12 December 2008
THE Government has directed Omnia Fertiliser Company to immediately resume the distribution of farming inputs with a commitment to clear US$11 million owed to the firm.
Omnia on Wednesday suspended the distribution of fertiliser after the debt by the Government increased to US$11 million.
Agriculture and Co-operatives Minister Brian Chituwo and Omnia managing director Dertie Serftein confirmed the development in separate interviews in Lusaka yesterday.
Dr Chituwo said he summoned the Omnia officials yesterday over their decision to close all of their depots and he was happy that the company had agreed to re-open the depots following discussions.
He regretted the decision to close the depot nearly in all parts of the country almost caused riots by farmers who had walked several kilometres to collect their inputs.
He said the delay to clear the debt was caused by a misunderstanding but assured that his ministry would ensure that the money was found and paid to the company to avoid any further delay the in distribution of inputs.
He said the Government did not refuse to clear the debt and called for calm among farmers who were inconvenienced following the closure of the depots.
"The ministry is treating the matter as urgent and I am confident that the matter will be resolved in the shortest period of time," he said.
Mr Serftein also confirmed that his company and the Government had reached an agreement to start the distribution of the fertiliser.
He said Secretary to the Treasury Likolo Ndalamei who also attended the meeting assured Omnia of the payment this month and next month.
"We have reached an agreement. We got a commitment from the secretary to the treasury and we accepted and went ahead to open our depots at 14:00 hours in the afternoon," he said.
On Wednesday, Southern Province Minister Daniel Munkombwe said the closure of the depot would negatively impact the Government's preparations for the next farming and appealed to Omnia to reopen the depots.
He said the hunger situation in the province was serious and it would be harsh on the people for the depots to remain closed because farmers would need to prepare for the next crop season.
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