PAC pushes for Malawi Housing Corporation to get part of K5 billion CDF projects

The Parliamentary Public Accounts Committee (PAC) wants the government to start giving some Constituency Development Fund (CDF) construction projects to the Malawi Housing Corporation (MHC) to help revive the struggling State-owned institution.

Speaking after meeting MHC management in Blantyre on Saturday, PAC chairperson Steve Malondera said the committee is proposing that MHC should handle some public construction works such as classroom blocks and teachers’ houses under the reformed K5 billion CDF programme.

Malondera said PAC wants at least 10 percent of the K5 billion allocated to each constituency to be reserved for projects to be done by MHC.

According to him, the move would help MHC recover financially while also ensuring government gets strong, durable and affordable structures.

Malondera questioned why MHC is being left out of major government contracts despite its history of constructing quality buildings at lower costs.

“If you look at the structures they have built over the years, they are cheaper, durable and of good quality. So why are they not getting enough government business? Is it corruption or something else?” wondered Malondera.

The proposal comes at a time when MHC is facing serious financial problems.

Reports presented to PAC showed that the corporation owes about K9 billion while its assets are estimated at around K6 billion, putting pressure on its operations.

MHC has also been struggling to collect rent from tenants, including some government institutions, which has affected its income.

Malondera said PAC will now engage the Ministry of Lands, Housing and Urban Development and the Ministry of Local Government and Rural Development to discuss how the arrangement can be officially implemented.

MHC chief executive officer Bob Chimkango described the corporation as “a sleeping giant” that still has the potential to recover and grow.

Chimkango said MHC is not asking government for financial bailouts, but simply wants to be given work.

“We are not asking for money from government. We just want government to help us get projects. Once we get the work, we will generate our own income,” he said.

Over the past four years, MHC has accumulated losses of about K8.1 billion.

Recently, Parliament approved an increase of the Constituency Development Fund from K220 million to K5 billion per constituency per year, creating huge opportunities for infrastructure development across the country.

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