In an effort to accelerate the progress of Constituency Development Fund (CDF) projects, the UPND government has granted Directors of Finance in local authorities the authority to clear CDF-related contracts. Previously, this responsibility solely rested with Directors of Finance in Ministries and Provinces. The Ministry of Finance and National Planning, through the Secretary to the Treasury, has devolved this responsibility to expedite project implementation and ensure the equitable development of all regions. This decision aims to streamline operations and enhance governance standards, while maintaining the requirement for contracts to be cleared by the Attorney General and adhering to the provisions of the Public Procurement Act.

The Ministry of Finance Public Relations Unit, representing the office of the Accountant General, issued a statement announcing the devolution of authority to Directors of Finance in local authorities for the clearance of CDF-related contracts. The decision is a result of Treasury and Financial Management Circular No. 7 of 2022, which had previously devolved requirements for contract clearance within Ministries and Provinces. Directors of Finance in local authorities will now assume the responsibility to assess the commercial viability of proposed contracts, contributing to efficient project implementation.

The statement emphasizes that Directors of Finance in local authorities must adhere to the stringent governance requirements outlined in Treasury and Financial Management Circular No. 7 of 2022. To facilitate the monitoring and tracking of cleared contracts, these Directors are required to submit monthly returns in an agreed format to the Treasury. This will aid in project oversight and ensure the smooth implementation of CDF projects. The government’s objective behind this measure is to expedite the delivery of developmental projects and avoid leaving any region behind in terms of progress and development.

While the responsibility for clearing CDF contracts has been devolved to Directors of Finance in local authorities, the Ministry, Provinces, and Local Authorities are still obligated to obtain contract clearance from the Attorney General, in accordance with the Public Procurement Act. The Act stipulates that no contract, purchase order, or bid acceptance letter can be issued without the required approvals, including clearance by both the Treasury and the Attorney General. This ensures that all necessary legal considerations are taken into account before the execution of contracts.

The decision to empower Directors of Finance in local authorities with the clearance of CDF contracts is a response to observed operational bottlenecks that have impacted the timely delivery of developmental projects. By devolving this responsibility, the government aims to expedite project implementation and improve the efficiency of CDF initiatives. While local authorities assume an increased role, they are still required to collaborate with the Attorney General and submit monthly returns to the Treasury for effective tracking and oversight of cleared contracts.