Our Mandate

WHAT WE DO

Mobilisation of Roads Fund resources

  1. The Roads Fund Administration (RFA) collects and accounts for funds due to the Roads Fund.
  2. Monitors utilisation of the funds to ensure that there is value for money.
  3. Recommend to the Minister of Finance, Economic Planning and Development other road user charges and tariffs and funding strategies as required.

In order to leverage on the technologies and efficiencies of other public institutions, the RFA has outsourced the collection of the International Transit Fees and Road Access Fees to the Malawi Revenue Authority (MRA) and the collection of fuel levies to the Malawi Energy Regulatory Authority (MERA).

Financing of approved annual road works, road safety and traffic management programmes

The annual road works, road safety and road traffic management programmes funding requirements as contained in the Annual National Roads Programme are always above annual available funds. In line with the act the RFA allocates to the implementing agencies financial resources for the maintenance and rehabilitation of public roads based on available resources and in most cases it is a percentage of the approved Annual National Roads Programme and for selected approved road safety and traffic management programmes.  Financing agreements are therefore entered into between the RFA and the implementing agencies on the same.

Total and timely accountability of the Roads Fund

The RFA coordinates and ensures total and timely accountability of the Roads Fund. All audited annual accounts of the Roads Fund for the past ten years of its existence have been concluded on time and the RFA has always had clean and unqualified annual audit reports.

Administration and management of road sector funds

The RFA administers and manages financial resources made available to it by the Government and its development partners for the construction, maintenance and rehabilitation of public roads and related activities.

In addition, the RFA manages funds for other public institutions; meant for construction maintenance and rehabilitation of roads. In the recent past, such funds have included those for the Ministry of Lands meant for construction of access roads in Area 43, Lilongwe; funds for the Ministry of Trade Industry and Tourism for the pavement of lakeshore resort access roads and the Rail Fund for the Ministry of Transport and Public Works.

The RFA also facilitates the payment of compensations to eligible beneficiaries who are affected by road projects on behalf of the Government of Malawi.

Assurance of Value for Money in the use of Roads Funds

One of the critical mandates of the RFA is to ensure that there is value for money for resources it manages. In executing this mandate the RFA undertakes financial, technical and procurement audits of implemented projects to ensure that there is value for money. In addition, continuous monitoring of the funded programmes through desktop reviews of all interim payment certificates before payments are made; projects progress tracking reviews; and periodic physical inspection of selected projects are carried out by the Technical Auditors from the Audit department of the RFA.

Agency collection of Value Added Tax and NCIC Levy

The RFA has entered into agency agreements with the National Construction Industry Council (NCIC) and the Malawi Revenue Authority (MRA) to collect at source NCIC Levy and Value Added Tax on their behalf respectively from contractors and consultants at the time of payment for the road works contractors’ and consultants certificates.