Hospitals’ rehabilitation budget hits K13bn
Failure to rehabilitate health facilities in seven districts has tripled the budget from K4 billion to K13 billion, it has emerged.
The rehabilitation budget has soared due to fluctuations in prices of materials on the market following the 25 percent devaluation of the kwacha last May.
Delays to start the rehabilitation works resulted from a stand-off between National Local Government Finance Committee (NLGFC) and councils over management of the projects.
However, the matter was resolved last September and NLGFC will manage the projects going forward before devolving the role to councils in the 2024/25 financial year.
NLGFC executive director Kondwani Santhe in an interview yesterday confirmed the increase in the budget, saying the bids submitted did not match the funds.
He said: “The bid amount is higher than what was provided. So, we requested the Treasury for extra resources which they have done for the 2023/24 fiscal year.
“From the K4 billion we used less than K50 million for site scoping, adverts and other things for bids. The total budget stands at K13 billion in the 2023/24 financial year.”
Santhe said they expect to do site handovers in March and works are expected to begin in April for the seven councils of Balaka, Chikwawa, Chitipa, Dowa, Kasungu, Likoma and M’Mbelwa in Mzimba.
On Monday, Malawi Local Government Association (Malga) executive director Hadrod Mkandawire told a meeting in Mzuzu the delay to rehabilitate the health facilities was worrisome.
“We thought we had moved looking at the fact that they have two months remaining before this financial year ends,” he said.
Deputy Minister of Health Enock Phale expressed dismay at the delay, saying, while the government was trying hard to source resources to help Malawians, councils were not committed to fast track the project.
Meanwhile, Minister of Finance and Economic Affairs Sosten Gwengwe said the project’s revised budget of K13 billion will have to be approved by Parliament.
