Question NW2931 to the Minister of Agriculture, Land Reform and Rural Development
28 September 2023 - NW2931
Mbabama, Ms TM to ask the Minister of Agriculture, Land Reform and Rural Development
What mechanisms has her department implemented to ensure that the funding from the Agro-Energy Fund that has been launched recently (a) reaches its intended beneficiaries and (b) is not susceptible to corruption?
Reply:
a) The Department of Agriculture, Land Reform and Rural Development has entered into a Memorandum of Understanding (MoU) with the Land Bank as the appointed Fund manager. The focus of the Agro-Energy Fund is on energy intensive agricultural activities. These include irrigation, intensive agricultural production systems and on-farm cold chain related activities. The MOU therefore details amongst others, a clear set of criteria with regards to who will benefit from the fund, the industries / commodities enterprises, the exclusions to the fund, the qualifying criteria, and other factors. This detail seeks to ensure that no anomalies are entertained and thus ensure that the most relevant enterprises apply for support.
b) Clause 18 of the MOU entered between DALRRD and Land Bank, depicts activities under Audit and Inspections, that could be carried out by DALRRD to ensure adherence to the conditions agreed to in the management of the fund. For example, the MoU provides for DALRRD, through its internal or external auditors, to undertake an audit of the Land Bank financial records relating to the Fund; the appropriation of funds, and relevant statistics and information relating to the Fund. Thus, it is envisaged that the application of all these agreed to principles will be adhered to and address potential misuse of the funds.