Thursday, March 11, 2010

German govt refuses to approve road contracts in S/Province

German govt refuses to approve road contracts in S/Province
By Masuzyo Chakwe
Wed 10 Mar. 2010, 04:20 CAT

A section of the Livingston-Zimba road is damaged and motorists use a detour
THE German government has refused to approve latest road contracts in Southern Province until outstanding issues regarding sector financing and procurement have been addressed.

In a letter dated February, 21, 2010 to the Road Development Agency (RDA) chief executive officer Erasmus Chilundika signed by KfW, a Germany-owned government development bank based in Frankfurt, the Joint Donor Forum was still waiting for a presentation of the outcomes of the procurement, technical and financial audits that had been initiated after the last joint donor forum in April 2009 where major shortcomings in fiscal management and budgeting in the road sector had been identified.

KfW division chief Kalus Gihr and project manager Andre Collin stated that; "we refer to your letter RDAHQ/72/7/33 in which you asked for our no objection to sign the contracts and start implementation of the road improvement works in Mazabuka, Choma and Kalomo districts.

As you are aware, donors financing to the road sector still has not been resumed due to various outstanding issues with regards to sector finance and procurement," they stated.

"We are still waiting for a presentation of the outcomes of the procurement, technical and financial audits that had been initiated after the last Joint Donor Forum in April, 2009, where major shortcomings in fiscal management and budgeting in the road sector had been identified.

Hopefully, we will soon be able to define a way forward for the Zambian road sector, on the basis of the auditing results."

The duo stated that for the time being, there were not able to give any no-objection to construction contracts under the mentioned programme.

"In order not to delay the rural transport programme for Southern Province, we urgently ask you to provide us with information and timelines of the next steps planned by the Zambian government," they stated.

But Auditor General Anna Chifungula said the audit for the road sector was completed in December last year and was presented to President Rupiah Banda.

Chifungula said her office was waiting to receive it from the President in order for it to be sent to Parliament.

"The audit was completed some time back in December. We had to get back to the Ministry of Works and Supply and the Road Development Agency (RDA) for input and we also got the last input from the controlling officer so it's with the President at the moment," she said.

Efforts to get Chilundika for a comment failed, as he was not answering his phone.

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