Govt cancels subsidy contracts

Ministry of Lands, Housing and Urban Development has cancelled some contracts of suppliers for Decent and Affordable Housing Subsidy Programme (DAHSP), popularly known as Malata and Cement Subsidy, for failing to fulfil contractual requirements.

The suppliers failed to supply the materials to the programme as required and this has resulted in delays in completing projects around the country, according to the ministry’s spokesperson Charles Vintulla.

The ministry contracted the suppliers to provide materials such as cement and wire for building houses.

The development follows remarks by President Peter Mutharika at the opening of Chiradzulu Teacher Training College that some of the suppliers were intent on sabotaging the programme by supplying substandard materials.

But Vintulla said in an interview that the contract suppliers failed to meet the deadline despite a grace period.

So far, there are 1 800 beneficiaries registered with established housing development groups nationwide.

Parliament approved K7 billion allocation towards the subsidy programme, but the project has come under fire because some of the suppliers of materials are linked to the governing Democratic Progressive Party (DPP). n