COMMENT - The government wants cheap maize, and they don't want to pay for it. They could easily set the cost just below market prices. And give the maize away, turn it into finished goods (bourbon) and make money left right and center. If the government needs to make money at all, because they actually print their own currency. All they have to is keep a reasonable balance between the goods produced and the amount of currency (nowadays: credit) that is around. - MrK
(THE MAST ONLINE) Lungu does not deserve credit over his maize price review as he created it – Jalila
By Ben Mbangu in Choma
on July 24, 2018
CHOMA based human rights activist Bright Jalila says politicising the marketing of crops like maize is greatly affecting the agricultural sector. Jalila said it was cheap politics for President Edgar Lungu to turn around and direct the Food Reserve Agency (FRA) to review the marketing price when he was the major problem to the country.
In an interview, Jalila said there was no difference between government and the FRA, because they are one.
“It’s cheap politics for President Edgar Lungu to turn around and direct the Food Reserve Agency to review the marketing price when he is the major problem to the country himself. He creates a problem himself then comes back through a back door and say review this price so that people think he has a good heart for farmers,” he said.
Jalila said the President’s statement did not deserve any credit because it was just mere politicking that had no bearing on the lives of people. He said politicians had impoverished farmers by continually dictating floor price for crops.
Jalila said if farming had to be a meaningful business that transformed people’s lives and the economy, then those involved in it must not lean on government which was controlled by politicians that have no heart for the poor.
Jalila said the system of over politicizing crops like maize was greatly affecting the agricultural sector in the country.
He said government through the FRA had become a monster that only held farmers to ransom. Jalila urged farmers come up with initiatives that could enable them stand on their own without depending on the political direction to favour them.
He said cooperatives that farmers were using to access inputs from government could be used as marketing platforms for their products than waiting upon government to completely finish them off.
Jalila said the PF had completely divorced itself from the path of poverty reduction through the promotion of agriculture owing to its stance to politicise the marketing price of crops. He said soon Zambia would plunge into untold economic crisis if President Lungu continued to play politics especially on maize marketing because farmers might stop producing for business purposes.
Jalila said once farmers considered maize a non-cash crop, that had potential to create food shortages in the country.
And Chief Cooma reminded FRA that its very survival depended on the same farmers the agency was killing through low prices. He said the FRA’s realignment to politics of shifting goal posts every now and then, following politicians in determining marketing price for cash crops had potential to destroy farming in the country.
Cooma proposed K85 per 50kg bag of maize as ideal if poverty was to be addressed in rural areas.
He welcomed President Edgar Lungu’s directive to the FRA to review its earlier announced floor price for maize pegged at K65 per 50kg bag, Cooma said the directive was welcome because it was not good for government to be the one putting the last nail on its people’s lives.
“If poverty levels continue being allowed to increase through failure to protect the available simple means of people making money such as agriculture, then Zambia will be as good as a dead nation. Poor people rely on agriculture and why should government destroy the market? What type of a country is Zambia going to be?” Cooma asked.
He said the cost of living for small-scale farmers was hard and would only change if measures were put in place to safeguard the market of their produce.
The chief said small-scale farmers were at the receiving end because they had no connections for market outside country as briefcase buyers did.
He urged FRA not to involve itself in politics because it would destroy the agricultural sector.
“The other major problem is that FRA here [Southern Province] only buys white maize and farmers who plant other crops like beans have nowhere to sell their products. It is our plea that FRA should start buying other crops as well,” said Cooma.
Labels: EDGAR LUNGU, FRA, MAIZE
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FRA explains maize destruction in Mkushi
By Onishias Maamba
Mon 13 Jan. 2014, 14:01 CAT
FRA executive director Chola Kafwabulula says moisture destroyed the over 2,000 by 50 kilogramme bags of maize in Mkushi.
Kafwabulula (right) in an interview yesterday said the destroyed maize was from the 2011/2012 grain-marketing season.
"The maize was well secured on our slabs, but it's the moisture which accumulated and got in touch with the maize," Kafwabulula explained.
"The 2,000 plus 50 kilogramme bags of maize destroyed in Mkushi are wnot from the 2012/2013 marketing season."
Kafwabulula said FRA had 'safely secured' 636,000 metric tonnes of maize in its strategic reserve.
"Out of that, 625,000 metric tonnes is in sheds while 11,000 metric tonnes is on our slabs and we are currently transporting it to our sheds," Kafwabulula said.
"This is a great achievement for us as FRA in our history, where we have managed to secure 98 per cent of grain in our sheds."
FRA site manager for Mkushi deport revealed that over 2,000 by 50 kilogramme bags of maize had been destroyed at the FRA depot.
Labels: CHOLA KAFWABULULA, FRA, MAIZE
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(LUSAKATIMES) Over 100 Nakonde farmers demand FRA payment
Time Posted: November 28, 2013 12:20 pm
Livestock and fisheries Minister Bradford Machila checking on quality of maize for FRA at ATZ plant in kafue 2
Over one hundred small scale farmers have stormed the office of Nakonde district commissioner James Singoyi demanding immediate payment of money for the maize they supplied to the Food Reserve Agency (FRA).
The district commissioner told Zambia News and Information Services (ZANIS) in Chinsali in a telephone interview today that over 100 small scale farmers stormed his office this morning demanding the immediate payment of their dues.
FRA owes small scale farmers in Nakonde in Muchinga province about K5 million.
Mr. Singoyi said the small scale farmers have vowed not to leave his office until they are paid their money.
” They have camped at my office and they are saying that they will only leave after receiving their dues,” said Mr. Singoyi.
He said that the small scale farmers have complained that delays in paying them their dues have affected their plan for farming activities.
Mr. Singoyi said that FRA had promised to pay the farmers in Nakonde by yesterday adding that a check at the local bank this morning revealed that money to pay the farmers is not yet in the bank.
The district commissioner has since appealed to the FRA to expedite the payments and ensure that the small scale farmers get their dues as soon as possible.
ZANIS
Labels: BRADFORD MACHILA, FRA, JAMES SINGOYI
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Muchiga small-scale farmers appeal for more satellite depots
By Jonathan Mukuka in Nakonde
Sat 24 Aug. 2013, 14:00 CAT
THE FRA has bought over 650,000 by 50 kilogramme bags of white maize in Muchinga Province since the start of the maize marketing exercise on July 27. Muchinga Province agricultural and cooperatives coordinator Victor Mulopa disclosed this in an interview.
Dr Mulopa said a total of 653,584x50 kilogramme bags of white maize have been bought as at Tuesday from various satellite depots dotted throughout the province.
He said the exercise was going on smoothly, adding that it was good that most of the small-scale farmers were taking their maize to FRA depots for sale.
He also said he was happy that FRA had started paying the farmers who supplied the maize at the start of the marketing exercise on July 27.
Dr Mulopa said payments would continue and appealed to the small-scale farmers to continue taking their maize to the nearest FRA depot for sale.
Meanwhile, small-scale farmers in Muchinga Province have appealed to the government to consider opening up more satellite depots.
Dr Mulopa said the small-scale farmers in Mafinga, Mpika, Isoka and Nakonde have petitioned the government to consider setting up more satellite depots as close to their areas as possible.
He said in Mpika, the small-scale farmers have proposed the setting up of satellite depots at Mupamadzi, Kanseke, and Chambeshi.
In Isoka, the proposed depot is at Mulilo, while in Mafinga, the small-scale farmers proposed the setting up of another depot at Chitapo.
For Nakonde, the proposed satellite depot is at Chitambi.
Dr Mulopa said his office was of the view that the outcry by the farmers to set up more satellite depots were genuine as the facilities would enhance the marketing exercise in those outlying areas.
He said he had since communicated to the permanent secretary in the Ministry of Agriculture on the proposed satellite depots.
Labels: FRA, MAIZE, MUCHINGA PROVINCE
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FRA maize in Chikankata marooned due to poor roads
By Gift Chanda in Chikankata
Mon 12 Aug. 2013, 14:00 CAT
TRANSPORTERS in Chikankata are shunning to ferry maize from satellite depots to the main hoarding depots due to the poor road network, FRA officials have revealed.
Speaking to journalists after touring the Chikombola satellite depot, located about 104 kilometres from the Mazabuka-Chikankata turn-off on Saturday, Stephen Liato, FRA Southern B provincial marketing co-ordinator, bemoaned the poor state of the roads.
He said there was a lot of maize in the area but the road network was hampering its transportation to the main hoarding depot. According to Liato, 4,300 *50kg bags of maize were marooned at Chikombola satellite depot as of Saturday.
"We are trying to reduce on wastage but the roads are hampering our operations here," he said. "The road is extremely bad, so all the possible transporters are shunning this place. There is just one female transporter who has agreed to assist us but she only has four trucks; and out of the four, only two are on the road, so it is a big challenge."
FRA executive director Chola Kafwabulula said it was a pity that such a high maize producing-area could have such poor state of roads.
In addition to the poor road network, the topography of Chikankata - mostly hilly - weighs hard on transportation in the area.
A journey which would otherwise take 15 minutes usually takes over an hour and half.
"Once it starts raining, this area will be cut-off, so we will try as much as possible in the remaining weeks to make sure that all of this maize is moved to a safer storage facility," Kafwabulula said.
He said the safety of the maize depended on the cooperation of transporters to move the maize to safer storage facilities.
"Once transporters being to shun certain routes then we have a problem," he said.
Meanwhile, Kafwabulula was pleased that maize at most satellite depots was being moved to main hoarding depots once they reached the 600*50kg bags as per his instruction.
He said the move would save a lot maize from theft and wastage.
Kafwabulula instructed depot supervisors to ensure that the maize is properly cleaned as some of the stock was destined for export markets in future.
Labels: FRA, MAIZE, ROADS, STEPHEN LIATO
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FRA depots in Chilubi run out of grain bags
By Ernest Mwape
Wed 07 Aug. 2013, 14:00 CAT
FRA satellite depots on the mainland in Chilubi district have run out of empty grain bags.
Chifwenge ward councillor Alfred Chileshe said the bags ran out a week ago and farmers were panicking that their maize might not be bought. Chileshe named the badly hit satellite depots as Matipa, Shitimali and Chaba in Chief Chiwanangala's area.
He said the three satellite depots had received 3,700 empty bags, but small-scale farmers had collected everything almost at once, leaving other farmers with none.
Chileshe appealed to Food Reserve Agency officials in Luwingu and Kasama to deliver more empty grain bags to Chilubi, adding that most farmers were still in need of bags.
He disclosed that the three depots require at least 2,000 empty bags each because several farmers had not yet completed shelling and taking maize to various depots.
Meanwhile, members of the Kapompo co-operative have called on FRA to consider buying rice from them because Chilubi district had no market where they could sell the commodity.
One of the rice growers on the mainland, Lambe Mukwila who is also a member of the co-operative, said they had 18 metric tonnes and no market readily available for their commodity.
Labels: ALFRED CHILESHE, FRA, MAIZE
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Maize buyers are duping farmers, says Kabwe DC
By Isaac Zulu in Kabwe
Tue 06 Aug. 2013, 14:00 CAT
KABWE district commissioner Patrick Chishala has advised farmers in the area not to sell their produce to bogus businessmen. In an interview in Kabwe, Chishala said small-scale farmers should sell their produce to the Food Reserve Agency (FRA) at a reasonable price. Chishala said the government, through the FRA, had opened eleven satellite depots in Kabwe and was targeting to buy 250,000 x 50 kilogramme bags of maize in this maize marketing season.
"Farmers should be cautious with these briefcase businessmen that are going round farming areas, buying farm produce at a giveaway price," said Chishala.
"After toiling hard, our small-scale farmers are being duped, which is very unfortunate. These briefcase businessmen are using malfunctional scales when buying maize from farmers and yet the FRA is using scales that are not malfunctional. FRA is using scales that are perfect and is buying maize at a good price. We are a pro-poor government and we are committed to addressing challenges being faced by our small-scale farmers."
He said he was currently impressed with the response from farmers so far.
Chishala added that the government would not delay payments to farmers that were currently supplying maize to FRA.
"This time around, there will be no delays in payments," said Chishala. "We want to ensure that farmers are paid on time in order to ensure that they plan and purchase farming inputs in readiness for the next farming season."
Labels: FRA, MAIZE, PATRICK CHISHALA
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Petauke farmers seek early payment from FRA
By Gift Chanda in Petauke
Sun 04 Aug. 2013, 14:00 CAT
FARMERS in Petauke have called for early payment for the maize supplied to the Food Reserve Agency this year. The farmers said they did not expect a repeat of last year's situation where they had to unjustly wait for more than five months to be paid their dues.
But FRA executive director, Chola Kafwabulula assured farmers countrywide that they would be paid within 10 days upon supplying the maize.
"Our biggest concern is on the payment period. We have no problem with the way the marketing season has been handled so far. I think it is going on well but we want assurance that we will be paid early this time around," Aliani Daka said on behalf of the farmers found selling maize to FRA at Musanzala satellite depot outside Petauke boma.
"We want to be paid on time so that we can also plan properly for the coming farming season. We have fertiliser and seeds to buy but we cannot do it without the money. "
Another farmer, Pamela Sakala, highlighted some of the challenges some farmers usually go through as a result of delayed payments.
"We cannot take our children to school because we don't get our money," she said.
But Kafwabulula assured the farmers that FRA would operate differently from the way it operated last year regarding the crop marketing exercise.
"In this year's programme, we will be paying the farmers within 10 days of delivery of the crop," he said.
"In the old system, we were paying much later than the 10 days but in this particular system, we should be able to pay within 10 days and it will be through the bank."
He said the government had already released part of the money for payments to farmers.
"As at yesterday Wednesday we had bought a total of 744,000 fifty kg bags of maize and in terms of the money to be paid that is in the region of K35 million and that money is in the banks right now," said Kafwabulula.
FRA, which is buying a 50kg bag of maize at K65, plans to purchase 500,000 metric tonnes for strategic reserve.
Labels: CHOLA KAFWABULULA, EASTERN PROVINCE, FRA, PETAUKE
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COMMENT - From Chola Mukanga's blog, from the President of NAREP, Elias Chipimo. It is great to hear a more detailed background to the maize/mealie-meal crisis. Drought in the US/Canada, leading to South Africa's exports being diverted from the DRC to the USA, leading to higher prices in the DRC, which leads to Zambian maize exports to the DRC.
The Mealie-Meal Crisis in Zambia
By Elias Chipimo
When NAREP held a press conference on 10 January 2013 to deliver our New Year message, we challenged the Patriotic Front to stop focussing on political domination (for example, through triggering unnecessary by-elections) and to prioritise development actions. We then gave several examples of people’s expectations and pointed out that it was not our intention to see the PF fail because if they failed, it would be the people who would suffer.
We received a harsh response from State House suggesting that we are living in a “parallel universe” and requesting us to: “pinpoint where the PF Government has failed, and provide alternative grounded options rather than spend time in a day-dreaming or theoretical session about what [we] [wish] to happen”. The Parallel Universe Series will therefore address issues we were asked to point out. We do this in the spirit of offering solution-oriented thinking and to share with the general public our own policy priorities and governance plans as a Party that seeks to restore values-based leadership through constructive reasoning and issue-based politics. Our first discussion topic is the current mealie-meal crisis.
Rule number one in handling a maize crisis: accept that there is a problemFew people would deny that we are facing a serious food crisis and one that could get a lot worse by the time the current rains are over and the new maize crop is harvested. The price of maize meal – the nation’s staple food – has increased in some cases by over 100 percent from the prices prevailing prior to the day the PF administration came to power. As we will try to demonstrate, although the problem is not entirely the PF’s fault, decisions that they have either taken or failed to take, have served to make a bad situation even worse.
With the price of mealie-meal reaching record levels, the PF appears to have finally woken up from its development slumber and realised they need to get their act together. The problem is that rather than acting, they are reacting. During one of the seemingly endless swearing-in ceremonies at State House, President Sata stated that he would consider re-introducing price controls to curb the high cost of mealie-meal. This would be an act of desperation and would only make the situation worse over the long-term. When you consider that prior to the election in 2011 the average cost of a 25 kilogramme bag of mealie-meal was K45,000 (rebased K45) and that this had risen to over K90,000 (rebased K90) at its highest point in some parts of the country last month, it is clear why there is some panic within the PF hierarchy.
The threat of price controls should not be taken lightly. Mealie-meal increases on a much smaller scale formed an important part of the revolutionary build up that saw the downfall of President Kaunda in 1991. Riots that took place in June 1990 due to Kaunda’s attempt to remove subsidies on maize were seized upon by a daring signals officer who mounted a short-lived coup less than 12 months before Zambia’s First President was finally voted out of power. Mealie-meal is clearly serious business in Zambia. What is sad about the situation we face today is that the present increases were predictable and could have been avoided.
The belated intervention by the Food Reserve Agency (FRA) and continued threats from the Head of State against the millers have meant that prices have started to come down. This has reduced the fear that price controls and other Second Republic tactics will be adopted to address a problem that was almost entirely due to the mishandling of the situation by an administration that appears to be focused more on playing politics than on development. Before we get too cosy with the idea that this risk has gone away, however, we need to remember that because the current price reductions are not a reflection of market forces, the reductions we are witnessing may only be temporary. Sooner or later, a more comprehensive approach to dealing with the mealie-meal crisis will have to be taken. What is needed now is a government that fully understands the politics of maize.
Understanding the politics of maize
When prices of commodities rise drastically, it is usually a market signal that something has gone wrong with the balance of supply and demand. If more people want to buy something that is in short supply, the price of that item will quite naturally go up. Any person who is in the business of trading in mealie-meal will be well aware when demand goes up and so will the consumers. Out of desperation and in order to secure an “essential” commodity whose availability is uncertain, people will – up to a certain level – be reluctantly prepared to pay more. This is exactly what has happened with the price of mealie-meal in Zambia.
The PF does not seem to have understood the politics of maize quickly enough. They have been too busy dealing with their political opponents to realise that they have created for themselves a new enemy: the ordinary Zambian who just wants to be able to enjoy his staple nshima without paying too much for it. Things might not even be so bad for the generally neglected Zambian if at least he or she had a job and could afford the price increase – or if he or she did not have to suffer endless load-shedding, lack of access to quality healthcare and safe clean water, or to face costly transport charges getting the family to school and to work. But before we give the PF too much grief over their poor handling of the maize crisis, let us first examine how we got here in the first place.
The roots of the crisis
The roots of the current mealie-meal crisis lie in the seemingly insatiable demand for the commodity from neighbouring countries, particularly the Democratic Republic of Congo (as well as in the broader Great Lakes Region and beyond), which demand has been made even worse by last season’s poor harvest in the United States and Mexico. Here is a summary of the challenge: South Africa has produced about 12 million metric tonnes of maize this year and is able to supply mealie-meal to the Congo more cheaply than Zambia because of its efficient system of planting, harvest, storage, finance and generally well-supported agricultural sector. This year, however, South Africa is not exporting to the Congo because its exports are covering the shortfalls in the North American markets (which were a result of last year’s drought in that region). The massive vacuum in the Congo supply chain has created even greater pressure on Zambian maize. Due to the basic rules of supply and demand, Zambian maize has simply become hot property in the DRC and beyond, pushing up the local sale price to unprecedented levels.
Had the Government intervened early enough when it became clear that prices in Zambia were rising, the crisis would have been far better managed. For example, when several politicians and commentators started speaking of banning exports last year, it was precisely to prevent Zambian maize from being sucked into the regional vacuum and creating a crisis here.
When you add to the regional demand factor, the various problems resulting from (i) the Food Reserve Agency’s confusing role in the maize market (exporting maize when our markets are facing erratic supplies); (ii) infrastructure challenges preventing maize from being collected from rural areas when roads are impassable during the rains and there is no effective storage in these locations; (iii) long-term structural problems in maize marketing; (iv) delays in providing inputs and payments to farmers; (v) poorly thought out government policy; and (vi) last minute procurement practices, you have the perfect storm of problems. You also have one predictable outcome: sky high maize prices in excess of K100,000 per 25 kilogramme bag. In some ways, we are lucky that the price is not higher!
When you have a critical continental shortage of a staple commodity creating strong regional demand, the short-term measure to take is to prevent exports (so that you can at least feed your own people) and flood the market with as much raw material (stored maize) as possible in a consistent manner. Belatedly, this is the action that PF administration has taken. The reason why prices are not coming down as fast as they should is that the demand is still so high and there are no effective means of preventing exports from our long and porous border with the DRC. Earlier this month newspapers reported the discovery by a Government official of a boat laden with mealie-meal as it was about to set sail for Burundi from Mpulungu harbour. Demand is high in the Great Lakes countries and into Sudan. How many boats go unnoticed? How much mealie-meal is being smuggled daily, weekly, monthly? No one knows!As for the FRA? Well, that is a whole different story. FRA stocks of maize are not audited and it is pure guesswork as to how much maize they are holding at any one time and the quality of that stock. It did not help that the FRA was itself getting in on the export game during the current marketing season, presumably to try and recover the huge subsidy costs to the maize sector which amounts to nearly US$2 million per day. That amounts to 730 million dollars a year – almost the same amount of money as we borrowed under the Eurobond!
So what is the way forward?
(a) Infrastructure and extension services
Clearly, there is need for more innovative approach to the challenges (actual or perceived) affecting this critical sector. Even when it is not trying hard, Zambia is capable of producing enough food to feed itself. There has to be an expanded incentive to produce not only more but to do so efficiently. This calls for massive investment in extension services, research and development, road networks, irrigation infrastructure and in maize marketing. The colossal amounts being spent on maize purchases could have done wonders if applied to these areas. It is commendable that a good part of the Eurobond is to be spent on the energy and transportation sectors. These are critical areas for ensuring sustained agricultural production.Zambia has in excess of 400,000 square kilometres of medium to high quality arable land that could serve as a massive breadbasket not only for the region but for Africa as a whole. Without investment in infrastructure, however, this potential will remain unrealised. The PF is certainly trying to do its part to improve the road infrastructure with its Link 8,000 project. The only problem is that Link 8,000 is not being supervised and run in a manner that will get us the best results within the shortest possible time and at the least cost (but this is a topic for another day).
(b) New marketing mechanisms
Once production costs are brought under control, we need to develop an efficient marketing mechanism. Innovative ideas include the support to the development of a vibrant commodity exchange linked to a series of storage centres around the country. Storage is critical and can be tied to a system of warehouse receipts. This is a great way to reintroducing the financial sector into agriculture even at a smallholder level. Storage that is certified based on best international practice will effectively commercialise the small farmer. If, for example, a rural small-scale farmer can deposit their produce in a warehouse near his or her field and collect a warehouse receipt for that commodity, he or she can take that receipt and obtain cash for part or all of the stock. This will prevent panic selling and will provide stability to his or her financial requirements. In order for such a system to work efficiently, however, Government must put in place – among other things – supporting legislation and a national storage construction and development programme.
It is important to recall that the private sector has been asking for the recognition of a Warehouse Receipt as a document of title from as far back as 2004. The MMD Government only moved on this in 2010 in an attempt to replace the Agricultural Credits Act. However, the 2012 Act remains unimplemented. This action should be delayed no further. Similarly, an Agricultural Marketing Bill went through stakeholders consultation in 2010 but it is not clear when it will be taken to Parliament despite a Parliamentary Committee report recommending the immediate presentation of the Bill to the National Assembly. It contains important provisions for the improving the sector and curtailing adverse political interference. A Commodity Exchange Bill also underwent stakeholder consultation in February 2010, although it is not clear what stage the Bill has reached.
All of these interventions will help to put maize supply on a much better footing. The price of mealie-meal should be determined as much as possible by market forces and if the Government wants to intervene then it should be done for every bag of roller meal which leaves the mill and not from the raw material stage. After all, Government is probably also subsidising the production of stock-feed (which uses huge amounts of maize) and is not able to monitor how much of the subsidised maize is being used in the stock-feed industry.
(c) Rethinking our diet and farming practices
It is also important for Government to begin the exercise of re-thinking our dependence on maize as a staple food as part of a broader crop diversification programme. Consuming huge quantities of maize meal, particularly the refined breakfast meal contributes to the high rates of preventable illnesses – particularly diabetes. It is almost as impacting as taking lots of sugar in your tea because it is simply refined carbohydrates (especially breakfast meal) that are then converted into sugar by the body. Traditionally, our communities were raised on finger millet – a commodity that can grow with far less fertilizer, has far greater nutritional value and would not become embroiled in the politics of maize as it can be grown more cheaply and efficiently in rural locations. Rural farmers need to be supported to move from subsistence to income-based farming through the emphasis on money crops like soya beans. Soya beans is a source of protein that is widely used for both human consumption and animal feedstock and has great national and regional demand. A soya farmer should have no problem paying back loans on the back of huge demand. In order for the maize sector to perform better, certain structural changes will have to be made.
(d) Rethinking the role of the FRA
Government needs to seriously rethink the role and performance of the FRA. Many traders and millers are not willing to take any local positions on maize preferring to do so purely for export and to a lesser extent to supply local breweries which consume a very small portion of annual production (approximately 80,000 metric tonnes against a full harvest of over 1 million tonnes). Local traders have traditionally had mandates from mills to buy and stock maize for them for release later on in the year but this business has been obliterated by FRA. The reason is simple. If a trader is not sure whether the FRA will also begin releasing maize at a cheap price to millers in the middle of the year, that trader will not want to hold stock that he might have purchased at a high price. This is because even a small reduction in the FRA price to the market could bankrupt a miller that has pre-purchased maize stock for releasing later into the market.
Most millers rely on bank finance but the lack of clarity and planning on the part of FRA makes both the millers and the lending institutions nervous and therefore cautious. They have no certainty as to when the FRA will intervene in the market. The only solution is to focus on the export market or buy limited amounts of stock that they can quickly sell if the FRA drops the price of maize. The financial sector generally prefers to lend to FRA because such lending comes with a Government guarantee. Millers would therefore rather fill their storage sheds with only a few months of stock when FRA is not participating in the market between May and October (a restriction set by the Food Reserve Act).
Further, because not every miller is able to accesses cheaper FRA maize, there is a distortion in the market. A close look at production figures shows that the more efficient producers of maize – essentially the large scale farmers – have tended to diversify into other commodities such as soya beans and tobacco. FRA has therefore only served to promote inefficiency. Current maize yields in Zambia average about 2 tons per hectare when they are supposed to be 5-10 tons per hectare. With its 1.3 million small-scale farmers, Zambia can easily match the average annual South Africa production of 10-12 million tons of maize and feed the continent!
Conclusion
A simple comparison between Zambia and South Africa demonstrates the challenge we face and how without more focussed national leadership, we will not solve the problem of high maize prices. In the end, unless economic activity picks up and people are able to earn more money, the price of maize will always be too high. Even in South Africa where production and marketing efforts are efficient, the price of a 25 kilogramme bag of maize fetches over K100,000 (rebased K100). If the PF administration was as determined to deliver development as it is to destroy Nevers Mumba’s MMD, Zambia would already be a very different country by now. As one expert in the sector (who shall remain nameless) points out, maize in the Americas and Asia is an economic commodity, whereas here we have reduced it to a political crop, haemorrhaged the Treasury and succeeded in sustaining poverty.
Elias C. Chipimo is a Zambian politician and current President of NAREP. He previously worked as a corporate lawyer and human rights activist. He is the author of the book - “Unequal to the Task” which discusses leadership in Zambia and the current state of the nation.
Labels: ELIAS CHIPIMO, FOOD, FRA, MEALIE-MEAL, NAREP
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Maize subsidies
By The Post
Wed 12 Dec. 2012, 10:10 CAT
Food security is central to the economic, political and social future of our country. Meeting the basic needs to families must take top priority in any government planning, with an agricultural policy that really respects the earth, the farmer and the consumer. Hunger in our society is a sign of gross injustice and a block to development.
We need to provide food at prices which both give a just return to farmers and are reasonable to consumers. We evaluate agricultural policies with particular concern for the sacredness of the land, and justice, especially towards the poor.
Independence is meaningless if we cannot feed ourselves as a country. And since independence, successive governments have been battling with the issue of food security. Many initiatives have been undertaken by government to deal with this challenge. The total failure of these endeavours to achieve the basic and essential objective of supplying all our people with enough food to develop their potentialities for enjoying a full life is today more evident than ever. We still have today many people who each day cannot meet the basic food needs necessary for a decent human life. And it is a strict duty of justice not to allow fundamental food needs to remain unsatisfied. Economic justice requires that each individual has adequate food to survive to develop and thrive. And economic growth depends in the very first place on social progress.
By now, it is perfectly obvious that the agricultural policies we have been pursuing have failed to eradicate hunger and give our people the necessary food security. We cannot say these policies haven't been well-meant. They actually have been more well-meant though unsuccessful. The painful truth is that, despite the efforts to eradicate food insecurity, this challenge persists and tends to grow. Why?
What this means is that we need to go back to the drawing board, re-examine critically everything we have done so far in this domain. We need to come up with new initiatives to enable us to meet our people's needs for basic foodstuffs as much as possible.
Our government has been spending too much money every year subsidising the production of maize and mealie-meal. But nothing seems to be changing, and this is increasingly becoming a permanent feature. The government is spending over US$300 million every year to subsidise maize production and mealie-meal consumption. The government is buying a 50-kilogramme bag of maize at K65,000 and selling it to the millers at K60,000.
And part of this maize and mealie-meal is consumed in the neighbouring countries. Even some of the subsidised fertiliser ends up in our neighbouring countries. What it means is we are subsidising maize production and consumption not only in Zambia but also in our neighbouring countries. This is not sustainable, no matter how much we love our neighbours and would like to help them.
An immediate solution to this problem should be found. Probably there may be need to consider modifying our subsidy to maize production and consumption. If this cannot be done in a more efficient and effective manner, a total removal of the subsidy to maize production and consumption may be inevitable. In saying this, we are not in any way advocating total removal of subsidies to agriculture. We are simply recognising the need for more efficient and effective subsidies. The current subsidy to maize production and consumption has proved not to be efficient and effective.
And this also calls for serious consideration of other food crops like rice. We cannot continue to depend on maize for our staple food; it's too expensive. It will be much cheaper for us as a nation to start seriously considering increasing the consumption of rice, which is much cheaper to produce. Rice doesn't need fertilisers and it is much more environmentally friendly to produce.
We shouldn't cheat ourselves that we have always been consumers of maize meal. The consumption of maize meal is something that was promoted by the mining corporations and the commercial farmers they had promoted. Our people were consumers of millet, sorghum and cassava. The consumption of maize meal was very limited. The same way we were made to become dependent on maize meal can be done to rice. We should learn to start to live within our means. In our traditional society, maize was produced cheaply because there was no use of fertilisers and other complicated farming methods.
At the current cost of producing maize, it can be said to be beyond us as a staple food and we have to start looking elsewhere. We are not saying the production of maize should be stopped. No. What we are saying is that maize should be produced, sold and consumed at its real cost. Those who can afford to eat maize nshima two or three times a day, let them do so, while those who cannot afford it are provided with affordable alternatives like rice.
Of course, the issue of maize meal has been highly politicised. But it can also be depoliticised in the same way. And this government is in a far much better position to change things because it is a highly popular one. If Michael Sata went around the country explaining why we need to increase the consumption of rice and reduce on maize, people will understand him better and follow. There is need for political mobilisation on this issue. Making food cheaper both in terms of production and consumption should be the aim of this government.
It will be very difficult under the current policy and approach to have sustainable agricultural production and food security. We are spending too much money for very little food security. If part of the money we are spending on maize subsidies was diverted to other crops, we would achieve a much higher level of food security than we currently have. If something has failed, there is no need to hang on to it, come what may.
Moreover, the majority of the world population lives on rice. We have all the conditions in almost every province of our country needed for the production of rice and other food crops. It is not wise for us to cling so much to maize. A political decision needs to be made for us to adopt more rational, more sensible agricultural and food security policies.
Labels: FRA, MAIZE
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Maize-prices sky-rocket in Kabompo
TIME PUBLISHED - Thursday, November 29, 2012, 7:30 am
Kabompo residents have appealed to government to offload large quantities of subsidized maize from the Food Reserve Agency (FRA) in the district.
The residents want FRA to offload the maize so that they could from the market and mill it themselves because of the high increase in the price of both maize and mealie meal.
A survey conducted by ZANIS yesterday morning at Musamba and main markets in the district revealed that the price of maize has gone up from K10,000 to K30,000 per tin, and from K30,000 to K90,000 per 50 kilogramme bag.
Those talked to at the markets appealed to government to offload large quantities of FRA maize on the market for the general public to buy during the rainy season when the district faces hunger due to food shortages.
The survey also revealed that roller meal has run out in all retail shops in the district while a 25 kilo gram bag of breakfast meal is selling at K 75,000.00
Labels: FRA, MAIZE
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Serenje farmers finally paid
TIME PUBLISHED - Tuesday, November 27, 2012, 12:33 pm
Government has sourced K8 billion to pay Serenje farmers who yesterday protested against the delay to pay them money for the maize they sold to the Food Reserve Agency (FRA).
Serenje District Commissioner (DC), Charles Mwelwa, confirmed to ZANIS in Kabwe today, saying the farmers have started getting their money today.
Mr Mwelwa said government owed Serenje farmers a balance of K8.2 billion, adding that the remaining K200 million will soon be found to clear all the farmers owed for their maize.
Mr Mwelwa appealed to farmers who will not be paid from the K8 billion to remain calm, saying government was determined to clear all the farmers by paying them their money.
He explained that several farmers yesterday protested and in the process damanged his vehicle by stoning it in anger about the delay to be paid.
Mrs Susan Chileshe, a farmer, complained that the delay to pay them their money affected them a lot because they could not prepare adequately for this season.
Mrs Chileshe further complained of alleged corruption, saying farmers who delivered earlier their maize were left out and only those who delivered later were being paid.
ZANIS
Labels: CORRUPTION, FRA, MAIZE
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FRA owes farmers K979bn
By Gift Chanda
Tue 23 Oct. 2012, 16:10 CAT
THE Food Reserve Agency owes farmers K979 billion for the maize they supplied to the agency during the ongoing marketing season, a senior official said yesterday.
Chola Kafwabulula, FRA acting managing director, disclosed that the agency as at October 12 had bought 968,242 metric tonnes of maize valued at over K1.2 trillion.
He said the 968,242 metric tonnes, a bulk of which was bought from Southern and Eastern provinces, represents 97 per cent of the 1 million metric tonnes target to be purchased by the end of this month.
"FRA has since paid out over K279.5 billion on maize purchases while payments have continued to be made to farmers country-wide in order to offset the K979 billion outstanding balance," Kafwabulula said in an emailed statement.
He added that following reports of fraudulent activities, the agency had stepped up security measures to ensure that payments were only made to genuine farmers who supplied the maize.
Kafwabulula said all payments were being adequately screened with the help of experts in white collar financial crimes.
"The agency will continue to pay until all farmers receive their money for the maize supplied," he added.
"The agency hopes to pay all farmers by the first week of November, just after the close of the purchasing exercise on 31st October, 2012."
The FRA had targeted to buy one million tonnes of maize from small-holder farmers this year compared to the 1.3 million tonnes it bought last year.
Labels: CHOLA KAFWABULULA, DOMESTIC DEBT, FRA
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Fiscal measures in mining impress World Bank
By Gift Chanda
Wed 17 Oct. 2012, 13:00 CAT
THE World Bank says the government's decision to avoid major changes to the mining fiscal regime will breed a sense of greater fiscal stability and reduce investor uncertainty.
And National Savings and Credit Bank (NATSAVE) managing director Cephas Chabu says the abolishment of the medical levy and removal of tax on interest earned on savings and deposit accounts will result in accelerated savings mobilisation by commercial banks.
Analysing the 2013 national budget yesterday, World Bank country representative Kundhavi Kadiresan hailed government for the fiscal measures undertaken in the mining sector.
She commended the government for resolving to avoid any major changes to the mining fiscal regime.
"This alone will breed a sense of greater fiscal stability and reduce investor uncertainty," she told a media briefing.
Recently, there had been mounting pressure on the government to maximise revenue collection from the mining sector by reintroducing the windfall tax.
The PF government has however resolved to remain adamant on reintroducing the windfall tax, but has doubled royalty tax for mining companies to six per cent in the 2012 budget.
"The proposal also to restrict operations of the Food Reserve Agency to the maintenance of the strategic food reserve stock is in the right direction and actually long overdue," added Kadiresan.
She, however, said the challenge would be in defining the size of the strategic food reserve and employing transparent and competitive processes for procuring the reserve stock.
Why on earth is the World Bank micromanaging the Zambian economy? They are going to tell the local government what the appropriate size of the food reserves are? No one at the WB went to jail when thousands of Malawians died of starvation because they told the government to sell off the food supply. - MrK
"For FRA to stop influencing the maize prices, the FRA Act will need to be amended," she said. "The enactment of the new agricultural marketing Act which among other things will establish an Agricultural Marketing Council would re-enforce this measure.
Maintaining government commitment to budget allocation to FRA has been a challenge in the past; we expect that in keeping with the commitment to support deeper development of agriculture in 2013, this allocation will be adhered to."
And Chabu hailed the government for measures undertaken in the financial sector.
The government, in its quest to restore a culture of savings and investment, plans to remove tax on interest earned by individuals from savings and deposit accounts.
In the same vain, the government further plans to abolish the medical levy which is currently charged on interest earned on savings and deposit accounts, treasury bills, government bonds and other similar financial instruments.
Chabu commended government saying the measures would result in improved culture of saving and subsequently accelerate the savings mobilisations by commercial banks.
"As a savings bank, we are excited about this measure, it is a marketing tool for us now because we will be going out in the rural areas, wherever we have our presence, to encourage people that the government is actually encouraging savings and because of that our savings mobilisation in 2013 will even be accelerated because people will be saying there is a benefit when you save," Chabu said in an interview.
"The other thing which has interested us is the infrastructure development because financial inclusion rides on infrastructures such as road, rail and energy infrastructure."
He said with a good road and rail network, and sufficient and reliable power supply, banks would be encouraged to expand into rural areas.
Labels: CEPHAS CHABU, FRA, MINING, TAXATION, WINDFALL TAX, World Bank
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FRA secures K1.5 trillion for farmers
October 12, 2012
By NKOLE CHITALA
THE Food Reserve Agency (FRA) says it has secured K1.5 trillion from commercials banks towards the payment of farmers across the country and has pledged to complete the payment exercise by the end of October, 2012.
FRA chairperson Guy Robinson says the agency has made arrangements with some local financial institutions to provide funds in form of a loan after Government’s consent last week.
Mr Robinson said the agency received K300 billion from Government and is expecting the rest of the money to come through soon.
“Yes, we are behind in terms of payments, we got K300 billion from Government but we are expecting the rest of the money to come through. We were given authority last week by Government to borrow money and in one week we have managed to secure K1.5 trillion,” Mr Robinson said.
Mr Robinson was speaking at the Zambia National Farmers Union (ZNFU) 107th Annual Congress under the theme dubbed Livestock and Agricultural Exports in Lusaka yesterday.
He said the agency is fortunate that local banks have come forward to provide funds saying currently money is coming through with payments being made.
“As we speak now, payments are being made and we do pledge that payments are made every day and please be assured that by the end of October, payments will be completed,” he said.
He said the agency has the mandate to meet the target of raising K2.1 million required to pay farmers.
Labels: FRA, GUY ROBINSON
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PF denies reports that most of its cadres have been employed as FRA clerks
TIME PUBLISHED - Wednesday, August 22, 2012, 9:17 am
The Patriotic Front in Choma has denied accusations that most of its cadres have been employed as maize buying Depot Clerks by Food Reserve Agency (FRA).
District Political Secretary Benadette Hamweemba says the rumours are false, and they
aim at disturbing the warm relationship her party is enjoying with the people of Choma.Speaking in an interview to ZANIS in Choma on Tuesday, Mrs Hamweemba said it’s unfortunate to learn that some people in the district are masquerading as PF cadres to champion their agenda bent on character assassination.
Mrs Hamweemba says this clearly indicates how much influence her party has in the district and that it has started bearing fruits resulting into some people trying to bring confusion through alleged falsehoods.
The Choma PF District Political Secretary has charged that her party will continue doing its best in the district to serve the people despite the falsehood that is being promoted by others.
Mrs Hamweemba says people of Choma will not allow some few individuals to take them for granted at the expense of development.
With the shifting of the provincial headquarters from Livingstone, Choma is expected to soon undergo major changes in terms of development.
Mrs Hamweemba however says qualified PF members are also at liberty to apply for employment as FRA Depot Clerks just like other members of opposition political parties.
Mrs Hamweemba has warned that the speculations are misleading and can cause political tension in the district if left unchecked.
“People are just jealous because they have seen how the party in the district has continued scoring marks,” she says.
Meanwhile Mrs Hamweemba has also disputed claims by a Sky FM Radio caller on the radio station popular program SKY Forum alleging that the ruling party in Choma district is forcing people to join it.
Mrs Hamweemba says on Monday this week an unknown caller called on Sky FM program alleging that her party (PF) is forcing people to join it.
She says people who are joining the party are doing so willingly due to the good leadership qualities the district has exhibited.
“We are working tirelessly and people are seeing results not that we are forcing them,” she says.
ZANIS
Labels: FRA, LYING, UPND
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Chadiza farmers complain about distance they have to travel to sell Maize to FRA
TIME PUBLISHED - Tuesday, August 21, 2012, 10:09 pm
Some farmers in Chadiza district have complained of the distance that they are covering in order to sell their maize to the Food Reserve Agency (FRA) deports. Kabvumo Ward Councillor Adamson Phiri said people are walking more than 10 Kilometres from their villages to the nearest FRA deports to sell their maize.
Mr Phiri said peasant farmers are finding it difficult to transport their maize as transporters are charging them K4,000 and K5,000 per 50 kilogramme bag of maize that is to be transported.
The area councillor has since appealled to government to quickly open satellite deports that will be closer to the communities so that people can afford to sell their maize in a more conducive manner.
The FRA has only opened three (3) deports in Chadiza district and these are Manje, Chamandala and Chadiza main deports while in Vubwi only Two (2) deports have been opend at Zozwe and Chikoma.
And in another development, works on the Chimtanga –Sakwi road via Nunda in Chadiza district have commenced.
Kabvuma Ward Councillor Adamson Phiri who confirmed the development to ZANIS in Chadiza praised government for releasing some money to rehabilitate the road structure that breaks almost every rainy season.
Mr Phiri has however, demanded that the road network must be reinforced with strong culverts if the road is to last long.
He said because of not being strengthened with any culverts, the water crossing points have been causing very huge impact on the road network.
Mr Phiri said that about 11 culverts were required in the stretch between Kabvumo and Sakwi and that another 6 culverts were required between Kabvumo and Chimtanga.
The bad road net work has been a big challenge for the programme of transporting farm produce and patients in rural setups especially in Chief Zingalume and Mwangala’s areas.
ZANIS
Labels: CHADIZA, FRA, MAIZE
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Farmers besiege FRA Kalomo office over payments
By Martin Mashekwa
Fri 06 July 2012, 13:20 CAT
IRATE farmers who were last week promised to be paid for the maize they supplied to the Food Reserve Agency yesterday protested at the FRA main offices in Kalomo demanding prompt payment of their money.
The farmers blocked the vehicles carrying security officers and district commissioner, Omar Munsanje and sought redress for their late payments which had lasted close to a year over the produce they sold to FRA.
The late payment of the farmers, despite the government having disbursed all the necessary funds for them to be cleared off, emanated from suspected fraudulent maize buying practices that had been committed by some satellite buyers engaged by the FRA in the district.
A combined team of government security officers has been investigating the alleged financial irregularities in the last maize marketing season in Kalomo.
Calm only returned when farmers were again assured that the committee that was investigating the suspected fraudulent practices was currently reviewing its report, promising farmers that they would get their dues by next Wednesday.
Spokesperson for the farmers Peter Mafwafwa however urged the government to be considerate and stick to its assurance because farmers had been patient for too long and that an abrogation of the promise might tempt farmers to take the law into their own hands.
By press time, all the farmers who had come to Kalomo town had obliged and returned to their respective places.
Labels: FRA, KALOMO
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Irate farmers give FRA one week ultimatum to pay them for the maize supplied
TIME PUBLISHED - Tuesday, June 26, 2012, 7:51 pm
Some farmers who have not yet been paid their money by the Food Reserve Agency (FRA) in Kalomo have given government a one week ultimatum to settle their dues or take the law into their hands if their demand is not met.
The farmers also demanded that their money which is being held in various commercial banks be paid with the current ruling bank interest rates claiming their money has attracted some interest. This action follows the delayed payment of their dues for the maize they supplied to FRA last year.
Some farmers stormed ZANIS today to air their grievances while others trekked to the local police station to ask what wrong they have committed for them to be subjected to what they termed miserable experience leading to hard lives due to delayed payment of their money.
The farmers are also threatening to collect the remaining maize that is still stacked in the outlying satellite depots and resale it to other millers to raise money for their families.
The farmers said out of the 21 FRA maize buying satellite depots which included those from Sikanga, Katundulu, Bbilili and Kalemu sheds to which maize was supplied to, no payments have been made due to the ongoing investigations for suspected fraudulent practices by some buyers in certain satellite depots while some are already in courts, leading to further delay in payments.
They claimed that investigation in the matter were taking too long while other suspects whose property were impounded were seen moving scot free and have even started buying maize from unsuspecting poor farmers.
The unhappy farmers have since urged government to speed up the investigations. Charles Munsanka who is one of theaffected farmers said he has not been paid his money for the maize sold to FRA last year.
‘You see, it is really annoying, I sold my maize in August last year and up to now I have not been paid, it’s like government is neglecting us, even on the cotton price it is still quite. Now that there is an outbreak of lumpy skin disease and corridor, our animals are dying mercilessly because we don’t have money to buy drugs and our children are failing to go to school,” complained Charles Munsanka.
However, Kalomo District Commissioner, Omar Munsanje has constantly told farmers who relentlessly visit his office of the late payment assuring them that their money is available only that government was cleaning the mess so that what happened do not repeat itself for the benefit of the genuine farming community.
In another development, the farming community in Mabombo area are up in arms with cotton ginners for buying the crop at K1,600 per kilo gramme, a move which they said was exploitative and discouraging farmers to engage in cotton growing as it was becoming grossly unprofitable.
Speaking on behalf of other farmers, Mabombo cotton growers group Chairperson, Edwell Kaale of chief Chikanta’s area said the negotiating team’s delay to come to an agreeable price from that of the proposed K3,200 per kilo gramme had a negative effect on cotton growers.
He said some ginning companies like Dunavant, Alliance and Continental agents have already invaded his area getting the cotton at the low cost of K1,600 per kilo gramme as farmers have no other means of revenue coupled with the fact that some have not yet been paid their money by FRA.
ZANIS
Labels: FRA
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Scott urges farmers to help weed out corruption in maize marketing
By Moses Kuwema in Serenje
Thu 07 June 2012, 13:24 CAT
VICE-President Dr Guy Scott says farmers should help the government weed out corruption in maize marketing and input support programmes by exposing the people involved. And Vice-President Scott says the government will distribute 4,000 bags of relief maize in Serenje.
Speaking when he addressed a public meeting at Nakalengule in Serenje on
Tuesday, Vice-President Scott said the government wanted to make input subsidy and maize marketing clean exercises.
He said the farmers could help by identifying individuals in their localities who were involved in corrupt activities.
"We shall continue buying maize through the Food Reserve Agency and will make it clean. We have no problem with giving you fertiliser and buying maize through FRA. A lot of businessmen were selling your fertiliser. Fertiliser is not for big businessmen but for you, don't sell it, you must help us to weed out corruption and move on with a clean system, you know the rats in your own house," Vice-President Scott said.
He assured the villagers that his government would continue with the developmental projects that were embarked on in Muchinga Constituency by his predecessor George Kunda.
And Vice-President Scott said it was wrong timing for Kunda's son, Howard, to have opted for the opposition in Serenje because they were still licking their wounds.
On the PF candidate Jeliat Ntembwa, Vice-President Scott said the PF opted for a youthful candidate as a way of empowering the youths.
"We promised to empower the youths and this candidate we have given you is a youth. We shall sort him out if he makes mistakes. As leader of the House in Parliament, he will be under my eyes and if he goes astray, I will sort him out," Vice-President Scott said.
He urged the PF youths in the area to work together and support Ntembwa.
"A decision was made by the Central Committee meeting and there is no change. You cannot have everything in life. I know this constituency is big and all these areas want their candidate to be adopted but you can only adopt one at a time," said Vice-President Scott in apparent reference to those who are opposed to Ntembwa's adoption.
And Ntembwa who was ordered to kneel before the gathering, pledged to be their servant once elected.
And Vice-President Scott yesterday said he was aware that the MMD would accuse his government of corruption over the 4,000 bags of FRA maize to people of Serenje, but that there was need to empty depots to create space for this season's harvest.
"This is a normal thing to do and the MMD when they were in power, they used to do the same. I have also instructed the permanent secretary and officers from the DMMU Disaster Management and Mitigation Unit to remain here and you should tell them what is needed," said Vice-President Scott when he addressed a public meeting at Serenje Basic School yesterday.
Labels: CORRUPTION, FRA, GUY SCOTT, MAIZE
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