Maravi

SOLATECH chief disputes AG report's conclusions

SOLATECH chief disputes AG report's conclusions
By Noel Sichalwe
Monday July 14, 2008 [04:00]

SOLATECH Limited chief executive officer Michael Nyirenda has disputed the Auditor General's report that his company abandoned works at Samfya Rural Hospital after being paid about K1.7 billion. Nyirenda said officials from the Auditor General's office should have cared to verify the facts before reporting on what happened with his contract.

He wondered why the Auditor General's office proceeded to publish the report on Solatech Limited without seeking any explanation from him over their queries.

Nyirenda said he had been working at Samfya Rural Hospital since last year and that his company had since been awarded Phase II of the contract.

"If we didn't do a good job, they would not have allowed us to proceed with Phase II of this project," he said.

He said all the issues raised by the Auditor General related to the extra works that Solatech Limited was requested to do but not stipulated in the contract.

Nyirenda said the contract was worth about K1.8 billion but that the value of the work done was more than that.

He said in fact, Samfya Rural Hospital owed his company money for the various extra works they had undertaken which were not stipulated in the contract.

He said his company had only been paid about K1.7 billion from the agreed contractual sum.

Nyirenda cited extra works that involved putting ceramic tiles in the theatre as some of the provisional works that were not stipulated in the initial contract.

"It is sad for somebody to say that we run away with money," he said.
According to the Auditor General's report, Solatech Limited which worked on Samfya Rural Health Centre had abandoned works after being offered a contract worth K1,801,801,474.

The report stated that Solatech Limited was awarded the contract to upgrade a maternity block, a theatre and an X-ray block at the health centre.

"In this regard, in October 2006, a contract was awarded to Solatech Limited at a contract price of K1,801,801,474 for a duration of 30 weeks and the contractor moved on site on 13th October 2006. Works were to be completed by June 2007," stated the report. "The contractor had been paid K1,796,118,225 out of the certified works leaving a balance of only K5,683,219 from the contract price.

"The district did not retain K90, 090,074 being five per cent of the contract sum as provided for in the contract."

The report added that toilets, sluices, bathrooms and other sanitary rooms were not fitted with ceramic tiles on the floors as well as the walls.

"Barium plaster had not been procured and applied to the X-ray department walls," revealed the report. "Special ceramic tiles for the theatre were not procured and fitted by the contractor."

Labels: ATTORNEY GENERAL, CONTRACTORS, PROJECT MANAGEMENT, SOLATECH

posted by MrK @ 3:43 AM