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Road contractors plan vigils over K45bn debt

Indigenous road contractors plan to hold vigils at Roads Fund Administration (RFA) offices to press for the payment of K45 billion owed to them.

In a letter dated August 23 2024 addressed to Lilongwe district commissioner and copied to Malawi Police Service and Roads Authority, the contractors say they have exhausted all means possible to make RFA pay them money which dates to January this year.

The contractors said they will hold the vigils from September 2 2024 until their grievances have been resolved.

Gwaza (C) presenting a petition in June

Reads the letter in part: “As you are aware, we the aggrieved contractors presented a petition to Roads Fund Administration on 21st May 2024 over delayed payments amounting to over K45 billion accumulated from January 2024.”

Speaking on behalf of the local contractors, Stanley Gwaza confirmed the plans for the vigils, saying only a few contractors were paid after RFA committed to settle the debt in May.

RFA spokesperson Masauko Mngwaluko did not pick up his phone when called for comment while Ministry of Transport and Public Works spokesperson Watson Maingo said RFA was better placed to comment on issues of funding for road projects.

In June this year, the contractors also planned to hold vigils at RFA over non-payment of road works certificates, but the vigils were cancelled after RFA committed to pay them.

RFA has been struggling to pay contractors due to lack of remittance of the road maintenance levy by Malawi Energy Regulatory Authority. RFA is owed about K104 billion for road levy built in the pump price of fuel, the major source of its revenue.

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