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Govt vows to cancel non-performing road contracts

by Staff reporter
6 hrs ago | Views
The Government has issued a stern warning to underperforming road contractors, declaring that it will not hesitate to terminate contracts for companies failing to deliver on agreed projects.

Transport and Infrastructural Development Minister Felix Mhona told Parliament during a recent question-and-answer session that the State had already begun cancelling contracts under the ongoing national road rehabilitation programme.

"As I am speaking, we are cancelling such contracts, contracts of those who have failed to deliver, then we will go back to the tender process," Mhona said. "If there is a road which relates to what I have just alluded to, then we are going to be removing such contractors and replacing them."

The minister highlighted that the "Second Republic" had changed the payment model for contractors, ensuring that companies are now only paid after completing satisfactory work. This policy, Mhona said, was introduced to prevent a repeat of past abuses where contractors were paid upfront and later abandoned their obligations.

"In the past, a contractor was paid, then they would do their job. Some, after getting paid, would abscond from their duties. For example, when someone is paid 10 percent of 10 million, it is one million, and they then spend that money," he explained. "In the Second Republic, we expect a contractor to do his job, then after successful completion, the contractor gets paid."

Mhona further stressed that government policy requires work to commence within seven working days of a contract being awarded. Failure to meet this condition, he said, results in the contractor being flagged for removal.

"Government policy is that when you have been given a contract, you are expected to start the ball rolling within seven days. But when we see that you have not started the mobilisation process, we approach you and inform you that you cannot continue with the task," he said.

The minister's remarks come as the Government intensifies efforts to accelerate road rehabilitation and ensure value for money in public infrastructure spending.

Source - The Herald