Chipata Municipal Council has been ordered to pay back about 1,000 Euros to the European Union, which the local authority has misappropriated.
Chipata Mayor Jealous Phiri has confirmed to Breeze News.
Mr Phiri says that the money, which was intended for construction of offices for WDCs, Ward Development Committees, was not properly used.
He says that works for most of the offices were not completed as some of the buildings were not even plastered while others stalled at slab level.
Mr Phiri further explained that some officers that were involved in the project have since been transferred and that the council has to find a way of paying back the money.
And Mr Phiri could neither confirm nor deny that the matter is being investigated by ACC, the Anti-Corruption Commission.