Nyimba Investments Limited has denied allegations that the company overpriced fertilizer supplied to government in the 2020/2021 farming season under the farmer Input Support Program – FISP.
Large Fertilizer trading companies have been accused of extortion and possible involvement in corrupt practices after it was revealed that the companies were charging the ministry of Agriculture – FISP program US$1,200 per ton when prices were as low as US$400 per ton.
Nyimba Investments is among the top three large scale suppliers of fertilizer to government under FISP that include Neria Investments and Export Trading Group – ETG whose dealings with government have come under scrutiny following the change of government from the Patriotic Front – PF to the United Party for National Development – UPND.
President Hakainde Hichilema during a briefing revealed that his predecessor government were buying fertilizer at US$ 1,200 per ton from its contracted suppliers at the time when the commodity was selling between USD400- USD450 on the international market.
“When the fertilizer world prices were USD 400-USD450 per tonne, our colleagues deliberately, consciously were buying fertilizer using taxpayer’s money at USD1,200 per ton, you multiply that by 300,000 metric tonnes”, President Hichilema said.
One of the companies that supplied huge volumes of fertilizer to government under FISP, Nyimba Investments Limited has refuted the allegations saying the company supplied fertilizer at a price below USD 1,200 per ton.
Company Head of Sales and Marketing Willings Mulendema noted that Nyimba Investments Ltd supplied about 103,000 metric tonnes of fertilizer in the 2020/2021 farming season and that the price was below the US$1,200.
Mulendema further questioned as to when or at no point was fertilizer selling at US$400 per ton on the international market. He indicated that some prices are quoted at Free on Board – FOB and one has to look at what the landing cost is which includes Insurance, freight and shipping and other cost components.
He added that there are various international suppliers of fertilizer and prices change all the time just like crude oil or any other commodities. So prices and volumes are agreed at particular times.
