Ben Phiri slams 'unacceptable' leak of bombshell K5bn audit letter — takestakes sly swipe at Finance Minister over control of Audit Office

Minister of Local Government and Rural Development Ben Phiri has hit out furiously after a leaked letter from the Auditor-General exposing audit queries worth over K5 billion made its way into the public domain — insisting the explosive document does not prove a single kwacha of public money has been mismanaged.

Speaking at the official unveiling of the 2024/25 Local Authorities Performance Assessment (Lapa) results in Lilongwe today, Phiri moved to calm nerves, explaining that the leaked letter simply outlined routine audit queries requiring responses from councils — many of which, he claimed, could already have been resolved.

"Some of the required information would be: missing documents, probably an unauthorised expenditure and upon response you would find that probably all have been cleared, or some have been cleared," Phiri told the room.

But the minister didn't stop there — firing a pointed swipe at his own cabinet colleague as he demanded answers over how the sensitive letter leaked in the first place.

"I am just hoping that the leakage of this letter did not happen at the National Local Government Finance Committee. It better be at the National Audit Office, where I don't have control," Phiri said, before adding with a barb: "Unfortunately, the man in control at the National Audit Office [Minister of Finance Joseph Mwanamveka] is here. These leakages in our councils and our offices are unacceptable."

The minister's fiery remarks come after media reports revealed the Auditor General had flagged a staggering K5.1 billion in audit queries across 10 councils for the year ending 31 March 2025 — sending shockwaves through development circles.

Phiri revealed the fallout had already reached donor partners, who began frantically calling to ask whether their funding was safe — when, he insisted, the money was never at risk in the first place.

Amid the row, there was still cause for celebration, with Dowa District Council crowned the best-performing local authority in the 2024/25 Lapa after scoring an impressive 98 percent. In total, 27 of the 28 district councils met the minimum access conditions and performance triggers required to qualify for the coveted Performance-Based Grant (PBG).

Eighteen district councils — including Lilongwe, Blantyre, Dowa and Salima — walked away with unqualified audit opinions for the assessment period, while Lilongwe, Nsanje, Ntcheu and Thyolo were singled out for praise after maintaining unqualified opinions for four consecutive years running.

But it wasn't good news for everyone: Nkhotakota, which had previously boasted four straight years of unqualified opinions, suffered a stunning fall from grace with a disclaimer in 2024/25 — while Chitipa and Phalombe also posted weaker audit outcomes this year.