proposal writing and awareness in communities should also be undertaken.

“We commend the Government for their decision not to recall any unutilised funds under CDF by the end of the year since all constituencies will continue with project selection, procurement and implementation in line with the CDF guideline,” she said.

The CDF has been increased from K25.7 million to K28.3 million per constituency.

The resources allocated to CDF will include funds for development interventions for under-served communities, secondary schools, and skills development bursaries to be administered at Constituency level.