Road contractors demand payment, issue ultimatum
Members of the Malawi Allied Building Contractors Association (Mabcata) have petitioned the Roads Fund Administration (RFA) demanding payments worth a combined K14 billion dating back to January this year.
The contractors, 50 in total, have since issued a seven-day ultimatum to the RFA demanding immediate action to address their concerns.
They said despite contractual agreements stipulating that the RFA should pay contractors within 45 days after the certification of measured works by the project manager, payments have been significantly delayed.
In the petition presented to RFA chief executive officer Stewart Malata in Lilongwe yesterday, the contractors said the delayed payments have led to severe cash flow problems that are making it difficult for them to pay their workers.
They added that banks and loan sharks were pressuring them to repay their loans, worsening their financial stress.
Reads the petition in part: “Since January 2024, 155 days have elapsed without any pay to us the contractors, which is very unfortunate, especially in view of the current inflation and loss of value of the Malawi kwacha,
“You should be reminded that this is our livelihood and we are failing to support ourselves and our families.”
RFA public relations manager Masauko Mngwaluko attributed the payment delays to the late remittance of road maintenance levies that Malawi Energy Regulatory Authority (Mera) collects from fuel pump prices.
He said 90 percent of RFA’s income comes from fuel levies and that they have not received the same since January.
Said Mngwaluko: “We have received the petition and will forward it to our principals. We will wait to see what happens.”
Mera chief executive officer Henry Kachaje in a telephone interview yesterday confirmed that the authority was not remitting the levisies. Je attributed the situation to cash flow challenges among importers. last night.
“But the issue is being sorted out,” he said.
Some of the contractors travelled from Blantyre and they converged at Mbowe Service Station in Lilongwe, ready to march to RFA offices.
In an interview after the foiled protest, one of the contractors Charles Chilunda said the group remains determined to proceed with their protest march tomorrow.
He wondered why the RFA delays payments when everyday citizens buy fuel fuel and motorists pay toll fees.
A copy of the demonstration request, dated May 21 2024, and addressed to Lilongwe district commissioner, which we have seen, outlines the contractors’ grievances.
