TIMB names, shames side marketers
THE Tobacco Industry and Marketing Board has named, fined some farmers and permanently de-activated some growers’ numbers for engaging in side marketing.
The board published names of the affected 229 farmers to discourage the illegal practice.
The listed farmers will have challenges securing contracts in the forth-coming seasons.
TIMB communications manager Ms Chelesani Moyo confirmed that some farmers had been fined for violating SI 77 of 2022 (prohibition of Side Marketing) and the Tobacco industry and Marketing Act (Chapter 18;20) during the 2021/22 tobacco selling season.
“Those who were “named and shamed” in the press were made to pay administrative fines by TIMB. Some were permanently de-activated and will have their grower numbers withdrawn for good.
“Having your name published will also make it difficult for the said growers to get any support from contractors in the coming season,” she said.
Recently, the board suspended operations of eight companies due to non-remittance of stop order deductions.
Dynamic Tobacco, whose suspension had been lifted on May 20, has been suspended again on allegations of side marketing.
TIMB directed Boost Tobacco to take over operations of its surrogate company. “The board encourages best business practices to restore order in the tobacco industry. Non-compliance to set regulations will be dealt with. The suspensions that have been happening are basically meant to name and shame the offender, encourage and ensure compliance through disqualifying trade from that merchant for a specified period and recommend to the Board of directors revocation of a license as a result of accumulation of suspensions warranting permanent cancellation if the merchant has willfully or
persistently failed to adhere to statutes,” said Ms Moyo.
Side-marketing is a form of contract default where a contracted tobacco grower sells his or her tobacco to a third party in breach of a legally binding contractual agreement which states that contracted tobacco shall only be sold to or bought by the licensed contractor who provided inputs to such a grower.
Side-marketing is also a form of breach of law when auction tobacco is sold otherwise than through auction floors in breach of S40 of the Tobacco Industry and Marketing Act (Chapter 18:20).
Side marketing can also take place when a contracted farmer sells his or her tobacco to a licensed contractor other than the one who supplied him or her with inputs. TIMB has established an Inspectorate department and is carrying out awareness campaigns educating farmers on the dangers of side-marketing.
The board is also making constant radar sweeps on frequency of sales on grower numbers to identify grower numbers perpetuating side-marketing.
Respective individuals will be called to explain these sales and if not convinced, TIMB blocks and suspends the grower numbers and refers such criminal elements to the police for prosecution.
Surveillance has also been increased in farming areas to identify middlemen and errant licensed contractors.-The Herald
