Most of the beneficiaries of the scheme complained of increasingly poor yields in the years beyond 1996 as an excuse for not repaying the grain and the government suspended the facility in 1999.

It has since been re-activated in the face of Zimbabwe's worst food crisis that has been triggered by another severe drought and the government's chaotic land reforms which have disrupted farming, cutting food output in the key sector by at least 60 per cent last season.

Harid's report also accuses the Ministry of Local Government and National Housing of delaying the handover of $1,923,524 to the National Drought Fund, which had been recovered from Grain Loan Scheme recipients.

The money was reportedly held in the ministry's temporary deposits account.

About $96 million was disbursed from the National AIDS Fund to the Zimbabwe Network of People Living with HIV/AIDS (ZNNP+) without control mechanisms to ensure the money reached the intended beneficiaries, Harid's report said.

It said an audit was not able to establish if all the beneficiaries receiving money were genuine.