Councils blame red tape and staff shortages for unspent CDF funds

Councils blame red tape and staff shortages for unspent CDF funds

As public concern grows over the apparent failure by some local authorities to fully utilise Constituency Development Fund (CDF) allocations, council leaders in Kitwe and Ndola have attributed the problem to lengthy approval processes and limited human resource capacity, rather than idle funds.

According to the Auditor General’s Report on the Audit of the Constituency Development Fund for the financial year ended December 31, 2024, a total of K771,387,282 out of K5,115,558,793 available for CDF programmes remained unspent during the period under review. The report further revealed that K1,505,360 in empowerment grants was misappropriated by 63 beneficiaries, who diverted the funds to personal use.

Out of K4,779,160,152 allocated to 156 constituencies, only K2,634,836,664 was funded, leaving an unfunded balance of K2,144,323,488. In addition, K3,564,803,304 was carried forward from the previous financial year.

However, council officials argue that the figures must be understood in the context of the evolving nature of CDF implementation following its decentralisation.

Patrick Kambita, the Kitwe City Council town clerk, said the challenge of non-utilisation was most pronounced in 2022, when councils were still adjusting to new guidelines and approval systems.

He described the early stages of implementation as a “teething problem”, marked by procedural bottlenecks that delayed project execution soon after funds were released.

“At that time, project approvals were centralised at the Ministry of Local Government,” Dr Kambita said. “All constituencies had to submit projects to one ministry, which inevitably took time.”

He said the decentralisation of approvals to provincial level had significantly reduced delays, with provincial ministers now authorised to approve projects on behalf of the ministry.

“As things stand, I cannot imagine money not being spent,” he said. “Once funds are received, we pay out within 48 hours, unless the money is tied to projects that must wait for specific processes to be completed.”

Dr Kambita explained that funds often reported as unspent were, in reality, already committed to ongoing projects.

“There is no money sitting idle in the account. These are committed funds. Once we exhaust what we have, we immediately apply for more, even as interim payment certificates are waiting,” he said.

He added that the nature of infrastructure development meant some projects inevitably spilled over into subsequent financial years, creating the impression of under-utilisation.

Kitwe, he said, was currently implementing a large number of projects simultaneously, stretching its technical capacity.

“You can have up to 120 projects running at the same time, managed by just six or seven engineers,” he said. “Each engineer may be overseeing as many as 15 projects, in addition to other council responsibilities. That is not easy.”

He said the council was proposing the creation of a dedicated CDF department to address capacity challenges, noting that Kitwe’s five constituencies collectively managed close to K200 million.

Managing such resources, he argued, required engineers and technical staff fully dedicated to CDF implementation, separate from routine council operations.

Kitwe Mayor Mpasa Mwaya said councils were still learning and adapting as the scale of CDF expanded.

She acknowledged that lengthy procurement processes had caused delays in the early stages, but said Kitwe had since adopted proactive measures to ensure funds were utilised promptly.

“We now do preliminary works even before funds reflect in our accounts,” she said. “That way, once the money comes in, we are ready to move.”

However, she warned that CDF had the potential to overwhelm larger councils with multiple constituencies.

“Existing staff are expected to manage both CDF and core council functions,” she said. “Our Director of Engineering is already responsible for essential services such as fire services, drainage and road maintenance. Adding CDF on top of that can stretch departments.”

Ms Mwaya said councils were not opposed to CDF, but called for additional manpower to ensure that service delivery was not compromised.

Meanwhile, Ndola City Council Director of City Planning Dorothy Kababa said Ndola had largely been utilising its allocations, with delays mainly arising from procedural requirements rather than inactivity.

“When people talk about under-utilisation, it is often because of the length of approval procedures,” she said. “We follow set processes involving Ward Development Committees and multiple approval stages. These may delay project commencement, but they are necessary.”

She said Ndola had since mastered the CDF process and now began application and approval procedures early to avoid delays.

“We start advertising for applications as early as February, using radio and social media,” she said. “By December 31, approvals must be in place so that spending can begin in January.”

While grants, loans and bursaries were paid promptly, Ms Kababa said infrastructure projects continued to face challenges due to procurement requirements and the need for clearance from the Attorney General.

She also cited delays linked to emerging contractors, noting that CDF was designed to be inclusive of small and upcoming firms that were still building capacity.

Despite earlier concerns, she said staffing levels at Ndola City Council had improved following intervention by the Ministry of Local Government.

“We now have 16 civil engineers for four constituencies, as well as socio-economic planners and assistants,” she said, adding that while capacity had improved, additional manpower would still be welcome if the need arose.

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