A controversial chia seed auction has been halted after the petitioner who won a legal battle involving Rwf40 million agreed to an out-of-court settlement, The New Times has learnt.

Last month, farmers who supplied chia seeds to Akenes and Kernels Ltd made an urgent appeal to the government to help halt the auction of 1,000 tonnes of the produce – estimated at Rwf3.6 billion – for which they said they had not been paid.

Earlier, Frederic Semuhoza, a professional bailiff, said that the second round of the auction started on November 18, and would be open through November 25 – since the first round which started on November 9 did not result in a bidding win.

Meanwhile, speaking to The New Times on Wednesday, December 7, Didier Sheja, who sought the auction in order to be paid the Rwf40 million he is owed by Akenes and Kernels, said they were asked to halt the auction by a task force of representatives from different ministries.

The action, he said, was meant to ensure that the property is not auctioned at a fair price because it was about to reach the third round, and some farmers would lose in the process.

"After understanding their request, we granted it, and we will continue to follow up on how the issue can be addressed,” he said.

Semuhoza said the auction was halted as a result of various requests because 'the issue was no longer in the hands of Akenes and Kernels', indicating that it was being handled by three ministries, including local government, agriculture and justice.

He said ministry officials summoned them, along with the president of the bailiffs, indicating that there were three clients with enforcement orders.

"They explained to us how the produce is bought through auction at a giveaway price,” he said.

"The second round of the auction was almost over so we entered the third because there were no buyers, probably because it is common practice for people to wait for an opportunity to buy at the lowest price."

Meanwhile, speaking to The New Times on December 7, Emmy Nsengiyumva, president of the committee of chia seed farmers in Rwanda, said the auction was removed from the online judgment execution portal after farmers filed an injunction case in court.

The committee of chia seed farmers in Rwanda, represented by Nsengiyumva, lodged the chia seed auction injunction case in the commercial court on November 24.

In this case, the committee indicated that the produce belonged to over 3,000 farmers who are owed by Akenes and Kernels, more than Rwf20 billion in arrears.

"We lodged a case requesting the auction halt, and having the right to the produce, which was done,” he said.

He said that a technical team established by the Prime Minister’s office met with farmers and considered the available market for the produce.

"We agreed that it would be better that the produce is taken to the market, and the money it will generate be used to pay the farmers,” he said.

Octave Nshimiyimana, Director General of Agriculture Value Chain Management and Trade at the Ministry of Agriculture and Animal Resources – who also heads the technical committee – told The New Times that the auction was halted so that "we get basic information”, but indicated that it is normally stopped by the person who won a case.

"The person who wanted the auction to be held agreed to engage in mediation in order to find a solution to the problem,” he said.

"He agreed to be on the negotiation table so that the product be sold at fair prices based on the market,” he said.

He said that there is an available market for the produce, indicating that the company had signed contracts with different buyers.

Meanwhile, some farmers or investors are taking legal action in which they are suing the company to pay the due amount – and court fines.