Government has ordered district councils and local authorities to stop accepting building materials be under the Decent and Affordable Housing Subsidy Programme (DAHSP) also known as Malata and Cement Subsidy, saying suppliers have no valid contract with the government.
According to Principal Secretary in the Ministry of Lands, Housing and Urban Development, Joseph Mwandidya, no supplier has been identified and contracted to supply DAHSP materials in the current financial year.
Mwandidya also refuted claims that the Ministry is “awarding secretive contracts” to suppliers without following procurement procedures.
“These assertions are not true as the Ministry executes an open tender procedure in identifying suppliers.
“The Ministry has not awarded any fresh contracts for the supply of materials under DAHSP in the current financial year. In the same vein, the Ministry has not signed any addendum for any previous suppliers to carry on with delivery of materials from the preceding financial year, ” said Mwandidya.
He said suppliers going about delivering building materials, such as cement and iron sheets, are doing that at their own risk.
Mwandidya said the his ministry is no under obligation to process any payments without valid contracts, as doing so would resulting in flouting Public Procurement and Disposal of Assets regulations.
“All local authorities will be advised in due course once fresh contracts have been awarded to suppliers, ” he added.
The programme was introduced by President Peter Mutharika when he took the country’s Presidency in 2019, and it targets less privileged and vulnerable groups such as persons with disabilities and the elderly.