Public Accounts Committee (PAC) of Parliament says it will use the Mid-Year Budget Review Meeting to lobby government to provide funds for completion of the construction and rehabilitation of roads.
During their tour of some projects in Mzuzu City, PAC members, speaking ahead of the Mid-Year Budget Review Meeting from November 25 to December 20 this year, observed that some roads and other infrastructure projects have delayed due to lack of funding.
Treasury has been unable to fund road projects in councils due to non-collection of road maintenance levy from the fuel pump price as the Price Stabilisation Fund was depleted.
PAC chairperson Mark Botomani said the financial challenges are a result of government’s failure to collect fuel levy.
He said it was revealed that the Roads Fund Administration (RFA) is owed over K104 billion in fuel levies by Malawi Energy Regulatory Authority (Mera); hence, the authority is unable to finance maintenance of the roads and pay contractors for works done.
Said Botomani: “The problem has become worrisome not only for Mzuzu, but across the country. There is a serious challenge with regards to funding of roads.
“What we have seen, especially with implementation of roads, is that the funding issue is beyond councils, the central government is struggling to collect fuel levy, which has affected many road projects.”
Zolozolo West Ward councillor Peterkings Mbale (independent) told the lawmakers that the Luwinga Bypass Road project had stalled due to lack of funding.
Other stalled projects in Mzuzu City include the Nkhorongo-Dunduzu Road, Dunduzu-Sonda Road, gravelling and grading of various city roads and construction of the Mzuzu Civic Offices.
In an interview, Mzuzu City Council chief executive officer Gomezgani Nyasulu said delayed and scanty funding has slowed down progress of many projects. He pleaded with PAC members to help push central government to fund the projects.
He said: “We wanted PAC to appreciate the progress of various projects in the city and the major challenges that contractors are facing. Issues of funding cut across all the projects.”
Recently contractors held vigils at RFA and Road Authority offices in Lilongwe in order to get paid. They also threatened to camp at toll gates in Dedza and Balaka to force RFA to pay them over K50 billion.
Currently, Mera owes the fuel importers about K785 billion and government has conceded that it has no authority to push the companies to pay K330 billion in road maintenance levy funds.
