Neef queried over K15bn farm inputs’ auction

The Public Account s Commi t tee (PAC) of Parliament has faulted the National Economic Empowerment Fund (Neef) for its intention to dispose through an auction excess farm inputs valued at over K15 billion. PAC chairperson Steve Malondera, speaking after meeting Neef officials at Parliament Bui lding in Lilongwe yesterday, expressed concern that the route taken would not benefit the under-served Malawians that the organisation was established to serve. He said disposing of the inputs through auction could open room for abuse and suggested that the intended beneficiaries should access the inputs through loans as designated.

Malondera, an opposition Malawi Congress Party legislator, said auctions tend to favour only a few individuals and that it is not the best method for selling farm inputs that were procured at commercial prices. He said: “Neef departed from its core business because they were only supposed to lend money, not disbursement of inputs and we feel they ended up buying items such as fertiliser and seeds at inflated prices. These seeds were never purchased directly from manufacturers to the extent that even if they are sold today, they will not recover the amounts invested.” Malondera said the committee has resolved to summon Neef, Treasury and Public Procurement and Disposal of Assets Authority (PPDA) officials to another meeting next Wednesday to understand why they adopted auctioning of the inputs.

In his explanation, Neef chief executive officer Kayisi Sadala warned that the more the disposal of inputs is delayed, the more losses will be incurred. He said the real value of the inputs and equipment to be disposed of is K16.9 billion, but after factoring in depreciation the figure stands at K15 billion because most seeds have deteriorated. Sadala could not estimate the damaged quantity, saying the inputs are scattered across the country with records showing further depreciation each day.

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He added that about K1.9 billion worth of inputs, especially seeds, have already been damaged. Sadala insisted that more losses could be incurred if the disposal process is delayed further. In an advert that was floated calling for bids from interested individuals to purchase the inputs, Neef indicated that over 210 000 kilogrammes (kg) of assorted maize seeds and 23 530kg of bean seed were up for sale through its designated offices nationwide. Other items listed for sale include chemical and liquid fertilisers, solar water pumps, irrigation systems, and sprayers.

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