Acting Auditor General has observed with concern the misapplication of youth and women empowerment grants under the Constituency Development Fund (CDF) disbursements in 2024, with some beneficiaries diverting funds to unauthorised activities.
This follows the release of the 2024 CDF Audit Report, which has identified weaknesses in the management and utilization of the Fund, undermining its objective of delivering meaningful social and economic benefits to communities across the country.
In a statement, Dr. Ron Mwambwa noted that the misapplication of grants diminishes the intended impact of empowerment programmes and weakens public confidence in CDF interventions.
Dr. Mwambwa observed that the report highlights a general non-enforcement of CDF guidelines, resulting in several systemic challenges, including weak budget utilisation and poor fund management.
He said these challenges have led to delayed project implementation and the accumulation of unspent funds at the end of the financial year, thereby denying communities timely access to essential services.
“In addition, the audit identified ineffective management of soft loans, characterized by poor loan recovery processes and weak enforcement of penalty provisions.”
“This has resulted in significant outstanding balances, limiting the Fund’s ability to support additional beneficiaries,” he stated.
Dr. Mwambwa also cited weak bursary management, including cases where beneficiaries failed to report to learning institutions after payments had already been made.
He further observed the funding of non-skills courses, contrary to CDF guidelines, which undermines the objective of enhancing skills development and youth participation in the labour market.
Dr. Mwambwa expressed concern over poor procurement and contract management, evidenced by inadequate due diligence, abandoned projects after advance payments, delayed deliveries, and the supply of defective goods.
“These shortcomings compromise value for money and slow the delivery of critical community infrastructure,” Dr Mwamba noted.
The Acting Auditor General warned that the identified weaknesses pose a significant risk to the achievement of the CDF’s intended outcomes and underscored the need to strengthen oversight and accountability mechanisms, from the parent ministry down to individual local authorities.
Dr. Mwambwa called for a comprehensive strengthening of controls across the entire CDF framework to address the gaps identified in the audit.
Among the key recommendations are the enforcement of stringent measures against contractors who abandon projects after receiving advance payments, improved monitoring of budget utilisation, strengthened project tracking systems, and enhanced contractor accountability to ensure timely and effective project delivery.
