Andrew Kathindi
Government through the Ministry of Public Enterprise (MPE) has instituted a probe into the operations of Agricultural Business Development Agency (Agribusdev) the Windhoek Observer can reveal.
The investigation comes amid increased concern over allegations of mismanagement and dubious tender awards at the government entity tasked improving the country’s food security.
Public enterprise minister, Leon Jooste whose remit the Agribusdev now falls under, confirmed that an investigation had been commissioned to understand the core reasons behind government agency’s historic problems. The findings will guide the Ministry’s proposed interventions.
“From Government’s side I can assure you that we are not happy with the performance of Agribusdev. I believe that they are sitting on productive opportunities that are enormous and once optimized, could make a large contribution to Namibia’s aim of attaining food security,” Jooste said.
The government decision comes as the agency which faced financial trouble over the past two years, was unable to pay staff salaries at some of its green schemes. There was a consideration to merge the troubled SOE merged with other government agencies.
Namibia Farm Workers Union (NAFWU) is also reported to be at loggerheads with the agency, demanding the immediate removal of its management after it was revealed that the agency staff has gone for two months without salaries. Agribusdev puts the blame for their inability to pay their staff on COVID-19.
Earlier this year, Windhoek Observer reported how the company awarded a multimillion-dollar fertilizer supply tender to South African company, Kynoch, whose Namibian agent was one of its own employees, despite that company not placing a bid for the tender.
“The investigation will also look into the awarding of tenders and other procurement practices to expose irregularities. I met with the Board on Thursday to discuss this matter. As part of public enterprises reforms, we will look into various opportunities for mergers and Agribusdev may be a potential candidate,” Jooste said.
Agribusdev Managing Director, Petrus Uugwanga blamed underfunding for the company’s woes, while refuting allegations of irregular awarding of tenders.
“Last year we received a relief for production (N$20 million) that is currently in the field and not yet harvested. Another one came this year (N$31 million) which is for assistance on the winter production, but this does not include salaries. It is from that production that we are supposed to generate revenue for salaries, but we have a situation where we have not yet harvested. We are planting and cashflow hits you, especially also with COVID-19,” he said.
“People have a right to become bitter about their salaries not being paid, however, this relief does not cover salaries and is meant for production entirely.”
Uugwanga said he was not aware of any allegations of questionable awarding of tenders.
“Concerned parties should instead report the matter to Anti-Corruption Commission (ACC). The agency is hard at work with a turnaround business plan and the consultant appointed is busy with validation of the plan and once done will find a mechanism to raise funds and scale up production,” he said.
On the matter of the failing green schemes, he said, “the army worms that invaded the farms in 2017 left the agency paralyzed to the extreme, so our turnover was cut by more than half. This impact was not just felt by Agribusdev but all the irrigation farms and even private green schemes.”
