Govt tough on K552bn Agcom 2 beneficiaries

Government has said it will tighten the application process, selection criteria and monitoring mechanisms for beneficiaries of the second phase of Agricultural Commercialisation (Agcom) project.

This call comes after it emerged that some groups cheated the system in the first phase, where they withdrew their 10 percent contribution before getting the matching grant, yet the money was supposed to be part of the whole package.

According to Agcom requirements, producer organisations must be ready to contribute a minimum of 30 percent of the capital costs, which is 10 percent in cash and 20 percent in-kind while 70 percent is the matching grant.

Speaking when Minister of Agriculture Sam Kawale visited Yield Cooperative Society in Rumphi on Tuesday, Agcom project national coordinator Ted Nakhumwa said the cheating stalled some of the projects as the money became less than planned.

He said: “So others would go, deposit the money, get the bank statement and withdraw the money, which was not the principal agreement. Unfortunately for them, we managed to catch them in time, and suspended budgets.

“It is a worrisome development because normally this is done by a few individuals, normally the executive who would want to think beyond the group. We are talking to banks to ensure that this is curbed, we don’t want to experience the same in the second phase.”

Going forward, he said they have tightened loose ends so that they do not encounter similar challenges.

“We have an internal audit system that follows up the money, but also our officials called the Technical Implementation Support [TIS] which help the groups. So we suspended some groups and that meant affecting everybody in such a group.

“We have sensitised banks that once the money is deposited, it should be locked up to the time when the project commences, but also, the TIS will be signatories to the accounts so that they are able to detect any flaws,” he added.

On his part, Kawale said the project seeks to increase the number of productive alliances across the country as well as ensure that productivity goes up.

“We have learnt from the first phase and along the way, we have been improving on the selection criteria for beneficiaries. Our team is busy polishing the application process, selection criteria and monitoring aspect of it,” he said.

Agcom phase two worth $328 million is expected to start soon after these developments are completed, according to Kawale.

Yield Cooperative Society chairperson Jai Kanyondo said they produced 2 400 kilogrammes (kg) of honey last year, which fetched K9 million.

“This year, we aim to produce about 6 000 kg of honey, and we hope for more production after the centre is completed,” he said.

The cooperative received K104 million funding from Agcom and used the money to construct the centre, procurement of a vehicle, 750 beehives, four honey pressers and 50 storage drums, among others.