PF Government’s $3.66 Million Payment Error Exposed

The Auditor General's Report for 2024 has exposed a costly error by the Ministry of Agriculture under the Patriotic Front (PF) government, which erroneously paid $3.66 million to a company that was subsequently liquidated, leaving taxpayers to bear the loss.

The controversy stems from a 2016 fertiliser procurement contract worth $30.6 million between the Ministry and Nyiombo Investments Limited. In September 2016, Nyiombo formally notified both the Agriculture and Finance ministries that it had assigned $3.66 million of its contract rights to Swiss Singapore Overseas Enterprises PTE Limited (SSOEL), now trading as Aditya Birla Global Trading Singapore.

The assignment notification explicitly required the Ministry to withhold this amount and pay it directly to SSOEL upon contract completion. However, in July 2018, despite this clear obligation, the Ministry paid Nyiombo the full contract sum of $30.6 million with approval from the Permanent Secretary.

The situation worsened when ABGTL demanded their rightful payment in May 2021. Following legal advice from the Attorney General, who confirmed the payment to the liquidated Nyiombo was erroneous, the Treasury was forced to settle the $3.66 million obligation with SSOEL in June 2021 - effectively paying twice for the same contractual obligation.

The Ministry of Finance subsequently sought help from the Drug Enforcement Commission in July 2024 to recover funds from either Nyiombo Investments or the officers who authorized the irregular payment. As of August 2025, no recovery has been made, leaving the Treasury $3.66 million poorer.