Zimbabwe: Farmers Union Compiles List of Farmers Owed by Reserve Bank

Source from:  AllAfrica.com 09/19/2010

Harare - The Zimbabwe Farmers Union is compiling a list of its members whose money is with the Reserve Bank of Zimbabwe under the foreign currency retention facility of the 2007/8 seasons. ZFU director, Mr Paul Zakariya, said they would then assist the farmers get their money. In 2007, tobacco growers were entitled to 20 percent of their sales proceeds in foreign currency. The retention levels were subsequently increased to 25 percent during the 2008 selling season. The foreign currency was an entitlement and growers had to buy it back as the currency from RBZ. By April last year, the central bank owed tobacco growers US$18 million and many say they are still to be paid. "We are going to engage the RBZ to start liquidating the money it owes to farmers. "Even if the RBZ has no money, it should be put on record that it owes farmers money and it should pay back. "RBZ should acknowledge the credit," he said. A number of tobacco growers who had their money retained said they were no longer confident of getting it. Some of the affected growers said they had gone to the central bank several times with no success. Others said they were being referred to and from the RBZ and Agribank. As a way of mitigating the plight of farmers owed money by Government, the RBZ in April 2009, paid farmers using fertilisers from the 2008 Toll-Manufacturing Programme. Under this facility, tobacco growers were to get 50 percent redemption thorough fertilisers and the remaining 50 percent in foreign currency. Many farmers said they got neither the fertilisers nor the money. No comment would be obtained from the central bank. Enditem