Africa-Press – Malawi. The National Economic Empowerment Fund (Neef) has issued an urgent, high-stakes plea to Parliament to partially lift a suspension blocking the disposal of overstocked farm inputs, warning that continued inaction is rapidly converting public assets into waste, with potential losses projected at K15 billion.
In a March 9, 2026 letter to Clerk of Parliament Fiona Kalemba, Neef chief executive Kayisi Sadala presses for immediate, conditional relief—arguing that time-sensitive inputs such as seeds, fertilisers and agricultural chemicals are deteriorating by the day under storage constraints and natural shelf-life limits.
“A considerable portion of these items are perishable and highly susceptible to rapid deterioration… there is a significant risk these assets may lose most, if not all, of their value,” Sadala warns, stressing that prolonged suspension would translate into “avoidable losses to the public purse.”
The impasse stems from a February 12, 2026 directive by Parliament’s Public Accounts Committee (PAC), which halted planned auctions amid fears that disposal processes could be manipulated to benefit a few individuals. But Neef now argues the freeze—while well-intentioned—has created a different crisis: idle, degrading stock that cannot be distributed, sold or recovered during an ongoing forensic audit expected to last up to three months.
Compounding the pressure is a financing bottleneck. Sadala notes that the audit has effectively paralysed lending operations, meaning the inputs cannot be issued to beneficiaries either—leaving disposal as the only viable recovery pathway for assets already procured.
Neef’s inventory underscores the scale of the risk: 210,000 kilogrammes of maize seed, 23,530 kilogrammes of bean seed, alongside chemical and liquid fertilisers, irrigation systems, solar water pumps and sprayers—a mix of highly perishable and durable assets now caught in regulatory limbo.
In a calculated compromise, Sadala proposes a split approach: allow immediate disposal of perishable inputs under strict, transparent mechanisms, while maintaining the suspension on non-perishable assets—such as irrigation equipment—until the audit concludes and Parliament provides further guidance.
“We fully appreciate the need to maintain the integrity of the audit,” he states, “but perishable stocks require urgent intervention; otherwise, value destruction becomes inevitable.”
However, PAC chairperson Baba Steve Malondera is holding the line, insisting no disposal should proceed before full due diligence, including scrutiny by Treasury and the Public Procurement and Disposal of Assets (PPDA). His concern is blunt: assets bought at commercial prices risk being offloaded cheaply through auctions, opening space for abuse and financial loss.
“These items cannot simply be sold off at reduced value,” Malondera argues, warning that premature disposal could “create room for manipulation and undermine value for money.”
The debate is further complicated by governance concerns. Centre for Social Accountability and Transparency (Csat) executive director Willy Kambwandira questions the credibility of parliamentary oversight itself, citing conflicts of interest where lawmakers—including those in oversight roles—are reportedly beneficiaries of Neef loans.
“This erodes legitimacy,” Kambwandira says, warning that “oversight risks being perceived as self-protection, weakening accountability and sending a dangerous signal that political influence can shield individuals.”
He calls for full public disclosure of all beneficiaries and strict enforcement of repayments, arguing that transparency is essential to restoring institutional credibility.
Meanwhile, Neef’s financial exposure is mounting. The institution is sitting on K12 billion in unpaid invoices tied to the same inputs, including K2.5 billion owed to the Smallholder Fertiliser Revolving Fund of Malawi (SFFRFM) and additional liabilities to seed companies and suppliers—debts it had planned to offset through controlled sales.
The standoff now presents Parliament with a stark trade-off: protect procedural integrity at all costs, or act swiftly to prevent escalating financial losses.
At its core, Neef’s plea is simple but urgent—act now on perishable stock, or watch billions rot.
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