Bingu Calls Tobacco Buyers Thieves

Source from:  by Zainah Liwanda, 05 July 2006 - 05:08:41  07/06/2006

President Bingu wa Mutharika had no kind words for tobacco buyers Tuesday, branding them as "thieves" and "exploiters" for defying the fixed reserve prices he set at the beginning of the tobacco sales. Limbe Leaf managing director and chairman of the Tobacco Exporters Association of Malawi (Team) Charles Graham has since expressed concern over the remarks. Addressing the press in Lilongwe on return from his trip to Banjul, The Gambia, where he attended the African Union (AU) summit, Mutharika warned that the buyers risk being denied entry into other neighbouring countries where some of them believe there is an alternative market. Mutharika said he took advantage of the AU meeting to his Mozambican counterpart Armando Guebuza on the defiance by tobacco buyers in Malawi who have refused to pay the US$1.10 reserve price the President fixed when he officially opened the tobacco season this year. The President said he informed his Mozambican counterpart that the buyers were saying they would relocate to Mozambique if Malawi was putting them under pressure over the price. "I had to explain to my colleague to say [the buyers] think they will come to Mozambique, so sooner or later, we will close all the waters for them because they are nothing but exploiters, they are nothing but thieves, they are stealing from my people. Period," said Mutharika. He said the buyers last year paid an average of 90 cents per kilogramme but resold the tobacco at US$4.30, a development the President said was exploitation. By pushing for better prices, Mutharika said the move was not for personal gain or glory, but protecting local farmers who get very little money from their tobacco. But Graham said tobacco buyers are concerned over being called "exploiters". He said they have served the country well for several years. "We are concerned that people are calling us exploiters and thieves. I think we have served this country well for many years. Let me discuss [this] with shareholders to see what they say," said Graham. General manager Alastair Craik of Alliance One, a major player in the tobacco industry, reserved his comment until he saw the statement. Commenting on local government elections, Mutharika said he was not against the idea, but limited resources were the hiccup considering that government has set five priorities to be achieved this year. On diesel shortage over the weekend, the President said he expected a report but assured the nation that the fuel would be in supply soon. He said currently Malawi imports fuel through Dar es Salaam which is far, but said if completed the Shire-Zambezi Waterway project would offer a solution to the country's transport problems. The President said it is high time all stakeholders, especially the opposition, supported the project. He also hit at some media organisations which he said describe the project as a white elephant. The Gambia summit, according to Mutharika, discussed various issues like security and trade. On Independence celebrations slated for Civo Stadium Thursday, Mutharika pleaded with the opposition to rise above party politics and celebrate as one family. He said party supporters are free to wear their uniforms. Enditem