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25 traders die without getting fertiliser payment

What you need to know:

  • The only thing needed is the payment process to start as   waited for quite some time

Moshi/Dodoma. At least 25 agro-dealers who fought a seven-year battle with the government are said to have died without receiving a penny despite supplying fertiliser to farmers in the 2015/16 financial year.

The deceased are among 300 agro-dealers who have been rendered bankrupt after defaulting on loan payments, prompting banks which lent them to seek to recover their money, according to the Tanzania Agro Dealers Cooperative Society (Tadcos).

In 2016, the government stopped paying dealers’ claims totalling over Sh38 billion to pave the way for further investigations following suspicion of massive fraud.

It was claimed that some of the agro-suppliers colluded with some dishonest public servants in the Ministry of Agriculture to steal from the government by presenting forged documents and claiming payments to the tune of Sh70 billion, which prompted the government to halt payments ahead of investigations.

The matter has taken approximately seven years with no end in sight despite dealers cooperating with investigating institutions such as the Controller and Auditor General (CAG).

About six months ago, Kalenga MP Jackson Kiswaga raise the matter during parliamentary proceedings in Dodoma.

Agriculture deputy minister Anthony Mavunde said payment verification processes were yet to be concluded.

The Citizen yesterday reached Agriculture minister Hussein Bashe for comment.

“It is difficult to specifically tell you when we will be paying them,” he said,

Mr Bashe added that distributors filed claims worth over Sh40 billion, “but actual claim are in the region of Sh20 billion”.

“The claims were taken to CAG for verification, after which the Finance and Planning ministry will review them,” he said

Commenting on the minister’s response, Tadcos chairman Gerald Mlenge asked the government to have pity on them as they had waited for a long time.

“The only thing we need is the payment process to start as we have waited for quite some time, and since the government has acknowledged our dues, it should pay up,” he said.

According to Mr Mlenge, both the government and Tadcos were on the same page as they do agree that there are claims, but differ when it comes to the amount it owes distributors.

Moreover, they have already decided that they will not keep fighting the figure, therefore he said: “Let them pay us according to what the government has decided, but if one of us thinks the amount paid is less than his operations, then he will personally seek for his right.”

“For us we want to support Mama (the President) in her quest to revive the agriculture sector, we are currently holdup, we can’t do anything, we don’t have capital thus failure to take part in the current subsidised fertiliser scheme.

“I had to close my shop in 2018 after I couldn’t continue due to capital unavailability. The bank sold my two houses, three vehicles to recover their money. In fact, as we talk, at least 25 dealers have died without getting a penny,” he said.