Ministry of Finance, Economic Planning and Decentralisation has dismissed claims that the disbursement of Constituency Development Fund (CDF) resources has been delayed, saying the process is progressing as planned under the reformed CDF framework.

In a statement, the ministry said the 2026/27 financial year began with the release of project preparation funds, adding that unlike the previous system, project implementation funds are now only disbursed after projects have been identified, technically appraised and procurement processes completed.

The ministry explained that contractors will receive advance payments only after procurement has been finalised, while subsequent disbursements will be based on project performance, supported by valid work certificates and funding requests.

According to the statement, not all local councils had completed project identification and appraisal by 1 July 2026.

However, councils that have finalised the process are already procuring contractors and will receive advance payments once the procurement process is complete.

The ministry also revealed that by the end of June 2026, Treasury had disbursed MK7.87 billion in project preparation resources to local councils after the process began in May.

It further said Treasury has already started releasing resources for youth and women loans through the Malawi Enterprise Development Fund (MEDF) and remains committed to ensuring timely CDF disbursements to support successful implementation of development projects.