Thousands of farmers who supplied chia seeds to Akenes and Kernels Ltd have made an urgent appeal to the Government to halt the auction of 1,000 tonnes of the produce – estimated at Rwf3.6 billion – for which they said the company had not yet paid them.

The New Times learnt that the chia seeds were put up for auction in order to enforce a court decision in which one Didier Sheja – a chia seed farmer – won a case against Akenes and Kernels Ltd for not paying him over Rwf40 million [for his produce].READ ALSO: Chia seed headache as pressure mounts on investors

The produce has been listed on www.cyamunara.gov.rw, a judgment execution portal under the Rwanda Integrated Electronic Case Management System (Rwanda IECMS).

The chia seeds in question have been put up for auction with an open market value (starting price) at Rwf3.6 billion.

According to an inspection report and valuation in line with the auction, the chia seeds in question consist of 1,000 tonnes, of which 400 tonnes are organic (valued at Rwf1.8 billion, with a unit price of Rwf4,500 a kilogramme), and 600 tonnes of conventional chia seeds (worth 1.8 billion, with a unit price of Rwf3,000 a kilogramme).

They are stored in Akenes and Kernels Ltd&039;s warehouse in Kigali Special Economic Zone, Masoro, Gasabo District, Kigali.

Farmers worried

Emmy Nsengiyumva, the president of the committee of chia seed farmers in Rwanda, told The New Times that "it is not understandable how chia seeds worth that much and belonging to over 3,000 farmers, would be auctioned to pay just one person owing Rwf40 million.”

The issue, he said, occured when the farmers were in negotiations coordinated at the national level, in order to amicably address the problem for them to get their payments.

Such negotiations involve the Ministry of Local Government, the Ministry of Agriculture and Animal Resources, and the Ministry of Trade and Industry, among other public entities.

A letter dated November 12, that the farmers’ representative committee wrote to the Rwanda Investigation Bureau (RIB) requesting an injunction of auction, suggests that the company owes farmers Rwf22 billion for the unpaid chia seeds they supplied to it.

"We wrote to RIB seeking to halt that auction [of chia seeds] until the mediation is over, because he [Sheja] is also among the farmers for whom we are making advocacy, so that people get equal rights,” Nsengiyumva said, adding that he does understand why Akenes and Kernels cannot pay him, without auctioning the produce of the farmers.

He said ‘one can smell something fishy’ in the chia seed auction.

The New Times tried to get a comment from RIB on the farmers’ request to prevent the chia seed auction, but it could not obtain it by press time.

When The New Times contacted Sheja for a comment on why he took legal action against Akenes and Kernels for produce payment, while, overall, farmers were in negotiation for an amicable solution to the issue, but he was not willing to provide information.

"I had an agreement with Akenes and Kernels. I do not understand why the media comes in,” he said.

Just enforcing a court order

Frederic Semuhoza, the professional bailiff who is enforcing the court order to auction the chia seeds in question, told The New Times that he went through the legally accepted processes including giving Akenes and Kernels the time to pay the due amount to Sheja, which it did not.

The announcement he wrote for the auction of the mentioned produce is dated November 7.

He indicated that the auction is in its second round – which started on Friday, November 18 and will be open for seven days until November 25 – as the first round, which started on November 9, did not get a successful bidder (buyer).

On why the auction involves chia seeds worth Rwf3.6 billion, yet Sheja is owed Rwf40 million, he said that even though he is "enforcing a court order for the payment of Rwf500,000, and he seizes an asset worth Rwf100 million, only the due amount is deducted from its sale, while the remaining amount is handed to the owner.”

Company’s reaction

Commenting on the farmers’ payment concern as chia seed auction is imminent, Yves Ndayisenga, Chief Finance Officer of Akenes and Kernels Ltd told The New Times on Saturday that he does not think the auction will take place in the interest of one person, yet there are thousands of farmers who are owed money.

"We are doing our best in the interest of many Rwandans for which we have their produce there [at Kigali Special Economic Zone warehouse], not in the interest of one person,” he said.

Meanwhile, on October 24, Ndayisenga told The New Times that the firm was under pressure to pay billions of Rwandan francs it owes to thousands of farmers, and that some 189 of them wanted to sue it in courts.

Also, he revealed that a caveat (transaction warning) was put on the company’s account in May this year, and as a result, "no bank could lend us money, yet the citizens were pressing to get payment for their produce.”