By Shaffie A Mtambo
LILONGWE-(MaraviPost)-Malawi Parliament on Wednesday was gripped by explosive revelations after Minister of Agriculture Roza Mbilizi delivered a detailed update on the controversial Mega Farms project, exposing massive loan defaults and alleging a deliberate scheme to siphon public funds.
Presenting figures from the 2023/24, 2024/25 and 2025/26 agricultural seasons, Mbilizi revealed that in the 2023/24 season alone, 239 farmers received support worth K6.04 billion in seed, fertilizer and equipment.
However, the total loan value including interest reached K10.79 billion, which was due for repayment by December 31, 2024. To date, only K3.48 billion has been recovered, leaving a staggering K7.27 billion unpaid.
The situation worsened in the 2024/25 season where K49.8 billion was disbursed to 952 beneficiaries across the country. Of these, 688 have not settled their loans, representing an 88 percent exposure.
About K55 billion that was supposed to be paid back by December 31 remains outstanding.
The Minister stunned the House by revealing that many beneficiaries were not genuine farmers but vendors who allegedly resold farm inputs on the open market for profit.
She described the arrangement as a calculated and organized structure deliberately designed to defraud public resources through the Mega Farms initiative.
The Malawi Agricultural and Industrial Investment Corporation (MAIIC), which managed the scheme, has attempted to recover the loans but with little success.
Government has since intensified recovery measures by issuing demand letters, engaging debt collectors and forwarding files of defaulters to the Attorney General for legal action.
As part of reforms, government has halted the “mega farms ang’onoang’ono” model for the 2025/26 season.
In the meantime, private companies including Illovo Sugar Malawi and Salima Sugar Company have been engaged to produce maize that will be sold through the Agricultural Development and Marketing Corporation (ADMARC) to ensure food availability.
The parliamentary session briefly turned dramatic when a legislator insinuated that Second Vice President Enock Kanzingeni Chihana was among the defaulters.
First Deputy Speaker Victor Musowa immediately demanded a withdrawal, clarifying that the Vice President’s name was not on the list read by the Minister. The statement was subsequently withdrawn.
Investigations later clarified that the name mentioned was Chakufwa Chihana, son of former Mzimba North MP Yeremiah Chihana, who is alleged to have defaulted on a loan amounting to over K318 million.
Among other notable names appearing on the list including Gotani Mkandawire, Helen Chabunya, Symon Vuwa Kaunda, former ministers Khumbize Chaponda Kandodo, Ezekiel Ching’oma and Jean Sendeza alongside her husband Justin Likhunya, Ulemu Chilapondwa, late deputy first speaker Madalitso Kazombo and Rudo Chakwera.
Minister Mbilizi maintained that government is determined to recover every tambala owed and restore integrity in the agricultural sector, stressing that under the leadership of Arthur Peter Mutharika, Malawi will never face hunger again.