Audit shows GMB takes between 25 and 300 days to pay farmers

The audit has shown that the GMB was taking between 25 to 300 days to pay farmers for maize delivered.

According to Parliament Hansard, these late payments resulted in farmers selling to private buyers who make prompt payments but as low as $180 per tonne, compared to the GMB rate of $390 per tonne.

"In addition, the audit revealed that farmers who delivered their grain in 2012 were paid ahead of those who had delivered grain worth US$ 4 534 741 during the 2011 grain intake," reads the Hansard.

"The Acting General Manager attributed the late payments to farmers to late disbursement of funds by Treasury. He further advised that the payment to the 2012 farmers ahead of those who had delivered their maize in 2011, was a result of a directive from Treasury. He further advised that the 2011 farmers were eventually paid and at the time of receiving evidence in June 2015, the only outstanding payments were for farmers who had delivered maize during the 2014/15 season."

The Hansard states that GMB Management further pointed out that due to inadequate funding from Government, depots from five selected provinces did not open their permanent collection points for purposes of maize mobilization during the period and surveys to determine the anticipated yields, were not carried out.

"The Committee observed that the lack of maize mobilization and late payment of farmers were the major contributors to low levels of maize in the SGR. Late payment for maize deliveries means that Government is making it very difficult for farmers to adequately plan for the next farming season," reads the Hansard.

"Farmers are also discouraged from growing maize which is the country's staple food and the country might in future have to rely on maize imports, creating a national food security risk. The other problem noted by the Committee was the setting up of floor prices for maize which are not informed by the current market realities, especially in our neighbouring countries."

The official Parliament document states that as part of the deliberations, the Committee noted that some of our neighbouring countries have adopted Genetically Modified Organisms (GMOs) as part of efforts to improve maize yields per hectare.

"Regional production levels range from 8 to 12 tonnes per hectare compared to ours which is around 4 tonnes per hectare. One wonders why maize was landing in Zimbabwe at $299 per tonne compared to GMB price of $390 per tonne. Some Governments have taken deliberate action such as subsidizing agriculture inputs to support their farmers," reads the Hansard.

"As a result of these and other factors, agricultural production in Zimbabwe remains highly uncompetitive. With Zimbabwe becoming more and more a net importer of maize, there is a risk of exposing Zimbabweans to GMOs which Government has vowed not to allow on its soil as a matter of policy."

The document states that the Committee is concerned that the objective of ensuring sustainability in the production of maize by setting floor prices was not being achieved, as Government had consistently failed to avail funds to GMB timeously for the purchase of maize.

"Disbursements have always been unpredictable. As a result of these bottlenecks, individuals with cash are now in the business of buying and selling maize. Soon after harvest time, they mop up maize from the helpless farmers at prices as low as $180 per tonne and later on sell to GMB at $390. Given the huge profit margins, they were patient enough to wait for late payments by GMB," reads the document.