RULING BY THE HON MADAM SPEAKER ON THE POINT OF ORDER RAISED BY MR D MUNG’ANDU, MEMBER OF PARLIAMENT FOR CHAMA SOUTH CONSTITUTENCY ON HON C MILUPI, MINISTER OF INFRASTRUCTURE, HOUSING AND URBAN DEVELOPMENT, REGARDING THE REASON FOR THE CANCELLATION OF THE CONTRACT FOR THE SESHEKE/IMUSHO ROAD

Hon Members will recall that on Tuesday, 7th June, 2022, when the House was considering Question for Oral Answer No. 314 and Hon C Milupi, Minister of Infrastructure, Housing and Urban Development, had just finished responding to a follow-up question, Mr D Mung’andu, Member of Parliament for Chama South Constituency, raised a Point of Order.
In the Point of Order, Mr D Mung’andu, MP, alleged that Hon C Milupi, MP, had breached Standing Order 65, which requiresMembers to ensure the information they bring before the House is factual and verifiable. 
He stated that Hon C Milupi, MP, had misled the House regarding the reason for the cancellation of the contract for the construction of the Sesheke/Imusho Road. He explained that, in response to his follow-up question on the matter, the Hon Minister denied that the contract was cancelled due to the International Monetary Fund (IMF) advising the Government to stop contracting debt. He alleged that that statement by the Hon Minister was untrue because the Hon Minister and other Ministers before him had attributed the cancellation of the contract to advice from the IMF that the country should not contract any further debt.
In her immediate response, the Hon Madam First Deputy Speaker reserved her ruling to enable her collect more details on the matter and review the Hon Minister’s statement. 
My office has since reviewed the relevant verbatim record. Of particular relevance is Hon C Milupi, MP’s, response to Question 314 on the Order Paper regarding when construction of the Sesheke/Imusho Road would commence. He stated, inter alia, as follows:
“Madam, the construction of the Sesheke/Imusho Road will commence once financial closure is attained between the contractor and the Ministry of Finance and National Planning.

Madam, the delay in the commencement of the project was caused by failure by the contractor to attain financial closure.

Madam Speaker, the answers I give here are indicative of the situation as it exists. For the benefit of the Member of Parliament, I will give a bit of background. The Sesheke/Imusho Road was scheduled to be constructed as part of the National Feeder Roads Phase III Contract, which was earmarked for execution using the CFI mode of financing. 

Under the Contractor Facilitated Initiative (CFI) mode of contracting, the contractor facilitates the finances for the project and the works only commence upon financial closure being attained between financier and the Ministry of Finance and National Planning.

Madam Speaker, it looks like this is not proceeding for two reasons: the contractor has failed to find this finance and being aware of the current situation, even if now the contractor was to find this finance, the Government, at the moment, has no appetite for further contraction or for contraction of further loans because of the indebtedness in which the country finds itself.”

Following the Hon Ministers response, Mr D Mung’andu, MP, asked whether the Hon Minister could lay on the Table of the House a list of projects that were discontinued due to the IMF’s advice to the Government not to borrow further.

In response, Hon C Milupi, MP, stated that he had not mentioned the IMF in his response.  He then reiterated that the project would be based on contractor facilitated finance.  It is this response by the Hon Minister that prompted Mr D Mung’andu, MPs, Point of Order.

Hon Members, the verbatim record clearly shows that the Hon Minister attributed the delay in the commencement of works on the road to the inability by the contractor to secure the finances required under the CFI model.  Mr D Mung’andu, MP, on the other hand, insisted that the Hon Minister once informed him that the project was discontinued due to advice from the IMF.  He, however, did not lay any evidence on the Table to support this assertion.  He, himself, therefore, ran the risk of misleading the House and the public and breaching Standing Order 65.

Hon Members, in the absence of evidence that the Hon Minister had once informed Mr D Mung’andu, MP thatworks on the Sesheke/Imusho Road were discontinued due to advice from the IMF, I find it difficult to conclude that the Hon Minister misled the House.  In fact, to the contrary, the Hon Minister was consistent in attributing the delay to the failure by the contractor to secure finances for the project.  I, therefore, find that the Hon Minister was not out of order.

I thank you.
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