Mmegi: Analysts said the start of repayments on unfinished projects was a double blow for public finances, being a preventable leak of resources that could be deployed elsewhere."The repayments are done from the same treasury from where funds will be sourced for the cost overruns," said one public finance analyst who requested anonymity.
"The net effect is the duplication of expenditure on a single project, which is an example of inefficiency in public finance management."
The analyst added that when the loans were awarded, the return on the projects was supposed to have aided repayment.
"But at the moment, even before returns can be made on the project, we are already paying and this is because of poor project implementation," said the analyst.
"This situation is worse when you take into account the fact that government is prioritising net return projects. In addition, the fact that the cost overruns are drawn from the development fund mean less funds for more deserving infrastructural projects."
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