Finance minister urges MPs to press councils over Constituency Development Fund procedures

Malawi's Minister of Finance, Economic Planning and Decentralisation, Joseph Mwanamvekha, has urged Members of Parliament (MPs) to enhance engagement with their respective local councils regarding the procedures for accessing the Constituency Development Fund (CDF). This follows widespread complaints from legislators about delays in fund disbursement. The Minister clarified that delays often stem from councils failing to complete necessary procedural steps, such as submitting project proposals, identifying contractors, and presenting budgets for ministry approval. The call highlights persistent challenges in the administration of the CDF, a critical mechanism for local development, amidst ongoing efforts to strengthen decentralisation, accountability, and public finance management in Malawi.

The effective disbursement and utilisation of the Constituency Development Fund (CDF) are perennial concerns in Malawi, directly impacting grassroots development initiatives. Recently, complaints from Members of Parliament (MPs) regarding delays in accessing these vital funds prompted a parliamentary address from the Minister of Finance, Economic Planning and Decentralisation, Joseph Mwanamvekha. The Minister's response shifted the onus, urging MPs to engage more closely with their local councils to ensure adherence to established procedures. This directive underscores a critical juncture in Malawi's decentralisation efforts and public finance management, revealing ongoing tensions and procedural bottlenecks in a fund designed to foster local socio-economic growth. This article will delve into the legal and procedural framework governing the CDF, analyse the roles and responsibilities of key stakeholders, and explore the implications of the Minister's call for enhanced inter-institutional collaboration.

The Constituency Development Fund (CDF) was established by the Government of Malawi in the 2006/2007 fiscal year with the primary objective of promoting poverty eradication through small-scale, short-term community development projects at the constituency level. It represents a crucial component of the country's broader decentralisation agenda, which gained momentum with the approval of the National Decentralisation Policy in 1998 and the enactment of the Local Government Act (No. 42 of 1998). These instruments aim to devolve administrative and political authority, as well as financial resources, to district assemblies and local councils, empowering them to drive local development and improve service delivery. The CDF, as a central government transfer to local authorities, is intended to align with this fiscal decentralisation process. The management and utilisation of CDF resources are subject to stringent public finance management laws and procedures, including the Public Finance Management Act (No. 4 of 2022), the Public Procurement and Disposal of Assets Act (No. 27 of 2016), the Public Audit Act (No. 10 of 2018), and the Corrupt Practices Act (No. 15 of 1995). Furthermore, specific Constituency Development Fund Guidelines, issued by the Ministry of Local Government and Rural Development, provide a framework for its administration, emphasising transparency and accountability. Historically, the CDF has been plagued by allegations of mismanagement, political interference, and elite capture, leading to calls for greater accountability and, at times, donor intervention.

The Minister of Finance, Economic Planning and Decentralisation, Joseph Mwanamvekha, addressed Parliament following complaints from MPs about delays in CDF disbursement, stating that the funds are available but their release is contingent upon local councils completing required procedures. Specifically, councils must submit project proposals, identify contractors, and present budgets for ministerial approval. This highlights a critical procedural bottleneck, suggesting that the existing *Constituency Development Fund Guidelines* and other public finance regulations are not being consistently followed at the local level. The Minister's statement implies that the delays are not primarily due to central government withholding funds, but rather a failure in the decentralised implementation chain.

The roles and responsibilities surrounding the CDF have been a source of significant legal and operational contention. While MPs have historically exerted strong influence over the fund, often leading to accusations of using it for political gain, a landmark Constitutional Court judgment in May 2025 declared the involvement of MPs and their voting rights in managing the CDF unconstitutional, citing the principle of separation of powers. However, in a subsequent development, Parliament approved Bill No. 2 of 2025, a Constitutional Amendment, in December 2025, which enshrines the CDF into the Constitution and controversially places it under the governance of Members of Parliament "as prescribed by an Act of Parliament." This legislative move appears to counter the spirit of the earlier court ruling, re-establishing a formal role for MPs.

Despite this constitutional amendment, the government has simultaneously pursued a policy of decentralising the management of the CDF to local councils from parliamentarians, introducing new guidelines to specify roles and responsibilities. This creates a complex and potentially contradictory legal landscape where MPs have a constitutionally enshrined governance role, yet the day-to-day management and procedural compliance are increasingly vested in local councils. The Minister's recent directive for MPs to engage with councils aligns with this decentralised management model, emphasising the councils' responsibility for the detailed procedural steps. This shift aims to enhance local ownership and accountability, but it also necessitates a clear understanding and strict adherence to the *Public Finance Management Act*, the *Public Procurement and Disposal of Assets Act*, and the *Public Audit Act* by all involved parties to prevent misuse and ensure transparency.

The persistent issues of mismanagement and lack of accountability have also attracted the attention of international donors. In January 2026, Finance Minister Joseph Mwanamvekha confirmed that donors would begin funding the CDF under strict conditions of transparency and accountability, effectively creating a "donor-backed system" due to the government's failure to establish a trusted, corruption-free management system. This external oversight underscores the critical need for all stakeholders, particularly local councils, to rigorously adhere to the established procedures and guidelines. The significant increase in the CDF allocation, reaching K1.145 trillion (approximately K5 billion per constituency) in the 2026/27 budget, further amplifies the imperative for robust financial controls and inter-institutional collaboration to ensure these funds genuinely contribute to local economic development.

The Minister of Finance’s call for greater engagement between Members of Parliament and local councils over Constituency Development Fund procedures is a timely reminder of the intricate legal and administrative challenges inherent in Malawi’s decentralisation framework. For legal practitioners, it underscores the critical importance of understanding the evolving legal landscape governing the CDF, including the interplay between constitutional provisions, statutory instruments like the *Local Government Act* and *Public Finance Management Act*, and the specific *Constituency Development Fund Guidelines*. The recent constitutional amendment re-affirming MP governance over the CDF, alongside the ongoing decentralisation of its management to local councils, creates a dynamic environment that demands careful navigation. Practitioners advising clients involved in local development projects funded by the CDF must emphasise strict adherence to procedural requirements, from project proposal submission and contractor identification to budget approval and financial reporting. The continued scrutiny from both the central government and international donors necessitates a robust commitment to transparency and accountability at all levels. Moving forward, the effectiveness of the CDF will hinge on the ability of MPs and local councils to foster genuine collaboration, ensuring that procedural compliance translates into tangible, accountable development outcomes for Malawian communities. Legal professionals should closely monitor the implementation of the new CDF guidelines and any further legislative or policy reforms aimed at streamlining its administration and strengthening oversight.