Donors set conditions for funding to road sector

Donors set conditions for funding to road sector
By Chiwoyu Sinyangwe
Sun 23 May 2010, 04:00 CAT

KEY donors to the road sector have said the release of the Auditor General’s report on the audit of the Road Development Agency (RDA) is not enough motivation for them to resume funding to the road sector.

And the donors have said the Auditor General’s report on the audit of the RDA
confirms their concerns last year in relation to budget execution and control, resulting in a significant over-commitment.

The Auditor General has revealed that RDA overcommitted the government by over K1 trillion through over-procurement of contracts in the 2008 annual work plan and at the same time, the audit report has revealed that about K19.1 billion imprest had not been retired by RDA since 2004.

Most road projects in the country have stalled as the key donors like the European Union, the biggest donor to Zambia, withdrew funding over concerns of irregularities in the operations of RDA.

In a statement released by the head of the European Delegation in Zambia Dr Derek Fee yesterday, co-operating partners commended the Auditor General for the comprehensive audit of the RDA for the years 2006 to 2009.

The donors, however, said resumption of funding to the road sector would depend on the government taking corrective measures arising from weaknesses identified by the audit findings.

“This audit is an important element of the Road Sector Management Plan developed in 2009 with the Government of the Republic of Zambia,” De Fee stated. “Remedial measures arising from the Audit findings, together with a realistic, affordable and sustainable road sector investment programme (ROADSIP II), would pave the way for the resumption of new road works which are still withheld by CPs.”

The EU stated that the audit outlined serious issues in the management of resources, procurement, contract management, and the quality of works.

“Cooperating partners note that the audit confirms the concerns expressed in 2009 in relation to budget execution and control, resulting in a significant over-commitment,” Dr Fee stated.

The donors observed that irregularities bordering on financial mismanagement only succeeded in worsening poverty levels in the country.

“The incidence of the shortcomings on the economy of Zambia cannot be overemphasised. As a direct consequence, the rural roads network remains in poor condition and the urban-rural divide keeps deepening,” Dr Fee stated.

“For a country with limited financial resources, with high levels of poverty, every effort should be made to use funds effectively so that investments result in quality and sustainable infrastructure. Furthermore, the transparent and efficient use of public and donor funds is essential to ensure value for money. The government and the cooperating partners (CPs) are held accountable by their respective taxpayers for the good use of the finances. Though CPs are committed to the development of the country, including at a time when their own financial situation is particularly difficult, they expect assurances on the management of public finances so that the partnership can be in full confidence.”

And the donors have welcomed the dissolutions of the Road Development Agency and the National Road Fund Agency boards.

“The CP stand ready to support the government in its endeavour to strengthen the institutions responsible for managing and providing oversight in the roads sector,” Dr Fee stated.

“Following the creation of the three road sector agencies, as part of the sector reform in Zambia, the challenge now is to create an enabling environment, with special focus on institutional capacity building. CPs, in particular, stand ready to assist with the strengthening of the Road Development Agency to enable it to address the issues highlighted in the audit. The pace of the remedial and policy actions will dictate the timing of CP resumption of resources to the sector.”