Malawi's PPDA Introduces Funding Directive for Public Contracts

The Public Procurement and Disposal of Assets Authority (PPDA) in Malawi has introduced a new directive requiring public institutions to provide proof of funding for major procurement contracts. This move aims to strengthen transparency, improve accountability, and curb corruption. The directive, issued on November 2, 2026, by PPDA director general George Mankhwala, instructs controlling officers and heads of procuring entities to submit evidence of funding for qualifying contracts by November 20.

Governance expert Victor Chipofya has backed the PPDA's directive, citing its importance in safeguarding public resources and promoting fiscal discipline. As a lecturer at Blantyre International University, Chipofya emphasized that requiring proof of funding is a critical due-diligence measure. He noted that it is essential for government institutions to show proof of funding for projects to ensure accountability and transparency.

The directive applies to contracts whose intention to award notices were published and subsequently signed between April 1 and October 31, 2026. According to Mankhwala, the exercise is being conducted under Section 5(1) of the Public Procurement and Disposal of Public Assets Act. The requested evidence should be in the form of a certification as provided in Regulation 36 of the Public Procurement Regulations of 2026.

Chipofya believes that the requirement can help reduce corruption and abuse of office by creating a stronger audit trail for public projects. He cited an example of a K1 billion project, emphasizing the need to know who will fund it. This, he said, can help address persistent delays in settling contractor payments.

The PPDA's directive is seen as a step towards ensuring that public resources are utilized efficiently and effectively. By requiring proof of funding, the authority aims to prevent projects from stalling due to lack of funds. This move is also expected to promote accountability and transparency in the management of public resources.

The directive has been welcomed by experts, who see it as a positive step towards improving governance in Malawi. Chipofya noted that the requirement can help to promote fiscal discipline and ensure that public resources are utilized for their intended purposes.

The PPDA's directive is set to have a significant impact on the management of public contracts in Malawi. With the requirement for proof of funding in place, public institutions will need to ensure that they have the necessary resources to complete projects. This move is expected to promote transparency, accountability, and efficient utilization of public resources.

Key points

• The PPDA's directive requires public institutions to provide proof of funding for major procurement contracts to boost transparency and accountability.