The Food Reserve Agency (FRA) has blacklisted two companies following their importation of Genetically Modified Organisms (GMOs) maize when they were contracted to supply the staple food.

FRA executive director, Anthony Mwanaumo told a parliamentary committee yesterday that the agency had stopped dealing with Nyiombo Investments and Louis Greyfus because they allegedly supplied the agency with GMO maize in two years ago.

This came to light when FRA officials appeared before a Public Accounts Committee (PAC) answering queries raised in the 2006 auditor general's report on accounts of parastatal bodies.

The committee was being chaired by Luena MP Charles Milupi (Independent).

According to the auditor general's report, contrary to the 2006 presidential directive on the importation of the GMO maize, the FRA in the same year imported, paid and received 3,000 tonnes of maize from Nyiombo Investment valued at K3, 689, 647, 200 (US$1, 080, 000).

The Agency also received 16,000 tonnes of maize from Louis Dreyfus valued at K20,006,087,040 (US$5, 856, 000).

And 6,000 by 50 kilogrammes bags of GMO maize were delivered and received in Mkushi in May 2006.

Further, FRA gave Louis Dreyfus, a second contract without consulting the board for the supply of 12,000 tonnes of maize instead of buying cheaper maize which would have been ready at the end of March 2006.

When Mr Milupi queried Dr Mwanaumo whether Nyiombo and Louis Dreyfus had been blacklisted: "I am not comfortable with the word blacklisted all I can say is that we have stopped dealing with the two companies."

He explained that upon detecting the GMO maize, the agency exported the maize to Democratic Republic of Congo (DRC) and South Africa to recover the cost.

On failure to collect K1.3 billion debt from Simama General Dealers of Malawi where the agency supplied 3,158.58 tonnes of maize valued K2,336,211, 236 ($498,172, 80) in 2005, Dr Mwanaumo said lawyers had been engaged to handle the issue.

The committee was saddened that the agency lost 15,000 by 50 kilogrammes bags of maize valued at K555 million in Kalomo because of poor storage of maize which was exposed to adverse weather conditions resulting into wastage.