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Nyore Madzianike Manicaland Bureau
Government has approved the construction of two more silos, with one of them to be located at Timber Mills in Macheke, Manicaland.

It is envisaged that a silo in Macheke will be strategically positioned as there is a railway line which links Harare to Beira, which can ideally be used for imports and exports of grain. Grain Marketing Board (GMB) general manager Mr Rockie Mutenha said construction of the silo is expected to begin sometime next year.

“Cabinet has approved two silos to be constructed this coming year and obviously one will be in Manicaland; that is, at Timber Mills in Macheke,” he said.

“The area is strategically positioned. There is a railway line that passes through the depot and famers in and around the catchment area grow a lot of maize. It is also enroute to the port of Beira for exports should we have a surplus of marketable crops or imports coming into the country,” he said.

Mr Mutenha also indicated that the $209 million loss incurred by the parastatal last year was a result of successive losses since 2009.

“It was not for the year 2016 and 2017 financial year, nor is it for 2017 and 2018 year because those financials have not yet been audited. The loss that was reported stretches back from 2009 to about 2016 and 2017. It is a cumulative loss over nine years,” he said.

Losses made by GMB, Mr Mutenha said, were not as a result of poor business trading or workmanship, but came as a result of a subsidy by Government, where it was buying products at a higher price and selling to local millers at subsidised prices.

“The loss came as a result of subsidy by Government where we were buying products at, say, $390 and because Government, in order to manage outflow of foreign currency, had to sell the maize to local millers at a subsidised price of between $240 and $270. The difference between the $390 and the subsidised purchase price to local millers is the loss that we are referring to.

“It is a subsidy by Government not a loss because of poor business trading or workmanship. It was a position understood by the Government. It is appearing in GMB books as a loss,” he said.

GMB, he said, was currently negotiating with other financial authorities to have the losses either transferred to Government or have them written off.

“We are required by an Act of Parliament that every year we publish audited financial statements and we want to mention that we are current with our audited financial results.

“Other parastatals are behind by a couple of years, but we are current in terms of the Act. We dont have any years which were not audited,” he said.