By Suleman Chitera

LILONGWE, Malawi — Minister of Local Government and Rural Development Ben Phiri has dismissed suggestions that more than K5 billion in audit queries raised by the Auditor General amount to proof of financial mismanagement in local councils, insisting that the issues highlighted are part of a normal audit process and may already have been addressed.

Phiri made the remarks in Lilongwe on Friday during the official announcement of the 2024/25 Local Authorities Performance Assessment (LAPA) results, following widespread media reports about a leaked letter from the Auditor General to the National Local Government Finance Committee (NLGFC).

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The leaked correspondence reportedly identified audit queries amounting to approximately K5.1 billion involving 10 local councils for the financial year ending March 31, 2025.

Addressing the controversy, Phiri stressed that audit queries should not automatically be interpreted as evidence of corruption or loss of public funds.

He explained that audit findings often require councils to provide additional documentation or clarification before conclusions can be reached.

“Some of the required information would be missing documents, probably an unauthorised expenditure and upon response you would find that probably all have been cleared, or some have been cleared,” said Phiri.

The minister further condemned the unauthorised disclosure of the Auditor General’s letter, describing the leak as unacceptable and damaging to public confidence.

“I am just hoping that the leakage of this letter did not happen at the National Local Government Finance Committee. It better be at the National Audit Office, where I don’t have control. Unfortunately, the man in control at the National Audit Office [Minister of Finance Joseph Mwanamveka] is here. These leakages in our councils and our offices are unacceptable,” he said.KICKING OFF DREAMS: Ben Phiri Unveils Trophy to Ignite Grassroots Football Revolution in Thyolo

Phiri warned that the leaked document had caused unnecessary concern among development partners and other stakeholders who questioned whether donor resources entrusted to local authorities remained secure.

“Partners were calling, wondering whether the resources were safe or not, when actually their money was safe,” he said.

The minister’s comments came as government unveiled the latest Local Authorities Performance Assessment results, which showed significant improvements in governance and financial management across district councils.

Dowa District Council emerged as the country’s best-performing local authority after achieving an impressive 98 percent score in the 2024/25 assessment.

The results further showed that 27 out of Malawi’s 28 district councils successfully met the minimum access conditions, performance measures and accountability triggers required to qualify for the Performance-Based Grant (PBG).Malawi Freedom Network Crowns Ben Phiri Minister of the Month

The assessment also reflected encouraging progress in financial accountability, with 18 district councils obtaining unqualified audit opinions, the highest level of assurance that financial statements fairly represent the councils’ financial position.

Among the councils receiving unqualified audit opinions were Lilongwe, Blantyre, Dowa and Salima.

In addition, Lilongwe, Nsanje, Ntcheu and Thyolo District Councils were recognised for maintaining unqualified audit opinions for four consecutive years, demonstrating sustained improvements in financial management and accountability.Ben Phiri Defends CDF Rollout, Says K15 Billion Already Disbursed

However, the assessment also highlighted areas requiring improvement.

Nkhotakota District Council, which had previously maintained four straight unqualified audit opinions, recorded a disclaimer opinion during the 2024/25 financial year, signalling significant challenges in providing sufficient audit evidence.

Meanwhile, Chitipa and Phalombe District Councils also registered weaker audit outcomes compared to previous years.

The Local Authorities Performance Assessment is a key government tool used to evaluate governance, financial management, service delivery and institutional performance among local councils. The assessment determines eligibility for Performance-Based Grants aimed at strengthening decentralisation and improving public service delivery.Ben Phiri Promise Transparency in CDF Use

Government has maintained that strengthening accountability and transparency within local authorities remains central to Malawi’s decentralisation agenda, while urging the public to distinguish between audit queries requiring clarification and confirmed cases of financial misconduct.