malvernmugadzikwa
Business Writer
A potentially massive scandal is unfolding in Zimbabwe’s tobacco sector as some tobacco contractors suspended by their regulator – the Tobacco Industry and Marketing Board (TIMB) – are reportedly disbursing inputs to farmers through licensed companies.
Investigations by this publication have revealed that suspended companies (names supplied) are issuing out the inputs in defiance of the TIMB order not to participate this season. The TIMB, which regulates the tobacco industry, suspended some companies which failed to pay the farmers during the just ended season.
According to the TIMB, farmers are owed about US$1,6 million. Some merchants are also owed “very substantial amounts” of money by farmers, according to the TIMB.
“The suspended companies are now using licensed merchants to distribute inputs to farmers on their behalf,” said one tobacco farmer (from Odzi) who benefited from inputs supplied by one of the suspended companies. “They had already purchased the inputs for this season, not knowing that it will be banned from funding growers. What is not clear now is how are they going to buy the tobacco and if they decide not to pay as they have done before, what recourse is there for the farmers?”
This publication has sought a comment from the TIMB and is still waiting for the response.
There are already growing concerns that farmers getting the inputs under the shady arrangement may lose out because—in the event of the problems–it would be difficult for them to seek redress. Some industry players warned “failing to stop these companies from what they are doing is a recipe for the chaotic season.”
In a recent note to stakeholders, TIMB said some tobacco growers have not been paid and this has affected the preparation for the 2022/23 season.
“The board greatly appreciates the efforts of all tobacco growers who have put in the work to make the season a resounding success,” said TIMB.
“However, we are aware that some tobacco growers have not yet been paid for tobacco sold during the 2021/ 2022 marketing season and this has affected timeous preparations for the 2022/ 2023 season.”
“The board is working towards resolving the issue to ensure that all outstanding payments are disbursed.
“All growers who completed sales but have not received full payment are advised to call TIMB for assistance,” it
added.
Bongani Ndlovu