PCCB arrests trader in crackdown on sugar hoarding
An alarm was sounded on Friday over harmful industrial sugar that was being supplied by dealers taking advantage of the current shortage of sugar for domestic use, with retail prices now spiking at Sh3,000 a kilo.
Knowledgeable sources in the industry told The Citizen that the harmful sugar has been seen in shops in Dar es Salaam and in the Central Zone, mainly in Singida Region, and urged consumers to be careful while purchasing their supplies.
The warning came as President John Magufuli issued a directive to state security organs to crack down on traders he accused of hoarding sugar to create the shortage.
What you need to know:
- PCCB boss Valentino Mlowola has confirmed that the anti-graft body and police have launched investigations into traders hoarding the commodity to create an artificial shortage and increase prices
Dar es Salaam. The Prevention and Combating of Corruption Bureau (PCCB) in collaboration with the police are holding the managing director of Alnaeem Enterprises Limited, Mr Haruni Zacharia, over allegations of hoarding 4,579.2 tonnes of sugar in his warehouse at Mbagala.
PCCB director general Valentino Mlowola confirmed yesterday that his anti-graft body and the police have launched countrywide investigations into traders hoarding the commodity while aiming at creating a false shortage so as to hike its prices.
Mr Zacharia was arrested on Friday evening at one of his offices just a few hours after President John Magufuli directed state organs to investigate and arrest all traders suspected of having hidden the commodity in order to create the sugar crisis. According to Mr Mlowola, all of Mr Zacharia warehouses were under PCCB and police watch. He said they were currently holding the trader for interrogations.
“We found a total of 4,579.2 tonnes of sugar that he purchased from the Kilombero Sugar Company. This was hidden in his warehouses,” said he. The anti-corruption czar said a task force team formed by police officers and PCCB officials visited Mr Zacharia’s warehouses at Mbagala and Tabata where they found the huge consignment of sugar.
According to Mr Mlowola, initial investigations showed that Mr Zacharia was hiding the commodity because there were no movement in the warehouses.
Mr Mlowowa added that when the team visited Mr Zacharia shop, which is located at Kitumbini in the city centre, they found a long queue of people who wanted to purchase the commodity.
“Very few people were able to buy sugar and even those who managed to get the commodity were given small amounts compared to what their orders. This was despite the fact that there were many tonnes of sugar in the warehouses,” said Mr Mlowola.
According to a statement issued later on the day by Mr Mlowola, the team also found that Mr Zacharia had planned to buy sugar from local producers and store it before releasing it in as small amounts as 250 tonnes daily in in order to create the crisis.
Mr Mlowola added that by doing so, Mr Zacharia had violated Chapter 200 of Economic Sabotage Act, which prohibits traders from hidding commodities from the markets.
The PCCB boss said currently PCCB and police were carrying out investigations across the country against traders who had hidden the commodity. In Arusha police seized a total of 45 tonnes of sugar which were hoarded in a ware house belonging to a trader identified as Kareem Dakik.
Arusha Regional police commander Charles Mkumbo said the commodity was seized following a special operation conducted by his boys in collaboration with PCCB following President John Magufuli’s Friday directive.
Mr Mkumbo said during the interrogation, Mr Dakik revealed that he had reached an agreement with Arusha District Commissioner Fadhili Nkurlu to sell the sugar through Ward Executive Officers so that the retail price would be that set by the government.
On Friday, President Magufuli issued a directive to state security organs to crackdown on traders he accused of hoarding sugar to create the shortage currently haunting the country.
He also warned traders who are hoarding sugar in their warehouses to create a supply crisis his government wouldn’t tolerate them.
“I warn these traders against thinking that they can fool around with the government. They should know that they are only playing with their own survival. I advise them to immediately release the commodity to the market,” the President was quoted as saying in Kateshi on his way to Monduli, where he commissioned 586 military officers at Tanzania Military Academy.
Despite the warning a survey by The Citizen in various part of the country showed that the commodity price had refused to come down.
Prices of a kilo of the comodity ranged between Sh2,400 to as high as Sh3,000.
In Dar es Salaam, shelves at the Mlimani City’s Nakumatt and Game supermarkets were empty as attendants said they hadn’t received sugar from suppliers.
In Newala District a kilo of sugar was sold at Sh3,000 while in Mtwara the price stood between Sh2,600 and Sh2,800.
A kilo of sugar was still retailing at Sh4,000 per kilo in most parts in Mwanza City despite the President’s directive.
Reported by Frank Kimboy (Dar), Mussa Juma (Arusha), Haika Kimaro (Mtwara) and Geofrey Kimani (Mwanza).
