BANKS USED K14BN CDF TO BUY TREASURY BILLS – NKULUKUSA
SECRETARY to the Treasury Felix Nkulukusa has revealed that commercial banks used K14 billion Constituency Development Fund (CDF) to buy treasury bills and government bonds.
And over K79.3 million was paid to excess staff in 43 local authorities as at December 31, 2022, according to the Auditor General’s Report on Local Authorities.
Mr Nkulukusa made the revelations during an appearance before the Parliamentary Committee on Local Government yesterday.
He said this is due to underutilisation of CDF as of February 2024.
“As we speak, we still have a lot of balances that are sitting,” he said.
“Commercial banks that were holding that money are now using that money to come to the Treasury and buy treasury bills and government bonds and we pay interest on our own money.”
Mr Nkulukusa, who said Government has taken measures to avoid this occurrence, said constituencies have used less than 50 percent of the allocated money, a situation he described as undesirable.
“We believe that this (CDF) is game changer and we have to make sure that it works,” he said.
“We know that it is still a child, and we know we have to grow and nurture this child.
“We have no choice. CDF has to work.”
CREDIT: Zambia Daily Mail
Penalise the banks. They are making money of funds that are not theirs….
They need to forfeit the interest. The officers that are failing to apply the funds need to be censured.
That’s what banks do… business nothing personal. Let the local government use their money for roads, water, lighting and other services then we won’t have that problem.