TIMB tightens screws on side marketers

LIVINGSTONE MARUFU

At least 90 persons have so far  been convicted for  engaging in tobacco side marketing  following  the  enactment of legislation to curb the scourge as the tobacco industry regulator tightens screws to weed out malpractices.

Statutory  Instrument 77 of 2022 gazetted last month punishes side marketers.

The Tobacco Industry and Marketing Board (TIMB) CEO, Meanwell Gudu, confirmed the development saying all manner of side marketing was prohibited and those found on the wrong side of the law “shall be liable to a fine not exceeding level five or to imprisonment for a maximum of six months or to both such a fine and imprisonment.

“To date, 90 individuals have been convicted for participating in side marketing. The new SI has found such persons guilty of delivering for sale tobacco grown by another person but marked by the deliverer’s grower number, buying tobacco without a license, bartering tobacco, selling auction tobacco other than through auction and a licensed contractor buying tobacco from farmers contracted to other companies,” Gudu said.

He added: “The new SI when used in conjunction with administrative penalties will go a long way in curbing side marketing. So far 37 individuals have been convicted using the new SI.”

TIMB trusts that all stakeholders will abide by the new regulations and join TIMB in creating a viable and orderly market.

The move is to thwart all farmers that may want to avoid repayment of loans thereby selling their tobacco through informal means.

Side-marketing increased when the government scrapped 100% foreign currency retention on farmers as they implemented a de-dollarisation roadmap.

The board established  an inspectorate department to curb side- marketing.

TIMB Inspectorate head, Saviour Muvirimu, said the board would suspend  side-marketing sales, growers’ numbers will be blocked  and  have licences revoked.

“As TIMB, we have come up with various strategies to address and discourage side marketing and some of these strategies will be on-going during the 2021-22 tobacco marketing season.

“We have  recruited informers in all farming areas in order to receive information on the presence of illegal buyers in communities. We will be making constant radar sweeps on frequency of sales on grower numbers with the view to identify grower numbers perpetuating side marketing,” Muvirimi said.

He said respective individuals are called to explain these sales and if the authorities  are not convinced,  grower’s numbers will be suspended and the matter will be referred to the police for prosecution.

TIMB increased its  surveillance patrols in farming communities in order to identify makorokoza and errant licenced contractors engaging themselves in side marketing.

Despite these efforts, various contractors are arguing that TIMB policies are inadequate to reduce side marketing and that companies are likely not going to settle their debts with banks and offshore lenders.

The Reserve Bank of Zimbabwe gave tobacco growers 75% forex retention threshold with the balance paid in the local currency.

Zimbabwe Tobacco Association chief executive officer  Rodney Ambrose said such inadequate policies will certainly not “boost “ production of tobacco as farmers are trapped in debt.

“The danger is that weak and inconsistent policies may lead to increased side marketing,” Ambrose said.