Africa-Press – Tanzania. CONTROVERSY surrounding the youth-led agribusiness firm, JATU PLC, is now set to be in hands of security organs for further action.
Over the recent days, the firm’s shareholders have been raising concerns and uncertainty surrounding their capitals invested in the company which implements various projects in the agriculture value chain in Tanzanai.
After registration in the Dar es Salaam Stock Exchange (DSE) in November 2020, the company attracted over 19000 investors (shareholders), out of which over 5000 are farmers, according to statistics obtained by February this year.
It also managed to attract over 60,000 customer members who offer a reliable market for JATU’s agricultural and industrial products from its investors.
Its significant achievements within the short period managed to lure many investors, within and outside the country.
But, due to raised concerns and complaints from its investors, Minister for Agriculture, Hussein Bashe, yesterday twitted that a team formed by the ministry has finished its work and will submit report to security organs this week for further steps.
However, Mr Bashe was quick to say: “Objectives and concept that led to establishment of the firm would be protected. Though, in order to protect credibility of the agriculture sector and not to discourage the working class, who have started channeling their capitals to agriculture sector, measure is inevitable.”
The minister emphasized that those who want to invest in agriculture should satisfy themselves first before investing their capitals.
Following his tweet, some stakeholders had different reactions, including Mr Imani Muhingo, head of research and financial analytics at Alpha Capital, who said: “We have already seen some restructuring with replacement of key management personnel in Jatu PLC. It is encouraging that this issue is almost coming to an end, we hope the responsible team shall get to the bottom of it and Jatu as a company come out of it stronger.”
Leader of opposition ACT-Wazalendo, Mr Zitto Kabwe, said he was expecting that recommendations from the ministry’s team would help the company to do better and not punish and finish them, because it is listed in DSE.
Last week, Tanzania’s Diasporas who injected their capitals in Jatu expressed their fears over their capitals amounting to over 1bn/-invested in the company.
The Diasporas include those living US, UK, Saudi Arabia, Dubai, Belgium, France, Germany, Ethiopia and South Korea.
Through their chairman, Shukrani Magoma, they said they had decided to respond to a government’s call to invest in Tanzania’s agriculture sector and livestock keeping through the Jatu PLC.
Mr Magoma said in a statement that shareholders have been facing challenge particularly when it reaches the time for payments.
“Jatu has been failing to implement their duty despite releasing satisfactory reports over implemented agriculture projects and profits. Despite good impressive reports investors have not been paid,” he claimed.
“Those Tanzanians abroad would like to invest in their country. And they still have hope that investments in agriculture and livestock keeping can significantly help in boosting the country’s economy. They ask the government to work on the issue so that they don’t be discouraged,” he stated.
He said the Diasporas have doubt that if the JATU would not be closely monitored, it would reduce trust of investors.
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