Delays in completing a forensic audit at Malawi Enterprise Development Fund Limited (Medf) have pushed potential losses from expired farm inputs beyond K16 billion, the institution has told Parliament.
Appearing before the Public Accounts Committee (PAC) in Lilongwe, Medf Chief Executive Officer Kayisi Sadala said large quantities of fertiliser, seeds and chemicals had deteriorated while awaiting authorisation for disposal.
Sadala said Medf had earlier requested permission to dispose of the stock after fears that some of the inputs were nearing expiry, but Parliament halted the process pending a forensic audit.
“It is now about five months since we appeared here, so most of the perishables have gone bad. Some items have expired while others are close to expiry,” Sadala told the committee.
He said the institution later wrote to Parliament seeking partial disposal of the affected stock after noticing delays in the commencement of the audit process.
Sadala blamed the situation on previous operational decisions that shifted Medf away from its core role as a lending institution into direct procurement of farm inputs.
PAC chairperson Steven Malondera defended Parliament’s decision to stop the disposal, saying the directive followed recommendations adopted by the National Assembly after investigations by the Parliamentary Committee on Statutory Corporations.
Medf, formerly known as the National Economic Empowerment Fund (Neef), has in recent years expanded from financial lending into the provision of farm input loans across the country.
