MUSHROOMING PARALLEL MARKETS DUBIOUS

SUNDAY NEWS LIVESTOCK MARKETS BY MUHLE M. MASUKU

27/11/11

 "Black business people are being treated very badly by some Rural District Councils that are conniving with some former white commercial farmers to create parallel cattle auction markets in communal areas,” a fuming Busani Nsingo, Director of Nyamazana Auctioneers said. He described indigenization efforts as a shame, as fellow black officials are working against the economic emancipation of other black people.

“There is a clear racial distinction at auction markets, with former commercial farmers launching dubious parallel cattle markets evading government levies in the process.” echoed Mthokozisi Sinala a seasoned cattle buyer. These auction markets are being awarded clandestinely, without going to tender as is the procedure when awarding black auction companies, he reiterated. He sited Mangwe RDC which has awarded a former commercial farmer the right to auction cattle in the district.

In the other instance, very strong cartels are strategically opening up cattle auction sales in various towns run by town boards such as Plumtree and Gwanda in a bid to subvert RDC and government efforts to get a total of 10.5% levies from animals bought at rural sales. These auction sales are purported to serve the dwindling commercial sector, while in reality a majority of sellers are rural farmers. If a levy collection method based on the origin of the animals is not put in place very soon, then local and central governments will be loosing millions of dollars ear marked for rural development.

According to Sibanda, R (2005) a significant shift has occurred since 2000 on land use and distribution of livestock in Matebeleland region. Only 9% and 4% of cattle in Matebeleland North and South provinces respectively are now found in commercial areas. The rest (i.e. at least 82% of total cattle) are in communal areas.

I have advocated for livestock market pluralism as it fuels competition among buyers resulting in better prices in the communal areas. I have also castigated rural councils and government for charging levies without infrastructural development and maintenance. Above all else I have said levies are in essence being deducted from cattle producers, and that leaves the cash strapped peasantry in the red. However, much as I might fight and pour scorn on that piece of legislation, until it is scrapped, it is law and no one is above it.

In this instance my advocacy has been misconstrued, need for plurality has led to equally lethal underhand deals. Flouting clearly stated rules stinks or is it a case of some comrades being more equal than others. If the rural council is paid levies in full and yet does not remit 3% to government that indeed is tantamount to fraud. Commenting on condition of anonymity, a Government Livestock grader said, “There is a widespread scam where RDCs collect government levies from private sales but do not remit to their department.” Is it mere inefficiency on the part of the Department of Livestock Production and Development (LPD) or feigned stupidity by officialdom?

There is a threat of escalation of stock theft as clerical services normally performed by experienced vetting team from the department of LPD is currently excluded from the newly introduced sales. Government normally retains copies of the sales receipts that are official documents used in courts of law in case of stock theft by false pretences.  

Official documentation not only aided in the government records of cattle outflows from rural areas but also provides such statistics as weights, grades and price ranges. Most rural development interventions are based on such statistics.

Cattle graders guard against the sale of immature females for direct slaughter as that seriously depletes breeding females. Cattle grading is meant to protect rural farmers from unscrupulous buyers and also alleviate asymmetry of information heavily in favour of buyers. However, the grading department has often been found with its pants down, fielding clueless officials that have inadvertently fueled the mass exodus of buyers and farmers alike. How so? The lackadaisical ( hakuna matata) approach of course.

Let us see government sink its steely teeth into the flesh of the unscrupulous lot or else it will be madirativange emagumeni (do as you like). I have heard of areas where police presence is highly despised, but surely here is a place where most people would agree with me, their presence is most welcome.

FEEDBACK:

Email: muhle.masuku@gmail.comor send sms to 0712 938 659 or follow this and other stories on http://livestockfocus.blogspot.com/