Parliament committee decries failure to act on audits

Public Accounts Committee (PAC) of Parliament has decried the failure by local councils to implement recommendations in audit reports aimed at improving efficiency in service delivery and management of public funds. PAC said in a report submitted to Parliament last week that the common governance failures highlighted in audit reports undermine operations of the councils. The report is based on the audited accounts of councils as reported in the Auditor General’s report for the financial year that ended on June 30 2023.

Between May 18 and June 19 2026, PAC summoned district commissioners and chief executive officers from 22 councils that had audit queries to respond to the shortcomings, according to the report signed by PAC chairperson Steve Malondera. The 22 councils are Mangochi, Ntchisi, Mulanje, Mchinji, Mwanza, Neno, Ntcheu, Zomba, Phalombe, Salima, Thyolo, Likoma, Balaka, Chiradzulu, Chikwawa, Chitipa, Dedza, Karonga, Machinga, Nkhata Bay, Kasungu and Blantyre City Council. During its scrutiny, the committee said it observed nine most recurrent irregularities in expenditure management, financial management, project management, records management, revenue management, procurement, strategic planning and miscellaneous matters.

“The committee established that the irregularities identified in the Auditor General’s report largely stem from non-compliance with legal provisions, weak internal controls, inadequate supervision, poor record keeping, and ineffective accountability mechanisms,” PAC report reads in part. On expenditure management, the committee found widespread non-compliance with the Public Finance Management Act, 2022, Treasury instructions and other applicable financial management regulations. The most common irregularities included long-outstanding payables, failure to remit statutory deductions and pension contributions, misallocation of expenditure, payments made outside the Integrated Financial Management and Information System (Ifmis).

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On financial statement irregularities, PAC noted that some councils continue to face challenges in preparing financial statements in accordance with International Public Sector Accounting Standards. PAC said it has given the National Local Government Finance Committee (NLGFC) six months to act on expenditure management irregularities. The committee said NLGFC should develop and implement a structured arrears clearance programme for councils with long-outstanding payables, salary arrears, utility bills and statutory obligations in accordance with the Public Finance Management Act (2022).

NLGFC executive director Kondwani Santhe yesterday said he was engaged and would respond to the newspaper’s questionnaire today. On his part, Malawi Local Government Association executive director Hadrod Mkandawire asked for more time before commenting and had not responded by press time.

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