MALAWI:   LOCAL GOVERNMENT ACT, 1998                                                     MALAWI SDNP
Sources of 
 44.  (1) The sources of revenue for the Assembly to finance its operations 
              shall be those stated in the Third Schedule. 
        (2) The Minister may, in consultation with the Minister responsible for 
              finance, amend the Third Schedule. 

        (3) The Minister may, subject to such terms and conditions as may be 
              agreed upon with an appropriate public body, authorize that body to 
              collect on behalf of the Assembly any revenue from the sources listed 
              in the Third Schedule. 

        (4) The distribution of Government grants to the Assembly shall be done 
              by the Government upon the recommendation of the Local 
              Government Finance Committee in accordance with a formula 
              approved by the National Assembly.

 Secretariate of 
  the Local 
45. The Local Government Finance Committee shall have a permanent 
      Secretariat which shall be headed by a Fund Administrator.

General fund  
and special 

46.  (]) The Assembly shall establish and maintain a general fund and all 
            monies received by the Assembly by way of revenue and grants 
            shall be paid into such fund, and all expenses incurred by the 
            Assembly in the execution of the powers and duties conferred 
            upon the Assembly by or under this Act shall be defrayed out of 
            such fund. 

       (2) The Assembly shall have power to create such special funds as 
             it may deem necessary. 

       (3) The Assembly may, from time to time, issue instructions with 
             regard to the general management, supervision and control of 
             the funds established under subsections (1) and (2). 

Assembly to  
open bank 
47. The Assembly shall open and maintain a bank account for all revenues 
      and other monies raised or received by it under this Act or any other 
      written law. 
 Cap. 37:01 
48. The Assembly may, subject to the Finance and Audit Act, obtain an 
      advance from a bank by overdraft:
      Provided that the prior approval of the Assembly shall be obtained 
      in any case where - 
     (a) the amount of the overdraft required will exceed one sixth of the
          previous years' recurrent revenue of the Assembly; and 

     (b) the overdraft is required for longer than six months.

 Power to borrow 
  Cap. 37-01 
 49. The Assembly may, subject to the Finance and Audit Act, raise loans
        within Malawl of such amounts, from such sources, in such manner, 
        for such purposes and upon such conditions as the Minister, in 
        consultation -with the Minister responsible for finaince,  may approve.
of  funds
 50. The Assembly may invest any portion of its monies may be  in 
       Government Treasury Bills or in other investments as approved by the 
Annual and 
51  (1) T'he Assembly shall, not later than ninety days before the 
            commencement of the financial year next ensuing, prepare detailed
            estimates of its revenue and expenditure for such financial year, and
            shall submit such estimates to the Local Government Finance 
            Committee which may either approve the estimates as submitted or 
            disallow such estimates in whole or in part or refer such estimates 
            back to the Assembly for further consideration.
      (2) The Assembly may in any year prepare and approve supplementary
            estimates of revenue and expenditure and such estimates shall be 
            submitted for approval to the Local Government Finance 
            Committee which may approve or disallow the estimates either
            wholly or in part.
Reallocation of 
52. The Assembly shall not, except with the approval of the Local 
      Government Finance Committee, incur any expenditure which has 
      not been included in the approved estimates of the Assembly, but 
      may, with the approval of the Local Government Finance Committee, 
      make reallocations of any sum contained in such approved estimates.
Accounts 53.  (1) The Assembly shall keep proper books of accounts and other records
             in relation thereto and shall balance its accounts for that year and
             produce statements of final accounts within six months from the end 
             of each financial year.
       (2) The Assembly shall submit the final accounts to the Local 
            Government Finance Committee which shall forward a copy to
            the Auditor General
Audit of 
 54.  (1) The accounts of the Assembly shall be audited bv the Auditor
             General or an auditor appointed by him. 
        (2) The Auditor General may carry out surprise audit, investigations or 
              any other audit considered necessary. 

        (3) The Auditor General shall give his report of the audited accounts to-
             (a) the Minister; 
             (b) the Local Government Finance Committee; and 

             (c) the Assembly. 
       (4) The Assembly shall have an Internal Audit Department. 

Finance com- 
mittee may 
disallow or 
 55.  (1)  After considering the report of the Auditor General, the Local 
               Government Finance Committee shall have power to disallow any 
               item of expenditure which is contrary to this Act and to surchage- 
              a)  the amount of any expenditure disallowed on the person 
                   responsible for incurring or authorizing that expenditure; 

             (b)  any sum which has not been duly brought intoaccount by the
                    person by whom the sum ought to have been brought into 
                    account; or 

             (c)   the amount of any -loss or deficiency upon any person by 
                    whose negligence or misconduct the loss or deficiency has been 

        (2) Any person aggrieved by a disallowance or surcharge. made 
              by the Local Government Finance Committee may appeal to the
        (3) Any person aggrieved by a decision of the Minister may 
              apply to the High Court forjudicial review. 
         (4) Any sum surcharged on any person shall be payable to the
               Assembly within one month of written notification of the sur- 
               charge to such person or, in the case of an appeal under 
               subsection (2) or an application under subsection (3), within one
               month of the decision of the Minister or the High Court if such 
               decision confirms the surcharge, and shall be recoverable as a 
               debt to the Assembly.

Power of 
Minister to give 
financial instruc- 
56. The Minister may, after consultation with the Minister responsible for
      finance, issue written instructions, not inconsistent with the provisions 
      of this Act, for the better control and efficient management of the 
      finances of the Assembly.
External assis- 

57. All external assistance Zo the Assembly shall, except assistance from a
      sister city, be routed through the Ministry of Finance.

Assistance from 
58. Any assistance to the Assembly from a Non-Governmental Organization
      shall be approved by the Minister in consultation with the Assembly.
 Financial year 59. The financial year of the Assembly shall be the period beginning from the
      1st day of July and ending on the 30th day of  June in the following year.
and retirement 
 60.  (1) The Assembly may establish a superannuation fund  for the benefit
             of officers on their retirement frorn service of the   Assembly and 
             the dependents of deceased officers. 
        (2) The Assembly may establish a provident fund for the, payment
              of gratuities to officers on their retirement from the service of the
              Assembly and to the dependents of deceased officers. 
        (3) No pension, provident fund payment, gratuity or other allowance or 
              benefit payable under this section shall be assignableor transferable 
              or liable to be attached or levied upQn, for or in respect of any debt 
              or claim except a debt due to or a claim made by the Assembly.