The $8.3m deal to supply Bahr el Ghazal farmers with fuel that was never delivered

Authors: Elsheikh Chol Ajeing | Chany Ninrew | Published: Tuesday, August 15, 2023

Tractors cultivating a stretch of land in Northern Bahr el Ghazal State. | Photo: Office of the Governor/ Facebook.

Four months after a lucrative 8.3-million-dollar contract was purportedly signed between the National Ministry of Agriculture and Shade Company Limited, to supply fuel to farmers in the Bahr el Ghazal region, officials from the benefiting states say nothing has since been delivered.

Contract documents dated April 26, 2023, oblige Shade Company Limited to supply millions of liters of fuel for agricultural use in the Greater Bahr-El Ghazal states, including Abyei.

The contractor (Shade Company) was supposed to deliver the multi-million-dollar fuel to the states before the start of this farming season.

But agriculture ministers from the Bahr el Ghazal States, said farmers in their states have never received the fuel and lubricant for tractors and ox-ploughs.

The ministers also said they have only learned about the contract recently and are now asking questions about where the contract really stalled, and who to blame.

– The agreement –

According to the agreement seen by Eye Radio, Dr. John Ogoto Kanisio, the Undersecretary of the Ministry of Agriculture signed on behalf of the government as First Party, and Amina Kidden Lawrence, the Managing Director of Shade Company Limited, signed as the Second Party.

The agreement tasks the contractor to deliver 1,400,000 liters of fuel (diesel) and 700,000 liters of lubricants (engine oil) to Lakes, Warrap, Northern Bahr el Ghazal, Western Bahr el Ghazal and Abyei Administrative Area, in the agricultural season 2023/2024.

The supply was expected within a period not exceeding three weeks from the date the agreement was signed.

The agriculture ministry shall then pay Shade Company Limited a 3,748,815,000 South Sudanese pounds – a purported equivalent of 8,330,700 US dollars. The amount was to be paid in cash within 60 days from the time of delivery.

The contract further read that the amount indicated will be subjected to “changes at any time dependent on the fluctuating market prices.”

The First Party was also required to verify and confirm that a correct delivery was made through proof of receipts of the needed qualities and quantities to the farmers.

Eye Radio could not independently verify whether or not the money was remitted by the Finance Ministry.

– Ministers complain –

Agriculture ministers in Bahr el Ghazal region said neither their offices nor the farmers in the states have received the fuel consignment as per the agreement.

“Concerning fuel delivery to greater Bahr-El-Ghazal region, we and our farmers have not received anything from the company since April up to now, which was actual made for this people,” said Deng Madut, the Minister of Agriculture in Warrap State.

Minister Madut said he appeals to the national ministry of agriculture, the company, and relevant ministries to resolve the issue.

He demands that the agreement be implemented as it was designed to alleviate the suffering of rural communities.

“What has gotten in the system has to continue as it is, the ministry should not be obstruct in matter that has do with farming in the region and that fuel has been already budgeted by national ministry of agriculture.”

“So why is the fuel been not delivered in the region for the last four years since 2022 and other regions are getting fuel.”

Madut said the contract has been approved by the national parliament – allegation that Eye Radio was unable to substantiate.

His Western Bahr el Ghazal State counterpart Daniel Akwong, said they were not consulted or informed by the parties to the agreement as the beneficiaries.

Akwong revealed that they only learned about the contract on their own way recently, while they are in juba for regional meeting.

“We were in Juba, we came across that contract it was made not suppose for this rainy season only, we were surprised during rainy season, we were there but we haven’t received anything,” the minister told Eye Radio.

“Even we were not informed that we’ve our share or portion regarding this thing. So, we left it to the contractor, she was telling us that, she has not yet received any money.”

Eye Radio was unable to reach the contractor – Shade Company Limited, for comment.

Meanwhile, Lakes State Agriculture Minister Poth Majak Dang said the unimplemented contract could have greatly maximized production and alliviate hunger in their states.

Mr. Majak said the lack of fuel is the biggest hindrance to agricultural production in the areas.

“It has negative impact, because it was made for our farmers so that it increases productions. But since that agreement was not implemented, it has reduced local productions to our farmers, and this is why we’re questioning. We urge the National Ministry (of Agriculture) to implement this together with the company. It has actual negative impact.”

Minister Majak urged the famers in his state to be patient as they follow up the matter with the national government.

“I want to urge our farmers to be patient, while we are pursuing this issue, we are not going to beg it, but later on we still going to update them, but we want them to be patient.”

Meanwhile, the state minister claim that the company has rejected to meet them.

Instead, Warrap’s Deng Madut said the company has told them they are not in a position to negotiate as they were not a party to the deal.

“They have rejected our meeting, saying that we have binding agreement with the national ministry, so we have to wait in the state till he come, so we are not again to bother to contact her (Shade CEO), after she have decided, she is not ready to meet us.”

When contacted, Professor Mathew Udo, who is the Undersecretary of Finance and Administration, declined to comment and referred the matter to his counterpart.

“First of all, we are two undersecretaries, which do you want, and I’m not the one,” he said before the call ended abruptly.

An Eye Radio journalist visited the office of Dr. John Ogoto Kinisio, the undersecretary in charge of Food Security, to get further details.

However, he also referred the matter to the Director-General for administration and finance.

But the Director-General said it is not in his mandate to clarify contracts signed between the ministry and other parties.

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