GMB diverts $8 million meant to buy grain from farmers to unauthorised use

An audit by Auditor-General Ms Mildred Chiri has revealed that the Grain Marketing Board (GMB) diverted  almost $8 million meant to buy grain from farmers to loan repayments, utility bills and salaries for staff without approval.

In her report Chiri said that the GMB diverted $7 982 537 out of the  $119 376 000 it received from Government.In response to the audit observations, the board said it met and deliberated on the issue and reprimanded the responsible staff to desist from such practices. Part of the reports reads:

The Board received a total of $119 376 000 from the Government for the payment of grain deliveries and grain handling charges between June 1, 2014 and October 31, 2015. However, I noted that out of this amount, $7 982 537 was used for non-grain procurement commitments such as salaries and statutory deductions, transport costs, council rates and water, electricity, packaging material, bank loans and overdrafts repayments and trading stock purchase and these were not authorised.

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