Parliament’s Public Accounts Committee (PAC) has ordered the National Economic Empowerment Fund (Neef) to suspend the disposal of farm inputs valued at K15 billion until a full due‑diligence review is completed.
In a letter dated 12 February, Nation on Sunday has seen and addressed to Neef chief executive officer Kayisi Sadala, the committee said it fears the planned auction could enable abuse of public resources and benefit a small group of individuals.
PAC chairperson Baba Steve Malondera told reporters the committee believes the proposed auction route is vulnerable to cartels and will exclude deserving beneficiaries.
He said PAC will verify each item and explore whether the inputs can instead be issued as properly structured loans rather than sold at auction.
Sadala. I Nation
“Items purchased at commercial prices should not be disposed of at auction prices, which opens room for abuse and losses for Neef.
“We need to quantify and verify stock, treat perishables appropriately, and closely inspect expired items before any disposal,” he said
Neef chief executive officer Kayisi Sadala confirmed receipt of the PAC stop order but warned that delaying the sale risks further losses because many inputs, especially seeds, are deteriorating in storage. Sadala said the institution is carrying unpaid invoices worth about K12 billion, which it had hoped to liquidate through the disposal proceeds.
“We have been asked to suspend the exercise pending PAC review. Our concern is that these items continue to deteriorate, and the company’s liquidity is affected by invoices in excess of K12 billion,” he said.
Sadala added that recovering outstanding loan repayments is critical to maintaining Neef’s revolving fund for future lending.
He also blamed election‑period disruptions and a change in government for reduced loan repayments, saying many borrowers delayed payments amid political uncertainty.
Executive director of the accountability watchdog Centre for Social Accountability and Transparency (Csat), Willy Kambwandira, welcomed the stop order but questioned its credibility.
He alleged that some PAC members may themselves be Neef loan beneficiaries or were responsible for oversight during the period under scrutiny.
“The credibility of this stop order is undermined by allegations that some PAC members are beneficiaries of Neef loans or were responsible for oversight when the alleged mismanagement occurred.
“PAC must address conflict‑of‑interest concerns; otherwise the order lacks moral and institutional authority,” he said
Officials say the stockpile resulted from over-procurement during the 2024/25 season and includes seeds, fertiliser, chemicals, and irrigation equipment, some of which have been damaged by prolonged storage.
