The Zambia Institute of Chartered Accountants (ZICA) has expressed concern with the revelations from the 2023 Auditor General’s report regarding abuse of Constituency Development Funds (CDF) at Lusaka City Council (LCC).
It is alleged that the Lusaka City Council disbursed K5.3 million to 373 beneficiaries of whose identities remain unknown and further, discovered that the recipients could not be traced, and no business operations associated with them could be located.
ZICA President Yande Mwenya said the audit also revealed that the LCC disbursed K336,000 in soft loans to individuals that were not on the approved list of beneficiaries.
“ZICA reiterates the need for the prudent use of CDF funds in all constituencies as government has been advised before on many occasions,” said Ms. Mwenya in a statement issued to RCV News in Lusaka today.
She highlighted the importance of transparency and accountability in the application, approval and disbursement process of CDF stating that when administered properly for the intended purpose, the CDF initiative will help to alleviate poverty and bring great development to the people of Zambia.
Meanwhile, Ms. Mwenya has commended government through Ministry of Local Government for engaging with the Institute to ensure all accountants and internal auditors in local authorities countrywide are registered and in good standing with the Institute.
She said the collaboration will help promote accountability and efficiency in the administration of Constituency Development Funds (CDF).
By Margaret Mwanza
