PAC wants MHC in K5bn CDF projects
Public Accounts Committee (PAC) of Parliament has proposed involvement of Malawi Housing Corporation (MHC) in infrastructure construction projects under the Reformed K5 billion Constituency Development Fund (CDF) . Speaking in Blantyre on Saturday after meeting MHC management, PAC chairperson Steve Malondera said the committee wants government to deliberately assign some public infrastructure projects such as … The post PAC wants MHC in K5bn CDF projects appeared first on Nation Online.
Black News 
Public Accounts Committee (PAC) of Parliament has proposed involvement of Malawi Housing Corporation (MHC) in infrastructure construction projects under the Reformed K5 billion Constituency Development Fund (CDF) .
Speaking in Blantyre on Saturday after meeting MHC management, PAC chairperson Steve Malondera said the committee wants government to deliberately assign some public infrastructure projects such as classroom blocks and teachers’ houses to MHC as part of efforts to revive the State-owned housing institution.
they failing to do? | Nation
He said the committee is considering proposals where at least 10 percent of the K5 billion CDF allocation should be reserved for MHC construction works to help restore the corporation’s commercial viability while ensuring quality and cost-effective public infrastructure.
Malondera wondered why MHC, despite its long-standing reputation for constructing durable and affordable structures, continues to miss out on major government contracts.
He said: “If you look at the structures that they have been putting up over the years, they are cheaper, but durable and of good quality. What is it that they are failing to do that they are not getting enough business in government? Is it part of corruption? What is it exactly?”
The proposal comes at a time MHC is rocked with financial challenges that have pushed the institution into lossmaking over the past five years
Financial reports presented to PAC during the meeting show that MHC’s current liabilities stand at approximately K9 billion against current assets of about K6 billion, a situation that threatens its ability to sustain operations.
The corporation has also struggled with delayed rental payments from its tenants including government institutions that has also negatively affected its revenue base.
Malondera said the committee plans to engage Ministry of Lands, Housing and Urban Development which oversees MHC, as well as the Ministry of Local Government and Rural Development to formalise the arrangement.
MHC chief executive officer Bob Chimkango described his institution as “a sleeping giant” which is being “strangled,” but has the potential to grow.
He said: “We are not here to ask for money from the government. We are not here to ask for any subvention. What we are trying to say is that government should facilitate for us to get work. Once we get the work, we will earn whatever we need.”
In the past four years, MHC has recorded cumulative losses of about K8.1 billion.
Parliament approved the hike of CDF from K220 million to K5 billion per constituency per year.
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