Government has warned against inappropriate use of the K1.3billion Kwacha disbursed to local councils for COVID -19 interventions.

The caution is stated in a communication issued by the National Local Government Finance Committee (NLGFC) addressed to all 35 councils in the country. In the statement Executive Director Alifeyo Banda says the resources should be utilised for the intended purposes according to accounting procedures and the regulatory framework.

Banda warns local authorities to ‘strictly follow guidelines’ as provided by Ministry of Local Government and Rural Development and the NLGFC. The Executive Director further says councils are required to report utilisation of the resources on monthly basis without fail.

In an interview, Linda Kapanda Finance Manager at the NLGFC said Public Finance Act guidelines demand that all funds should be used for intended purposes according to accounting procedures which do not change according to funding.

Kapanda says the resources were approved for local interventions by the Presidential Committee on COVID 19. The K1.3 billion was released by the Department of Disaster Management Affairs in the Office of the President and Cabinet through Treasury to various councils.

In the disbursements, Blantyre and Lilongwe District Councils have received K85 million each, Karonga, Mangochi, Machinga, Zomba and Mwanza have got K60 million each, Mbelwa district councils have received K50 million, Lilongwe city and Blantyre city have got K40 million each, with the rest receiving K30 million kwacha and Luchenza Municipal council, K20million.

The NLGFC is a constitutional body established under section 149 (1) of the republican constitution to mobilize, distribute and ensure efficient and effective utilisation of financial resources among local authorities for efficient and effective service delivery and development.