Maravi

RB's government over-procured road works by over K4 trillion

RB's government over-procured road works by over K4 trillion
By Mwala Kalaluka
Thu 06 Oct. 2011, 14:00 CAT

THE Rupiah Banda administration over-procured road works through the Road Development Agency by over K4 trillion in its election campaign-motivated urban and townshIP projects, sources have disclosed.

The RDA board which was dissolved by President Michael Sata for alleged
corrupt practices is reported to have also influenced the award of a contract to tar the Pedicle Road to an Italian contractor whose contract bid was K60 billion kwacha over and above the lowest bidder, China Heinan.

The sources said there was a possibility that part of the money obtained from the inflated road projects went towards bankrolling former president Rupiah Banda and the MMD's futile 2011 electoral campaign.

A status report of projects under the so-called Formula One township roads rehabilitation works dated September 26, 2011 indicates that contrary to the MMD 's claims that the road works covering three provinces cost K1.3 trillion, the projects totalled over K2 trillion.

Towards the just-ended elections in which the MMD was defeated by the Patriotic Front, president Banda and his ministers said the K1.3 trillion used in the upgrading of township roads on the Copperbelt, Lusaka and Central provinces was obtained from the mines.

The roads earmarked for upgrading on the Copperbelt include, Chililabombwe and Chingola town by China Civil engineering Construction at a cost of K41,281,544,555.09, Mufulira town roads by Fratelli Locci Sri Limited at K50, 770,394,746.18, Kitwe and Kalulushi town roads by China Civil Engineering at K90, 614,348,143.42, Luanshya town roads by Gomes Haulage Z Limited at K89, 723,044,158.74 and Ndola City roads by Fratelli Locci Sri Ltd at K91, 849,611,038.85.

Jiangsu Wujin Corporation was awarded the contract to upgrade urban roads in Kabwe and Kapiri Mposhi towns in the Central Province at a cost of K117,112,013,727.34 but a problem arose after the Chinese firm submitted a fake security bond and obtained a K5 billion advance payment on the project.

In Lusaka Province, Teichman Construction Limited were awarded the contract to upgrade roads in Lusaka's Chelstone and UNZA areas at a cost of K112,027,643,178.54.

Sable Transport was apportioned the road works in Northmead and Mandevu areas at a cost of K117,151,184,900.62 while roads in Matero township were given to Sanyati Construction at a cost of K102,969,705,286.42 and those in Kanyama and Kafue were awarded to Inyatsi Roads Limited at a cost of K84,844,915,133.00.

The roads in Kamwala and Woodlands areas of Lusaka were apportioned to Roads and Paving Z Limited at a cost of K97,228,603,111.35, bringing the total amount of the MMD's Formula One road projects to over K2 trillion.

The sources said the above amount added to the cost of 'political' projects undertaken by the previous government on the Copperbelt, Northern and Western provinces caused the over K4.4 trillion over procurement of projects outside the RDA's approved budget.

The political projects that were over procured outside the budget by the RDA include the Mufulira-Chembe Pedicle Road, Nakonde-Mbala, Isoka-Muyombe, Kasama-Mporokoso, Mbesuma Bridge and Mongu-Kalabo.

"If you remember the former executive director Erasmus Chilundika and others were dismissed for over procuring by K1.3 trillion in 2008 but these guys have over procured more than K4.4 trillion over and above 2011 annual work plan," the source said.

"The most unfortunate part is that all these roads are being executed without engineer's design, bill of quantities and book of drawing. What this means is the projects are prone to abuse such as over-inflating the contract prices and not done to specifications."

The sources said the true cost of these projects could only be ascertained once a technical audit was carried out.

"One cannot rule out the possibility that part of the money was used in campaigns," the source said. "For example on the Pedicle Road the RDA board awarded an Italian contractor, Fratelli Locci Sri Limited, who bid K60.7 billion over and above the lowest bidder, China Heinan, whose contract bid was K253 billion."

The sources further disclosed that a Chinese contractor awarded a contract to carry out road rehabilitation works on a key road in Northern Province had not commenced the works despite obtaining a US $27 million advance payment from the RDA.

President Michael Sata on Tuesday dissolved the RDA board saying it was another conduit of corruption where contracts were awarded without tenders.

Labels: CORRUPTION, MMD, ROADS

posted by MrK @ 3:29 PM