Agriculture ministry defends N$143m fertiliser payments
Eliot IpingeWindhoek
The agriculture ministry yesterday defended paying N$82.2 million to Agri Gro Namibia Pty Ltd in January this year and another N$61 million in June for fertilisers without going through the Central Procurement Board of Namibia (CPBN), citing seasonal and drought emergencies.
Namibian Sun is in possession of letters by ministry executive director Ndiyakupi Nghituwamata in which she asked Treasury to pay N$82.2 million to Agri Gro on 29 January this year, followed by another for a payment of N$61 million on 25 June.
Critics say the payments exceeded the N$25 million internal ministerial threshold for tenders, making it unfair for other suppliers who would have wanted to participate in the process.
In a statement this week, the ministry noted that an article by Namibian Sun last week regarding this matter was “misleading” because the money was not paid for a one-off tender.
The ministry stated that the emergency procurements were triggered by a Cabinet decision that terminated the management of green schemes by AgriBusDev and transferred responsibility to the ministry.
With no budgetary provision initially allocated, the ministry said it was forced to invoke emergency procurement procedures to secure inputs such as fertilisers and seeds in time for the cropping season.
“At the time of the award, each contract value was individually below the procurement threshold of N$25 million, in accordance with the provisions of the Public Procurement Act, 2015,” the ministry said.
Urgent interventions required
According to the ministry, subsequent supply contracts worth less than N$25 million each, in accordance with the Public Procurement Act, were awarded in December 2023 through open bidding to the Agri Gro joint venture with Ziara Energy and Namibian Freshness, covering seeds, chemicals and fertilisers.
The ministry underlined that Namibia’s ongoing drought and global grain shortages compelled further interventions, including expanded cultivation at green schemes and input support to farmers.
As a result, maize output at government-run schemes reportedly increased by 82% to 15 430 metric tonnes this season, though wheat production fell by 37% due to high input costs and delayed planting.
“By 2024, a national state of emergency was declared by former President Nangolo Mbumba in response to the escalating drought and worsening global grain shortages. The ministry was once again directed to place all green schemes under full production to mitigate the crisis. In response, additional land was put under production, and irrigation infrastructure was expanded to maximise output across all green schemes under direct government management,” the ministry explained.
“Due to intensified efforts, the demand for agricultural inputs exceeded initial projections. As the country was under a state of emergency, the ministry was compelled to procure additional inputs, which are primarily imported, as there is no domestic production of agricultural inputs.”
The ministry says it has acted in full compliance with procurement regulations. “The apparent increase in cumulative expenditure is not due to irregularity or breach but reflects legitimate operational scale-up and responsible agricultural support in line with national priorities,” it said.
The agriculture ministry yesterday defended paying N$82.2 million to Agri Gro Namibia Pty Ltd in January this year and another N$61 million in June for fertilisers without going through the Central Procurement Board of Namibia (CPBN), citing seasonal and drought emergencies.
Namibian Sun is in possession of letters by ministry executive director Ndiyakupi Nghituwamata in which she asked Treasury to pay N$82.2 million to Agri Gro on 29 January this year, followed by another for a payment of N$61 million on 25 June.
Critics say the payments exceeded the N$25 million internal ministerial threshold for tenders, making it unfair for other suppliers who would have wanted to participate in the process.
In a statement this week, the ministry noted that an article by Namibian Sun last week regarding this matter was “misleading” because the money was not paid for a one-off tender.
The ministry stated that the emergency procurements were triggered by a Cabinet decision that terminated the management of green schemes by AgriBusDev and transferred responsibility to the ministry.
With no budgetary provision initially allocated, the ministry said it was forced to invoke emergency procurement procedures to secure inputs such as fertilisers and seeds in time for the cropping season.
“At the time of the award, each contract value was individually below the procurement threshold of N$25 million, in accordance with the provisions of the Public Procurement Act, 2015,” the ministry said.
Urgent interventions required
According to the ministry, subsequent supply contracts worth less than N$25 million each, in accordance with the Public Procurement Act, were awarded in December 2023 through open bidding to the Agri Gro joint venture with Ziara Energy and Namibian Freshness, covering seeds, chemicals and fertilisers.
The ministry underlined that Namibia’s ongoing drought and global grain shortages compelled further interventions, including expanded cultivation at green schemes and input support to farmers.
As a result, maize output at government-run schemes reportedly increased by 82% to 15 430 metric tonnes this season, though wheat production fell by 37% due to high input costs and delayed planting.
“By 2024, a national state of emergency was declared by former President Nangolo Mbumba in response to the escalating drought and worsening global grain shortages. The ministry was once again directed to place all green schemes under full production to mitigate the crisis. In response, additional land was put under production, and irrigation infrastructure was expanded to maximise output across all green schemes under direct government management,” the ministry explained.
“Due to intensified efforts, the demand for agricultural inputs exceeded initial projections. As the country was under a state of emergency, the ministry was compelled to procure additional inputs, which are primarily imported, as there is no domestic production of agricultural inputs.”
The ministry says it has acted in full compliance with procurement regulations. “The apparent increase in cumulative expenditure is not due to irregularity or breach but reflects legitimate operational scale-up and responsible agricultural support in line with national priorities,” it said.
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