NUCIW condemns govt stance on fertiliser tenders

NUCIW condemns govt stance on fertiliser tenders
By Florence Bupe
Sat 27 Mar. 2010, 04:00 CAT

THE National Union of Commercial and Industrial Workers (NUCIW) has condemned the government’s stance on the awarding of tenders for the supply of fertiliser to Omnia and Nyiombo Investments over the past seven years.

Commenting on concerns raised by the Parliamentary Public Accounts Committee (PAC) that the government has been favouring the two companies in the awarding of contracts to supply fertiliser meant for peasant farmers under the Farmers Input Support Programme (FISP), union president Seth Paradza said he could not agree more with the committee.

He said it was surprising that Omnia and Nyiombo had continued to be the only suppliers of fertiliser even after proof had been shown that Nitrogen Chemicals of Zambia (NCZ) had the capacity to produce higher grade fertiliser at a lower cost.

“We agree with the PAC chair Emmanuel Hachipuka on the worries that only two companies have been awarded the fertiliser supply contracts for the past seven years. There is clearly something sinister happening behind the scenes,” he said.

Paradza said the NCZ technical team had convened a meeting with former agriculture minister Dr Brian Chituwo at which the concern in question was raised.

“We had challenged Dr Chituwo to give us an explanation on how the two companies have continued to be picked to supply fertiliser when there was actually a season in which they failed to deliver 100 per cent of what was required,” Paradza said.

“Dr Chituwo expressed surprise as well and told us it could be because Nyiombo and Omnia were smarter than the rest of us (NCZ).”

Paradza described the explanations given to PAC by agriculture authorities as annoying, unsatisfactory and untrue.

He disclosed that another meeting was held with the ministry director of agribusiness Green Mboozi on February 23 this year to try and resolve NCZ’s production impasse.

“We had a meeting on February 23 with the director- agribusiness at which we made comparisons between the imported fertiliser and the locally produced one. It was proved that comparatively, our fertiliser quality was higher and cost effective. I don’t, therefore, see why government can’t work towards strengthening the capacity of NCZ instead of undercutting the institution,” he noted.

Paradza said if the financial muscle of NCZ was strengthened, the manufacturing plant would be able to produce and supply fertiliser to the government, and ultimately create employment for local people.

And Isoka West member of parliament Paul Sichamba disclosed that there was an existing cartel by Omnia and Nyiombo against any other company to bring in fertiliser from Saudi Arabia.

“We are aware the Omnia and Nyiombo have arrived at a decision that no other Zambian company can import fertiliser from Saudi Arabia for sale here in Zambia. I would like to urge the ministry of agriculture to look into this matter so that we break the monopoly of fertiliser supply that do not benefit the country at all,” said Sichamba.

Earlier this week, PAC questioned the government’s continued awarding of contracts to supply fertiliser under FISP to Nyiombo and Omnia annually for the past seven years.

Hachipuka said it was worrying that the government had continually awarded contracts to the two companies despite the unfavourable conditions attached.
Hachipuka said the trend was holding Zambians to ransom and suffocating agriculture efforts.

In response to the concerns, agriculture permanent secretary Dr Abednigo Banda claimed that the two companies continued getting the tenders for the fertiliser supply because they were the only ones that had been meeting the tender requirements through the years.

This comment unsettled Lukashya member of parliament Alfrida Mwamba who said it was impossible that Omnia and Nyiombo should be the only ones meeting the tender requirements for so many years without other players learning the ropes.