The Ministry of Lands, Housing and Urban Development has accumulated office rentals amounting to K13.5 billion, as the Principal Secretary in the Ministry of Lands, Bernard Sande, the Transport and Public Infrastructure Committee of Parliament to help in lobbying for more funding to pay for the sum.
“Our estimated budget, for the ministry to run five main projects, is about K29.8 billion but not all the money is channeled to the ministry. The K13.5 billion Kwacha arrears have accumulated because the Ministry keeps on receiving minimal allocation in the budget as per required.” said Sande, while stating that the ministry to have its own building is a welcome development.
The development is not news as parastatals have posted similar arrears; in June this year The Water Services Association of Malawi (Wasama) has disclosed that government ministries, departments and agencies (MDA) are yet to pay K30 billion worth of bills.
Last year in March, a detailed report showed that the MDAs owed K21 billion as a list of the specific entities that owed the sum, was released. By the time, topping the list is Malawi Defence Force (MDF) and Malawi Police Service (MPS) that are in arrears with the Blantyre Water Board, Lilongwe Water Board, Northern Region Water Board, Central Region Water Board and Southern Region Water Board. According to the report, MDF is yet to settle its K11.4bn bill, as MPS has a K4bn to pay. State Residences also add to the sum, as they have registered a bill of K3bn while Prisons have an outstanding bill K1.7bn.