Govt audit establish GMB is failing to maintain stipulated grain levels of 500 000 metric tonnes

A government audit report has exposed that the grain Marketing Board is failing to maintain the stipulated 500 000 metric tonnes which was set up in 1996.

According to the report read in parliament, in 1996, the Government of Zimbabwe entered into an Agreement with the Grain Marketing Board which mandated GMB to maintain 500 000 metric tonnes of maize and cash reserves sufficient to import 436 000 metric tonnes of maize on behalf of Government, as a Strategic Grain Reserve.

"This was to ensure national food security. The Value for Money(VFM) audit noted that GMB was failing to maintain the stipulated strategic grain level of 500 000 metric tonnes and cash reserves sufficient to import 436 000 metric tonnes, at any given time, during the period April 2009 to March 2012," reads the report.

"The physical stocks fell short of the minimum requirement by 459 649mt (91.93%), 277 831mt (55.57%) and 201 386mt (40.28%) during the three grain intakes 2009-2010, 2010-2011 and 2011-2012 respectively."

The report states that during the periods under review, the Board downgraded maize totalling 61 396 metric tonnes with a replacement value of US$18 111 820 due to poor storage facilities, poor quality tarpaulins and delays in fumigation. "The Consumer Council of Zimbabwe advised that the maize could have fed 1 534 900 households of six people each, for a period of one month," reads the report.

 The Acting Secretary in responding to the audit observation indicated that the management of the Strategic Grain Reserve (SGR) was wholly funded by Government in terms of the 1996 Agreement.

"GMB admitted that it was failing to maintain the stipulated strategic grain level due to inadequate provision of funding by Government. At the time of receiving evidence in June, the SGR stood at 118 000mt," he said.

"The downgrading of maize was also blamed on under funding by Government which as a result, GMB said was not able to maintain storage facilities, purchase tarpaulins, fumigations and appropriate packaging and ensure proper storage of maize. The Acting General Manager indicated that disbursements from Treasury improved in 2014 and as a result, some of the challenges had since been resolved."

The Committee noted with concern that the GMB was failing to fulfill its mandate of  maintaining adequate levels of the SGR, hence food security cannot be guaranteed.

The Committee further noted that minimum levels for SGR set in 1996 were no longer in tandem with the current realities in terms of the population of 14 million people.

"If there was adequate supervision and funding, the appropriate intervention would have been taken to avert the loss," reads the report.