admin
Elita Chikwati Features Editor
Four tobacco companies caught leasing permits to other companies not authorised to operate in the tobacco sector have had their contracting licences cancelled by the Tobacco Industry and Marketing Board and can no longer contract farmers.
The companies had their licences cancelled on Tuesday last week after it came to the TIMB’s attention that the companies were leasing licences to other companies who were not authorised holders of the board’s licences. The contracted farmers are unlikely to be hit since they are dealing with the companies who were using the licences and have their inputs.
The four companies are: Leanrise Tobacco, Bigway, Archivers and J and P.
Leanrise had their contract cancelled for leasing their licence to Munyasha Agro Pvt Ltd, Achievers leased to Green Golden Leaf while J and P leased to Green Golden Leaf and Tobacco digital Agro incorporated.
According to a letter written to Bigway by TIMB, the company’s licence was cancelled for “failure to perform the contracting functions for the 2022/23 season, the unsatisfactory financial standing and all circumstances surrounding the matter”.
TIMB spokesperson, Mrs Chelesani Tsarwe confirmed the cancellation of the licences and said the exercise was ongoing.
“The board cancelled the contracting licences of four tobacco companies for leasing licences to other companies who were not authorised holders of TIMB licences.
“This conduct is a violation of Section 7 of the Tobacco Industry and Marketing (Prohibition of Side Marketing) Regulations (S.I 77 of 2022).
“The Board notes that part of its obligations is to control and regulate the tobacco industry in Zimbabwe to ensure orderly marketing, therefore we will continue to monitor the operations of other companies for continued compliance,” she said.
TIMB has been suspending companies for side marketing as part of efforts to encourage best business practices and to restore order in the tobacco industry. The board sees immediate firm action as the only way of dealing with side-marketing at both farmer and contractor levels, and is able to enforce its ban on the practice since it has to register everyone in the industry, from the smallest farmer to the largest company.
So the TIMB is naming and shaming offenders, encouraging and ensuring compliance through disqualifying trade from merchants for a specified period and recommending to the board of directors revocation of a license as a result of accumulation of suspensions warranting permanent cancellation if the merchant has wilfully or persistently failed to adhere to statutes.
Side-marketing is a form of contract default where a contracted tobacco grower sells his or her tobacco to a third party in breach of a legally binding contractual agreement which states that contracted tobacco shall only be sold to or bought by the licensed contractor who provided inputs to such a grower.
TIMB has also established an inspectorate department and is carrying out awareness campaigns educating farmers on the dangers of side-marketing.
Surveillance has also been increased in farming areas to identify middlemen and errant licensed contractors.
Online Reporter