A four-year performance audit report of the Ethiopian Agricultural Business Corporation paints a concerning picture of persistent failures in delivering essential agricultural supplies. The report highlights shortages of vegetable and fruit seeds, agrochemicals, and machinery, alongside mismanagement of inventory.

The Public Expenditure Administration & Control Affairs Standing Committee took a keen interest in the audit's findings. Last week, members rigorously questioned the Corporation's management on its performance based on the concerning details revealed in the Office of the Federal Auditor General's report. The Committee's Chairwoman Yeshimebet Demissie (PhD) pointed questions aimed to shed light on the Corporation's shortcomings and hold them accountable.

The audit identified a critical issue at the Corporation's Asela Branch in Oromia Regional State, where poorly handled expired seed stock, valued at 4.7 million Br, was found. This posed a potential health risk to employees and could have contaminated the remaining seeds. Zenebe Weldeselassie, head of seed & forest products at the Corporation, attempted to explain the situation by stating these seeds were purchased before the Corporation was even established.

Yeshmebet Demisse (PhD), chairwoman of the Standing Committee, promptly intervened to steer the official's focus from the historical sources of the seeds towards the current lack of adequate response.

"We have taken corrective measures," Zenebe said.

The audit exposed the struggles to secure essential supplies. For consecutive years, the Corporation failed to procure critical agricultural inputs including 415,000ltrs of liquid agrochemicals, 131,158Kg of powdered agrochemicals, and 30 million Br worth of veterinary medicine.

The import of horticulture seeds has also stalled this year.

Feleke Gezahegn, deputy head of the Corporation, attributed these supply problems to limited access to foreign currency and insufficient capital following fertiliser purchases. He stated: "Importing improved horticulture seeds is our lowest priority right now."

The Corporation is attempting to boost revenues by cultivating and exporting soybeans on an 80hct plot in Chagni Town, Amhara Regional State. Feleke also mentioned seeking financial assistance from institutions. The audit uncovered a previously lucrative revenue stream that has since dried up. Until recently, they earned up to a million dollars annually by exporting natural gum harvested from farms in Benishangul Gumuz and Tigray regional states. However, security concerns have made this venture increasingly difficult.

Adding to the financial strain, the Corporation is struggling to recover a significant amount of money owed from past sales. It is owed around 850 million Br from the sale of agricultural machinery to various enterprises but has only managed to recoup a meagre 11 million Br, through a court ruling.

The Corporation was established eight years ago by merging several agricultural entities, with a total initial capital of 2.4 billion Br. However, only a quarter of this amount was paid up.

Kifle Woldemariam, head of the Corporation, pointed to a critical lack of capital as the main obstacle to their irrigation ambitions. Kifle emphasised the limitations this places on their ability to cultivate improved seeds through irrigation projects, stating: "We simply don't have enough capital for such undertakings.”

However, Kifle outlined some efforts to address these issues. Feasibility studies are underway for cultivating improved seed varieties through irrigation on two plots totalling 5,000hct.

Fogera wereda in Amhara Regional State encapsulates the challenges faced by the Corporation, as a single kilogram of seed has not reached the medium-sized farming community over the past two harvesting seasons.