Local Contractors Break Silence on CDF Standoff
Published on January 16, 2026 at 10:29 AM by Robert Ngwira
As some lawmakers especially from the opposition side in Parliament are planning to re-table the controversial Constituency Development Fund (CDF) Constitutional Amendment Bill, some local contractors in the country trading under the banner Indigenous Construction Contractors Association (ICCA) have added their voice on the matter.
Earlier this month President Professor Peter Mutharika rejected the bill thereby stripping off lawmakers powers to peep-through the funds.
Speaking in an interview with faceofmalawi, one of the ICCA members who opted for the condition of anonymity expressed fear that with the hiked Constituency Development Fund being solely handled by councils will lead to massive plunder of the funds.
“Councils in Malawi fail to administer Mk200m cdf and most of the councils have got audit queries, corruption in councils is institutionalized. Imagine big councils with 10 constituencies that’s 50billion this will put our councils in a bad situation to the extent that ambiri amangidwa.
“My suggestion is why not use already established institution like Roads Authority. Just boost it by amending a law to make it ‘Roads and Building Authority’ give it mandate to administer all the development activities,” he said.
He added: “This institution has all the expertise and experience to administer all the infrastructure needs of the country they know each and every road. By amending the law governing these institutions it will give powers to them to build and maintain building structures in all govt institutions across the country and they’ll employ or absorb existing works departments in district councils. MP/councillors or vdc will be just going there to submit their needs/proposals and Roads and Building Authority will just be implementing. While Roads and Building fund administration will be the pay master. All the CDF funds will deposited into roads and building administration fund account.
“This will save money because these two institutions have the experience, expertise, and infrastructure to implement the CDF.”
When contacted for comment Minister of Local Government Ben Phiri was quoted assuring Malawians that the funds will be safe in councils.
“Let me assure Malawians that their funds are safe and my ministry is committed to transparency and accountability in the utilisation of these public resources,” Phiri said.
On her part Cathy Maulidi, State House Press Officer told this publication that President Mutharika has ordered the ministers of Justice and Constitutional Affairs and Finance, Economic Planning and Decentralisation to draft guidelines for managing CDF that do not compromise financial integrity.
President Mutharika has hiked the CDF from MK200 million to MK5 billion as promised during the campaign trail.
The High Court, sitting as a three-judge panel comprising Justices Mzonde Mvula, Howard Pemba and Eddah Ngwira-Mwakibinga, delivered its judgement in the case of The Registered Trustees of the Malawi Local Government Association versus Ministry of Local Government and the Attorney General.
Ruling in favour of Malga, the court declared the guidelines for CDF and Water Resources Fund (2022), issued by the Ministry of Local Government, unconstitutional.
The Guidelines had vested MPs with primary responsibility over local development plans and granted them voting rights in local councils as ex-officio members under Section 5(1) of the Local Government Act.
The court observed that an MP, as part of the Legislature under Section 8 of the Constitution, participates in the enactment of laws, but by assuming an ex-officio role in the council with powers to determine the management and control of development funds, including voting rights, undertakes functions that fall within the domain of the Executive under Section 7.
According to the court, this dual role contravenes the doctrine of separation of powers under sections 7, 8 and 9 of the Constitution.
As a result, the court declared the guidelines invalid to the extent of their inconsistency with the Constitution.
It further directed that the guidelines be revised to exclude MPs from such roles and that alternative stakeholders be identified to uphold constitutional compliance and the integrity of the oversight function.
