Cashew nut co-ops hit by Sh30bn scam

Bagamoyo. Cashew nut farmers from Lindi and Mtwara regions are demanding legal action against executives of co-operatives accused of defrauding them of over Sh30 billion in unpaid dues.

The cooperatives were fingered in a revealing Prevention and Combating of Corruption Bureau (PCCB) 2015/16 report released at the just-ended cashew nut stakeholders’ meeting in Bagamoyo.

Speaking after the report was read, Mtwara Rural MP Hawa Ghasia said the money was supposed to be paid to farmers during the 2015/16 season.

Full details of how a whopping Sh30 billion could not be released to farmers are still sketchy, but reports from the meeting suggested that co-operative officials, who acted as middlemen in selling the farmers’ produce, did not remit the funds.

The Registrar of Co-operatives has confirmed underhand dealings had cost farmers billions of shillings in the recent farming season. But he said investigations are still in progress.

“We are still auditing to assess the full extent of the problem, and also to identify the culprits. Stern measures will be taken against them,” said Mr Audax Rutabanzibwa, the Registrar.

A Cashew nut Board of Tanzania (CBT) report, however, reveals that in the same season, co-operatives had “unjustifiably and unexplainably” deducted over Sh17 billion from the farmers’ accounts.

She said: “What we want is for the government and Registrar of Co-operatives to pursue legal action against those who swindled the money.”

Nanyamba MP Abdallah Chikota said the government had assured them that the suspects would be brought to book before the new season.

However, Tandahimba MP Katani Ahmed blamed the Registrar of Co-operatives for the problems bedevilling cashew nut farmers.