Thursday, July 22, 2010

Situmbeko confirms non-release of road funds from donors

Situmbeko confirms non-release of road funds from donors
By Chiwoyu Sinyangwe
Thu 22 July 2010, 04:01 CAT

FINANCE minister Dr Situmbeko Musokotwane has disclosed that donors have not released any money to the country’s road sector this year owing to the financial scandal at Road Development Agency (RDA).

Dr Musokotwane told Parliament on Tuesday that the government was currently in talks to convince the donors to release K416.4 billion they pledged to Zambia’s road sector this year.

Dr Musokotwane was responding to a question by Chipili Patriotic Front (PF) (...name of MP) who wanted to know the amount of money released by National Road Fund Agency (NRFA) for last year’s annual work plan.

“For this year, there is no money received from our co-operating partners for the roads,” Dr Musokotwane said.

Dr Musokotwane confirmed that the recent audit report by the Auditor General which revealed that RDA overcommitted the government by over K1 trillion through over-procurement of contracts in the 2008 annual work plan.

“It is common knowledge to everyone who reads newspapers that the problem came as a result of the adverse report by the Auditor General…as a result, co-operating partners decided to suspend funding for the road works. However, we have been discussing to agree on the roadmap to address the matter, and in no distant future, we should once again be receiving funding from our co-operating partners.”

Dr Musokotwane announced that last year, K1.3 trillion was approved for the country’s road sector with government funds accounting for K715 billion while donor money was K620.8 billion.

Of this amount, K882.3 billion, representing 66 per cent was released.

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