A glimpse of how the corruption took place in the Road Development Agency (RDA) :
"In Kabwe there was one company given the Kabwe roads and some in Kapiri Mposhi...When you are going to get advance, you are supposed to give the security bond. What happened with these guys [Chinese firm] is that they got a fake security bond. They got the money and RDA realised that it was fake after the contractor had used the money...When somebody submits a security bond, you are supposed to verify with the bank that has issued it..There was about K5 billion for the Kabwe and Kapiri roads as advance payment....How is RDA going to recover that money? Why security bond is required is that in case of bad performance, you can go and encash the security bond..In this case, the contractor knew that he was going to default. We have lost K5 billion and RDA can't recover that money and it is not only this project where we have lost money. It is across."
President Sata recently dissolved the RDA board after repeated cases of corruption e.g. here and here. GIven the nature of how corruption took place (through fake bonds), it appears this was a well orchestrated plan fed by strategic ineptitude on the part of the board. It does not take a genius to know that where large projects are being undertaken the risk must always reside with the constructor. The key to that is to ensure that your "bond" verifications are spot on.[view whole blog post ]