The Roads Authority (RA) paid over K1.8 billion (about $4.5m) interest for delayed payments in 2012/2013 financial year, a summary annual report released recently has shown.
The authority’s report published in the press this week and signed by RA board chairperson Emily Banda further indicates that K403 million was paid in contractual claims. The report further indicates that K330 million (about $8.2m) was paid for contractual claims by the European Union on roads projects while K2.7 million (about $6 750) was paid as interest on delayed payments.
The report notes that the Malawi Government is responsible for all relocations of utility services and compensation for property ,crops and trees affected by projects implementation which during the year hit K84 million (about $21 000).
The authority notes that during the year there was minimal improvement on RA’s total financial performance and programmes income dropped by about 17 percent to K3.2 billon (about $8m) which was 41 percent less than the approved budget of K5.4 billion (about $13.5m).
The report further notes that 59 percent of planned activities in the recurrent programmes were executed and paid for.
Currently the RA manages 15 451 km of designated public road network and also provides management support for 9 478 km undesignated road network that serves rural communities. Out of the designated road network 28 percent is paved while 72 percent is not.
In the previous year government also paid K500 million interest on delayed payments. During the year government also paid K4.8 million for compensation costs and K6.1 billion for contract claims.