Tanzania’s ruling party councilor arrested for alleged embezzlement of Sh139 million of farmers’ money

Masasi. Chiwale Ward’s CCM Councilor, Mr Yusuph Mataula, is currently under investigation for his alleged involvement in a Sh139 million embezzlement scandal.

The funds were meant for cashew farmers associated with the Nanyindwa Agricultural Marketing Cooperative Societies (Amcos) during the 2016/17 season.

The situation came to light during a public meeting held by Minister Bashe on October 2, 2024, in Chiwale Village, Masasi District, Mtwara Region.

Mr Bashe was on a tour to assess development projects when he learned that many farmers had not received their payments, leading to the court-ordered auction of Amcos assets, including a tractor and truck.

In an effort to address the issue, the new leadership of Nanyindwa Amcos announced a plan to pay back Sh10 million each season to help reduce the outstanding debt.

Amcos chairman, Mr Anania Kamaghe, admitted that the embezzlement issue was inherited from previous management upon taking office early this year.

When pressed by the minister to identify those involved in the scandal, Kamaghe revealed that the entire board, along with the former Amcos secretary—now Councillor Mataula—and 12 other leaders were implicated. He disclosed that each leader is expected to repay Sh7.4 million to compensate the farmers.

In response to these allegations, Minister Bashe directed law enforcement to take Mataula into custody to assist with the investigation aimed at recovering the missing funds and identifying all those involved in the embezzlement.

He insisted, “All funds must be recovered within a week, and those involved must be identified,” urging councilors to oversee Amcos operations rather than exploit them.

The minister also ordered the arrest of retired village executive officer Hashimu Pahala for allegedly participating in defrauding a 30-acre farm from farmer Fatuma Namkumbo, despite her having paid Sh1.5 million and receiving a receipt.

Additionally, Mr Bashe called for investigations into further embezzlement cases within Lipumbulu Amcos, as reports indicated some farmers had not received their payments for sesame sales, while others had been paid twice.

Bashe emphasized the urgency of ensuring payments to farmers from RV Company, which had purchased peas from Nanyindwa Amcos on September 15, 2024, yet failed to make payments.

He set a deadline for the company to comply by 10 a.m. on Thursday, October 3, warning that failure to do so could result in the revocation of their business license.

The minister's actions underscore a commitment to addressing the grievances of local farmers and restoring accountability in agricultural management within the region.