BY FREEMAN MAKOPA

THE Grain Marketing Board (GMB) lost US$1,4 million in a botched maize import deal after it contracted a local company to import 10 000 metric tonnes of maize.

This was revealed by Auditor-General Mildred Chiri  in her 2019 audit report of State enterprises and parastatals.

Chiri said sometime in 2019, GMB contracted an unnamed company to import maize on its behalf, but the company delivered part of the consignment but failed to honour the rest.

“The (GMB) board contracted a local company to import 10 000 metric tonnes (mt) of maize on its behalf. An advance payment of US$3 900 000 was made for 10 000mt to facilitate the imports. The company delivered 3 800mt of grain worth US$1 482 000, leaving a balance of 6 200mt.

“However, the contract was amended for the supplier to deliver soyabeans instead of maize. The company subsequently delivered soyabeans worth
US$1 418 000. A reconciliation of the value of maize and soyabeans received to what the supplier had been paid revealed that soyabeans worth
US$1 000 000 had not been delivered,” the report said.

She recommended that the supplier should deliver as stipulated in the contract.

In response to the issue, the GMB management pointed out that the supplier was paid $3 900 000 through an escrow account for 10 000mt.

“They supplied 3 800 tonnes of maize, valued at $1 482 000, and 4 836 tonnes of soyabeans valued at $1 418 000,” the GMB management
said.

The report also revealed that the board made a request to the Finance ministry for funding of the construction of 100 hardstands and a total of US$6,5 million was availed to the parastatal for 90 hardstands, but the parastatal only constructed 39 hardstands.

“The board should conduct adequate project due diligence to ensure efficient utilisation of availed funds,” Chiri said.

In its response, GMB said it only applied for funding to construct 36 hardstands, but Treasury availed $6,5 million, which was more than the requested amount.

“The contracts for these hardstands were eventually signed in October 2018. Due to these delays, the money had already been eroded due to the inflationary environment prevailing in the country,” GMB said.

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