Parliament's Public Accounts Committee (PAC) has rejected a proposal by the National Economic Empowerment Fund (NEEF) to sell farming equipment worth about K16 billion through an auction, arguing that such a move would harm public interest and undermine the original purpose of the programme.
Speaking after a meeting with NEEF officials at Parliament in Lilongwe, PAC Chairperson Steven Baba Malondera said the committee was not convinced that auctioning the equipment was the right decision.
Malondera said selling the items through auction would likely force NEEF to dispose of valuable assets at very low prices, which would not benefit the institution or the citizens who were supposed to receive the equipment as loans.
"When you sell through auction, you are under pressure to sell quickly. That means you don't get the real value of the items. This is public property, bought with public money, and it must be handled carefully," Malondera said.
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Parliament's Position: Loans First, Not Sales
The committee's position is that most of the equipment should still be given to farmers as loans, as originally planned. According to Malondera, only items that are highly perishable or likely to get damaged quickly should be sold.
He explained that machines and tools that can last long--such as tractors, irrigation equipment and processing machines--should be distributed to beneficiaries instead of being auctioned.
"Our thinking is simple. If the items can still be used, let people use them. That is the whole idea of NEEF--to empower citizens, not to sell everything when problems arise," he said.
Another High-Level Meeting Planned
The PAC has now scheduled another meeting for next week involving key stakeholders, including:
The Ministry of Finance
The Public Procurement and Disposal of Assets Authority (PPDA)
NEEF management
The aim of the meeting is to reach a common position that protects public resources while addressing NEEF's financial challenges.
NEEF's Defence: We Need Cash Urgently
On the other hand, NEEF Chief Executive Officer Kayisi Sadala told the committee that the institution has little choice but to sell the equipment quickly.
Sadala said the assets are at risk of deteriorating if they stay in storage for too long. He also revealed that NEEF owes suppliers about K12 billion, and needs immediate cash to settle these debts.
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"We are under serious financial pressure. Some of these items are already deteriorating, and if we don't act fast, their value will drop even further. We also have creditors who must be paid," Sadala explained.
Bigger Issue: Governance and Public Trust
This standoff highlights a deeper issue in public finance management--how state institutions balance financial survival with their development mandate.
Parliament's stance reflects concern that NEEF may be drifting away from its core mission of empowering citizens, especially farmers and small-scale entrepreneurs.
From Parliament's point of view, selling assets meant for empowerment is a short-term fix that creates long-term damage by denying citizens access to productive tools.
In simple terms, MPs are saying: NEEF was created to help people work, not to become a fire-sale company.
The coming meeting is expected to determine whether NEEF changes course--or whether financial pressure will force it to proceed with the auction despite Parliament's objections.
