FRA owed K107.6 billion
THE Food Reserve Agency (FRA) is owed K107.6 billion by co-operatives and private individuals.
Deputy Minister of Agriculture and Co-operatives Allan Mbewe told Parliament yesterday that this is as at December 31, 2009.
He said only K3.3 billion has been recovered from fertiliser and seed loans.
Mr Mbewe said most co-operatives did not provide collateral but that most of them have been taken to court to try and recover the money.
He said property has also been seized from some of the debtors and will be auctioned so that money realised from the sale could be paid to FRA.
Mr Mbewe was answering a question from Kanchibiya MP Davies Mwango who wanted to know how much money was owed to FRA in fertiliser and seed loans as of December 2009.
Mr Mwango also wanted to know how many people owed FRA and whether Government has continued giving fertiliser and seed loans to farmers.
“I cannot exactly tell which individuals or co-operatives owe the agency money because I have not seen the list. Government is trying hard to collect this money. FRA is not giving out any loans at the moment,” he said.
But Monze MP Jack Mwiimbu (UPND) claimed that only those who are not “politically correct” are being pursued.
He said the process of recovering money has not been transparent. Mr Mbewe said there is no one who is being favoured because of their political inclination.
When asked by Roan MP Chishimba Kambwili whether it is true that two Cabinet Ministers are among those that owe the agency, Mr Mbewe said he has not seen the list.
And Mapatizya MP Ackson Sejani (UPND) moved a motion to urge Government to urgently address the perennial constraints in the agricultural marketing system to enhance food security in the country.
The motion was seconded by Lusaka Central MP Guy Scott (PF).
In moving the motion, Mr Sejani alleged that FRA at the moment is unsuited to handle maize marketing in the country.
He said there is need for Government to restructure the agency to bring in specialised departments to handle strategic food reserves, marketing and funding.
