GMB stops selling to six millers

GMB stops selling to six millers
By Elita Chikwati

THE Grain Marketing Board has stopped selling maize to six millers after allegations that they were reselling the maize to private buyers and stockfeed manufacturers at inflated prices. GMB acting chief executive Retired Colonel Samuel Muvuti identified the millers as: Eveready Milling Company, Golden Millers (both from Ruwa), D and F and Katsaona (Chitungwiza), Nelma (Murewa) and Tinotenda (Norton).

The six have since been issued with suspension notices. The suspected double-dealing by the millers was distorting the tonnage of maize delivered to the GMB depots since some of it would be recorded twice.

"This is disrupting the equitable distribution of maize since some of the grain is recycled," Rtd Col Muvuti complained.

To authenticate the claims, the GMB’s loss control department is investigating two cases in which a manager with Eveready Milling Company is alleged to have sold grain secured from the GMB to stockfeed manufacturers while a worker with Golden Millers allegedly sold it to poultry producers.

Rtd Col Muvuti said the parastatal had put all millers under surveillance because unscrupulous millers were distorting the GMB’s maize intake figures. The buying and reselling of maize has resulted in the board failing to tell how much grain it has in stock for planning purposes. This means millers who buy grain from the board should account for it.

"We are monitoring grain from the time it is bought to the outlets where millers distribute the maize-meal," he said.

GMB vowed to continue suspending millers who resold maize to third parties instead of milling it. A number of millers had been taking advantage of the low selling price of maize from the GMB depots. These have been buying maize from the depots for processing and instead were reselling it to other depots and making hefty profits in the process.

"We are very much aware of this and we will continue monitoring the situation to ensure that millers distribute the correct amount of maize meal to their outlets," he added.

GMB is buying maize from farmers at $3 million per tonne while the central bank pays an additional $1,2 million per tonne, bringing the total to $4,2 million per tonne. The parastatal then sells a tonne of maize to millers at $3,1 million. The Government, through the GMB, is importing 400 000 tonnes of maize from countries in the region to augment supplies at the parastatal, which has so far taken delivery of more than 563 000 tonnes of maize from farmers, the bulk of it from the 2005/06 farming season.

Zimbabwe consumes at least 1,8 million tonnes of maize per year but production has fallen short of this figure in recent years due to periodic droughts. The move by the GMB comes hard on the heels of reports that the Government has shut down three oil companies for selling fuel above the stipulated prices despite accessing cheap foreign currency from the central bank. Country Petroleum, Downtown Petroleum and M&M Fuels had their licences cancelled this week.