Find us on Google+

Tuesday, 11 October 2011

Corruption Watch (Road Development Agency), 3rd Edition

A glimpse of how the corruption took place in the Road Development Agency (RDA) :

"In Kabwe there was one company given the Kabwe roads and some in Kapiri Mposhi...When you are going to get advance, you are supposed to give the security bond. What happened with these guys [Chinese firm] is that they got a fake security bond. They got the money and RDA realised that it was fake after the contractor had used the money...When somebody submits a security bond, you are supposed to verify with the bank that has issued it..There was about K5 billion for the Kabwe and Kapiri roads as advance payment....How is RDA going to recover that money? Why security bond is required is that in case of bad performance, you can go and encash the security bond..In this case, the contractor knew that he was going to default. We have lost K5 billion and RDA can't recover that money and it is not only this project where we have lost money. It is across."
President Sata recently dissolved the RDA board after repeated cases of corruption e.g. here and here. GIven the nature of how corruption took place (through fake bonds), it appears this was a well orchestrated plan fed by strategic ineptitude on the part of the board. It does not take a genius to know that where large projects are being undertaken the risk must always reside with the constructor. The key to that is to ensure that your "bond" verifications are spot on.

2 comments:

  1. These matters are just a tip on the iceberg. I think there is more to RDA and also the ERB of not providing proper accountability on the evidence of work done as well quality of work. No wonder our infrastructure has remained sub standard. There is need to bring all culprits to book and have them give back the money to the treasury and all contractors's licenses revoked for being used as a conduit of embezzlement of public dollars.

    I hope as Mr Sata has said that he would not engage in witch hunting but we the people of Zambia should demand for ACC and police to step up press charges against any one found wanting.

    Kunda M.

    ReplyDelete
  2. All the crooks involved in corruption should have their day in court. This is outrageous!!

    ReplyDelete

All contributors should follow the basic principles of a productive dialogue: communicate their perspective, ask, comment, respond,and share information and knowledge, but do all this with a positive approach.

This is a friendly website. However, if you feel compelled to comment 'anonymously', you are strongly encouraged to state your location / adopt a unique nick name so that other commentators/readers do not confuse your comments with other individuals also commenting anonymously.