Published by the government of Zimbabwe
Fortious Nhambura
31 May 2007
Harare — THE Agricultural and Rural Development Authority is yet to start repaying the $24,3 billion loan it acquired from the Reserve Bank of Zimbabwe two years ago for repairs and improvements of underutilised farming equipment from farms around the country.
The loan was due for repayment in 2005 with the first instalment falling due in July that year.
Responding to questions from Parliament on the operations of the country's parastatals that were bailed out by the monetary authorities, RBZ Governor Dr Gideon Gono said: "Repayments were expected to be quarterly with the first instalments falling due on July 31 2005. No payments have, however, been made by Arda to date.
"The facility was put in place to acquire unutilised farm equipment around the country so that it could be brought to reproductive use. The equipment was subsequently sent to Farmec (Private) Ltd for repairs before being transferred to Arda for use at its estates and for A1 farmers.
"A loan agreement between the Reserve Bank of Zimbabwe and Arda on the value, terms conditions and repayment modalities of the loan were signed."
However, the parastatal is still to commence repayment of the loan which is now overdue. In 2004 the central bank assisted Arda in its mechanisation programme through the purchase of equipment worth $20 billion.
The equipment included 129 tractors, 15 ploughs, 15 combines, 29 disc harrows, nine planters, seven rippers and three fertilizer spreaders among an assortment of other agricultural equipment.
"It is, however, disheartening that the 2004 sponsored Arda equipment were like seeds which fell on barren ground, for to this date, no one seems to know the fate of equipment outlined above. Arda is thus imposing a burden to the economy to replace the machinery that cannot be accounted for," said Dr Gono.
Last November President Mugabe castigated the authority for not living up to the ideals of land reform saying the nation would not accept any excuses from Arda's inept management.
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