582 nabbed for tobacco side marketing

Sunday Mail Reporter

MORE than 582 people have been arrested for side marketing since the beginning of the tobacco marketing season on March 8.

Statutory Instrument (SI) 77 of 2022 criminalises side marketing of the cash crop, which is one of the country’s biggest foreign currency earners.

The practice constitutes a breach of contract.

It arises when a contracted tobacco grower sells their crop to a third party in breach of a legally binding contract.

Tobacco Industry and Marketing Board (TIMB) spokesperson Mrs Chelesani Tsarwe said:

“To date, 582 growers have been convicted of side marketing.

“Considering that this was a very busy season, we recorded many cases of side marketing.

“However, with the strict enforcement of the Contractors’ Administration Compliance Framework and SI 77 of 2022 (prohibition of side marketing) by our inspectors, we managed to contain the situation.”

Most of the culprits have been fined.

“Among the reported cases, some have been referred to police for further management; the investigations are pending, while several cases are before the courts,” she added.

SI 77 of 2022 imposes a six-month prison sentence or a fine on those who would have been convicted.

TIMB chief executive officer Mr Emmanuel Matsvaire recently said the regulator’s compliance administration framework will bring sanity and transparency to the sector.

“We de-contracted some partly contracted farmers and suspended some unscrupulous surrogate companies,” he said.

“Licences were not renewed for some undisciplined stakeholders.

“We are also implementing tight monitoring of sales floors to ensure adherence to the compliance framework.”

Tobacco Association of Zimbabwe president Mr George Seremwe said eliminating the practice could help lure more investors.

“I hope that this development will bring in more players who would want to invest in tobacco as they feel their returns are protected and guaranteed.

“We will see more competition among contracting companies, who will offer good prices for good-quality tobacco,” he said.

In April, TIMB temporarily suspended 448 farmers suspected of side marketing after they had used their grower numbers to trade multiple times over a fortnight.

This prompted the regulator to send technical teams and law-enforcement officers to inspect the growers’ farms.