What You Need to Know
The Tanzanian government has instructed the Prevention and Combating of Corruption Bureau (PCCB) to investigate companies that owe debts to Agricultural Marketing Cooperative Societies (AMCOS) in Geita Region. Reports indicate that cotton and tobacco farmers are owed over 218 million Tanzanian Shillings, prompting authorities to take action to ensure timely payments and protect farmers’ rights.
Africa-Press – Tanzania. THE government has directed the Prevention and Combating of Corruption Bureau (PCCB) to follow up on companies that have failed to settle debts owed to Agricultural Marketing Cooperative Societies (AMCOS) in Geita Region.
Geita Regional Commissioner, Martine Shigela, issued the directive through Geita District Commissioner, Hashimu Komba, who represented him at the region’s main Cooperative Societies Forum. Mr Komba said reports indicate that cotton and tobacco farmers in Bukombe, Mbogwe and Chato districts are owed more than 218m/- by purchasing companies.
He said the debts will be pursued by district security committees under the coordination of PCCB to ensure farmers’ rights are protected and to curb exploitation.
“This issue should not be left to cooperatives alone; we must all take collective responsibility,” he said. “Our colleagues from PCCB and cooperative unions should summon these indebted companies and require them to explain the delays in paying farmers.” He added that authorities will work closely with the companies to recover the debts and stabilise the cooperative sector.
“As we insist on debt repayment, we will also cooperate with you in the recovery process so that together we can strengthen the cooperative sector in our areas,” he said.
Mr Komba also called on AMCOS leaders to safeguard the interests of all stakeholders including farmers, buyers, local government authorities and the cooperatives themselves in addressing debt-related challenges.
He said local government authorities are owed about 52m/-, while cooperative societies are owed approximately 168m/- by various stakeholders, warning that delayed payments could disrupt market stability
Agricultural cooperatives in Tanzania play a crucial role in supporting farmers by facilitating access to markets and resources. However, issues like unpaid debts can severely impact their operations and the livelihoods of farmers. The government’s intervention through the PCCB highlights the ongoing challenges faced by the agricultural sector, particularly in ensuring fair compensation for farmers’ produce and maintaining market stability. This situation underscores the importance of accountability and collaboration among stakeholders in the cooperative system.
