The Zambian Institute of Chartered Accountants (ZICA) has called for increased transparency and accountability in the management of the Constituency Development Fund (CDF) following recent allegations of misuse of public funds
This is following revelations of alleged abuse of CDF funds at the Kalabo District Council, which has triggered an internal audit of all constituencies.
ZICA President Yande S Mwenye has since commended the Minister of Finance, Dr. Situmbeko Musokotwane MP, for taking a keen interest in addressing the issue and emphasized the need for qualified accountants and auditors regulated by ZICA to be employed to ensure adherence to ethical standards.
Mwenya noted that the CDF allocation was increased in the national budget from K1.6million to K28.3million 2021 and currently to K30.6million, this requires accountability and transparency of the disbursements to ensure confidence in the Zambian people, as these funds are intended for the betterment and to provision of positive impact to local communities across the country.
“We reiterate the need for prudent use of these funds in all constituencies as said before. We need to see more transparency and accountability in the application, approval and disbursement process of the CDF as this is of utmost importance! However, this can only be achieved if qualified accountants and auditors regulated by ZICA are employed. This will ensure adherence to our ethical standards and of course employment for the Zambian accountant.”
ZICA has also expressed concerns about the placement of qualified accountants in non-strategic roles within local authorities, hindering their ability to provide effective oversight of resources.
The institute urged the Local Government Commission to address this issue urgently, emphasizing that the recruitment of registered accountants in local authorities would lead to significant improvements in financial management and oversight.
“The recruitment of registered accountants by local authorities will lead to significant improvements in financial management and oversight. Recruitment of non-registered accountants contributes to the mismanagement and potential abuse of public funds, undermining the integrity of local authorities. As ZICA, we wish to re-emphasize the need for custodians of CDF funds to be trained so that they are able to execute their duties in line with the CDF guidelines. We are ready to help build capacity by providing targeted trainings in financial management to all local governance structures (Ward Development Committees) in all the constituencies.”
Furthermore, ZICA has highlighted the importance of training custodians of CDF funds to ensure compliance with CDF guidelines and offered to provide targeted financial management training to all local governance structures. The institute stressed the need for increased implementation of internal controls at all levels to ensure accountability and transparency in the use of allocated resources by the government.
ZICA also expressed readiness to receive reports from the Controller of Internal Audit once the audits of all constituencies are concluded and emphasized the provisions of the Accountants Act No. 13 of 2008, section 18 (1), which outlines the requirements for practicing as a chartered accountant in Zambia.
The institute’s strong stance on the need for improved accountability and transparency in the management of the CDF underscores the importance of ethical financial practices in driving positive impact and development within local communities across the country.
“We are ready to help build capacity by providing targeted trainings in financial management to all local governance structures (Ward Development Committees) in all the constituencies. Increased implementation of internal controls at all levels is of utmost importance to ensure accountability and transparency of the use of all allocated resources by Government. We look forward to receiving the reports from the Controller of Internal Audit once the audits of all the constituencies are concluded.”
“The Institute wishes to state that in accordance with the Accountants Act No. 13 of 2008, section 18 (1) A person shall not, unless the person is registered as a Chartered Accountant under this Act (a) practice as, be employed as, offer services as, or hold out to be, a chartered Accountant.” She added.
