Civil society organizations have warned that the country’s planned expansion of the Constituency Development Fund (CDF) to K5 billion per constituency annually could worsen corruption and mismanagement unless strict accountability systems are introduced,.
The warning follows a prolonged constitutional dispute over who should control the multibillion-kwacha fund and how it should be managed.
President Professor Arthur Peter Mutharika recently announced the increase of the CDF allocation from K200 million to K5 billion per constituency, a move that would channel billions of kwacha into local development projects across the country’s 229 constituencies.
Read More
The expansion comes amid ongoing political and legal tensions over whether the fund should be controlled by Members of Parliament or local councils.
During the presentation of the 2026/27 national budget in Parliament on February 27, 2026, Minister of Finance Joseph Mwanamvekha said government will finalize new CDF management guidelines only after consultations with key stakeholders.
Meanwhile, civil society organizations say those guidelines will determine whether the expanded fund improves development outcomes or deepens governance problems.
Aubrey Farooq Mbewe, national coordinator of the Movement for Community-Led Development (MCLD) has told Nthanda Times that the increased funding alone will not guarantee meaningful development if communities are excluded from decision-making.
“We feel like this is a bold step because it will enable communities to achieve self-reliance and enhance participation, because they will be able to do tangible projects in their communities than before,” Mbewe said.
However, he said safeguards are necessary to ensure transparency and community ownership of development initiatives.
“What we want to see is engagement with women, youth, persons with disabilities and other marginalized groups in the decision-making process. This will ensure communities themselves contribute to and benefit from development initiatives,” Mbewe said.
The debate over CDF governance intensified after a May 26, 2025 High Court ruling that declared existing guidelines unconstitutional.
In the case The Registered Trustees of Malawi Local Government Association v Ministry of Local Government and the Attorney General, a three-judge panel comprising Justices Mzonde Mvula, Howard Pemba, and Eddah Ngwira-Mwakibinga ruled that allowing Members of Parliament to manage development funds violated the constitutional principle of separation of powers.
The court found that MPs, as members of the legislature responsible for oversight of government spending, could not simultaneously perform executive functions such as controlling development funds.
The ruling declared the 2022 CDF guidelines invalid to the extent that they gave MPs voting rights and decision-making powers within local councils.
The judges directed that the guidelines be revised to remove MPs from executive roles in the management of development funds.
The decision triggered a political standoff when Parliament later passed Constitution (Amendment) Bill No. 2 of 2025, which sought to legalize lawmakers’ continued involvement in the fund.
President Mutharika vetoed the bill on January 6, 2026, arguing that development initiatives must not undermine accountability and constitutional governance.
The dispute reflects broader concerns about how the fund has been managed in the past.
Investigations and audits have repeatedly documented irregularities in CDF projects across the country.
Monitoring by the Malawi Anti-Corruption Civil Society Support (MACCSS) programme found that more than 70 percent of 28 CDF projects reviewed in three districts failed to meet basic compliance standards, with over K150 million flagged as questionable expenditure.
Other investigations have documented ghost projects, abandoned construction works and bursary funds that never reached intended beneficiaries.
In some communities, projects recorded as completed on official documents were found to be nonexistent.
Governance advocates say these findings highlight the risks associated with dramatically expanding the fund without stronger oversight mechanisms.
Despite the concerns, Mbewe said civil society organizations remain ready to support reforms that promote transparency and community participation.
“As a movement, we are ready to support the government to ensure there is accountability and that programs developed are truly community-led,” he said.
The Movement for Community-Led Development is a coalition of 166 organizations, including local and international NGOs, community-based organizations and academic institutions working to strengthen citizen participation in development processes.