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The Cotton Company of Zimbabwe (COTTCO) has assured farmers that all seed cotton stored at common buying points (CBPs) will be transported to ginneries by mid-October and that outstanding payments for 2024 will also be processed.
This assurance comes in response to farmers’ concerns that some 2024 seed cotton remains at certain CBPs, with the local currency portion (equivalent to US$0.08) yet to be received.
Stewart Mubonderi, chairman of the Cotton Producers and Marketers Association (CPMA), said that some seed cotton at the CBPs was damaged due to recent rains. He said (via <a href="https://www.herald.co.zw/all-seed-cotton-to-be-in-ginneries-by-mid-october/">The Herald</a>):
<blockquote>
COTTCO has not yet picked seed cotton in some CBPs in areas such as Mutoko, Chiredzi and Binga among others and the cotton was damaged by rains that fell last week.
Farmers have also not been paid their local currency component for the crop plus the grade-based differentials.
</blockquote>
COTTCO’s CEO, Rockie Mutenha, said that 76% of seed cotton has been transported from common buying points (CBPs) to ginneries, with efforts underway to complete the movement by mid-October.
He said 45 to 50% of the local currency owed to farmers has been paid, and although a local bank has a facility to cover the full amount, it is currently facing liquidity challenges but plans to disburse funds soon.
According to a COTTCO report dated September 26, the total intake from all six business units (BUs) was 9,973,909 kilogrammes, with 7,611,788 kilogrammes moved and 2,362,121 kilogrammes remaining.
The Sanyati unit has the highest outstanding amount at 910,302 kilogrammes, followed by Chiredzi, Gokwe, Chinhoyi, Muzarabani, and Kadoma.
The 2023/24 agricultural season was significantly affected by an El Niño-induced drought, leading to an 85% drop in production, from 90,084 tonnes in 2022/23 to just 13,545 tonnes this year.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

COTTCO promises to move all cotton to factories and pay farmers. Some cotton got damaged by rain but will still be moved. They have paid some money to farmers but still owe more. The CEO says they are working to finish moving cotton by mid-October. Some banks are helping with the money but are facing problems. The drought last year caused a big drop in cotton production. The report shows how much cotton has been moved and how much is left. Don't worry, the cotton will be taken care of soon!

COTTCO Pledges To Move Seed Cotton To Ginneries And Process Payments To Farmers

The Cotton Company of Zimbabwe (COTTCO) owes farmers nearly US$3 million for cotton deliveries made between 2022 and 2023.
This was revealed by Lands, Agriculture, Fisheries, Water, and Rural Development Minister Anxious Masuka in response to written questions from legislators during a parliamentary session this week. He said (via <a href="https://www.newsday.co.zw/local-news/article/200032907/cotton-farmers-owed-us3m">NewsDay</a>):
<blockquote>
COTTCO is being mindful of the indebtedness to the farmers and engagements with various financiers are underway for facilities to liquidate the outstanding balances.
To date, US$20 917 906 has been paid against a target of US$23 722 509, hence there is an outstanding debt amounting to US$ 2 804 603.
</blockquote>
Over the years, COTTCO has faced difficulties in paying for cotton deliveries due to insufficient funding.
Cotton production in Zimbabwe has been declining as a result of several factors, including drought, climate change, low pricing, outdated crop varieties, and delays in payments.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO, a company in Zimbabwe, owes farmers $3 million for cotton deliveries. The Minister said they are working on getting money to pay farmers. They have paid some money, but still owe a lot. COTTCO has had trouble paying farmers in the past. Cotton production in Zimbabwe is going down because of things like drought, climate change, low prices, old crops, and late payments.

COTTCO Owes Farmers US$3 Million

A former Cotton Company of Zimbabwe (COTTCO) manager was Wednesday taken to court charged with theft of trust property, reported <a href="https://www.newzimbabwe.com/cottco-boss-in-court-for-stealing-1-000-bags-of-fertiliser-under-presidential-inputs-scheme/">NewZimbabwe.com</a>.
Praise Makombore, who was COTTCO Mutoko’s business unit manager, allegedly stole 1 000 bags of fertiliser which were under the presidential inputs scheme.
She apppeared before Harare magistrate Marewanazvo Gofa who granted her US$300 bail.
Makombore was also ordered to surrender her passport to the clerk of court as part of her bail conditions.
The court heard that sometime in 2023, Makombore, who was the custodian of the presidential inputs allegedly connived with Zinhle Ndlovu who is still at large to steal fertilisers meant for distribution to farmers in the Mutoko area.
The duo allegedly planned to pretend as if they had instructions to order the release of fertilizer for distribution to farmers. Reads the court papers:
<blockquote>
The fertiliser was then collected by two trucks without completing the necessary documentation. The trucks proceeded to a warehouse in Murehwa where the accused person’s car would be seen collecting the fertiliser on different occasions.
The accused person’s action resulted in COTTCO losing 1170 bags x 50kgs of compound L fertilisers valued at US$42 120 and nothing was recovered.
</blockquote>
On the second count, it is alleged that between February 2022 to June 2023, Makombore contracted four vehicles to offer transportation services to COTTCO.
The prosecution further alleges that Makombore arranged for a transporter, registered as T Mutandiro, to receive payments using the bank account of Mutandiro’s husband, Motifa Nzaraigono, without disclosing to COTTCO that she had a personal interest in these transactions.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

A manager at COTTCO in Zimbabwe is accused of stealing 1,000 bags of fertiliser. She pretended to have permission to take the fertiliser for farmers, but actually stole it. The manager took the fertiliser to a warehouse and then her car would come and take it away. COTTCO lost a lot of money because of this. The manager also arranged for payments to be made to a transporter who was actually her husband, without telling her company. She has been taken to court and granted bail.

COTTCO Boss In Court For Stealing 1 000 Bags Of Fertiliser

The Zimbabwe Republic Police and the Cotton Company of Zimbabwe (COTTCO) have warned cotton farmers who received farming inputs disbursed under the Presidential Input Scheme (PIS) against side marketing their harvest.
Side marketing refers to a situation where farmers, especially those engaged in contract farming, sell their produce to buyers other than the contracted purchaser.
In a joint statement issued this Thursday, June 20, ZRP spokesperson Commissioner Paul Nyathi and COTTCO Chief Executive Officer Roki Mutenha, said farmers who engage in side-marketing seed cotton produced through PIS and buyers who will try to influence farmers to engage in side marketing will be arrested. Part of the statement reads:
<blockquote>
The Cotton Company of Zimbabwe (Cottco) and the Zimbabwe Republic Police (ZRP) are working together to secure seed cotton produced from inputs disbursed under the Presidential Input Scheme (PIS).
Farmers who benefitted from this programme are requested to deliver their produce to Cottco and shun side marketing.
COTTCO is the official off-taker of all the seed cotton produced under (PIS). The broader commitment by the Government in rolling out this programme is to ensure sustenance, employment creation, rural development and bolstering of the cotton. value chain in line with National Development Strategy 1 and Vision 2030.
</blockquote>
COTTCO has assured farmers that it will make immediate payments for seed cotton delivered at common buying points.
The ZRP urged farmers to secure their funds and minimize the risks of robberies as well as the potential loss of funds.
Under the Presidential Inputs Scheme, farmers receive inputs such as seeds, chemicals, fertilisers, tillage and agronomy support at no cost.
In return, they are expected to establish, maintain and deliver seed cotton to COTTCO when the marketing season commences. Reads the statement:
<blockquote>
The Zimbabwe Republic Police will ensure that the law takes its course on anyone found to be side-marketing seed cotton produced through the Presidential Input Scheme (PIS).
In this regard, any buyer who will try to influence farmers to engage in side marketing activities will also be brought to book.
</blockquote>
Early this month, a Hurungwe farmer, Augustine Nyamadzawo (38) from Nkani village, Chief Nematombo, Magunje was arraigned before the Karoi Magistrates’ Court for side-marketing his tobacco harvest.
Nyamadzawo was charged with contravening the Farmers Stop Order Act, that is, “dealing with the whole or part of any crop or any proceeds thereof in such a manner as to avoid or to be likely to avoid the due payment of any prescribed costs, addressee’s fees, registered stop-orders or special stop-orders relating to such crop.”
The complainant, who was the contractor, Boost Hail and Cotton Private Limited, suffered prejudice of US$829 and nothing was recovered.
Nyamadzawo was convicted and sentenced to 6 months imprisonment by the Karoi Magistrates’ Court. Four (4) months were suspended on condition of restitution of US$829 by 01 July 2024. In addition, 2 months was suspended on condition he pays a fine of US$150.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Police, COTTCO Vow Stern Action Against Cotton Farmers Involved Side Marketing

Four Cotton Company of Zimbabwe Limited (COTTCO) employees stationed at Gokwe Depot were brought before the Gokwe Magistrates’ Court this week on allegations of stealing fertiliser meant for farmers.
The four, Chrispen Gwavuya (Business Unit Manager), Albert Kanimbirira (Business Accountant), Elvis Chakanetsa Nyamayaro (Human Resources Officer) and Thomas Fukai (Stores Officer) are facing theft of trust property charges.
Allegations are that sometime in 2023, COTTCO Gokwe depot was entrusted to distribute fertilisers to cotton farmers around the Gokwe area.
These fertilisers were under the free Presidential Input Scheme and were meant to be given to cotton farmers.
It is alleged that the accused persons acting in concert unlawfully decided to sell the fertiliser to COTTCO staff instead of giving the farmers as instructed. The National Prosecuting Authority (NPA) said:
<blockquote>
On the 3rd of April 2023 accused 4 raised a disposal form requesting that 571 bags x 50kgs of Compound L fertilizers be written off as breakages.
On the 27th of July 2023, the accused persons held a meeting as the disposal committee and agreed that the fertilisers will be disposed to COTTCO employees. This was done without the authority or approval of the COTTCO Head Office.
The accused persons proceeded to sell 358 bags of 50kg fertilizer at USD2 to COTTCO employees who were not meant to receive them. The proceeds of the sale amounted to USD716.
</blockquote>
The four were arrested by the Zimbabwe Anti-Corruption Commission (ZACC). The commercial value of the prejudice is US$12 172.
Gwauya (46), Kanimbirira (30), Nyamayaro (54) and Fukai (45) appeared before magistrate Honest Musiiwa.
They were remanded out of custody to June 27.
They were ordered to remain at their given addresses, not to interfere with State witnesses and to report to Gokwe CID offices once every week.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZACC Arrests Four COTTCO Bosses For Stealing 358 Bags Of Fertiliser

Transporters contracted by the Cotton Company of Zimbabwe (COTTCO) for the 2023-2024 farming season are demanding payment in US dollars for their services.
As reported by <a href="https://nehandaradio.com/2024/05/17/cottco-transporters-demand-payment-in-usd-for-services-rendered/">Nehanda Radio</a>, the transporters, represented by the COTTCO Transporters group, accuse the company of breach of contract after it allegedly failed to settle their accounts “in full or part timeously”.
Some of the transporters withdrew their trucks and halted operations.
In a letter addressed to the COTTCO Board Chairperson, the transporters said:
<blockquote>
The contracts in issue, varying in scope and duration and periods, were denominated in USD.
COTTCO had been paying us in the same currency before they defaulted on payments which extended up to this day.
</blockquote>
The transporters said the new monetary policy should not apply retroactively to their contracts, which were signed before the introduction of ZiG. They said:
<blockquote>
We believe COTTCO should not apply the ZIG payment policy in retrospect but should be guided by the contract…
Quite shockingly, recently, COTTCO seems to be have raised resources and ready to pay the transporters, albeit, in ZIG.
One could be forgiven for believing that the client seeks to exploit the changes in our currency to the transporter’s detriment.
</blockquote>
The transporters highlighted that their operating costs are all USD-denominated, including loans, employee salaries, rentals, and fuel.
They argued that accepting ZiG would leave them struggling to meet their financial obligations. They said:
<blockquote>
The transporter appreciates all challenges that are alleged to be bedevilling the company. Unfortunately, the individual contracts remain ex tandi binding and lawful agreements.
</blockquote>
The transporters also raised concerns about a potential conflict of interest within COTTCO management and pleaded for fair treatment. They wrote:
<blockquote>
Of concern is the revelation that certain members of management are alleged to be competing with the transporters and it will be curious to check on their respective accounts to see if they are owed.
The conflict of interest is gross and stinks of bad faith…
In view of the above compelling issues, reasons and facts transporters humbly request Cottco to settle their overdue payments in USD as per contract.
In all circumstances, it is fair, just and equitable that settlement be made as contracted.
</blockquote>
Early this month, Munyaradzi Chikasha (46), who is COTTCO’s Acting Managing Director, was arraigned before a magistrate for corruptly concealing a personal interest in a financial transaction related to his employer’s operations and money laundering.
Chikasha was accused of devising “a plan to have his trucks contracted to ferry COTTCO goods and benefit financially without disclosing his interests in the transactions to COTTCO.” The National Prosecuting Authority (NPA) said:
<blockquote>
He bought two trucks and registered them in the name of his nephew and allegedly instructed his nephew to open a bank account where the payments for the transportation services would be made. A contract for the transportation services was then concluded between the nephew and COTTCO Chiredzi Depot.
Thereafter the accused person’s trucks were used to transport COTTCO goods on various occasions and the trucks were always assigned routes on well-maintained roads.
The accused person made sure that all outstanding payments for the services rendered by his trucks were made promptly even when other transporters who had serviced COTTCO ahead of him remained unpaid for their services thereby showing favour to himself.
The money laundering charges arise from the allegations that he used ill-gotten gains i.e. the money he benefited from the transportation services to acquire two more trucks and finance the building of his house.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Transporters Demand Payment In United States Dollars

The Cotton Company of Zimbabwe (COTTCO), says it has paid the US$21 million it owed cotton farmers, with U$323 642 remaining uncollected despite several notices to farmers to do so.
In an update, COTTCO urged farmers to visit the designated collection points to collect the payments. It said:
<blockquote>
This delay in voucher redemption is a cause for concern, particularly in this drought year whereby farmers require financial resources to ensure food security.
Farmers are encouraged to visit business units or designated collection points promptly to access their hard-earned payments.
COTTCO remains committed to ensuring transparency and efficiency in the payment process and encourages farmers to actively engage with the company to access their rightful payments without delay.
</blockquote>
In an interview with NewsDay, Cotton Producers and Marketers Association of Zimbabwe chairman Stewart Mubonderi cotton farmers are still owed US$2,8 million by COTTCO. He said:
<blockquote>
COTTCO had paid US$21 million and the outstanding is US$2,8 million which is worrisome as we are facing drought.
</blockquote>
The cotton farmers were initially owed US$23,6 million by COTTCO. The company had been struggling to settle the payments due to a lack of funding. Added Mubonderi:
<blockquote>
The company has to show seriousness as farmers are facing hardships this year, and giving those vouchers will be easier than what is happening.
On the issue of ZiG which they have not paid, that money needs to be paid to farmers. It will be unfair if that money is not paid on time to farmers.
</blockquote>
Cotton is one of Zimbabwe’s major agricultural exports but yields have declined over the years due to several factors.
According to the Agricultural Marketing Authority (AMA), the country’s cotton production increased by 67% to 89,6 million kilogrammes during the 2022/23 farming season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Says It Paid Out US$21 Million To Cotton Farmers

The Cotton Company of Zimbabwe (COTTCO) says it has paid farmers US$19.6 million and $7.2 billion with outstanding dues expected to be cleared by 31 March 2024, reported the <a href="https://www.chronicle.co.zw/cotton-farmers-paid/">Chronicle</a>.
In a trading update from 01 September 2023 to 31 January 2024, company secretary, Eunice Mupanduki, said liquidity in the local economy remained constrained.
She said COTTCO was unable to draw down to the full extent of available facilities, despite having adequate security. Said Mupanduki:
<blockquote>
The company was, however, able to settle US$19.6 million (83 per cent) and $7.2 billion (18 per cent) of the farmer payments dues in the respective currencies with outstanding dues expected to be cleared from product receipts by 31 March 2024.
</blockquote>
She said the final intake figures for the 2023 cotton buying season stood at 69 419 metric tonnes, which was a 48 per cent increase from the 46 748 metric tonnes achieved in 2022. Added Mupanduki:
<blockquote>
To date, 58 326mt (84 per cent) of seed cotton has been ginned with only 1 066mt (two per cent) having been toll ginned in the Lowveld due to the high volumes in that area.
Local and offshore lint customer collections are still underway with 7 776mt of lint in stock.
Ginned seed on hand is 4 642mt and upliftment by seed suppliers and oil expressors is underway.
475mt of lint has been converted to yarn since April 1 2023 to date.
</blockquote>
She said erratic power supplies in the last quarter of 2023 delayed the completion of ginning.
COTTCO is expecting to break even, in US dollar terms, for the year ended 31 March 2024.
Mupanduki said the Government’s 37.1 per cent shareholding in COTTCO Holdings Limited, previously held in the name of the Ministry of Finance and Economic Development is now held through Mutapa Investment Fund.
The Government, through COTTCO, is the major financier of cotton production in the country.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Pledges To Pay All Cotton Farmers By 31 March

The Cotton Company of Zimbabwe (COTTCO) has paid US$19.3 million to farmers to date, out of the US$23.6 million it owes, the State-run company said in a recent update.
In terms of the local currency debt payment, the company has only managed to settle ZWL$5.4 billion out of ZWL$28.8 billion.
The Zimdollar payments will be made at the prevailing bank rate.
COTTCO also said 168 428 farmers have received inputs, which consist of seed, fertiliser and herbicides for the current planting season.
At least 3 211,48 tonnes out of 4 537 of seed and 15 497,50 tonnes of Compound L have been disbursed to farmers.
Speaking to <a href="https://www.newsday.co.zw/business/article/200021939/cottco-pays-us193m-to-farmers">NewsDay</a>, Zimbabwe Commercial Farmers Union president Shadreck Makombe expressed unhappiness over COTTCO’s failure to pay farmers timeously. Makombe said:
<blockquote>
We are not happy at all with the way Cottco has been run and even as of now, there are some changes, but we are yet to realise the effect of those changes on the ground.
We continue lobbying and advocating for the best for farmers. We continue knocking on their doors… We would want it to improve.
We expect that things will move in the right direction, considering that cotton was known as white gold.
</blockquote>
He said inputs were available but discouraged farmers from further planting saying it’s too late for that. Said Makombe:
<blockquote>
But as for planting, we are now discouraging farmers because we are in the middle of the season, which is a bad season.
Yes, as it stands right now, the Meteorological (Services) Department has told us that there will be rains, and in the past, there were rains, meaning the crop which was (already) planted is doing well because of the rains.
However, we don’t encourage farmers to plant going forward because even those ultra-short season seed varieties can be affected. After all, the season is so short.
</blockquote>
Cotton used to be one of Zimbabwe’s major agricultural export commodities but production of cotton has been on the decline since 2013.
Before 2013, production was between 200 000 and 350 000 tonnes.
However, there has been a notable improvement in production in recent years.
According to statistics from the Agricultural Marketing Authority (AMA), the nation produced 137 702 tonnes in 2021, up from 91 712 the year before.
Production further increased by 67% to 89,6 million kilogrammes during the 2022/23 farming season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Yet To Pay US$4.3 Million, ZWL$23.4 Billion To Farmers

The Government has summoned the Cotton Company of Zimbabwe (COTTCO) officials to explain why the company is delaying paying the US$6.8 million the company owes cotton farmers, reported <a href="https://www.newsday.co.zw/local-news/article/200019469/govt-summons-cottco-over-us68-million-debt">NewsDay</a>.
Speaking during Parliament’s question and answer session last week, Lands, Agriculture, Fisheries, Water and Rural Development Minister Anxious Masuka said the Government expects COTTCO to clear the outstanding US$6.8 million owed to farmers before the end of this month. He said:
<blockquote>
The government is concerned by the delayed payments, which is why we summoned COTTCO officials to get an understanding of why these delays are persisting when others have almost completed paying their contracted growers.
We take their word as COTTCO that they will be able to make good on the outstanding US$6.8 million to farmers before the end of this month as they are now able to sell the cotton.
We had meetings with companies that help farmers like the Zimbabwe Farmers Union and others, we will be supervising as Government so that farmers get the necessary inputs and are paid early if they deliver their cotton.
</blockquote>
Last month, COTTCO chief executive officer, <a href="https://www.pindula.co.zw/2023/10/21/cottco-owes-cotton-farmers-millions-of-us-dollars/">Priscilla Mutembwa said that efforts were underway to pay all farmers’ outstanding payments</a> before the onset of the 2022/23 summer cropping season.
Mutembwa COTTCO had paid $16.7 million to farmers, out of $23 million owed, adding that the company was working hard to ensure that arrears to its workers were also cleared.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Summons COTTCO Over US$6.8 Million Owed To Cotton Farmers

The Cotton Company of Zimbabwe (COTTCO) says it still owes farmers about 30 percent of payment for deliveries made by farmers last season, reported <a href="https://newziana.co.zw/2023/10/19/cottco-working-to-clear-farmers-debt-official/">New Ziana</a>.
Speaking to journalists recently, COTTCO chief executive officer, Priscilla Mutembwa said that efforts were underway to pay all farmers’ outstanding payments before the onset of the 2022/23 summer cropping season. She said:
<blockquote>
We are trying to improve the production as well as how we can be more prepared to be able to work better with the farmers in terms of input distribution and farmer payments.
We still owe some farmers about 30 percent of the amount that has been delivered which we are currently working on very vigorously with both the Reserve Bank of Zimbabwe and our partner banks as well as the Ministry of Finance.
</blockquote>
Mutembwa said to date, COTTCO has paid $16.7 million to farmers, out of $23 million owed, adding that the company was working hard to ensure that arrears to its workers are also cleared.
She said COTTCO has not yet distributed free Pfumvudza/Intwasa cotton inputs to farmers around the country. Said Mutembwa:
<blockquote>
We have not started the distribution of free inputs, but we have prepared as much as we can; we normally distribute after the end of October, we are also waiting for some of the inputs to arrive, so we are not too late. We are currently working on making sure that we are prepared.
</blockquote>
Some farmers in cotton-growing areas such as Muzarabani and Gokwe have abandoned the crop due to low prices and late payment for their deliveries by COTTCO.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Owes Cotton Farmers Millions Of US Dollars

The 2023 cotton marketing season has been extended to the end of this month to allow farmers to complete delivering their crop.
Deliveries currently stand at over 86 000 tonnes but are expected to reach 100 000 tonnes, doubling the harvest from last year (48 000 tonnes).
Agricultural Marketing Authority (AMA) business director Jonathan Mukuruba told <a href="https://www.herald.co.zw/cotton-marketing-season-extended-to-end-of-month/">The Herald</a> that the extension of the marketing season is meant to ensure that all farmers complete delivering their crop. He said:
<blockquote>
We received requests that there are some other areas that did not finish delivering their crop hence we have decided to extend the marketing season to the end of August to ensure that all farmers complete delivering their crop.
</blockquote>
Statistics released by AMA show that the four cotton buyers purchased 85 920 590 kg of seed cotton valued at US$28 440 927 and $22 885 283 553 in local currency.
The increase in cotton production this season has been attributed to the provision of free inputs by the Government and the classification of cotton as an export crop this season.
This year, cotton farmers are paid 85 percent of their total sales in United States dollars and the remainder will be paid in Zimbabwe dollars at prevailing interbank exchange rates upon delivery of the crop at any COTTCO buying point.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cotton Marketing Season Extended To End Of August

The Government says it has injected US$30 million into the Cotton Company of Zimbabwe (COTTCO) to enable the company to buy raw cotton from farmers.
The cotton selling season opened in May but COTTCO has been struggling to pay farmers for their product.
COTTCO chairperson Sifelani Jabangwe told <a href="https://www.sundaymail.co.zw/new-cottco-receives-us30-million-boost-from-treasury">The Sunday Mail</a> that the US$30 million will enable the firm to cover outstanding payments. He said:
<blockquote>
We are pleased to announce that, following yesterday’s (Tuesday) Cabinet meeting, our company has been allocated a total of US$30 million to buy cotton from farmers.
Prior to this meeting, we were facing challenges to make payments to our farmers because our coffers had just 40 percent of the total amount required to pay for the total deliveries to be made during this season.
</blockquote>
Zimbabwe Farmers Union (ZFU) director Paul Zakariya said farmers welcome Government’s intervention.
Cotton Producers and Marketers Association chairman Stewart Mubonderi, said:
<blockquote>
The delay of payments to the farmers was a major challenge. We hope that from this new financial injection, we will see a great improvement.
Farmers were ending up doing side marketing because they will be in need of money while the proper channel was not forthcoming with payments.
We hope all these will be the things of the past and hope COTTCO will ensure a smooth flow of payments throughout all channels.
</blockquote>
To date, 54 000 tonnes of cotton worth US$80 million have been delivered, against the target of 96 000 tonnes.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Says It Has Allocated US$30 Million To COTTCO

The Cotton Company of Zimbabwe (COTTCO) says it has resumed payments to farmers after liquidity challenges forced the country’s largest cotton company to stop payments.
COTTCO had stopped payments after it failed to secure money from the banks and this may have resulted in some farmers selling their cotton to other players, a practice known as side-marketing.
<a href="https://www.businessweekly.co.zw/cottco-resumes-payments-after-liquidity-crisis/">Business Weekly</a> reported that the Government, through COTTCO, is the major financier of cotton production in the country and is supporting nearly 300 000 households under the Presidential Free Inputs Scheme. COTTCO chairman Sifelani Jabangwe said:
<blockquote>
The Cotton Company of Zimbabwe would like to assure farmers that payments for seed cotton delivered to depots and common buying points are now resuming after engagement with relevant authorities.
The delays were a result of the prevailing liquidity position in the country.
Payments modalities are being refined in partnership with other stakeholders to ensure maximum convenience for farmers.
COTTCO urges farmers to shun side marketing and continue delivering the crop to designated points.
</blockquote>
However, some farmers are threatening to withhold their commodity or sell to other merchants due to COTTCO’s failure to pay them.
Jabangwe said nearly 45 000 tonnes of cotton have so far been delivered and the company is still expecting a similar volume.
The national output, including from private merchants is estimated at about 100 000 tonnes.
Cotton farmers, like their tobacco counterparts, will be paid 85 percent in foreign currency and the remainder will be paid in Zimbabwe dollars at the official bank rate.
The lowest grade will fetch US40c per kg while farmers will be paid US46c for the best quality grade (A).
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Resumes Payments To Cotton Farmers

The Cotton Company of Zimbabwe (COTTCO) says it is taking measures to ensure it does not run out of US dollar notes during the forthcoming marketing season.
The 2023 cotton selling season is just around the corner as it usually commences in May.
Speaking in an interview with <a href="https://www.businessweekly.co.zw/cottco-seeks-cash-guarantees/">Business Weekly</a>, COTTCO acting accounting officer Munyaradzi Chikasha revealed that they were negotiating with its international buyers for the provision of US dollar cash in the event that local banks run out of notes. Chikasha said:
<blockquote>
We have noted that the issue of liquidity could affect us and disrupt the marketing season.
We have approached our customers to bring liquidity so that we avoid disruptions.
We are negotiating the facilities with local banks- our previous experiences show us that they may run out of physical notes and when this happens, it opens pathways for side marketing because a farmer can’t keep the crop waiting for us to get cash.
But that of course comes with guaranteed tonnage that will be supplied to off-takers.
</blockquote>
He said COTTCO has a debt of about US$3 million are negotiating for a debt rollover.
Last season, COTTCO initially expected an output of 116 000 tonnes but the company only bought 48 000 tonnes.
This year, the company is expecting output to reach 100 000 tonnes.
The lowest grade (D) will fetch US40c per kg while the premium grade (A) will be sold at US46c per kg.
Farmers will be paid 85 percent in US dollars and the remainder in local currency at the official interbank rate.
More: <a href="https://www.newsday.co.zw/local-news/article/200009522/ed-demands-re-run-in-violence-hotspots">Pindula News</a>

COTTCO Seeks Cash Guarantees Ahead Of Marketing Season

Norton MP, Temba Mliswa (Independent), says he has withdrawn his remarks about a picture purportedly showing Gokwe Nembudziya MP, Justice Mayor Wadyajena, having a time of his life on Valentine’s Day.
Images of fashion stylist Natalie Mhandu, holding a man, presumed to be Wadyajena, who was facing away from the camera near the Eiffel Tower in Paris, France on Valentine’s Day, surfaced on social media platforms prompting Mliswa to criticise Wadyajena.
Mliswa <a href="https://news.pindula.co.zw/2023/02/17/wadyajenas-paris-valentines-day-pictures-spark-fury/">said it was “disturbing” to see someone</a> who “has been involved in a US$5 million Cottco case which has disenfranchised many farmers… lavishly spending the money in a foreign land”.
However, some reports suggest the man with his back to the camera who was holding Mhandu is not Wadyajena but one Vusimuzi Ngwenya.
Posting on Twitter this Sunday, Mliswa said it was not his intention to scandalise Wadyajena but to hold him to account for the US$5 million COTTCO money. <a href="https://twitter.com/TembaMliswa/status/1627283857656410117">Said Mliswa</a>:
<blockquote>
It seems the figure in [the captioned] image may not be Hon Wadyajena. I wouldn’t want to scandalize him over fake news and duly withdraw the remarks relating to that image.
I however maintain the substance of my position on the US$5 million Cottco issue. Money can’t just disappear!
I seek accountability and not vain scandals and thus reiterate that the Cottco saga needs to be investigated and the culprits dealt with.
[ZACC] has consistently done its duty but the NPA is failing to complement them as shown in this case.
</blockquote>
Below are the pictures posted by Mliswa today:
<img alt="Image" decoding="async" src="https://pbs.twimg.com/media/FpVGA9EX0AMjr_x?format=jpg&amp;name=900x900"/><img alt="Image" decoding="async" src="https://pbs.twimg.com/media/FpVGCNUX0AAyZbq?format=jpg&amp;name=large"/>
Wadyajena was recently <a href="https://news.pindula.co.zw/2023/02/06/wadyajena-cottco-managers-removed-from-remand/">acquitted of the fraud allegations involving USD$5 million that was “stolen” from the Cotton Company of Zimbabwe (COTTCO).</a>

Mliswa "Withdraws" Wadyajena Criticism

Members of Parliament have expressed concern with the Cotton Company of Zimbabwe (Cottco)’s inability to pay farmers for their 2022 deliveries, reported <a href="https://www.zimlive.com/mps-flag-cottco-for-paying-farmers-using-groceries/">ZimLive</a>.
The legislators also bemoaned Cottco’s tendency to use groceries to pay farmers for their cotton.
Speaking in the National Assembly last week, Kambuzuma legislator Willias Madzimure (CCC), demanded that the government cotton merchant treats cotton farmers with dignity. Madzimure said:
<blockquote>
The issue of giving farmers groceries and sometimes equipment to use in the fields does not augur well for farmers.
When farmers deliver produce, they are expecting to get their money in cash so that they will then decide on their own what they want to use the money for, instead of them being asked to go to a shop and pick up groceries or implements.
</blockquote>
Gokwe-Kabuyuni legislator Spencer Tshuma (ZANU PF) noted that cotton farmers were now failing to pay school fees for their children.
Responding to the lawmakers, Acting Agriculture Minister Felix Mhona confirmed farmers have been paid using groceries.
He, however, added that farmers were never forced to accept groceries saying it was a voluntary arrangement between the parties. He said:
<blockquote>
I think the time when that was happening was more of a voluntary programme where one would opt to get groceries. Of late, this is not happening.
Where people were actually getting groceries in terms of payment, going forward and as it is now, the government is going to pay farmers their hard-earned money and not in the form of goods.
</blockquote>
Mhona also acknowledged that payments to cotton farmers had been delayed and said the government was looking into the issue to ensure that the farmers are paid.
Finance Deputy Minister Clemence Chiduwa said cotton farmers were owed more than US$28 million. Said Chiduwa:
<blockquote>
Last week but one is when we agreed that in order for us to pay out that money, we are paying US$5 million per week.
So, I expect that in the following week, we will be able to pay all the outstanding money in tranches of US$5 million per week.
</blockquote>

MPs Criticise COTTCO For Paying Farmers Using Groceries

Gokwe-Nembudziya MP, Justice Mayor Wadyajena (ZANU PF), and his co-accused who were facing fraud charges among other allegations have been freed after the court granted their application for refusal of further remand.
Wadyajena, COTTCO bosses Pius Manamike, Maxmore Njanji, Chiedza Danha and Fortunate Molai were jointly appearing in court on fraud, money laundering, and concealing a transaction from a principal charges.
They were accused of embezzling funds meant for acquiring bale cables and buying trucks.
Wadyajena’s Mayor Logistics and Danha’s Pierpoint Moncroix were also being charged.
Speaking to <a href="https://zero.pindula.co.zw/">Pindula News</a> after the court ruling on Monday, 06 February, Wadyajena’s lawyer, Oliver Marwa, said his client is now a free man. He said:
<blockquote>
Once an accused person is no longer in remand, that case is complete for the purposes of the records and there is no longer a fetter on the accused’s right to liberty. They can do as they please, and they can have their passport back.
They can, if they so wish, withdraw their bail recognizance or the money that they deposited for bail with the clerk of court. Essentially, they are free individuals henceforth.
</blockquote>

Wadyajena, COTTCO Managers Removed From Remand

A Cotton Company of Zimbabwe (COTTCO) employee has been sentenced to nine months in jail for stealing Presidential Agricultural Inputs and attempting to sell them.
Munyaradzi Timire (41) of Shashe Village, Chief Bere in Mashav was a Cottco Coordinator in Mashava when he committed the offence.
Timire was arrested by detectives while on his way to Masvingo to sell the inputs.
The herbicides which Timire stole from COTTCO were valued at US$1 050 and meant for distribution to the farmers in Summerton Area in Mashava.
Timire was sentenced to nine months in prison by Masvingo Magistrate Philiip Makondo.
Three months of the sentence were suspended on condition of good behaviour.
The remaining six months were wholly suspended on condition that he performs 210 hours of community service.
Nickson Chamisa appeared for the State. | <a href="https://www.chronicle.co.zw/cottco-employee-jailed-9-months-for-stealing-presidential-agricultural-inputs/">Chronicle</a>

COTTCO Employee Gets Wholly Suspended Jail Term For Stealing Herbicides

The High Court has granted the Prosecutor General approval to seize properties allegedly owned by the Cotton Company of Zimbabwe’s (COTTCO) corruption-accused boss.
The property, worth millions of US dollars, belongs to COTTCO marketing and business development manager Maxmore Njani.
The seizure is meant to preserve the property from dissipation or alienation during investigations.
Njani was arrested on corruption charges in June this year together with company managing director Pious Manamike.
The duo was granted bail pending trial.
According to the court seizure order, Njani is being investigated for money laundering and corruptly concealing from his employer, personal interests in COTTCO transactions.
The order, which is directed to the Zimbabwe Anti-Corruption Commission (ZACC), reads in part:
<blockquote>
Any investigating officer in the employ of ZACC and or other law enforcement officers of the law proper to the execution of warrants be and are hereby authorised to enter into the business and residential precincts of Njani, Chita One Logistics, and Square Family Trust for the purpose of identifying, seizing and securing the following property:
A Freightliner (Argosy) Vehicle registration Number AEZ 7356, a Tanker (Trailer) Vehicle registration Number AEZ 7095, a home-made (Trailer) Vehicle registration Number AFQ 1784, a Shacman (Dump) Vehicle registration Number AFQ 0913, a Freightliner (Century) Vehicle registration Number AFJ 2963 A Shacman (Tractor) Vehicle registration Number AFJ 0908, A Toyota Landcruiser Vehicle registration Number AFN 4185, an International (Truck) Vehicle registration Number AEZ 7795, a Freightliner (Century Horse) Vehicle registration Number AEZ 6068, a Freightliner (Century) Vehicle registration Number AEU 3040 A Freightliner (FLD120) Vehicle registration Number ACQ 6629, a Hendred (Freuhauf) Vehicle registration Number AFJ 5933, a Torsian (Interlink Trailer) Vehicle registration Number AEZ 9623 A Shacman (Tractor) Vehicle registration Number AFQ 0909.
</blockquote>
Njanji is reportedly eyeing the Mazowe Central seat in Parliament on a ZANU PF ticket. | <a href="https://www.newzimbabwe.com/grand-theft-high-court-allows-seizure-of-cottco-boss-property-worth-millions-of-usd-includes-12-trucks-several-tractors-high-end-4x4s-vast-tracks-of-land/">NewZimbabwe.com</a>

High Court Allows Seizure Of COTTCO Boss’ Property Worth Millions Of USD

<a href="https://www.pindula.co.zw/Linda_Masarira">Linda Tsungirirai Masarira</a> who leads the opposition <a href="https://www.pindula.co.zw/Labour,_Economists_and_African_Democrats" title="Labour, Economists and African Democrats">Labour, Economists and African Democrats</a> (LEAD) party has called for the release of 16 Citizens Coalition for Change (CCC) members who were arrested in June over the 14 June 2022 violence which erupted in Nyatsime.
Among the arrested are Members of Parliament (MPs) <a href="https://www.pindula.co.zw/Job_Sikhala">Job Sikhala</a> (Zengeza West) and <a href="https://www.pindula.co.zw/Godfrey_Sithole">Godfrey Sithole</a> (Chitungwiza North).
They have been in prison since June with courts <a href="https://news.pindula.co.zw/2022/08/31/zengeza-west-mp-job-sikhala-denied-bail-again-2/">denying them bail on several occasions</a>. 
Reflecting on her past, Masarira said she was once arrested during the time of the late founding leader of Zimbabwe, <a href="https://www.pindula.co.zw/Robert_Mugabe">Robert Mugabe</a> and she reckons the system under which she suffered hasn’t changed despite the fact that it’s about five years since Mugabe’s departure.
Mugabe’s predecessor, President <a href="https://www.pindula.co.zw/Emmerson_Mnangagwa">Emmerson Mnangagwa</a>, is being accused of presiding over a system that violates human rights. Masarira said in a Twitter post seen by Pindula News:
<blockquote>
6years ago I faced political persecution under Mugabes regime. Fast forward 2022 people are still being persecuted for differing political opinions &amp; being denied bail which is a fundamental human right. If murderers &amp; corrupt elements are being granted bail why not #Nyatsime16
</blockquote>
Her remarks echo those of the opposition CCC which argues that its members are being arrested for political reasons.
Government critics argue that the arrests are meant to intimidate and destabilise the opposition ahead of the 2023 harmonised elections.
Sikhala is one of the most vocal senior leaders in CCC. 
While the CCC activists are being detained for a prolonged period of time, several political elites accused of stealing millions of dollars from the state are being released from jail and in some cases, their charges dropped, much to the annoyance of the opposition. 
Only recently, ZANU PF MP for Gokwe-Nembudziya <a href="https://www.pindula.co.zw/Justice_Mayor_Wadyajena">Justice Mayor Wadyajena</a> who was accused of defrauding Cottco of about US$5.8 million was granted bail.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

"Murderers And Corrupt Elements Are Being Granted Bail, Why Not Nyatsime 16" - Masarira

The Cotton Company of Zimbabwe (COTTCO) says it will pay cotton farmers all they are owed before the start of the next season.
Recently, COTTCO said it had paid ZWL$1 billion and US$9.9 million to cotton farmers, with more than 50 000 tonnes having been paid for.
The producer price for the current marketing season is US$0.30 plus $32 for each kilogramme delivered.
Addressing cotton farmers at the Harare Agricultural show last week on Friday, COTTCO’s acting accounts officer, Munyaradzi Chikasha, said:
<blockquote>
We promise to give you inputs on time so go and prepare. We want to achieve better results next season.
All outstanding payments will be done soon so we are urging farmers to continue with cotton farming next season. Our hope is to have over 400 000 farmers next season.
About 237 000 farmers grew cotton this year compared to 387 000 last year. We appreciate the great effort you are doing in farming.
We urge you to continue doing hard work. We also applaud Government for introducing foreign currency payments to our farmers.
</blockquote>
Cotton Producers and Marketers Association of Zimbabwe president Stewart Mubonderi urged COTTCO to avail farming inputs so that farmers can plant on time. | <a href="https://www.herald.co.zw/cotton-farmers-to-get-outstanding-payments/">The Herald</a>

COTTCO Promises To Clear All Payments To Cotton Farmers Soon

The Cotton Company of Zimbabwe (COTTCO) says it has disbursed US$9.9 million and ZWL$1 billion to farmers to date.
In an update to stakeholders, COTTCO board chairman Sifelani Jabangwe said there has been renewed interest in cotton farming largely due to the clearance of outstanding farmers’ payments. Said Jabangwe:
<blockquote>
Farmer payments have been progressing well with US$9.9 million and $1 billion having been disbursed to farmers to date.
… Volumes are expected to have a marginal increase due to a small crop under hybrid seed.
To this end, Cottco staff are currently focusing on crop establishment activities for the new season.
</blockquote>
Jabangwe said ginning is in progress with lint allocations to local and export consumers having commenced.
COTTCO is 38 per cent owned by the Government. The company provides nearly 400 000 households with free cotton inputs under the Presidential Free Cotton Inputs Scheme.
COTTCO has been administering the Presidential Inputs Scheme since 2015 after production had fallen to 28 000 tonnes from 352 000 at its peak.
More: <a href="https://www.chronicle.co.zw/cottco-pays-farmers/">Chronicle</a>

COTTCO Says It Has Paid Cotton Farmers

The Cotton Company of Zimbabwe (COTTCO) has rebranded at a time two of its senior managers face corruption charges.
The company’s managing director Pious Manamike and marketing and business development manager Maxmore Njanji, were arrested by the Zimbabwe Anti-Corruption Commission (ZACC) in June on corruption allegations. They were released on $100 000 bail each in July.
However, the two managers were arrested again on 16 August, together with Gokwe-Nembudziya MP Justice Mayor Wadyajena (ZANU PF), COTTCO official Fortunate Molai, and Pierpont Moncroix Director Chiedza Danha on fraud and money laundering charges involving U$5 million.
Meanwhile, as part of the rebranding, COTTCO changed its logo and board members took oaths that they will loyally serve the company and will not be involved in corrupt practices. COTTCO board chair Sifelani Jabangwe said:
<blockquote>
We are moving away from the past where the company would be in the news for the wrong reasons.
For the first time in many years, we have managed to pay our farmers on time.
We have also managed to clear the money we owed farmers from past seasons.
</blockquote>
The government, which is a 37% shareholder, seeks to gain 51% shareholding by end of the year.
Growing cotton is no longer a viable enterprise for some farmers who have since abandoned the crop due to uncompetitive prices.
More: <a href="https://www.newsday.co.zw/2022/08/cottco-rebrands/">NewsDay</a>

Cotton Company of Zimbabwe Rebrands

The Cotton Company of Zimbabwe (COTTCO) has appointed its head of operations Munyaradzi Chikasha as the acting accounting officer.
This follows the arrest of COTTCO managing director Pious Manamike and head of marketing and ginning Maxmore Njanji on Thursday last week.
The duo is facing corruption charges mainly centred on conflict of interest after failing to declare their business dealings to their principals.
In an internal memo to the staff last Friday, COTTCO chairman Sifelani Jabangwe advised workers of the latest development. He said:
<blockquote>
COTTCO executives, namely Pious Manamike and Maxwell Njanji are currently unavailable to execute their duties.
Whilst they are away, the cotton business needs to continue more so during the intake (buying) season.
Therefore, the Cottco board of directors has with immediate effect appointed Mr Munyaradzi Chikasha, head of operations to be the acting officer.
He will be responsible for coordinating all the business activities and reporting to the board.
</blockquote>
Jabangwe, however, did not indicate whether Njanji and Manamike had been suspended or not.
Meanwhile, Njanji and Manamike were each granted ZWL$100 000 bail when they appeared before Harare magistrate Stenford Mambanje on Wednesday.
COTTCO, formerly the Cotton Marketing Board (CMB), is 38 per cent owned by the Government.
<h4>More: <a href="https://www.herald.co.zw/executives-arrest-cottco-moves-to-ensure-stability/">The Herald</a></h4>

Chikasha Takes Charge Of All COTTCO Business Activities

Cotton Company of Zimbabwe (Cottco) marketing manager Luxmore Njanji is accused of spending huge amounts of money and Cottco farming inputs to campaign for ZANU PF Mashonaland Central chairman Kazembe Kazembe, who is fighting to retain his post in elections slated for 28 December.
The allegations directed towards Njanji come at a time Cottco is failing to pay farmers for cotton delivered last season.
NewZimbabwe reported sources from both Cottco and ZANU PF as saying, Njanji, whose rural area is Chiweshe, has been abusing the company’s resources to prop up Kazembe’s campaign.
Cottco employees allege that Njanji has been diverting the company’s inputs to fund Kazembe’s political ambitions. Said a source:
<blockquote>
This issue has caused conflicts within Cottco. Farmers who are yet to be paid by Cottco are up in arms over the deployment of these materials by a company that is failing to pay them. They are very angry right now.
He has donated 10 000 litres of diesel, four motorbikes and 120 soccer balls to help Kazembe’s cause.
To make matters worse, his father is a former MDC candidate for Mazowe South constituency.
He lost the election to former minister Fortune Chasi.
</blockquote>
Several Cottco bosses have been involved in corruption scandals in the past few years and in 2018, the Zimbabwe Anti-Corruption Commission (ZACC) arrested four Cottco managers implicated in illegal cotton trading.
The illicit deals prejudiced the company of millions of dollars.
<h4>More: <a href="https://www.newzimbabwe.com/cottco-boss-caught-up-in-zanu-pf-factional-battles/">NewZimbabwe.com</a></h4>

Cottco Top Official Implicated In ZANU PF Factional Battles

The Statutory Instrument (SI) published this year does not have room for self sponsorship when it comes to cotton farming. Every cotton farmer has to be contracted.
Contract farming sounds enticing because the farmer is told he/she will get free inputs but it’s not free but a loan.
You repay the inputs when you deliver the cotton. However, the loan comes with unfair conditions to the farmer.
The farmer is not allowed to sell his cotton to any other buyer besides the one who gave him the loan. Here comes the problem; it is the buyer who decides on the cotton price.
The farmer does not have a voice in deciding the cotton price. Secondly, the farmer does not have recourse even if the cotton buyer decides not to pay him.
The farmer cannot reclaim his harvest from the buyer in the event that the loan giver decides not to pay him for cotton like what Cottco is doing now. 
Cottco is taking cotton from farmers without paying the farmers’ crops. Cottco did not pay cotton farmers last year and this year it’s the same thing. This year Cottco has paid only 10 USD per 200kg bale of cotton. Can you imagine?
Cotton farming has enslaved Gokwe farmers. They are working for Cottco for free while Cottco managers are counting profits every year and getting promotions for “working very hard” while our parents are wallowing in poverty as if they are not working.
Cottco is taking the advantage of a contract farming Statutory Instrument that was designed to protect the merchant and impoverish the farmer.
Contract farming is evil, it is exploitative and enriches one who hasn’t worked, it is pure robbery by the government and other cotton merchants.
The solution is there. If I was a policymaker, I would make sure that there are three players when it comes to cotton farming and marketing; (1) The cotton farming funder or financier (2) The cotton farmer and (3) The cotton buyer.
The law must clearly stipulate that the cotton buyer must not loan anything to the farmer. The law must also stipulate that the cotton buyer must deduct the Cotton financier’s funds first and surrender such funds to the financier before paying the farmer.
The farmer must be left free to sell his crop to any cotton buyer who offers more money and one who pays on time.
Our MP Karikoga instead of praising Cottco must be mobilising his counterparts from other Gokwe constituencies to rally behind the above-outlined cotton regulations and influence the Minister of Agriculture to enact such a good law.
Etiwel Mutero is an archivist and a political commentator.+263773614293 etiwelm02@gmail.com
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

The Evils of Contract Cotton Farming | OPINION

The governor of the Reserve Bank of Zimbabwe (RBZ), Dr John Mangudya has said he is clueless on how to pay $389 million due to farmers as they are financially excluded.
Mangudya said the concerned farmers do not have either bank or mobile money details making it difficult to pay them since payments need to be done within the financial system in line with money laundering regulations.
He said the preferred solution was for the financially excluded farmers to open low-cost bank accounts, which can be done easily, as the RBZ has ruled out printing cash for the payments.
Mangudya told the Parliamentary Portfolio Committee on Lands and Agriculture on Thursday that the farmers would be paid, but there were challenges with the unbanked lot.
The committee, chaired by Gokwe Nembudziya legislator Justice Mayor Wadyajena (Zanu PF), wanted an update on the settlement of $1.5 billion owed to farmers for cotton delivered last season.
Mangudya said the schedule from Cottco showed that $436.6 million ought to be paid through mobile banking platforms while $66.6 million was for those with bank accounts and $389.5 had no banking details.
The RBZ will start payments Friday for the $66 million for those with banking details while pursuing solutions on how to settle payments for those without bank accounts. Mangudya said:
<blockquote>
<div class="sirius-dfp-inarticle">_In this day and age, we definitely need banking details. How do we validate that? The question is, is the money going to people who are known or unknown because a list of names will always be a list?_</div>
<div class="sirius-dfp-inarticle"> </div>
<div class="sirius-dfp-inarticle">_We are not comfortable as a bank to hear that in this country, there are people with no bank accounts. We spoke to six banks last year who were able and willing to open low-cost accounts. One of our jobs is to have financial inclusion so that all producers are included, to bank theunbanked._</div>
<div class="sirius-dfp-inarticle"></div>
<div class="sirius-dfp-inarticle">_In terms of accountability and transparency, it is not good. We need to have a spirit of Zimbabwean farmers to have bank accounts for traceability. This is the reason why $1,5 billion was taking long to be settled. How can it be released when we do not know where it is going? My job is to protect the Government coffers at all costs. If we had all the banking details, the money would have been released. One day I will be called by the Public Accounts Committee to explain where the money would have gone._</div>
</blockquote>
In response, Cottco managing director Mr Pious Manamike said farmers resisted having bank accounts citing concern over the withdrawal limit and the distance they have to walk to nearest financial institutions, while others stay in areas with no mobile network for them to use mobile banking platforms, among others.
<div class="sirius-dfp-inarticle">Manamike said they have since approached the RBZ for a guarantee for them to borrow money to pay farmers for this season, which started last week.</div>

<div class="sirius-dfp-inarticle">
<ul>
<li class="entry-title"><a href="https://news.pindula.co.zw/2021/05/08/farmers-urged-to-register-farms-with-mines-ministry-to-avoid-conflicts/">Farmers Urged To Register Farms With Mines Ministry To Avoid Conflicts</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2021/04/26/cotton-farmers-owed-1-5-billion-from-last-years-deliveries/">Cotton Farmers Owed $1.5 Billion From Last Year’s Deliveries</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2021/04/08/chamisa-suffers-huge-financial-blow/">Chamisa Suffers Huge Financial Blow</a></li>
<li class="entry-title"><a href="https://news.pindula.co.zw/2018/11/02/matemadanda-calls-for-war-vets-callss-financial-inclusion-in-mainstream-economy/">Matemadanda Calls For War Vets’ Financial Inclusion In Mainstream Economy – 2018</a></li>
</ul>
More: <a href="https://news.pindula.co.zw/">Pindula News</a>; <a href="https://www.herald.co.zw/rbzs-389m-headache/">The Herald</a>
</div>

RBZ's Mangudya Clueless On How To Pay $389m To Financially Excluded Farmers

Chimurenga maestro Thomas Chikawa, better known as Thomas Tafirenyika Mapfumo, is suing the Cotton Company of Zimbabwe (Cottco) for failing to settle a US$33 000 debt.
The debt emanates from commercial advert services Mapfumo did for the company in Muzarabani District in 2019.
The agreement between parties was that he would be paid upon his return to Harare, but Cottco has failed to honour the agreement.
A Cottco representative, Mugura Gumeni, made contact with Mapfumo’s Zimbabwe representative, Simbarashe Chiromo for the musician to do a commercial advert for Cottco in Zimbabwe sometime in 2019, the summons now before the High Court reveal.
Both parties entered into an agreement around the same period and Cottco agreed to pay a nominal fee of US$2 000 to enable Mapfumo to travel to Muzarabani.
The exact amounts for the services were to be determined by the scope of the project and established during the actual field visit.
The court has been told that on the 27th of February 2019, Mapfumo did the video shooting in Muzarabani and returned to Harare the same day.
But Cottco allegedly failed to formalise all relevant and necessary documents to enable Mapfumo to be paid for his services.
The total cost of the services provided by Mapfumo, according to the summons, amounted to US$35 000 and Cottco, having paid only US$2 000 is failing to pay off the balance of US$33 000.
Mapfumo is seeking an order for the payment of the balance of US$33 000 plus interest.
The matter is yet to be fully heard.
<h4>More: <a href="https://www.newzimbabwe.com/thomas-mapfumo-sues-cottco-over-us33k-debt/" rel="noopener" target="_blank">NewZimbabwe.com</a></h4>

Thomas Mapfumo Sues Cottco Over US$33 000 Debt

A ZANU PF Member of Parliament has arm-twisted the Cotton Company of Zimbabwe (Cottco) management to employ unqualified administration clerks in his constituency.
Makonde MP Kindness Paradza told a ZANU PF inter-district meeting held at Muvhami on Saturday that Cottco agreed to recruit clerks who failed to attain five Ordinary Level subjects.
Normally, Cottco recruits clerks with at least five O’ Level passes but Paradza, who is also the Deputy Information Minister, argued that learners in his area performed poorly last year due to the coronavirus and should therefore be considered even without the required number of subjects. Said Paradza:
<blockquote>We agreed that at all cotton depots in Makonde, they (Cottco) will take children from Makonde. They had put a prerequisite of 5 ‘O’ Levels and l said where do five ‘O’ Levels (holders) come from in Makonde?
In Makonde, there are one, two, three, and four ‘O’ Levels. There was corona (Covid-19) so the pass rate was not all that good.
Therefore, you the (Zanu PF) leadership, if you realise there is a clerk who is not a local community member that you know, inform me because l finalised with management at Cottco yesterday (Friday). There would be posts for clerks, loaders of cotton bales, and guards.</blockquote>
Cottco is a quasi-parastatal that buys cotton from farmers across the country. It currently owes farmers $1.5 billion from last year’s deliveries, which were done when the cotton producer price was set at $43.94 (US$1.75) per kg.
<h4>More: <a href="https://www.newzimbabwe.com/paradza-arm-twists-cottco-to-employ-clerks-without-o-level/" rel="noopener" target="_blank">NewZimbabwe.com</a></h4>

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