Construction material price drop eases housing sector in Mozambique
At least 138 builders who received payment but who have abandoned or are failing to finalize works financed by the government in different parts of the country have been referred to the Attorney General’s Office by the Ministry of Public Works, Housing and Water Resources.
In addition to referring the cases to the courts, termination of contracts, execution of guarantees, suspension of work and withdrawal of contractors’ permits has already begun.
Speaking after a Cabinet meeting in Maputo yesterday, public works minister Carlos Bonete said that there are 359 stalled or unfinished works in total, mostly educational, health and state administration projects.
These projects represented a value to the state of more than five billion meticais, of which about 1.5 million meticais has already been paid out.
“An exhaustive survey was made which, in addition to identifying causes concerning lack of honesty and bad faith on the part of contractors and inspectors, also registered non-fulfillment of contracts. Incapacity of contractors in the execution of contracts has also been uncovered,” the minister said.
The investigation was carried out between August last year and January this year and also uncovered government delays in providing the funds necessary for the completion of the buildings.
“As a result, we obtained information on 117 works which were stalled due to funding limitations and 140 abandoned, of which we have already submitted the files for 138 cases to the Attorney General’s Office. We have 50 works under negotiation for finalization, and 52 that have been completed,” Carlos Bonete said.
Yesterday’s Cabinet meeting approved a resolution ratifying the US$90 million Credit and Donation Agreements between the government and the International Development Association to finance the Water Service and Institutional Support II project, about US$66.5 million in the form of credit and US$23.5 million in donations.Source: Noticias