A contractor has abandoned a K140 million project to turn Nkhata Bay old hospital into a community college after the government failure to pay his money on time forcing the company to incur losses.
The managing director of the company, Gomegza Khamula confirmed that his company has abandoned the project.
“The initial sum was K70 million but the government decided to extend the project to other works so we agreed that the money should go up to K140 million.
“But the problem is that the government is not honouring our contractual agreement on payments. When we finish a level we had agreed and we ask for money, the money is not forthcoming,” he said.
He said the company has done almost 70 per cent of the agreed work but was only paid K58 million for all the works done at the old hospital to turn it into a community college.
He said this has forced the company to incur losses and decided to withdraw from the contract because the government was not cooperative on the payments.
Principal secretary in the ministry of Labour and Manpower Development Joseph Mwandidya however disagreed with the contractor, saying what was paid out was what was agreed on.
He said the government could not pay out all the money to the contractor before the contractor finished all the works.