MPs flag governance, accountability gaps at Agro-Chemical and Food Company

Members of Parliament (MPs) have raised concerns over governance and accountability gaps at the Agro-Chemical and Food Company (ACFC) and the Office of the Data Protection Commissioner (ODPC), following audit findings that pointed to irregular legal payments, staffing gaps and non-compliance with statutory requirements.

The Public Investments Committee on Social Services Administration and Agriculture, chaired by Navakholo MP Emmanuel Wangwe, reviewed the audited financial statements of the two institutions during separate sessions held at Parliament Buildings.

MPs questioned the Agro-Chemical and Food Company over the engagement of private legal consultants without prior approval from the Office of the Attorney General, in breach of Section 17(1) of the Office of the Attorney General Act, 2012.

The audit report indicated that the company hired and paid a law firm without the required authorisation, despite legal provisions requiring state entities to obtain approval before engaging external legal services.

The committee also flagged recruitment irregularities, including the hiring of a driver who allegedly did not meet the minimum qualifications set out in the Public Service Commission Human Resource Policies and Procedures Manual, 2016. Legislators said the findings pointed to weaknesses in internal controls and lapses in adherence to public service hiring standards.

ACFC management acknowledged the procedural oversight in engaging legal services without approval, with Chief Executive Officer Ashok Agrawal telling the committee that the law firm had been drawn from a pre-qualified panel of service providers. He said the company would seek formal approval from the Attorney General going forward and strengthen internal compliance systems.

At the Office of the Data Protection Commissioner, MPs raised concern over failure to meet the statutory requirement that at least five per cent of staff be persons with disabilities, noting that only about two per cent of employees fall under this category. The office was also faulted for not establishing a dedicated climate change unit as required under the Climate Change (Amendment) Act, 2023.

Data Commissioner Immaculate Kassait told the committee that the office had already initiated corrective measures, including plans to recruit more persons with disabilities and integrate climate change targets into its strategic plan during the upcoming mid-term review.

The committee further observed that the ODPC operates without a governing board, a gap MPs said weakens oversight, decision-making and institutional accountability. Legislators recommended the establishment of a board to strengthen governance structures and improve oversight.