Melo News | Friday, June 14, 2024 | Lusaka
The recent special audit report conducted on the Road Development Agency (RDA) has brought to light significant mismanagement of road contracts and various financial irregularities. The report, covering the Financial Years ending 31st December 2017 to 2022, disclosed that the RDA had overcommitted the government by a staggering amount exceeding 7.5 billion Kwacha.
According to the audit findings, the RDA had engaged 24 construction companies for 24 projects, with the total contract sums surpassing 9.7 billion Kwacha. However, it was revealed that these engagements violated the Public Procurement Regulations as they lacked adequate financial support and surpassed the budgeted amounts by over 7.5 billion Kwacha.
The report highlighted that between 1st January 2017 and 31st December 2022, the RDA had initiated contracts with construction companies before securing the services of consultants. This delay in engaging consultants, ranging from three to eight months, led to significant delays in project timelines due to the absence of essential designs, drawings, and official authorization.
Furthermore, the audit report pointed out that fourteen road contracts, initially valued at over 4.5 billion Kwacha, were later varied to over 6.6 billion Kwacha. This variation resulted in the government incurring additional costs amounting to K2,126,116,809. Acting Auditor General Ron Mwambwa recommended that the RDA prioritize and budget for projects in alignment with the approved budgets set by the Ministry of Finance and National Planning.
Dr. Mwambwa further advised that all projects undertaken by the RDA should have a budget line and funds committed before awarding the contract to mitigate high interest charges. The report also highlighted other irregularities, such as the failure of the Road Development Agency to prepare final accounts after the termination of contracts. Seven contracts entered into between 1st January 2017 and 31st December 2022 were terminated, as revealed by the report.
This information was disclosed in an official statement released by the Auditor General’s office, shedding light on the ongoing financial discrepancies related to the terminated contracts.
