|
|
|
|
| National |
| NRA splits, struggles to pay debtors |
|
by
Joseph Langa, 03 March 2007
-
03:40:27
|
Government has finally split National Roads Authority (NRA) into Roads Authority and Road Fund Administration with effect from January 1, 2007, a move that has affected the mother body which is still operating.
The split of NRA follows the enactment of two acts—the Roads Authority Act and Road Fund Administration Act—that were assented to by President Bingu wa Mutharika on May 2 last year.
According to the Roads Authority Act, the Authority which will be managed by the Board of Authority will ensure that public roads are constructed, maintained or rehabilitated at all times.
It will also advise the Minister of Transport and where appropriate the Minister of Local Government on the preparation and the effective implementation of the annual national roads programme.
On the other hand, the Road Fund Administration, to be managed by the Board of the Administration, will raise, administer and account for funds for construction, maintenance and rehabilitation of public roads.
Sources at NRA, however, said government has not yet appointed chief executive officers for the two institutions and has allowed NRA to continue operating although Secretary to the Treasury has ordered that Road Funds be channelled to his office.
“This has affected us because we can’t pay our outstanding debts accumulated before the establishment of the two institutions and yet the Act clearly states that such debts are supposed to be treated as the Authority’s debts,” said the source.
“On or after the appointed date, the administration shall allocate adequate funds to the Authority to enable the Authority discharge any liabilities or obligations of the National Roads Authority which are deemed transferred to the Authority,” reads section 33 of the Act.
Secretary for Transport Francis Chinsinga confirmed the operations of the two institutions were effected on January 1 and that government has not yet set up the administration offices because the Chief Executive Officers are yet to be hired.
He also confirmed that NRA might indeed be having problems paying outstanding debts since the administration for the two institutions is not yet in place.
However, he said a provision was already made in the Act that all commitments by NRA will be cleared by the two new institutions.
“We have already conducted interviews for the Executive Director of the Road Authority but we have not yet interviewed the one for the Road Fund Administration,” said Chinsinga.
|
| |
|
|
|
|
|
