BY AUDREY KAPALAMULA
It has been established that government owes the country’s seed companies about K3.8 billion under the Farm Input Subsidy Programme (Fisp).
Seed Trade Association Chairperson, John Lungu, recently said the arrears date back to 2013.
“We have taken up the matter with Treasury, Ministry of Agriculture and the Malawi Confederation of Chambers of Commerce and Industry. They all know our concerns. Yes the government has been paying the seed companies involved in the Fisp programme but there have always been balances,” Lungu said.
Ministry of Agriculture, Irrigation and Water Development spokesperson, Osborne Tsoka, who is also Fisp Director, admitted owing the companies but said the ministry has earmarked K2.1 billion for settling the debt in the next financial year.
Tsoka said the government already paid the companies K1 billion through promissory notes.
“There were issues. When we have arrears, there must be an audit for us to be sure of whatever we are paying for. So the audit has been finalised and the figures have been verified. That’s why we have set aside the funds for settling the debt,” Tsoka said.
The concern came to light when the Parliamentary Committee on Finance and Budget engaged SeedCo Malawi Limited in Lilongwe recently.
During the meeting, committee Chairperson, Rhino Chiphiko, expressed concern about how Fisp is being managed, saying only a small fraction of the budget reaches out to the intended beneficiaries.
“Parliament is disappointed that although we have increased resources going to the programme, it appears the amount of resources such as seeds and fertiliser that go to targeted beneficiaries is less than 50 per cent. Much of the money is spent on logistics and corruption,” Chiphiko said.
In the just-passed 2018/2019 budget, the government has increased the number of beneficiaries to one million with a corresponding budgetary increase of K41 billion from K33 billion.
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