By Kingsley Jassi:
A study by the Construction Industry Regulatory Authority (Cira) has revealed that public projects worth $2.3 billion are shrouded in secrecy, thereby posing serious implementation risks.
The study, conducted under the Infrastructure Transparency Initiative, sampled 19 climate-financed projects across the country with a total cost of $2.7 billion, finding that only projects worth $360 million provided adequate information to stakeholders.
It examined disclosure requirements and compliance by project implementers, with Central Region projects performing poorly in terms of transparency.
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The study found that only 8 percent of the projects disclosed full bidding process information while 58 percent did not provide any information at all.
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During dissemination of the results in Lilongwe on Monday, Cira Chief Executive Officer Gerald Khonje said the secrecy in public projects infringed both the Cira and Public Procurement and Disposal of Assets acts.
Khonje added that Cira would follow up the issue with project implementers to ensure compliance with the law, with penalties being imposed where necessary.
“The new construction industry Act provides more powers to bite on non-compliance issues such as failure to disclose project information. The new Act provides that issues of transparency and accountability are mandatory. As such, the study has helped us understand the baseline and we know what to improve,” Khonje said.
CoST International Board Chairperson Rajiv Lall warned that projects that fail to disclose information had high chances of cutting corners, corruption and poor execution, costing the government huge resources.
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“This study is a starting point and Malawi is the first country to do it. There is an opportunity to improve from here and address the gaps,” Lall said.
Consultant Rodney Kumsinda, who conducted the study, said the lack of transparency had the potential to erode donor confidence as it suggests corruption.
“The CoST study does not accuse, it only sheds light on the gaps in project execution according to the principles of the CoST initiative,” Kumsinda said.
Most of the projects are financed by borrowed money, raising concerns about accountability and value for money.
The Infrastructure Transparency Initiative aims to promote transparency and accountability in publicly funded infrastructure projects, ensuring that citizens can access information about how their tax money and borrowed funds are being spent.
Cira has pledged to engage non-compliant project implementers and ensure adherence to transparency requirements under provisions of the new construction industry law.
