Minister for Agriculture, Hon. Hussein Bashe, is determined to eliminate corruption and monopolies within tobacco cooperatives, a sector that has seen a troubling history of financial mismanagement.
Speaking during a public meeting held on October 11, 2024, in Sikonge District, Tabora, where Vice President Dr. Philip Mpango was the guest of honor, Bashe issued a stern warning to cooperative and financial institution employees who have been sabotaging payments to tobacco farmers.
The minister's remarks came after a scandal involving the theft of over 550 million Tanzanian shillings from the KISANGA Cooperative Society.
The scheme, which involved 13 employees from the Cooperative Commission, TAMISEMI, and NMB Bank, resulted in the suspension of one cooperative employee.
Bashe emphasized that any employee or leader involved in misappropriating farmers' funds would face immediate suspension, underscoring the government’s commitment to rooting out corruption in the agricultural sector.
Visibly frustrated by the extent of the wrongdoing, Vice President Mpango directed TAMISEMI to suspend its implicated employee without delay.
He also urged Minister Bashe to coordinate with the management of NMB Bank to take similar action against their staff involved in the scam. A comprehensive report was to be submitted to the Prime Minister.
In collaboration with the Director of Public Prosecutions and the Prevention and Combating of Corruption Bureau (PCCB), the government had already recovered 117 million shillings from the accused, while an additional 437 million shillings had been frozen in their bank accounts.
Their assets, including houses and vehicles, had also been seized, signaling a crackdown on corrupt practices.
Minister Bashe also revealed an ongoing case involving the company Voedsel, which owes US$78,000 to farmers from the Mtapenda Cooperative Society. Efforts are underway to ensure the farmers are compensated.
The situation has prompted significant changes in the payment procedures for farmers, as Bashe strives to make cooperatives more inclusive.
Under the new policy, a member of a cooperative, even without shares, will have their dues recognized as proof of their membership.
The initiative is designed to break the monopolies that have plagued cooperatives, ensuring a more equitable system.
Sikonge District, known for its thriving agricultural production, has seen a remarkable increase in tobacco yields, growing from 2,650 tons in 2019/2020 to 10,565 tons in 2023/24.
The total value of this year’s production stands at an impressive US$23.9 million, highlighting the district's significant contribution to the country’s economy.
Through these reforms, Minister Bashe is working to restore integrity in the cooperatives and ensure that farmers receive what they are rightfully owed, marking the beginning of a new era of transparency and accountability in the tobacco industry.
