Fertilizer scam in Malawi

Synthetic fertilizers may be unaffordable for the vast majority of African farmers who want them, but nevertheless fertilizer trade is a big business with many in the supply chain being involved in murky deals. It is not unusual to hear allegations of corrupt practices by manufacturers, importers and other middle-men as well as politicians. At the bottom end of the chain it is the farmer who is most prejudiced by prices that are far higher than the real costs of production and trade.

In Malawi recently the leader of an opposition party alleged that the country had lost U.S. $60 million paid to a company in Thailand that did not produce fertilizer at all. The purchase was for the country's programme to supply subsidized fertilizer to farmers.

The subsidy programme has been dogged by controversy, with the arrest of traditional leaders who are said to have abused their privileged access to fertilizer coupons. The opposition leader charged that arresting traditional leaders who are alleged to have stolen the coupons was not a solution "as very influential people who are involved in serious theft of subsidized fertilizer are left free."

In neighbouring Zimbabwe there was a furore in 2006 over similar allegations that the country was supplied a type of fertilizer with a nitrogen-phosporus-potassium content inappropriate for use with maize. Among the other controversies were allegations that the South African supplier was a newly-formed middleman rather than an established manufacturer or supplier of fertilizer. Questions were also asked on how the agriculture ministry officials sent to inspect the fertilizer in South Africa before shipment could have possibly not noticed that it was not what was required for the intended purpose.

The insinuation was that the company had been selected because there were benefits to key players in the supply chain, rather than because it offered the best deal for the country.