Green scheme modus operandi questioned
Theft, mismanagement rife
The committee found that the green schemes were operating on defective implements and equipment, with no maintenance plans in place.
The Parliamentary Standing Committee on Natural Resources has concluded that the government’s green schemes have not been optimally set up to function commercially, while theft and mismanagement were found to be responsible for the schemes’ failures.
The findings are contained in a report compiled after a visit to government-owned green schemes in the Kavango East, Kavango West and Zambezi regions.
“While the privately-run green schemes could operate freely and take initiative to increase their production, the government-run green schemes were subject to a non-functioning bureaucratic system introduced through Agribusdev’s wrong business module - without due consideration of the consequences of their actions or non-action,” the report read.
The committee found that the green schemes were operating on defective implements and equipment, with no maintenance plans in place, while decisions were taken by the agriculture ministry without consulting the farm managers of the respective schemes.
Inconsistency in allocating funds to green schemes and delays in paying for services rendered - such as water and electricity - were also flagged, as well as a lack of communication and coordination between stakeholders on the operations of green schemes.
Suggestions
To counter these shortcomings, the committee recommended that a new strategy be worked on for high demand charge payments to Nored, while it has stressed the regular payment of bills.
The Standing Committee on Natural Resources also suggested putting in place measures to ensure that assets at all green schemes are accounted for, by instituting annual stocktaking and maintenance of equipment.
It has further urged the adoption of a new business model of decentralised operations, securing markets for their produce and subsidising high transport costs to Agro-Marketing and Trade Agency (AMTA) hubs.
A submission made to Cabinet indicates that the now-defunct Agribusdev did not properly manage the green schemes and that they were underperforming.
Government is considering operating its green schemes under a public-private partnership, Namibian Sun reported in 2021.
“All indications were that the business model under which Agribusdev was managing the green schemes was the main cause for the underperformance. Farming decisions and operational matters were decided from head office with great delays, while financial decisions from head office deprived green schemes of required inputs in time, if at all, a memo to Cabinet read.
The ministry of public enterprises commissioned studies – one conducted by Deloitte, another by the National Planning Commission and a third by the Bank of Namibia - into the viability of Agribusdev’s business, which all found fault with the parastatal’s management inefficiencies.
The findings are contained in a report compiled after a visit to government-owned green schemes in the Kavango East, Kavango West and Zambezi regions.
“While the privately-run green schemes could operate freely and take initiative to increase their production, the government-run green schemes were subject to a non-functioning bureaucratic system introduced through Agribusdev’s wrong business module - without due consideration of the consequences of their actions or non-action,” the report read.
The committee found that the green schemes were operating on defective implements and equipment, with no maintenance plans in place, while decisions were taken by the agriculture ministry without consulting the farm managers of the respective schemes.
Inconsistency in allocating funds to green schemes and delays in paying for services rendered - such as water and electricity - were also flagged, as well as a lack of communication and coordination between stakeholders on the operations of green schemes.
Suggestions
To counter these shortcomings, the committee recommended that a new strategy be worked on for high demand charge payments to Nored, while it has stressed the regular payment of bills.
The Standing Committee on Natural Resources also suggested putting in place measures to ensure that assets at all green schemes are accounted for, by instituting annual stocktaking and maintenance of equipment.
It has further urged the adoption of a new business model of decentralised operations, securing markets for their produce and subsidising high transport costs to Agro-Marketing and Trade Agency (AMTA) hubs.
A submission made to Cabinet indicates that the now-defunct Agribusdev did not properly manage the green schemes and that they were underperforming.
Government is considering operating its green schemes under a public-private partnership, Namibian Sun reported in 2021.
“All indications were that the business model under which Agribusdev was managing the green schemes was the main cause for the underperformance. Farming decisions and operational matters were decided from head office with great delays, while financial decisions from head office deprived green schemes of required inputs in time, if at all, a memo to Cabinet read.
The ministry of public enterprises commissioned studies – one conducted by Deloitte, another by the National Planning Commission and a third by the Bank of Namibia - into the viability of Agribusdev’s business, which all found fault with the parastatal’s management inefficiencies.
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