The World Bank told Malawi councils to pay back K1.3 billion that went missing from a social support project. Money reviews for two years showed spending problems and poor management across local governments. Teams from the bank worked with national finance groups to check where the money went. The Social Support for Resilient Livelihoods Project lost track of large amounts during regular operations. Officials found councils spent money without proper records or approval forms.
Nsanje District Council must return K169.1 million after spending K166 million without any paperwork. Dedza District Council owes K93.1 million because it broke buying rules and used fake payment slips. Bank officials said the spending broke finance laws and computer system rules that guide government money use. Each council has until June 30 to send back the missing amounts through the national finance committee. The bank wants councils to investigate their money problems and punish workers who broke the rules.
Councils must send monthly reports about their spending to the national committee by the 10th of each month. The bank will watch these reports closely to prevent future money problems. Local governments broke the Public Finance Management Act and treasury rules when they spent project funds incorrectly. Bank officials want stronger controls over how councils handle development money from international donors. These changes should help protect future aid projects from similar financial losses.
Nsanje District Council must return K169.1 million after spending K166 million without any paperwork. Dedza District Council owes K93.1 million because it broke buying rules and used fake payment slips. Bank officials said the spending broke finance laws and computer system rules that guide government money use. Each council has until June 30 to send back the missing amounts through the national finance committee. The bank wants councils to investigate their money problems and punish workers who broke the rules.
Councils must send monthly reports about their spending to the national committee by the 10th of each month. The bank will watch these reports closely to prevent future money problems. Local governments broke the Public Finance Management Act and treasury rules when they spent project funds incorrectly. Bank officials want stronger controls over how councils handle development money from international donors. These changes should help protect future aid projects from similar financial losses.
