Road Traffic explains K1bn revenue

The Department of Road Traffic and Safety Services (DRTSS) has once again registered an increase in revenue, collecting K1 billion ($1,785,714) more over a three-month period than last year’s target.

This signals that the department, one of government’s non-tax revenue collection points, is set to beat its K2 billion ($3,571,428) target for the 2015/16 financial year.

Following the installation of the new system, Malawi Traffic Information System (Maltis), the department had a collection target of about K233 million per month, but it has exceeded it.

DRTSS reported to the Public Service Reforms Commission chaired by Vice-President Saulos Chilima last week that the system has tightened operational and financial controls and rooted out corruption which led to under-collection.

This means that whatever is collected this financial year, K200 million will be remitted to Treasury, K376 million will cater for salaries while K1.2 billion will cover  operations and development, including payment for the Maltis equipment to the supplier.

DRTSS public relations officer Chisomo Chibwana on Tuesday confirmed that the assessment was an indication that the system was efficient and the controls are working, resulting in the increase in revenues.

She said: “During the same period in 2014, the directorate collected K600 million, our target was K936 million, but we have managed to collected K1.6 billion, meaning that we have collected K1 billion more than last year.

“With the system, all financial transactions are taking place at the bank and no document [is] being printed without payment. If there is no evidence that you have paid, the document will not be issued.”

However, DRTSS did not rule out the hike in traffic fees introduced in October last year as some of the factors which could have led to the increase, but Chibwana said the margin was too small to amount to K1 billion.

The department introduced a K5 000 fee for the traffic identity card which every user must have to carry out services. There was also a marginal increase for services such as vehicle inspection and driving licences.

DRTSS also plans to open two new service centres at City Centre in Lilongwe and Mandala in Blantyre by Monday to reduce congestion at its regional offices.

Maltis has been operational since June and experienced teething problems such as congestion and poor network, but DRTSS has become a star performer in the public service reforms, according to Chilima. n