Implementation of 2024 CDF programme continues following late release of funds
The Ministry of Rural Development (MRD), through its 50 constituency offices, is continuing to implement the 2024 Constituency Development Funds (CDF) programme with $194 million paid to all constituencies in the closing quarter of 2024.
Of the total amount, each constituency received $3.88 million as CDF.
This slow release of funds and implementation was associated with several factors, including the commencement of the CDF Act 2023, which requires that constituency offices and SIG constituency-designated bank accounts must be established before funds can be disbursed.
Another factor for the delayed payments was the government’s reservation on its budget in 2024.
The MRD also confirms that in terms of budget delivery, the Ministry of Finance & Treasury (MoFT) paid out 100 per cent of the CDF to all 50 constituencies by end of the financial year. Each of the constituencies has received an equal allocation for 2024.
The late transfer of grants to the constituencies also resulted in the delivery and implementation of constituency programs and activities lagging into 2025.
The MRD further confirmed that disbursements to all constituencies were in grants and were remitted throughout the final quarter of 2024 on instalment basis into the respective SIG-constituency’s development fund bank accounts. These SIG-Constituency Accounts are now administered by the Constituency Office and approved signatories apart from the Member of Parliament as required under Section 22 of the CDF Act 2023.
MRD implements the CDF programme through two components; one is through Grants and the other is through the Preferred Supplier Arrangement (PSA).
The ministry also wishes to inform the public that due to the short financial year in 2024, the government has opted to undertake the CDF program implementation by transferring grants to each of the constituencies.
The grant component covers sectors such as productive and resource, social and cultural, essential services, and cross-sectoral development needs.
To comply with Section 29 of the CDF Act 2023, all 50 constituencies are obligated to provide their reports on the utilisation of the 2024 CDF grant.
The CDF, as per Section 30 of the Act, is also subject to audit by the Auditor General under the Public Financial Management Act 2013.
All constituencies will be required to comply with these legal guidelines and obligations under the CDF Act 2023.
Constituents and the public are encouraged to consult their respective constituency offices should they need to get more information about how their constituency offices spend their CDF allocations.
CDF is a national programme of the government targeted at alleviating poverty and improving the livelihoods of Solomon Islanders in the 50 constituencies.
The CDF programme and funding for 2025 will soon be implemented as MRD has recently received its approval for spending from the Ministry of National Planning and Development Coordination (MNPDC).
-MRD Press Release