The Tobacco Commission (TC) is keeping $374,033 (about K655 million at the current official rate) generated from bales of tobacco it confiscated for nesting, Times Business has learnt.
During the just-ended tobacco marketing season, the tobacco industry regulator confiscated 3,420 bales using the Tobacco Industry Act (2024).
The law defines nesting as the concealment of substandard tobacco within a bale or the concealment of stems, scraps, loose leaf or any other object within a bale of graded tobacco bundles, with an intention to deceive a buyer on quality and weight of tobacco.
It transpired that out of the 3,420 tobacco bales confiscated for nesting, 2,772 were sent to rehandling companies.
- Advertisement -
At the time, TC indicated that the owners admitted wrongdoing.
- Advertisement -
In an interview, TC spokesperson Telephorus Chigwenembe said the rehandling exercise produced 170,223 kilogrammes (kg) of tobacco and the sale of this tobacco generated $374,033.00.
“This tobacco was sold under Tobacco Commission registration number and the proceeds are with the regulator, awaiting guidance from the Ministry of Agriculture on what to do with the money,” Chigwenembe said.
Tobacco growers’ representative body, Tobacco Association of Malawi (Tama) Trust, says it awaits the authorities’ verdict on the proceeds.
In an interview, Tama Trust Chief Executive Officer Trust Nixon Lita said a decision on how the money be handled would be based on policy and TC or Ministry of Agriculture officials were best positioned to determine.
- Advertisement -
In an earlier interview, Chigwenembe said in such a situation, the proceeds are kept in the custody of the regulator until the processing of relevant administrative penalties is concluded.
This year, tobacco—Malawi’s top export crop—raked in $396.28 million.
The earnings are 40 percent more than the $283.76 million realised during the previous season.
Sales volume went up in the year by 10 percent to 133.1 million kg from 120.5 million kg sold last year.
