PAC questions govt over Nyiombo Investments, Omnia’s contracts
By Florence Bupe
Thu 25 Mar. 2010, 04:00 CAT
THE parliamentary Public Accounts Committee (PAC) has questioned the government over the continued awarding of contracts to Nyiombo Investments and Omnia for the annual supply of fertiliser under the Farmer Input Support Programme (FISP).
Raising the concerns when the Ministry of Agriculture and Cooperatives and the Ministry of Livestock and Fisheries appeared before the PAC on Tuesday, committee chairperson Emmanuel Hachipuka said it was worrying that only two companies should continue supplying fertiliser to the government despite the unfavourable conditions attached.
The 2008 Auditor General's report disclosed that the agriculture ministry had accrued huge debt arising from interest on payment as well as exchange rate losses.
“This practice the persistent awarding of contracts to Nyiombo Investments and Omnia is holding Zambians to ransom and our agriculture efforts are falling to the ground due to the high cost of inputs,” he said.
Hachipuka said there was need to address rules that favour foreign suppliers at the expense of the Zambian government and communities.
“We need to address the inbuilt rules that favour suppliers. You need to find ways of recovering costs as opposed to passing on the high costs to the Zambian farmers,” he said.
Hachipuka urged the government to seriously look at reviving the local fertiliser manufacturing industry to avoid losing huge sums of money through exchange variances.
In response, agriculture permanent secretary Dr Abednigo Banda claimed that the companies had continued getting the contracts for the supply of fertiliser because they met all the requirements of the tenders.
He referred further queries to the Zambia Public Procurement Authority (ZPPA).
Dr Banda explained that due to the quantities and amounts involved in the procurement of fertiliser, the awarding of contracts went beyond the ministry and were handled by ZPPA.
“The explanation to the continued awarding of fertiliser supply contracts to the two companies over the last seven years is that they have always met the terms required by government, others fail,” Dr Banda said. “We conduct an open tender procedure; we have no particular bias towards these companies.”
Hachipuka suggested that there would be need for ZPPA to appear before the committee to explain the controversial supply issue.
“We may need to call ZPPA before the committee. The issue is that nobody in ZPPA is protecting government and that's a source of concern,” Hachipuka said. “We need to create giants locally that will be able to compete with the two companies for the purpose of lowering the cost of fertiliser.”
Labels: CORRUPTION, FISP, NYIOMBO INVESTMENT LTD, PAC
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Agric inputs arrive in Luapula, Northern provinces, says Namachila
Written by Chewe Kamungu in Mpika
Tuesday, October 28, 2008 8:51:57 PM
THE delayed agricultural inputs have started arriving in various sheds in Luapula and Northern provinces.
Agriculture and cooperatives Permanent Secretary Bernard Namachila said the input distribution programme in Northern and Luapula provinces had delayed due to the late delivery of the D Compound fertiliser by contracted supplier of the inputs, Nyiombo Investments Ltd.
He said according to Nyiombo, they were unable to deliver to the districts because they had not received their supplies from Tanzania where the inputs were marooned and that Tazara did not have sufficient wagons to bring the commodity into the country.
In an interview in Mpika after his tour of Northern and Luapula provinces, Namachila called on farmers not to lose heart as the inputs had started flowing into the various parts of the provinces.
"I am satisfied that the inputs are in the country and are being distributed to Luapula and Northern provinces where 85 per cent of the districts had not yet received the D Compound fertiliser," he said.
Namachila called on Nyiombo to take more inputs to depots that needed the fertiliser as opposed to keeping the commodity in the wagons in Mpika while affected districts were still waiting for the inputs.
He added that more transport and manpower should be secured by Nyiombo to ensure that the inputs that were yet to be offloaded from the wagons were transported to affected districts.
"We have urged Nyiombo to put in more transport and manpower to ensure that these inputs are offloaded. We have eleven wagons in Mpika each carrying 1000 x 50kg bags of D Compound fertiliser and that means that we will still be offloading to various parts of the two provinces," he said.
Namachila assured farmers of further deliveries of inputs where balances were remaining on allocated inputs in the districts.
"My appeal to the farmers is that the inputs have arrived and they are in their sheds and those that are still waiting for balances will be supplemented and supported by further deliveries where balances of inputs were being awaited," he explained .
Namachila appealed to the farmers to utilise the inputs for production of crops and not for resale.
He said that if there were some people who had intentions of reselling the fertiliser, they should consider entering into separate contracts with Nyiombo as the fertiliser was not for resale under the Fertiliser Support Programme.
Labels: BERNARD NAMACHILA, FERTILIZER, NYIOMBO INVESTMENT LTD
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Nyiombo, Omnia to distribute fertilizer
By Chiwoyu Sinyangwe
Monday June 30, 2008 [04:00]
NYIOMBO Investment Limited and Omnia Small Scale Limited are set to distribute fertiliser for the 2008/09 farming season under the FSP after a tender by the Zambia National Tender Board (ZNTB). ZNTB public relations manager Hazel Zulu confirmed the development in an interview last week. Zulu said ZNTB has since forwarded the recommendations to the Ministry of Agriculture and Corporative to award the two companies the tenders.
She said ZNTB gave authority to the agriculture ministry on June 16 and the tender involved 50,000 metric tonnes of both basal and top dressing fertiliser.
“The tender for supply and delivery of 25,000 metric tonnes of basal dressing (D-compound) and 25,000 metric tonnes of top dressing fertiliser (Urea) have been concluded,” Zulu said. “ZNTB central tender committee has given authority to the Ministry of Agriculture and Cooperatives to award Omnia Small Scale Limited and Nyiombo Investment with a delivery period of four to six weeks.”
She explained that Nyiombo Investment would supply the quantity to Northern, Luapula, Central, Copperbelt, and North Western provinces.
“Nyiombo Investment will supply 13,425 metric tonnes to Luapula and Northern provinces while the Central, Copperbelt, and North Western provinces will also receive the same quantity,” she said.
Zulu further said Omnia Small Scale Limited would distribute the commodity to Southern, Western, Eastern and Lusaka provinces.
“Omnia Small Scale Limited will supply 11,575 metric tonnes to Southern and Western provinces,” said Zulu. “Eastern and Lusaka provinces will also receive 11,575 metric tonnes bringing the total quantity of fertiliser to be distributed to 50 thousand metric tonnes.”
Labels: FERTILIZER, NYIOMBO INVESTMENT LTD, ZNTB
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