TI-Z Slams CDF Misuse

....Nyambe Calls for Funding Suspension as Governance Failures Raise Concerns for Future Allocations

By Francis Maingaila ♥️

Lusaka, Zambia, (05-03-2025) - Transparency International Zambia (TI-Z) has called for an immediate halt to the increase in Constituency Development Fund (CDF) allocations, citing serious concerns regarding accountability and transparency.

This recommendation follows the release of TI-Z’s analysis of the 2023 CDF audit report, which revealed significant financial irregularities, mismanagement of funds, and poor project implementation.

TI-Z insists that without addressing these systemic issues, increasing the CDF allocation will only worsen existing challenges.

Executive Director Maurice Nyambe told journalists at a media briefing that the findings from their comprehensive analysis were deeply troubling.

"Our analysis of the 2023 CDF audit report reveals that less than 42% of the funds allocated for community projects were utilized, while approximately 53% of the total CDF allocation remained unspent," Nyambe stated.

"Despite increased CDF allocations over the past few years, many constituencies have failed to effectively utilize these resources for their intended purposes."

Nyambe further pointed out that TI-Z did not collect information directly from constituencies, but instead used data from the Auditor General's 2023 CDF audit report to rank the performance of provinces and constituencies.

The analysis found that eight out of the 10 provinces had utilization rates below 50% for community projects, while none of the provinces had utilization rates above 60% for the total CDF allocation.

The report also highlighted three major categories of financial irregularities in the management of the CDF program: the failure to recover loans, failure to account for funds, and unauthorized changes to projects.

"The highest irregularity, in terms of value, is the failure to recover over K254 million in loans, followed by K8.3 million in unaccounted funds and K9.4 million in unauthorized project changes," Nyambe explained.

Notably, some local authorities, such as the City of Lusaka, ranked among the top 10 in all three categories of financial mismanagement.

Nyambe expressed concern that many of the top councils failing to recover loans were located in areas that are political strongholds of the ruling UPND party.

This raised suspicions of political patronage and the abuse of CDF resources for political gain. He called for action to address this issue, warning that such practices undermine the CDF's goal of promoting local-level development.

Further, TI-Z’s analysis revealed significant weaknesses in the management of the CDF program.

"The CDF program has been plagued by poor contractor management, weak enforcement of penalties, and ineffective monitoring and budget oversight," Nyambe noted.

"These issues have resulted in delays, abandoned projects, and overall inefficiencies."

TI-Z has recommended that the government freeze any further increases to the CDF allocation until there is concrete evidence of improved monitoring, better financial management practices, and stronger institutional capacity at local levels.

 "Until these issues are addressed, any increase in CDF allocations would only exacerbate financial leakages and corruption," Nyambe asserted.

An analysis of Zambia’s Constituency Development Fund (CDF), based on the 2023 Auditor General’s report, highlights significant mismanagement, corruption, and low fund utilization. 

Although CDF allocations have risen sharply from ZMW 249.6 million in 2021 to a projected ZMW 5.6 billion in 2025, local authorities continue to face challenges in effectively utilizing these funds.

Bright Chizonde, Advocacy, Policy, and Research Manager at Transparency International Zambia (TIZ), said the audit shows the low utilization of community projects, with rates as low as 41.9%. “Despite increased funding, local authorities lack the capacity to manage these resources,” Chizonde stated.

The report highlights several irregularities, including over ZMW 250 million in uncollected loans, ZMW 8.3 million in unaccounted funds, and unauthorized changes to projects. The findings raise concerns about political patronage and abuse, particularly in constituencies controlled by the ruling party.

Weak governance is another major issue. Poor budget management, inadequate procurement systems, and ineffective monitoring have been identified as key factors contributing to the mismanagement of funds.

The audit also shows uneven provincial performance, with Eastern Province performing best (83.55% utilization), while Central Province performed the worst (17.38%). Overall, 8 out of 10 provinces reported utilization rates below 50%.

The findings have led to calls for reform. TIZ has urged the government to strengthen local authorities, improve transparency, and increase public scrutiny of CDF spending.

“Without reform, the CDF will continue to underperform, wasting public resources meant for community development,” Chizonde warned.