Angula admits AA loan scheme defective

AGRICULTURE Minister Helmut Angula admitted in Parliament that the Affirmative Action loan scheme had its faults and failings.

“The scheme, like all schemes, is not without problems,” the Minister said in response to a motion from DTA MP McHenry Venaani who proposed last month that the scheme be discussed. Angula said on Wednesday that poor co-operation between his Ministry and Agribank had landed the scheme in hot water.He said the Ministry had been “too enthusiastic” to accommodate as many farmers as possible, but that the financial control of the scheme had not been up to scratch to ensure that it didn’t run into arrears with the bank.Since its inception, the scheme has funded 544 farmers to the tune of N$465 million.However, at least 199 of them have defaulted on their payments.In total, they owed Agribank N$9,3 million – another contributing factor to the current predicament of the scheme, the Minister said.Angula noted that despite an annual request for N$50 million to subsidise farmers taking part in the scheme, the Ministry had not always received the full amount.Agribank had, however, continued to fund farmers to the limit.The Minister blamed the bank for not always providing his Ministry with up-to-date records of its transactions, so that it could have been forewarned of its financial trouble.Following Cabinet approval two weeks ago of a N$7 million transfer from the Lands Ministry to pay its arrears, Angula said the moratorium on new applications would be lifted as soon as Agribank received funds.On a suggestion that Agribank used its reserves to assist more farmers, Angula said he felt this was inappropriate.”The Ministry has no power to tell Agribank how to deal with their reserves.But reserves are there to cater for unforeseen circumstances,” he said.In his concluding remarks, Angula said he welcomed suggestions and recommendations that would improve the scheme.Lands Minister Hifikepunye Pohamba however felt Angula was being too hard on himself.Pohamba said the AA scheme had managed to put more land into the hands of the disadvantaged than his Ministry’s land redistribution programme.Venaani is expected to deliver his remarks on the motion this week.Angula said on Wednesday that poor co-operation between his Ministry and Agribank had landed the scheme in hot water.He said the Ministry had been “too enthusiastic” to accommodate as many farmers as possible, but that the financial control of the scheme had not been up to scratch to ensure that it didn’t run into arrears with the bank.Since its inception, the scheme has funded 544 farmers to the tune of N$465 million.However, at least 199 of them have defaulted on their payments.In total, they owed Agribank N$9,3 million – another contributing factor to the current predicament of the scheme, the Minister said.Angula noted that despite an annual request for N$50 million to subsidise farmers taking part in the scheme, the Ministry had not always received the full amount.Agribank had, however, continued to fund farmers to the limit.The Minister blamed the bank for not always providing his Ministry with up-to-date records of its transactions, so that it could have been forewarned of its financial trouble.Following Cabinet approval two weeks ago of a N$7 million transfer from the Lands Ministry to pay its arrears, Angula said the moratorium on new applications would be lifted as soon as Agribank received funds.On a suggestion that Agribank used its reserves to assist more farmers, Angula said he felt this was inappropriate.”The Ministry has no power to tell Agribank how to deal with their reserves.But reserves are there to cater for unforeseen circumstances,” he said.In his concluding remarks, Angula said he welcomed suggestions and recommendations that would improve the scheme.Lands Minister Hifikepunye Pohamba however felt Angula was being too hard on himself.Pohamba said the AA scheme had managed to put more land into the hands of the disadvantaged than his Ministry’s land redistribution programme.Venaani is expected to deliver his remarks on the motion this week.