The Chairperson for Parliamentary Committee on Agriculture, Irrigation and Water Development describes the use as collateral the two companies; STECO and Chitakale tea factories by Mulli Brothers and alleged takeover, blow to the farming sector.
Salima Central legislature was reacting to the petition sent to the National Assembly by the concerned Smallholder Tea Farmers from Mulanje and Thyolo districts who wants the House to help them prevent now sold Malawi Savings Bank (MSB) from selling the two tea companies and hand them over back to the farmers.
MSB announced the sale of the two tea companies in a bid to recover the Billions of Kwacha’s that Mulli Brothers owes the bank. Mulli obtained loan worth Billions from the bank using the two companies as collateral but the concerned Smallholder farmers claims Mulli does not own STECO and Chitakale.
After receiving the petition on Thursday, Hon. Felix Jumbe Hon. Jumbe said as a farmer he is concerned that the problem is deliberate and so many other companies and organizations that should have been owned by farmers themselves were wrongly “taken in such format” citing David White Head and Dairiboard. He said this is depriving farmers of realizing better income.
He noted that it is sad that Malawi government remains silence as businessmen are taking ignorance of farmers on issues, to enrich themselves saying issue at hand is one of it.
Hon Jumbe promised that parliament “Will look into the circumstances which led to this situation for Mulli to use collateral of an asset which he was just a shareholder. Even for the change of hands from STECO to Mulli”
He as well, assured that his committee together with relevant committees including Privatization Committee will investigate and come up with conclusion on circumstances that led to alleged illegal change of ownership of STECO and Chitakale tea factories by Mulli Brothers.
“The two companies were meant for farmers that when they grow their tea they should sell their leaf to the these companies with a view that when they add value, farmers would be benefiting more than just selling the green leaf” he observed
According to the Smallholder Tea Farmers petition, their majority shares were sold to an individual (Mulli) without consulting the will or majority (Smallholder Tea Farmers In Malawi) and as well, wondered why government allowed Mulli to get the two companies.
“We the voiceless farmers were disappointed regardless of pressure against the idea of the sale of the Smallholder facilities and eventually decided to be refugees in our own country and had to look for asylum in the private tea companies” claimed Wilfred Custom who led the petitioner’s
They demand that Malawi Savings Bank (MSB) now sold to FDH Holdings Limited, should exclude STECO and Chitakale in its proposed sale of Mulli Brothers assets since Mulli Brothers is just a partner.
“Farmers wonder as to why Mulli Brothers used STECO and Chitakale as collateral for obtaining loan from MSB which never benefited the two companies.” He said
“The proposed STECO and Chitakale remains an issue uncalled for, because the investor (Mulli Brothers) failed to run the two companies in more viable and profitable standard in the sense that he failed to service loans, he failed to pay farmers approximately K70 million for green leaf sales and bonuses” claimed Mr. Custom who added that Mulli has failed to publish audited accounts and implement the dividend policy among others that are in the MOU.
“Government should assist the smallholder farmers to reclaim the two companies and outsource transparent and dynamic management on contract to revamp the operations and finally hand over the companies to the Smallholder Tea Farmers” pleaded the group in the petition
The group has also asked government to revoke the existing Trust Deed of the Smallholder Tea Growers Trust and Smallholder Tea Company and replace with a Trust Deed which will empower growers to manage the company without political interference.
According to the concerned farmers, there are 15000 smallholders in Malawi with 70% female representation with an average land holding size of 0.4 hectares.
No comments:
Post a Comment