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Contractors, govt spar overconstruction sector woes

Contractors and government have given contradictory views on the state of the local construction industry with local firms alleging corruption and nepotism, but authorities have dismissed the concerns as politically-motivated falsehoods.

The exchange happened in Lilongwe yesterday when Malawi commemorated the inaugural National Construction Day under the theme ‘Quality-driven construction industry: Building for generations’, which brought together public and private sectors as well as development agencies.

In an interview on the sidelines of the event, Malawi Building and Civil Engineering Contractors and Allied Traders Association Central Region chairperson Hodges Mzunga accused public officers of manipulating procurement processes and sidelining indigenous bidders in favour of politically-connected firms and foreign entities.

The President gestures on as he toured pavilions at the venue. | Jacob Nankhonya

“Civil servants are awarding contracts to companies owned by their wives, children or proxies. They are both gatekeepers and bidders. We are being squeezed out,” he said.

Mzunga also decried delays in payments for completed works, a lack of access to financing, and restrictive insurance bond as critical barriers.

Last year, members of the organisation petitioned the Roads Fund Administration to honour payments worth a combined K14 billion dating back to January 2024.

Mzunga said most banks view the construction sector as too risky to fund, with some demanding collateral of up to K500 million for government project bonds.

But in his opening speech, President Lazarus Chakwera cautioned against what he described as deliberate misinformation aimed at discrediting government efforts.

He said Malawi must focus on building a nation that lasts, with development efforts tailored to meet the needs of all groups and further challenged what he called false narratives about his administration’s performance.

Said the President: “One of the lies being spread is that my administration has not completed any meaningful development project. But we have completed over 600 projects to date, that’s a fact.”

He also dismissed claims that the completed projects were merely inherited from previous administrations, arguing that development is a continuous process.

“The truth is each regime builds on the work of the last. What matters is that we are building,” said the President.

Minister of Transport and Public Works Jacob Hara echoed Chakwera’s sentiments, stating that spreading falsehoods stalls development.

“How we communicate infrastructure progress is critical. Inaccurate claims hurt the very communities we aim to serve,” he said.

The minister also dismissed claims that contractors are required to pay bribes to secure contracts.

However, corruption perception surveys by several organisations have mentioned procurement contracts award as one area where corruption is rife.

In his opening remarks, National Construction Industry Council (NCIC) board chairperson Jeremiah Magaba pointed to ongoing reforms intended to address some of the sector’s long-standing inefficiencies.

He cited achievements such as the development of the Malawi Infrastructure Delivery Management System, construction cost indices, a public infrastructure information platform, and automation of service delivery.

Despite government assurances, the divide between policy rhetoric and on-the-ground realities remains stark.

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