Seven hundred and 15 Million Kwacha meant for development projects in Chinsali District in Northern Province has been misapplied by Milimo Construction Company.
This has lead to government suspending the disbursement of Constituency development Funds for next year to the district.
Local Government Deputy Minister Moses Muteteka disclosed when he addressed councilors and management of the Chinsali District Council.
The Deputy Minister says Milimo Construction Company has been reported to Police for failing to start the construction of a clinic despite being paid 60 million Kwacha last year.
Mr Muteteka further says the company belongs to the young brother of area PF Member of Parliament Christopher Mulenga, who has misapplied the funds.
Mr Muteteka says the PF run Chinsali District Council has not been following guidelines for using the funds.
Mr Muteteka says the councilors should ensure they put their house in order before the next CDF is released.
He has appealed to the area MP to help recover the monies by ensuring his brother his prosecuted.