Voedsale problems mount as bank goes after properties

06 Dec, 2022 - 00:12 0 Views
Voedsale problems mount as bank goes after properties

eBusiness Weekly

Business Writer

 Three properties owned by Voedsale Tobacco International will be auctioned this Friday after the tobacco company failed to pay money owed to AFC Bank, according to a notice published last week.

 Voedsale, which had a bad start in the 2022/23 cropping season after the Tobacco Industry and Marketing Board suspended the company from financing the crop after failing to pay the farmers is set to lose property in Mhangura and two in Harare.

 The auction will be conducted at Rayton Sports Club in Harare, according to the notice.

 Last month, Voedsale was banned from contracting farmers this year after–for the past two years–failed to pay the growers. However, the ban was lifted after the company made a commitment to settle its obligation before November 31, 2022.

 This publication is yet to verify if the company managed to fulfill its commitment.

 With buying facilities in various tobacco-growing regions including Rusape, Marondera and Karoi, Voedsale was among the major financiers of tobacco under contract schemes. It, however, has been on several occasions blamed for side marketing.

 In a recent note to stakeholders, TIMB said some tobacco growers have not been paid and this has affected the preparation for the 2022/23 season. 

“The board greatly appreciates the efforts of all tobacco growers who have put in the work to make the season a resounding success,” said TIMB. 

“However, we are aware that some tobacco growers have not yet been paid for tobacco sold during the 2021/ 2022 marketing season and this has affected timeous preparations for the 2022/ 2023 season.”

 “The board is working towards resolving the issue to ensure that all outstanding payments are disbursed.

  “All growers who completed sales but have not received full payment are advised to call TIMB for assistance,” it added.

Calls seeking comment from Tennyson Hwandi, a director at Vodsale were not answered.

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