Govt owes contractor K222m for stadium renovations; risks coughing more

Government risks paying more on Kamuzu Stadium renovations due to accumulative interest rate after failing to pay the contractor within the agreed period.

According to the agreement which Weekend Nation has seen, government was supposed to pay the contractor, Pabe Construction Company, K410 million within 28 days after completion of the work in June last year.

However, government has only paid the contractor about K188 million, leaving it with a K222 million balance.

Ironically, this is happening at a time when President Peter Mutharika has pledged to construct stadiums for local football giants Nyasa Big Bullets and Be Forward Wanderers.

The contract stipulates that interest will be charged for delays in payment which will depend on the evaluated bank interest rates.

The contractor was hired to rehabilitate the stadium’s toilets, drainage system, VIP, Covered Stands, painting of the toilets and construction of a tunnel from the dressing rooms.

Ministry of Labour, Youth, Sports and Manpower Development spokesperson Christina Mkutumula confirmed the development, but did not indicate the actual amount owed to the contractor.

In an email response, Mkutumula said the ministry acknowledges the work done at Kamuzu Stadium and the need to meet its obligation to the contractor upon finishing the works.

“Thus, the ministry, in fulfilment of this obligation, is currently facilitating payment and once the ministry has funding, [we] will pay the contractor,” she said.

Pabe Constructions director Paul Madula said his firm is still in the dark as to when government will settle the balance.

“Yes, it is true government hasn’t paid the remaining money. We are hoping that they will pay us soon,” he said.

Madula said the remaining unpaid invoices are K121 149 584.78 and  K101 584 168.61.

Asked what actions he intends to take against government, the contractor said: “I am still consulting, but surely there will be an interest following the delay.”

Director of buildings in the Ministry of Transport and Public Works Limbikani Sukasuka said his office certified the work soon after the contractor completed the works.

“After the contractor finished the work, we supervised. We were impressed with the work,” he said.

“In every work there is an agreement between the contractor and client. I am aware that government hasn’t paid the contractor, meaning the contractor is at liberty to charge the interest as per the agreement.”

Government used K1.5 billion in the 2017/18 financial year to renovate the stadium. Part of the money was used to buy a new artificial turf. n

Govt owes contractor K222m for stadium renovations; risks coughing more