THE Auditor General’s Report on accounts of the Republic for the financial year ended December 31 2020 has revealed that the Ministry of Agriculture engaged 15 suppliers of fertiliser and seed at a contract sum of US$430,336,620 under the Direct Input Supply which was not provided for in the budget.

And the report revealed that during the period 2018/2019 to 2020/2021, the Ministry received amounts totalling K10,866,214 from insurance companies as compensation for farmers who were affected by bad weather but the funds were not disbursed as at June 30, 2021.

Meanwhile, the report disclosed that salaries in amounts totalling K44,118 were paid to an individual who was not known at the Ministry and as at June 30, 2021, the funds had not been recovered.

The report stated that the engagement of 15 suppliers of fertiliser and seed at a contract sum of US$430,336,620 was contrary to the Appropriation Act No 18 of 2019.

“In the Estimates of Revenue and Expenditure for the financial year ended 31st December 2020, a provision of K761,840,201 was made to cater for the Farmer Input Support Programme (FISP) Electronic Voucher. Contrary to the Appropriation Act No 18 of 2019, the Ministry engaged 15 suppliers of fertiliser and seed at a contract sum of US$430,336,620 under the Direct Input Supply which was not provided for in the budget,” the report read.

“Under this Electronic Voucher programme beneficiaries use their NRCs and e-Voucher codes to redeem any agriculture related inputs of their choice from approved Agro-dealers up to a maximum of K2,000. During the 2020/2021 farming season, the Government targeted to support 1,024,414 beneficiaries, of which each was to contribute K400 (K300 for inputs and K100 for insurance). The Direct Input Supply (DIS) was implemented in 90 districts and was to support 857,653 beneficiaries while the e-Voucher was implemented in 26 districts and was to support 166,761 beneficiaries.”

The report revealed that although the Ministry was underfunded, as at December 31, 2020, amounts totalling K2,566,050,943 had been spent leaving a balance of K 385,253,764.

“The Government through the Ministry of Agriculture introduced the Farmer Input Support Programme (FISP) in 2002 which was aimed at improving access of small scale farmers to inputs and enhancing the participation and competitiveness of the private sector in the supply and timely distribution of agricultural inputs in adequate amounts,” the report read.

“In the Estimates of Revenue and Expenditure for the financial year ended 31st December 2020, a provision of K5,314,630,517 was made to cater for operations of the Ministry against which amounts totalling K2,951,304,707 were released resulting in an under funding of K2,363,352,810. Although the Ministry was underfunded, as at 31st December 2020, amounts totalling K2,566,050,943 had been spent leaving a balance of K 385,253,764.”

The report disclosed that the Permanent Secretary, Ministry of Agriculture did not call for the National Steering Committee from as far back as 2016.

“The 2020/2021 Agriculture season FISP Direct Input Implementation Manual, provides that the Permanent Secretary for the Ministry of Agriculture may call upon a National Steering Committee which should provide policy guidelines. The composition of the National Steering Committee included the following: Minister of Agriculture – Chairperson, Ministry of Agriculture – Permanent Secretary, Ministry of Fisheries and Livestock-Permanent Secretary, Ministry of Finance- Budget and Economic Affairs, Ministry of Community Development and Social Services- Permanent Secretary, Ministry of Commerce, Trade and Industry-Permanent Secretary, Bank of Zambia and SMART Zambia Institute,” the report read.

“Food and Agriculture Organisation, Agriculture Consultative Forum Chairperson, Zambia National Farmers Union (ZNFU), Zambia Cooperative Federation (ZCF), National Union for Small Scale Farmers in Zambia (NUSFAZ). The functions of the Committee as defined in the annex include the following: Supervise and provide policy guidelines to the programme; Promote coordination with other stakeholders at policy level; Mobilise resources for the programme; Monitor and oversee the overall programme; and • Meet not less than twice in a year. However, it was observed that the Permanent Secretary Ministry of Agriculture did not call for the National Steering Committee from as far back as 2016.”

The report revealed that 2,240 farmers benefited more than once in the 2020/2021 farming season resulting in an estimated minimum loss of K4,480,000 to the programme.

“During the period under review, 2,240 farmers benefited more than once in the 2020/2021 farming season in that they had redeemed packs more than once resulting in an estimated minimum loss of K4,480,000 to the programme,” the report read.

“According to the FISP Direct Input Supply Implementation Manual No. 4.4.3, all Acquitted Authority To Collect (ATC) issued to farmers should be signed for by the beneficiaries. Contrary to the above, two ATC in respect of farming inputs costing K458,535 were questionably acquitted in that the acquittals were signed by two individuals who purportedly signed on behalf of 63 farmers without authority.”

The report further revealed that during the period 2018/2019 to 2020/2021, the Ministry received amounts totalling K10,866,214 from the insurance companies as compensation for farmers who were affected by bad weather but the funds were not disbursed as at June 30, 2021

“In the 2018/2019 agricultural season, the Ministry introduced weather index insurance to mitigate the risk of bad weather affecting small scale farmers. During the period 2018/2019 to 2020/2021 agriculture seasons, a total of K306,112,827 was collected from farmers as insurance premium out of which the Ministry paid K302,815,538 to the insurance companies leaving a balance of K3,297,289 unremitted from the collections from farmers as at 30th June 2021,” the report read.

“During the period 2018/2019 to 2020/2021, the Ministry had received amounts totalling K10,866,214 from the insurance companies as compensation for farmers who were affected by bad weather. However, the Ministry had not disbursed the amount to several farmers for periods ranging from six to 24 months as at 30th June 2021.”

Meanwhile, the report stated that during the period under review, salaries in amounts totalling K44,118 were paid to an individual who was not known at the Ministry and as at June 30, 2021, the funds had not been recovered.

“During the period under review, salaries in amounts totalling K44,118 were paid to an individual who was not known at the Ministry. As at 30th June 2021, the funds had not been recovered. Cabinet Office Circular No. B1 of 2019 (3) (d) states that employees who are separated from employment by way of resignation, dismissal or discharge should be terminated from the payroll with effect from the date of resignation, dismissal or discharge,” the report read.

“Contrary to the Circular, an officer who resigned on 25th July 2019 was maintained on the payroll for a period of nine months. In this regard, the officer was irregularly paid salaries in amounts totalling K33,309. Although an amount of K5,000 had been recovered, and a commitment letter indicating that K2,500 will be repaid monthly over a period of 12 months commencing July 2021, there was no repayment for July 2021 and the officer only paid K1,000 in August 2021 leaving a balance of K27,309.”