Govt admits delays in contractor payments for nationwide security housing programme
The Government has acknowledged facing serious financial constraints in paying contractors under the nationwide security housing programme, revealing that it is now prioritising payments based on the level of project completion as delays continue to mount across multiple construction sites.
Minister of Lands, Housing and Urban Development Chimwemwe Chipungu made the admission on Friday after touring a K6.6 billion housing project for immigration staff in Chinsapo, Lilongwe, where 100 houses are currently under construction.
The project forms part of the broader national security housing initiative aimed at improving accommodation for personnel in key security institutions, including the Malawi Police Service, Malawi Defence Force, Malawi Prison Service and the Department of Immigration and Citizenship Services.
Chipungu said government is currently juggling a large number of incomplete projects competing for limited funding, forcing authorities to adopt a phased payment approach.
“We have many unfinished projects that require funding, and we are paying contractors according to the level of completion, starting with those that are 100 percent complete going downwards,” he said.
The minister’s remarks highlight growing pressure on public infrastructure financing, with several contractors reportedly facing delays in receiving payments despite ongoing construction work.
At the Chinsapo site, which falls under Area 45 in Lilongwe, the 100-unit housing project is being implemented as part of government’s five-year plan to construct 10,000 housing units for security personnel across the country.
Out of the 100 houses under construction, 51 are being built by Sadebcogems Construction, according to company director Mkhuzo Bandula.
Bandula appealed to government to urgently release full payments to contractors, warning that continued delays could slow down progress and affect the agreed completion timelines.
Contractors on site say that while work is ongoing, cash flow constraints are affecting procurement of materials, labour management, and overall construction speed.
The Chinsapo housing scheme is one of several flagship government projects under the security housing programme, which is designed to address long-standing accommodation shortages affecting officers in the country’s security services.
Government officials say the programme is intended to improve welfare, boost morale and strengthen operational efficiency within the security sector.
However, the current payment backlog has raised concerns among contractors and stakeholders about the sustainability of the rollout pace, especially as more sites across the country move into different stages of construction.
Authorities insist, however, that prioritisation of completed or near-complete projects is necessary to ensure value for money and avoid accumulation of stalled infrastructure nationwide.
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