Poor farmers and cooperatives promised fast-tracked growth in opportunities, seem to have been thrown into greater financial problems. This follows after the province transferred part of the government nutrition programme to MEGA, as the implementing agent for health and education.

They say they have done the work, but MEGA has not paid them their money so they can no longer sustain their cooperatives.

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This non-payment has resulted in some schools not receiving their weekly supplies of fruit and vegetables.

According to the Auditor-General of South Africa’s tabled 2017/18 Public Finance Management Act (PFMA) report, MEGA did not have the capacity to carry out this function and appointed a service provider. It did this without following supply chain management prescripts.

It started providing services in June 2017 and was last paid in December 2018.

According to one of the suppliers, the SMMEs have not been able to provide services and many businesses have gone under as a result of non-payment.

“We have invested so much money in this project, but we are not getting paid for our services. We cannot pay back the money we borrowed. This has affected so many people and they are left without jobs since there’s no money to pay them.

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“There are farmers who supply the vegetables and fruit, which are then transported to the distribution centre. There are people there who prepare the products. We collect everything from the distribution centre and then deliver,” he explained.

Lowvelder spoke to one of the people who are awaiting payment from a supplier. He said this is also affecting him.

Education spokesman, Jasper Zwane said this new arrangement had experienced challenges regarding implementation.

“However, every effort is being made to ensure efficiency and effectiveness.”

He said MEGA is responsible for 37 per cent of the schools.

“The department is working with the agency to ensure that delivery is not compromised.”

PROGRAMME HAS CASH-FLOW PROBLEMS

Lowvelder visited local schools. Some confirmed that there were no supplies of certain products.
Desiree Ntshingila from MEGA said it is not true that supply had stopped. She said the programme was experiencing cash-flow challenges due to a myriad of reasons.

“It is undergoing some review and assessment by the Office of the Director-General of Mpumalanga.”
She denied that the suppliers had not been paid. She stated that due to not reaching an agreement on tariffs, they had not been paid for February and March.

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“The discussions on the review of transport tariffs as from February 1, have not been concluded between MEGA and transporters. The transporters refused to submit claims (invoices) on the reduced rates before conclusion of the negotiations, even though they were advised to claim on the old rates in the meantime and be reimbursed later if the conclusion of the negotiations favours them. Therefore they have not been paid for February and March.”

“With regard to farmers, some of the invoices that were submitted had errors that needed to be corrected before payments can be effected. MEGA supplies 35 per cent of the schools and 11 hospitals with vegetables. The remaining are supplied by other service providers who are roped in to assist when challenges are experienced.”

Ntshingila admitted that indeed, as a result of delayed or late payments, some businesses have suffered.
She said the reasons were subject to investigation.
The suppliers said they are planning to take the matter to court.