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Minister Bimha

Tawanda Mangoma in CHIREDZI
Industry and Commerce Minister Mike Bimha has dismissed the decision by the Commercial Sugarcane Farmers’ Association of Zimbabwe to drag him to court over their industrial dispute with Tongaat Hulett. Minister Bimha said the litigation will not stop him from executing his duties to develop Zimbabwe’s economy.

The dispute dates back to 2014 when farmers complained to Minister Bimha over Tongaat Hulett’s alleged exorbitant charges for milling services. Minister Bimha responded by setting up an interim division of proceeds in which the miller received 17,25 percent of the value of a processed tonne of sugar, while an independent consultancy, Ernst & Young, were drafting new ratios whose findings were to be followed by all parties.

The Ernst & Young report, however, set the DOP ratio at 23 percent for the milling company, while the farmer pockets the balance meaning farmers were being overpaid by the miller since 2014. Guided by the findings, Tongaat Hulett this season started recovering close to $10 million owed by the farmers, although Minister Bimha had cited some flaws in the Ernst & Young review process.

In an interview, Minister Bimha said while he could not meet the farmers last month, he was prepared to mediate over the impasse. “It’s time we meet and solve the DOP issue so that the industry can move on smoothly,” said Minister Bimha.

Chiredzi West legislator Cde Darlington Chiwa said farmers engaged their parliamentarians for assistance, but their input was being suppressed by the association’s executive.

“I am a former secretary-general of the CSFAZ,” he said. “I know the whole DOP story by heart, but when we left office in 2013 the whole process was led stray by the newcomers.”

Cde Chiwa said a meeting had already been requested with Minister Bimha to iron out the matter. He said they would also ask the new Provincial Affairs Minister for Masvingo, Dr Paul Chimedza, to attend the meeting between Tongaat Hulett and the minister. Former CSFAZ chairman Mr Admore Hwarare, who has a strong background on the issue, would also be asked to be part of the process. Mr Hwarare also called for dialogue to resolve the dispute.

“Farmers have lost millions just because we made a mistake of trusting in a team which is confused,” he said. “They believe in the courts to solve everything and tried to gag the minister who was appointed by the highest authority in Zimbabwe, President Mugabe.”

Mr Hwarare said the dispute could be overcome in just seven days of dialogue.