Maravi

Rupiah's associates' K117bn road deal under question

Rupiah's associates' K117bn road deal under question
By Mwala Kalaluka
Wed 15 Feb. 2012, 12:01 CAT

RUPIAH Banda's associates within the Road Development Agency dubiously contracted a Chinese company without any equipment to undertake a K117 billion road-upgrading project in Central Province.

Sources within the construction sector, the RDA and available documentation pertaining to the rehabilitation of urban roads in Kabwe and Kapiri Mposhi under the MMD's so-called, Formula One roads, reveal that China's Jiangsu Wujin, apart from issuing a fake security bond, did not have any road equipment.

The matter where Jiangsu Wujin submitted a fake bank security bond to obtain about K17 billion as advance payment against the road project is on-going before Lusaka chief resident magistrate Joshua Banda's court.

The sources said in this case, the Dr Michael Mulenga-led RDA was aware at the time of awarding the contract to Jiangsu Wujin, that the company had no equipment but that equipment from a local company was used to show that Jiangsu Wujin had equipment.

According to the documentation, Dr Mulenga on May 12, 2011 wrote a letter of intent to award Jiangsu Wujin the contract in question with the completion period planned for a month after the September 20, 2011 elections.

On June 10, 2011, Jiangsu Wujin Corporation director - operations and projects, Jim Daniel Mundambo, wrote the managing director of a local construction company, Mahoha Construction Limited, reminding them of the contract they signed on May 27, 2011 for the provision of equipment towards the road contract on a sub-contraction arrangement.

"I am therefore requesting you to set camp and mobilise all the equipment by Monday 13th June, 2011," Mundambo's letter read.

The documentation highlights that on June 22, 2011 an amount of K3,412, 550,000.00 was forwarded to Mahoha Construction Limited as payment for paving works Jiangsu Wujin Corporation sub-contracted the Zambian company to undertake on the Kabwe and Kapiri road projects.

But instead of the payment being forwarded by Jiangsu Wujin, which entered into the sub-contract with Mahoha Construction, the money was remitted through a Mufulira-based heavy plant and haulage company, Chubri Haulage Limited.

The company director Chungu Kabwe wrote a letter to the manager at Kitwe Standard Chartered Bank to transfer the said funds into Mahoha Construction's account number 0110053470013 domiciled at Lusaka Main Investrust Bank.

Two days later, Mahoha Construction chief executive officer, Saeli Kalaluka, described the above mode of payment as strange, especially in the absence of an explanation from Jiangsu Wujin on how Chubri Haulage Limited was coming into the picture when Mahoha was not sub-contracted by the Mufulira company.

However, on July 15, 2011, Mundambo again on behalf of Jiangsu Wujin wrote Chubri Haulage Limited managing director to pay Mahoha Construction over K2 billion against the sub-contracted road works.

Mundambo explained in his correspondence that the request was in accordance with the agreement between Chubri Haulage Limited and Wu Zhong Xian, chairman/president of Jiansgu Wujin, that the Mufulira company should pay for the order.

Sources said some of the senior managers still working at the RDA were fully aware of the circumstances under which Jiangsu Wujin was awarded and paid on the road contract.

The sources said even the road contract sum was inflated by K4 billion from the original project sum of K113 billion and that the RDA's explanation of the enhanced amount was that it would go towards 'elections'.

The source further said in a bid to save the termination of the road rehabilitation projects, which was pertinent to seeing the MMD being re-elected into office, the RDA management asked Mahoha Construction to fully take up the project.

On September 1, 2011 Dr Mulenga wrote the project consultant on the above road projects, NWE Zambia Consulting Engineers Limited, complaining of slow progress on the project.

Dr Mulenga pointed out that months after signing of the contract, the contractor had not fully mobilised on site.

"Progress on site is approximately 4% which is way behind schedule considering that 55% time has elapsed," Dr Mulenga stated.

Subsequently, on September 7, 2011 Central Province regional engineer, Gilbert Nkweto, wrote NWE Consulting Engineers Limited, resident engineer Renier Basson, asking that Mahoha Construction should take over stalled works on the road project.

"From the outcome of the meeting held at our offices this afternoon, you are further instructed to draw up a work program for completing the major works on Makululu Road by the 18th of September 2011," Nkweto stated.

Going by the documentation, the stalled road works were initially being undertaken by AMC Contractors, instead of Jiangsu Wujin, which had been awarded the road contract.

Few days after he took office as Zambia's fifth President, Michael Sata, dissolved the Luambe Mondoloka-led RDA board saying it was a conduit of corruption.

Labels: CHINESE, CORRUPTION, RDA, ROADS, RUPIAH BANDA

posted by MrK @ 4:09 PM