LOBAMBA – About E743 161.02 meant for cattle farmers as proceeds is lying idle as government is having a challenge in identifying most of them.
This was revealed during the appearance of the Ministry of Agriculture before the Public Accounts Committee (PAC) yesterday.
It was gathered that out of about 310 farmers, the ministry has only managed to locate 143.
The matter dates back to the 1980s, where there was a period in which the Nyonyane Sisa Ranch was unable to brand and identify weaners.
As a result of the failure to identify the cattle properly, a significant number could not be allocated to relevant owners.
This was further compounded by illegal branding of some of the animals by one farmer, who was also a civil servant using his brand mark.
It is said that the matter was of national concern such that in 1989, Parliament appointed a select committee or commission, led by then member of Parliament (MP) to investigate and make recommendations.
The commission recommended that all the unmarked cattle and those that were marked illegally should be branded ‘NN’ (No Number) and sold.
Proceeds from the sale were to be shared or distributed amongst all the registered cattle owners of the Sisa Ranch at the time.
This recommendation was implemented, the cattle were sold and proceeds deposited into a suspense account, from which they were paid to the farmers accordingly.
However, the proceeds from the sale of some of the illegally branded cattle became a subject of litigation, therefore, could not be distributed and the suspense account could not be closed.
Over the years, the Sisa Ranch has received unidentified stray cattle (imiduka), whose progeny is registered under the ‘NN’ brand.
When these animals are sold, the proceeds are deposited into the suspense account and this is why the amount in the accounts keeps growing.
Following his audit and in his report for the financial year ended March 31, 2025, the Auditor General, Timothy Matsebula said he reported that the Ministry of Africa had unremitted proceeds amounting to E1 292 079.02, in respect of the sale of cattle to rightful farmers (beneficiaries).
The AG said according to the government system, these proceeds were not remitted to the rightful beneficiaries as at March 31, 2025.
In his report, the AG made reference to Financial and Accounting Instruction 1307, which stipulates that amounts accepted as deposits must not be left un-actioned.
He said vigorous and continual investigations should be made in order to dispose of all deposits to the rightful payees.
Also, he said Paragraph 8.8 explains that balances for this account should normally be in credit or zero.
Furthermore, the AG said Section 11.8, Paragraph 8.7, of the Financial Management and Accounting Procedures Manual states that any deposit which remains unclaimed for five years should be credited to the Consolidated Fund through an adjustment voucher and if a subsequent claim is proved, such entry may be reversed and the deposit refunded.
“The farmers are being deprived of receiving their proceeds and the money continues to lose value due to time value for money. Additionally, there is a risk that the money may be misappropriated or received by wrong beneficiaries,” the AG said.
He mentioned that he advised controlling officer to trace and remit the proceeds to the rightful farmers (beneficiaries).
In response, the AG said the controlling officer stated that the ministry confirms that from the proceeds amounting to E1 292 079.02, E548 918.00 belonged to farmers who sold cattle to the Ministry of Home Affairs for hosting national events and these funds were disbursed to the rightful farmers.
*Full article available on Pressreader*
Senior officers from the Ministry of Agriculture led by Principal Secretary Sydney Simelane during the appearance before the Public Accounts Committee. (Pic: Ntombi Mhlongo)