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61 Fisp bidders face probe

Some beneficiaries of fertilizer subsidy queuing for coupons
Some beneficiaries of fertilizer subsidy queuing for coupons

The Ministry of Agriculture and Food Security has said it has asked the Malawi Police Service to investigate at least 61 companies which were said to have submitted forged and fake documents, including dubious bid bond securities from various banks to support their bids.

Initially, the minutes of the internal procurement committee (IPC) meeting held on August 12 2013 indicated that out of the 151 companies that submitted bids to supply fertiliser, 76 were disqualified for various reasons with 49 of them having submitted fraudulent bank security bid bonds to support their bids.

However, in an interview on Wednesday on the sidelines of a review meeting of the 2012/2013 Fisp, secretary for Agriculture Jeffrey Luhanga said out of all the companies that bid for both transport and supply of the subsidy, 61 had fake documentation in their bids.

“Some of the bid bonds were just generated on computers, some suppliers and transporters did not even exist at all but had fake registration certificates,” said Luhanga.

While the ministry has already come up with a final list of the suppliers, it is yet to announce the final names of the successful transporters for the Farm Input Subsidy Programme (Fisp).

Luhanga said since forging and presenting fake documents is a criminal offence, his ministry has since referred the issue to police for appropriate action.

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recently reported that fraudsters have penetrated several banks in the country where they were producing fake documents including bid bond securities to help companies and individuals secure business with government departments including in the supply of the subsidised fertiliser.

At least 49 companies were said to have obtained such bank security bid bonds which they submitted to the Ministry of Agriculture (MoA) for the subsidy.

During yesterday’s meeting, School of Oriental and African Studies at the University of London and Wadonda Consult presented a report on the impact of the Fisp; whether the subsidy is worth the K61 billion (about $152m) investment; how much of it benefits the intended people and how the programme could be improved.

The review disclosed that although the Fisp has several benefits and does improve food security, there were a number of areas that have to be improved and strengthened if the programme is to have even more impact.

Some of the challenges observed included leakages of the inputs leading to about 30 percent of it not reaching the intended beneficiaries; targeting whereby at times the rightful people do not get the subsidy while at the same time, the wrong people get it and the huge programme costs.

Luhanga also said it would be unwise for Malawi to abandon Fisp at a time when other countries have started adopting the programme after learning from what the country has achieved.

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