Written by  MBC Online

Government has cleared 88 percent of verified private sector arrears amounting to K139.7 billion.

Williams Banda: Treassury Spokesperson Williams Banda: Treassury Spokesperson

Treasury Spokesperson Williams Banda told The Nation that the bulk of the money was paid in the 2020/21 fiscal year.


Banda told the paper that out of the K139.7 billion, K130.7 billion has gone to contractors while K9 billion is in tax refunds.


Banda said the arrears were initially estimated at K228.6 billion, but after verification by the Auditor General, K69.7 billion—or 30.5 percent of the claims— were rejected.


He said: “Out of the K158.9 billion that was audited and verified by the Auditor General’s office, K130.7 billion has been paid through promissory notes and we are hoping to clear the remaining K28.2 billion as soon as possible.


“Going forward, we are hoping there would be no accumulation of arrears as government has changed the policy and introduced a non-compliance interest of one percent for any delayed payment after 90 days.”


In his 2020/21 Mid-year Budget Review Statement delivered in Parliament in Lilongwe early this year, Mlusu vowed to settle the arrears to help inject back much-needed liquidity into the economy to improve cash flows, boost investment, protect and create jobs.

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