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Monday, May 27, 2024

Construction industry exchanges notes with treasury

Story by Davison Vandira

THE construction sector has pledged to spearhead the implementation of the National Development Strategy One by embracing all capital projects on offer this year.

The country’s construction industry, which got an allocation of ZWL1.1 trillion from the 2023 national budget, exchanged notes with treasury this Wednesday, with a view to streamlining operational financial challenges and resolve clashes between government and contractors.

The sector sought government intervention into the value for money audits that are taking long to be completed, thereby affecting efficient execution of rolling projects which end up being affected by inflation.

“The objective of this interaction was to streamline various operational issues within our sector that are affecting efficient operations, chief among them the slow pace of value for money audits which means more often we fail to make acquittals on time which attract penalties hence we want that rectified, but all the same we are ready to play our facilitatory economic role,” said the President Zimbabwe Construction Industry Association, Architecture Tsitsi Dzvukamanja.

Treasury welcomed views of the construction sector, but stressed that value for money audits will be the strategy to weed off outliers in the sector to preserve macroeconomic stability.

“While we welcome the recommendations from the construction industry regarding the operation of value for money audits , we however have a duty to see that no abuse of funds is done directly or indirectly as such they will continue to be rolled,” noted Mr Clive Mphambela, Chief Director Communications in the Ministry of Finance and Economic Development.

The construction industry is well known on the globe as a key indicator for economic growth, hence treasury has committed more than 50 percent of its budgetary allocations towards capital expenditure.

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