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Former Tobacco Industry and Marketing Board (TIMB) CEO, Meanwell Gudu, was acquitted of all charges related to criminal abuse of office on Friday, August 23.
Gudu had been arrested and accused of misappropriating over US$2 million. He appeared before Harare magistrate Marehwanazvo Gofa, along with co-accused Stuart Shanyika, TIMB’s former head of special services, and Andrew Matibiri, a retired former TIMB CEO.
The trio was arrested by the Zimbabwe Anti-Corruption Commission (ZACC) on September 6, 2022, and first appeared before the Harare Magistrate Court on September 8, 2022.
The state alleged that in the 2017-2018 farming seasons, the Reserve Bank of Zimbabwe had introduced a tobacco financing facility to support small-scale tobacco farmers with inputs and working capital.
A memorandum of agreement was signed on September 10, 2018, between the RBZ, AFC Commercial Bank, and TIMB.
The RBZ was the provider of the funds for the facility, AFC Commercial Bank was the agent and TIMB was the borrower.
However, the court heard that the three accused persons allegedly entered into private agreements with other tobacco contractors, handpicking them in a corruptly designed deal to support the firms with inputs from the TIMB loan.
As a result, the RBZ was allegedly prejudiced of US$2 million, and nothing was recovered.
The matter was heard at the Magistrate Court on Thursday, nearly two years after the arrests, and the charges were ultimately withdrawn before a plea was entered.
Gudu joined TIMB in 2008 as a technical services executive and was appointed CEO in April 2021, following the retirement of the then-CEO Matibiri.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Former TIMB CEO, Meanwell Gudu, was accused of taking money but has been found not guilty. The case was about $2 million for tobacco farmers that went missing. Gudu and others were accused of making deals with specific companies instead of helping all the farmers. The court said the charges were not true, and Gudu is now free. The case started in 2022, but after two years, it was dropped. Gudu has been working in TIMB for a long time and became CEO in 2021.

Former TIMB CEO, Meanwell Gudu, Acquitted Of Corruption Charges

Local banks and pension funds are reluctant to fund tobacco farming amid calls for the central bank to increase the forex retention threshold from the current 60% and rescue the sector from collapse.
Tobacco Industry and Marketing Board (TIMB) chief executive officer, Andrew Matibiri told Business Times this week that the unwillingness by the lenders to fund the crop, which requires about US$600m a year, has left the merchants firmly in control.
The tobacco merchants have been accused of manipulating the tobacco pricing system. Said Matibiri:
<blockquote>The tobacco sector needs local funding but with banks not willing to fund the US$9m TIMB Input Scheme, one wonders if they can commit to funding US$600m yearly.
… Pension funds have the capacity to fund the sector but with them having not benefited immensely from other government programmes [Command Agriculture Scheme], they seem not interested to fund.
It’s very sad for the sector as this leaves the farmer with the same old tobacco merchants for funding.</blockquote>
Matibiri pleaded with the Reserve Bank of Zimbabwe (RBZ) to review the foreign currency retention threshold from 60% to 70%. He said:
<blockquote>Farmers urgently need an upward review of the foreign currency retention threshold to clear debt, some farmers say they need 70% to break even hence an upward review will enable them to start getting profits.</blockquote>
Mangudya defended the activities of tobacco merchants, claiming that tobacco farmers are the most privileged exporters. He said:
<blockquote>I don’t see anything wrong with tobacco merchants getting their money back after sales as they will be deducting the money they would have invested in tobacco growers. They put forex and we give them 100% forex.
Tobacco farmers are the most privileged exporters as they get 60% of the net sales after all deductions have been made.
They should be happy as their gold counterparts are getting 60% forex retention from gross sales.</blockquote>
<h4>More: <a href="https://businesstimes.co.zw/banks-shun-tobacco/" rel="noopener" target="_blank">Business Times</a></h4>

Banks, Pension Funds Shun Tobacco Sector

The <a href="https://www.pindula.co.zw/Tobacco_Industry_Marketing_Board" rel="noopener noreferrer" target="_blank">Tobacco Industry and Marketing Board (TIMB)</a> will consult with stakeholders before it sets the opening dates for the 2020 tobacco marketing season.
This was revealed by TIMB chief executive, <a href="https://www.pindula.co.zw/Andrew_Matibiri" rel="noopener noreferrer" target="_blank">Andrew Matibiri</a> on Thursday. He said:
<blockquote>We are going to consult with other stakeholders before we come up with the opening dates.
The stakeholders will come up with the recommendations which will be taken on board when deciding when to open the floors.</blockquote>
The tobacco marketing season normally starts in March every year and farmers have already started preparing for the marketing season.
Meanwhile, tobacco farmers want the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe" rel="noopener noreferrer" target="_blank">Reserve Bank of Zimbabwe (RBZ)</a> to simplify access to the US dollar component of their proceeds, including a portion to be withdrawn in cash.
<h4>More: <a href="https://www.herald.co.zw/no-opening-date-for-tobacco-season/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

TIMB Yet To Announce Opening Date For Tobacco Season

Tobacco farmers have been forced to cut production by 16% following a dry spell and other reasons. This will also result in lower export receipts next year the Herald reports.
This was revealed by tobacco grower statistics that show a 16% decline in registrations for the 2019/2020 season. The TIMB CEO <a href="https://www.pindula.co.zw/Andrew_Matibiri">Andrew Matibiri</a> was qouted by the Herald saying the decline may be temporary:
<blockquote>There is a -16 percent variance over the same period last year, We believe this is transitory as more are expected to register as they plant their crops in the fields.</blockquote>
Some farmers that spoke to the publication have however announced their retirement from tobacco farming as they are now venturing into other crops. According to the publication, the RBZ governor is on record saying forex generated from Tobacco sales is enough to import fuel for a greater part of the year.
More: <a href="https://www.herald.co.zw/more-farmers-plan-to-ditch-tobacco/">The Herald </a>

Drought Prompts Tobacco Farmers To Cut Production - Report

The Reserve Bank of Zimbabwe (RBZ) will allow tobacco growers to retain 50 per cent of their sales in United States dollars with the other part being credited into their RTGS$ accounts.
This is a significant increase from the 30 per cent announced by RBZ governor John Mangudya when he presented the Monetary Policy Statement.
A joint statement released on Saturday by the RBZ governor and Tobacco Industry and Marketing Board (TIMB) chief executive officer Dr Andrew Matibiri read in part:
<blockquote>The Reserve Bank of Zimbabwe has put in place measures to ensure that tobacco growers who are going to sell their tobacco during the 2019 marketing season, are paid within the shortest possible time.
Tobacco growers shall be paid 50 per cent, after deduction of the USD loans, in United States dollar, and the proceeds shall be deposited in the growers Nostro FCA bank accounts.
The balance of 50 per cent of the net sale proceeds shall be credited into the grower RTGS$ bank account
Small-scale tobacco growers – with two hectares and below of the crop – are entitled to retain sales proceeds in the Nostro FCA for an indefinite period as free funds.</blockquote>
<h4>Related:</h4>
<ul>
<li class="entry-title">
<h4><a href="https://news.pindula.co.zw/2019/03/17/full-text-payment-arrangements-for-green-leaf-tobacco-during-the-2019-marketing-season/">FULL TEXT: Payment Arrangements For Green Leaf Tobacco During The 2019 Marketing Season</a></h4>
</li>
</ul>
<h4>More: <a href="https://www.sundaymail.co.zw/forex-joy-for-tobacco-farmers-growers-to-get-50-percent-earnings-in-us">The Sunday Mail</a></h4>

Tobacco Farmers To Be Paid 50% Earnings In US Dollars

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