The Fertiliser Association of Malawi has taken government to task for failing to settle in time payments for the fertiliser supplied in the 2013-2014 Farm Input Subsidy Programme (Fisp).
The organisation has since warned government that further delays to settle payments will force it to invoice government any apprehended costs of interest.
According to a letter signed by the association’s executive secretary Richard Chapweteka, the delay to settle payments has affected the association’s members who are paying a 42 percent overdraft interest to the banks.
The letter dated February 18 reads in part: “This letter is to inform you that members of our association who supplied fertiliser to Fisp 2013/14 are still waiting to get payments against invoices which are now overdue by more than 45 days.
“We kindly request you to treat this matter with utmost urgency and we look forward to remittances of our outstanding amount as soon as possible.”
Ministry of Finance spokesperson Nations Msowoya said government will settle the outstanding dues in due course.
“Where did you get that letter? These people should not worry because we will pay them. What they should know is that the financial year ends in June and I am hopeful by that time all the outstanding dues will have been settled,” said Msowoya.
Recently Nation on Sunday reported that the Fisp is mired in billions of kwacha in debts, contract breaches and unaccounted for coupons.
As at February 11 2014, government owed nearly K33 billion to Fisp suppliers in the 2013/14 season months after invoice submission.