THE Agricultural Bank of Namibia has suspended its affirmative action (AA) loan scheme because of weaknesses in the Government accounting system, a Minister admitted yesterday.
Agriculture Minister Helmut Angula said Agribank’s decision to suspend the processing of new applications for the loan programme for black farmers was “unfortunate”. But, he admitted: “This (moratorium) has, most unfortunately, come about due to our weakness in controlling the accounting systems”.
The Minister explained that Government did not have a limit on the number of AA loans that could be approved, yet it only appropriated N$50 million a year for the scheme and this amount had never been increased since the scheme started.
He added that the annual N$50 million given to Agribank fell short of the amount given out as loans and hence the scheme had run into arrears.
Angula was, however, quick to point out that Cabinet has decided to transfer a “still to be determined” amount from the Ministry of Lands “to my Ministry in order for the scheme to resume”.
He could not say when exactly the transfer of money between the two Government ministries would be effected, but expected it to happen “as soon as possible”.
Angula was speaking at the launch of a new initiative to assist emerging commercial farmers – mainly the beneficiaries of the AA loans and the Ministry of Lands’ resettlement programmes – to become more productive.
The AA loans scheme aims to help established and stronger communal farmers move into commercial areas.
Angula’s statement was the first official acknowledgement of problems affecting the loan scheme since The Namibian reported on December 17 last year that at least 18 applications received by Agribank since October 31 had been frozen.
At the time senior officials from the Agriculture Ministry and the Agribank denied the report.
But, he admitted: “This (moratorium) has, most unfortunately, come about due to our weakness in controlling the accounting systems”. The Minister explained that Government did not have a limit on the number of AA loans that could be approved, yet it only appropriated N$50 million a year for the scheme and this amount had never been increased since the scheme started. He added that the annual N$50 million given to Agribank fell short of the amount given out as loans and hence the scheme had run into arrears. Angula was, however, quick to point out that Cabinet has decided to transfer a “still to be determined” amount from the Ministry of Lands “to my Ministry in order for the scheme to resume”. He could not say when exactly the transfer of money between the two Government ministries would be effected, but expected it to happen “as soon as possible”. Angula was speaking at the launch of a new initiative to assist emerging commercial farmers – mainly the beneficiaries of the AA loans and the Ministry of Lands’ resettlement programmes – to become more productive. The AA loans scheme aims to help established and stronger communal farmers move into commercial areas. Angula’s statement was the first official acknowledgement of problems affecting the loan scheme since The Namibian reported on December 17 last year that at least 18 applications received by Agribank since October 31 had been frozen. At the time senior officials from the Agriculture Ministry and the Agribank denied the report.
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