Dedza, Ntcheu want share of tollgate fees

 Malawi Local Government Association (Malga) says central government should accept Dedza and Ntcheu district councils request to get five percent of collections from tollgates in the districts.

During public sector reforms engagements, the two councils made the request which has not been taken on board.

Roads Fund Administration (RFA) has constructed two tollgates at Kalinyeke in Dedza and the newly commissioned Chingeni Toll Plaza in Ntcheu.

In an interview yesterday, Malga executive director Hadrod Mkandawire said the central government’s monopoly of tollgate fees defeats efforts towards achieving full fiscal decentralisation.

He said tollgate revenue is part of ceded revenue that the local governments are supposed to benefit alongside motor vehicle registration fees and fuel levy, among others.

Mkandawire said: “What worries Malga is that the central government has rejected a request from the two councils [Dedza and Ntcheu] for a share of the revenue from the tollgates.

“Malga finds the position of the central government to snub this noble request, regrettable in the context of fiscal devolution.”

Chingeni Toll Plaza alone is expected to raise about K4.5 billion in revenue every year and if Ntcheu District Council were granted its wish, it would be getting K125 million year as extra income to cover for local development. The same applies for Dedza.

In a written response, Dedza district commissioner Emmanuel Bulukutu said they would use the requested five percent of tollgate fees for improvement of roads that connect to M1 within the district.

“Our idea was to improve road infrastructure to enable our farmers/citizens to have better access to markets and services. Thinking bigger, we want to tarmac some of these feeder roads using these funds,” he said.

Early this year, Ministry of Local Government and Rural Development spokesperson Anjoya Mwanza told our sister paper Weekend Nation that the ministry, together with the National Local Government Finance Committee, was developing a fiscal decentralisation strategy which will outline obligations by government to provide significant financial resources to the councils.

She said: “Efforts are being made to engage the Ministry of Finance and the Accountant General’s Department to allow for ceding of funds that government has been collecting to the councils.

“Some of the funds to be ceded are the motor vehicle registration fees, casino fees, gambling fees, mining fees, toll fees and energy levy.”

In a telephone interview yesterday, Deputy Minister of Local Government Halima Daud assured the two councils that their proposal is still under discussion.

She said her ministry is engaging with the Treasury onw the matter.

Treasury spokesperson Williams Banda yesterday also confirmed that the discussions are going on.

The Chingeni Tol l Plaza officially opened on November 8 2021