By Edwin Mauluka

The Minister of Local Government and Rural Development, Ben Phiri, has asked the country’s district councils to digitalise revenue collection services before new fiscal year in order to maximise revenue collection and strengthen the fight against corruption.

Malawi’s financial year runs from April 1 to March 31.

Speaking when he visited Chitipa and Karonga district councils on Monday, Phiri emphasised that digital services have potential to improve resource mobilisation for local councils while sealing holes for revenue leaks.

“Councils must transition from manual revenue collection to digital systems of revenue collection. Currently, more revenue is lost and unaccounted for because some officers misdirect taxes to personal pockets,” he said

The minister noted that cash-based revenue collection encourages the appetite to steal among officers and discourages citizens from paying taxes due to rampant fraud. He said digital systems can prevent officers from handling cash and curb the issuance of fake receipts.

“People expect the revenue to work for them. They expect councils to use the funds for infrastructure development projects and ensure availability of essentials services including procurement of drugs in hospitals. So, we want councils to stop corruption through new technologies so that we reduce appetite to steal,” he emphasised

Phiri directed that local councils must digitalise their revenue collection by March 31, 2026, before commencement of the 2026/2027 financial year.

He warned that the Democratic Progressive Party (DPP) led government will not tolerate corrupt officers and councils that mismanage public funds.

“Corruption and mismanagement of public resources in district councils have the potential to derail development,” the minister said.

The DPP administration has promised to increase the Constituency Development Fund (CDF) annual allocation from MWK200 million to MWK5 billion per constituency from the 2026/2027 financial year. Additionally, each constituency will get a total sum of MKW200 million for the youth and women as part of the decentralisation agenda as well as to promote economic opportunities for youth and women.

According to Phiri, the reformed CDF will play a vital role of transforming both towns and rural areas across the country if councils utilise the fund wisely and transparently.

He said the CDF will enable councils to achieve development goals while addressing concerns related to inadequate financing.

In his recent visit to Rumphi district, the minister of also encouraged councils to hire highly qualified directors and staff members for effective use of the CDF.

“We have demanded that District Commissioners and directors have good credentials and the stamina to handle these amounts. We really need competent officers who can oversee effective spending of the substantial amounts that will be received by councils to ensure quality and accountability.” said Phiri, pointing out that government wants every Director of Finance to have a minimum of an Accounting Degree and be certified as a Chartered Accountant.

He added: “So, we are putting every measure to make sure that this money is safeguarded by having human capacity at councils.”

He also asked local councils to develop visionary strategic plans for coming years in line with the Malawi Agenda 2063 vision.

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