Introduction to the NLGFC

The National Local Government Finance Committee (NLGFC) is an institution provided for under the provisions of Section 149 of the Constitution of the Republic of Malawi.

It is an institution that is placed to drive the fiscal decentralisation processes.

Its mandate and roles are derived from the Constitution and are as follows:

1. Receive budget estimates from all Local Authorities (LAs);

2. Supervise and audit accounts of LAs subject to the recommendations of the Auditor General;

3. Make recommendations relating to the distribution of funds allocated to local governments;

4. Prepare a consolidated budget for all LAs after consultation with the Treasury which shall be presented to the National Assembly by the Minister of Local Government and Rural Development;

5. Make application for supplementary funds; and

It has to be noted that the Local Government Act (LGA) of 1998 also gives powers to the NLGFC to disallow and surcharge any item of expenditure irregularly drawn by an office of the local council.

Membership of NLGFC

The membership of the NLGFC is as follows:

1. A representative of the Malawi Electoral Commission;

2. The chairperson of the Civil Service Commission

3. The Secretary for Local Government and Rural Development

4. The Secretary to the Treasury

5. A representative of Local Government Authorities;

6. An independent professional accountant.

The committee co-opted a representative from the National Audit Office and the Accountant General to help the committee. The committee was set up in July 2001 and it is serviced by a Secretariat which was set up in October 2001.