ACC investigates 150billion kwacha mbala-nakonde road project fraud

The Anti-Corruption Commission (Acc) Is Investigating A Case Of Fraud And Theft Of 150 Billion Kwacha Relating To The Mbala-Nakonde Road.

And Northern Province Permanent Secretary, Emmanuel Mwamba Has Revealed That He Is Deeply Concerned By The Manner In Which The Contractor China Camc Engineering Was Paid Cash Advance Of 27 Million Dollars In August 2011 Before The Loan From China Was Obtained.
In This Contract The Permanent Secretary For Works And Supply, Mr. Watson Ngambi On Behalf Of The Road Development Agency (Rda) Signed A Contract With Mr. Luo Yan, President Of China Camc Engineering For A Contract Worth 180 Million Dollars To Upgrade The Mbala - Nakonde Road To A Bitumen Standard.
China Camc Engineering Committed To Obtain Finance Loan Of 180 Million Dollar Contract Sum For The Road If Government Released The 15% Of The Amount To The Contractor.
When Ministry Of Finance Paid The Contractor The Advance Payment Of 27 Million Dollars In August 2011, The Payment Should Only Have Been Done Upon Receipt Of The Loan From China And Advance Payment Guarantee From Exim Bank Of China.
Mr. Mwamba Has Expressed Concern That It Has Been One Year After The Contractor Was Paid The Money But The Loan From China Has Never Been Obtained.
He Said The Advance Payment Made To The Contractor Was To Enable Him Mobilise Plant And Equipment, Purchase Material And Meet Expected Expenses Related To The Execution Of The Road Works.
He Stated That The Contractor Had Presented An Equipment Sales Agreement To Government Dated 26^th August 2011 That Purported That The Contractor Had Bought 16 Tippers, Front-End Loaders, Bulldozers, Excavators And Compactors.
Mr. Mwamba Has Stated That To Date, The Equipment Listed On The Equipment Sales Agreement Has Never Been Brought To The Site.
He Says The Contractor Has Only Mobilised By Bringing Only Seven Pieces Of Equipment Stressing That This Demonstrates That The Advance Payment Was Either Squandered Or Stolen.
Mr. Mwamba Stated That The 257 Kilometer Mbala-Nakonde-Kanyala Road Is Critical For The Country As It Is A Sadc Initiative And Is Expected To Offer Effective Trade Links For Malawi, Tanzania And Link Them To Mpulungu Port.
He Says The Road Is Part Of The Nacala Development And Mtwara Corridors And The Current Happenings Related To The Suspected Fraud Is A Matter Of Serious National Concern.
The Joint Investigating Team Is Currently Investigating Roads That Were Procured By The Previous Government.