Councils have been cited for failure to effectively manage the Local Government Equalisation Fund and the Constituency Development Fund -CDF.
The councils have also been cited for various other offences, which include poor waste management, failure to update valuation rolls, failure to control markets as well as weak procurement and contract management.
And Auditor-General, Dick Sichembe said these issues point to poor public service delivery as well as the mushrooming of unplanned settlements.
This is according to the Auditor-General’s report on the councils for the financial years, ended December 31, 2018 and 2019, which has been released.
Dr Sichembe is also concerned that the councils have continued to exhibit poor governance in the management of public resources.
Among the financial irregularities in the councils is failure to remit statutory obligations, amounting to over 1.6 billion kwacha and failure to collect revenue, amounting to over 100 million kwacha.
Dr Sichembe says these two factors are affecting the payment of terminal benefits for those retiring, but as well, failed revenue collection is depriving government of money for development.