Tongaat to compensate farmers

Tawanda Mangoma in CHIREDZI
Lowveld sugar producer Tongaat Hulett has agreed to compensate over 200 new farmers in Chiredzi who are occupying over 4 000 hectares of sugar cane whose land is at the centre of an ownership wrangle between the company and the indigenous beneficiaries. The move to pay the farmers came after Government set a compensation framework for the affected farmers after their offer letters were withdrawn by the Ministry of Lands and Rural Resettlement early this year.

Farmers are set to receive a windfall from Tongaat if the compensation framework set by Government is adhered to.

Tongaat and the new farmers are currently haggling over control of the fields that are holding cane crop worth an estimated US$20 million.

Government initially allocated the new farmers model A2 cane plots at Hippo Valley and Triangle before making a U-turn and withdrew the offer letters citing the Bilateral Investment Promotion and Protection Agreement (BIPPA) between Zimbabwe and South Africa.

Tongaat Hulett is a South African-based firm.

Farmers responded by taking Government and Tongaat to the Supreme Court.

Tongaat has denied farmers access to mill their crop at Triangle and Hippo Valley with the latter also barring the sugar producer from accessing the disputed cane fields.

There were fears that the stand-off between Tongaat and the farmers could lead to losses spilling into millions.

In a letter to the farmers dated September 1 this year, Lands and Rural Resettlement Minister Dr Douglas Mombeshora said all the 220 farmers were going to be compensated based on investments they made on the cane crop.

The minister said farmers would be paid profit after Tongaat deducted costs incurred during the transportation and milling of the sugar cane.

“A payment framework has been determined following discussions between the ministry and Tongaat Hulett based on the following: 1. Payment will be made to farmers willing to participate based on the understanding that Tongaat Hulett harvest the sugar cane on the plot,” said Minister Mombeshora.

He said farmers were supposed to provide proof that they maintained the crop as this would be used in calculating their profits.

“Farmers who maintained the crop fully to the point of harvest will be paid based on revenue from sugar cane less costs incurred by Tongaat Hulett with farmers receiving their full profit.

“Farmers who partially maintained the crop will be paid based on costs incurred. Farmers are free to be present when the sugar cane is harvested to witness the process,” said the Minister.

Minister Mombeshora advised farmers to vacate the land after harvesting of the cane to pave way for Tongaat to take over operations until the outcome of the pending Supreme Court case.

He said farmers who disobeyed his directive and continue to stay at the disputed cane plots would be doing so at their own risk.

“Farmers are to vacate the land after harvesting to allow Tongaat Hulett to maintain the crop and protect the cane roots pending the outcome of the Appeal which is before the Supreme Court.

“Farmers who choose to remain on the plot after the harvest will do so at their own risk. Similarly, Tongaat Hulett will maintain the crop at its own risk,” said Minister Mombeshora.

However, secretary-general of the Lowveld Sugarcane Growers Association, which represents the farmers, Mr Ailess Baloyi said they were going to stay put on their plots.

Mr Baloyi also said they were not going to submit any documentation indicating investments they made on the cane crop in question.

“We are going nowhere, the company must just pay us all the revenue generated from our crop. Tongaat is not Zimra which can help us calculate our profit margins. They just have to deposit our money so that we start preparations for this season as we are behind,” said Mr Baloyi.