Zimbabwe Commercial Farmers Union president Wonder Chabikwa

A TOBACCO levy charged on growers for afforestation purposes has become a thorny issue among stakeholders and government as Treasury fails to disburse the $20 million raised so far.
Stakeholders who spoke to The Financial Gazette last week alleged that the money paid by the farmers had vanished from the State coffers.
Stakeholders in the sector, growers, farmers’ representatives and forestry experts are puzzled that the money is yet to be disbursed for the programme to start.
Government introduced the levy in January 2015 and all tobacco farmers have been charged at a rate of 1,5 percent in the first year and 0,75 percent in subsequent years and to date, an estimated $20 million has been raised.
Growers have previously complained that they should have benefited from the fund and established woodlots, but it was not clear how they were supposed to access the money or how it was being managed. Disgruntled farmers even lobbied for the scrapping of the levy, citing lack of transparency in the manner it was being administered.
“The tobacco levy has become a very thorny issue in the sector. We are also wondering what is going on because the afforestation programme should have started by now,” Zimbabwe Commercial Farmers Union president Wonder Chabikwa said.
The levy should be administered by the Tobacco Industry Marketing Board (TIMB), but allegations are that the money has not been released by Treasury.
The funds were meant to reduce environmental degradation and farmers who contributed had a right to benefit from the money.
“Tobacco levy proposals were made and structures were put in place by the TIMB right up to the districts but up to now the money has not been released,” Chabikwa said.
The money has been collected from farmers for four marketing seasons but efforts to get the money released have been futile.
“We are closely following this issue but what we have been told is that the money is being held by Treasury and should be released to the TIMB to work with farmers’ unions towards full implementation of the afforestation  programme,” Zimbabwe Farmers Union executive director Paul Zakariya said.
TIMB, however, said it is waiting for the legal mandate to start disbursing the funds.
“We are waiting for the Parliament of Zimbabwe to give us the legal mandate for the administration of this fund. Parliament is yet to approve the TIMB constitution to administer the fund,” the board’s communications manager, Isheunesu Moyo, said.
According to the law, every statutory fund should have a constitution that is approved by Parliament before the funds are utilised.
Government had initially appointed the Forestry Commission to manage the fund, but the Ministry of Finance later changed that and gave the responsibility to TIMB.
“As the committee responsible for environment, water and climate, we wanted the Minister of Finance to come before us and explain why the money is being administered by TIMB and not the Forestry Commission. However, the session closed before the minister could appear before the committee,” Environment, Water, Climate and Hospitality Industry Portfolio Committee chairperson Yeukai Simbanegavi (pictured) said.
Because of the controversy surrounding the fund, the Forestry Commission appeared before Parliament claiming that TIMB had wrested the fund from them after Finance Minister Patrick Chinamasa, in his 2017 budget statement, announced that the fund would now be administered by TIMB.
Some stakeholders, however, still maintain that it is not clear what is happening with the fund as there are allegations that the money has been misused.
“As farmers, we are still waiting on the promise that the money will be disbursed to TIMB and the unions. Four agricultural season have passed and farmers are not happy. The delays are not helping the environment as deforestation continues abated,” Chabikwa said.
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