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| National |
| BT assembly owed K237m |
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by
Gedion Munthali, 22 June 2003
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15:04:12
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Blantyre City Assembly is failing to raise about K27 million to pay salaries, wages and allowances, and square utility bills and debts, despite the assembly itself being owed in city rates K237,427,304.20 by many debtors, including government institutions and senior cabinet ministers.
According to a debt collection campaign report on Malawi Government Properties which the Assembly’s Chief Executive Sophie Kalimba presented to the assembly’s finance committee, a total of 26 government departments owe the assembly a sum of K37,634,885.96.
The report notes below a table analysing the debts: “List of Malawi Government Properties as listed above and as verified by the Department of Lands and Valuation have on several occasions been sent to the Ministry of Local Government and Treasury and Ministry of Housing”.
The highest debtors among government departments, according to the report, are the Ministry of Lands which owes the assembly K14,697,997.66 and Police Headquarters which has a bill of K10,009,176.97.
Malawi Housing Corporation, which had a total debt of K75,648,551.17, according to the report, is under Tembenu, Masumbu and Company lawyers and “are paying K500,000 fortnightly”.
The report also indicate a total of 98 debtors, some of them classified as difficult debtors, including state house, senior government ministers, companies, entrepreneurs, political parties, churches, sports clubs, publishing companies, Malawi Broadcasting Corporation, owe the assembly K119,559,177.40.
The foregoing debts, according to Kalimba, have thrown the Assembly into “cash flow constraints” forcing it to seek respite from banks.
Kalimba says the assembly needs K8 million for salaries, wages and members allowances, K12 million for contractors, K2.7 million for utility bills and K4.6 million for creditors.
In utility bills, the assembly owes Escom K500,000, Blantyre Water Board K1,400,000, Malawi Telecoms Limited K600,000 and Telecom Networks K200,000.
The assembly is also supposed to pay off contractors as follows: Fargo K2.5 million, C&D; K2.5 million, Wats K1.9 million, Akhira K321,000, Classic K2.9 million and Inchem K1.9 million.
The assembly’s creditors include Shire Highlands Hotel, who are owed K800,000, Superior Hotel K800,000 and Top Range K3 million.
“We have been engaged in talks with the contractors and the creditors to assure them that the Assembly will be able to pay in July. Similarly, some of the utility suppliers have also been informed. But employees have not been told of our current predicament,” said Kalimba in her report.
She informs the assembly’s finance committee that “in situations like this our bankers normally come to our rescue by providing temporary cash cover for a limited time”.
“It is therefore recommended that the Assembly seek the assistance of the bank to provide temporary overdraft facility for K8 million until end of July 2003,” said Kalimba. “The committee’s approval is hereby sought.”
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