Maize chiefs sacked as food crisis drags on

The government on Monday waived duty on imported maize to deal with the near collapse of the grain’s marketing system and a shortage in the international market.

It comes amid reports that traders contracted by the government last month to import maize had met serious difficulties finding white maize in the world market.

At the same time, it shook up the top management of the State-owned marketing body and the biggest buyer of local maize — the National Cereals and Produce Board (NCPB) — sacking five out of six directors, and 14 out of 17 top managers.

The move is meant to contain rampant corruption in the grain sector, and pave the way for free importation of maize.

But the managing director, Prof Gideon Misoi, will continue in his position. Also left untouched is the chairman, Mr Jimna Mbaru, who was appointed to the position by President Kibaki last Friday.

At the same time, Finance minister Uhuru Kenyatta lifted import duty on maize, allowing importers to buy maize from the international markets to feed a country in which 10 million people are at risk of starvation.

The move is likely aimed at ending the artificial shortage created by mismanagement of maize stocks by the board and politicians.

At the board, the Daily Nation has learnt that preliminary investigations show the country may have lost close to a Sh1 billion in irregular maize dealings involving officials at the board and politicians.

The country’s Strategic Grain Reserves that stocks up to four million bags of maize have dwindled. NCPB is required to store up to six million bags for emergencies.

While announcing the changes on Monday, Agriculture minister William Ruto said they would help bring “transparent, efficient and professional delivery” of the board’s duties in a liberalised market.

The minister did not say on what specific charges the 14 senior managers were found culpable, neither did he explain if Prof Misoi’s retention meant the investigation had cleared him.

But one source claimed that the MD’s contract, which runs up to next year, was being reviewed with a view to removing him too.

The new directors are Dr Adrian Wekulo Mukhebi, Mr Elias Barree Shill, Ms Rozaah Akinyi Buyu, Mr Mohamed Islam Ali and Mr Timothy Kipkorir Busienei. They replace Mr James Gitutho Njendu, Mrs Grace Wanjiku Maina, Mr Francis Wanyonyi, Mr Bernard Maingi Killu and Ms Beatrice King’ori.

Mr Ruto said that the government made the changes after receiving an audit report on the board’s operations and structure last Friday.

A consultancy firm was hired to study the structure, management and operations of the board and to prescribe any changes.

The Nation has established that the move to replace the directors and sack the managers came after the audit revealed incompetence in the board.

The minister added that two general managers, in charge of operations and finance and administration, have been sent on terminal leave and their positions will be advertised.

The 12 other managers have also either been sent on early retirement, terminal leave, or summary dismissal.

Corruption charges

Those sent home were in charge of operations, finance, sales and marketing, pest control, human resources and the company secretary.

“All their positions will be advertised for competitive replacement,” said Mr Ruto.

The minister added that the sackings do not absolve NCPB officials from corruption charges adding that those found guilty in the ongoing investigations will be punished.

More than 150,000 bags of maize are said to have disappeared from the grain stores managed by the NCPB.

Last week, the government announced that the strategic reserves had only 1.3 million bags and due to this precarious situation it indicated that it intend to buy another two million bags of maize to replenish stocks by mid-February.

In contrast, following impressive harvests in 2006 and 2007, the board had stocks of up to 5.2 million bags in January 2008.

It was allowed to sell 3.67 million bags to maize millers, individual households (one bag each), schools and millers of animal feed.

NCPB was hoping to buy 4.57 million bags locally but this has now been complicated by poor harvest this year, wasted grain following the post-election violence and farmers’ refusal to sell their grain to the government.

On Monday, Mr Ruto said that the Cabinet committee on food security was meeting this week to make a decision on the stand by the farmers.

Farmers have said they will only give NCPB maize if they are paid Sh2,500 a bag. The government is offering Sh1,950.

Between October and December last year, the government issued instructions to NCPB not to release maize to millers, creating an acute shortage.

The maize was then sold to brokers, among them politicians, at Sh1,750. They sold the same maize to millers at Sh2,600.

Some are said to have exported the maize to Southern Sudan.