THE Ministry of Natural Resources and Tourism has suspended processing of all application forms for permits to harvest forest products, pending completion of an in-depth investigation on some noticeable irregularities. Among other issues under scrutiny are factors behind the continued authorization of permits despite an official ban by the government. Some of the permits were misused to propel illegal exports of logs together with the associated revenue denied to the government in the tune of billions. Sources revealed that in the list of applicants are four 'foreign' companies that for the last six months kept pressing for authorization of their permits to harvest the expensive teak-wood in Mtibwa, Morogoro and Longuza Forest in Lushoto, Tanga Region. The applicants previously bragging and confident to have the permits in their possession anytime before elections were disappointed by the change of leadership in the ministry. Impeccable sources from within have disclosed that the applicants believed that the permits would be issued promptly due to the pressure exerted by influential personalities to expedite the process. It was further disclosed that some of the entrusted government officials both within and outside the forestry division have teamed up to form forest product export companies but the majority opt to hide their identities. However, Natural Resources Minister Ezekiel Maige has sensed some irregularities in different sections, including issuance of permits and expenditure of public funds through unnecessary trips abroad. "Laws and regulations must be adhered to and no stone will be left unturned. Shoddy deals are totally unacceptable. Our (ministry) responsibility includes management of natural resources, cultural resources and the development of the tourism industry," Maige explained. Nevertheless, the minister was explicit on harnessing of the resources, saying that timber harvesting was not prohibited indefinitely but rather should be done in a sustainable manner not indiscriminately. The 'Sunday News' wanted to find out whether the reported irregularities were accidental or deliberate. The answer is simple; deliberate. Local traders including corrupt officials were taking advantage of the existing outdated rates charged for forest products in the country. Local traders have proved beyond reasonable doubt that the world market offers better prices many times more than the local rates. As a result more join the business confident of huge returns. At the moment, teak wood fetches the best prices in the world market but comparative revenue demanded in Tanzania is hardly 200,000/- or USD 133.3 per cubic meter, equivalent to USD 1,330 per tonne as opposed to over USD 3,000 per tonne abroad. The worst part of the story is that even the necessary revenue is not fully paid and the income does not match the consignment(s) ferried to distant destinations. Uncelebrated ports like Mafia, Lindi, Mtwara, Pangani and others are excellent exit points of untaxed logs. The document at hand, for example, under the title, License to fell and collect Forest Produce in General Land with serial number 000008535 issued in one of the district councils on May 07, 2008 indicated that 1,080,000/- was paid as revenue for 60 cubic metres of Mkongo wood. This is equivalent to 18,000/- per cubic metre or 180,000/- per tonne which equals USD 120. From the Web, the teakwood wholesale selling prices are posted each month by the International Tropical Timber Organization (ITTO) According to ITTO, the average wholesale price of teak in 2002 was USD $2,929 per Hoppus tonne. But In January 2003, the price had risen again to $3,244 for a three months rolling average of $3,063. Among other surprises noticed despite official government ban on log export since 2006 was laxity in supervising felling of trees even for timber meant for domestic consumption. Sources further explained that it was common for a trader, for example, to be granted a permit to harvest 100 cubic metres of wood but left alone to harvest 300 cubic metres. "Lack of control was deliberate only to 'penalize' traders at check points. But little goes to the government coffers because the check points are quite symbolic. The alleged penalty goes into individual pockets," another source said. He added; "In fact the check points are nothing short of 'cash points' where money exchanges hands.. Perhaps the new administration will make a difference," the source sounded optimistic. The latest information indicated that the ongoing reforms at the ministry have annoyed corrupt officials who have established business empires beyond borders. To prove their word, sources outlined three factors that complicated the fight against illegal export of logs and suggested ways to stamp out the illegal transactions. First; "The existing alliance between corrupt officials and unscrupulous log exporters will continue to drain the country's resources unless decisive measures were taken to break the chain," said the source. Secondly; "The advent of internet communication facilitated conclusion of business deals with foreign dealers who are less concerned with losses that the country of origin incurred," And lastly; "The negative attitude that forests and other natural resources belonged to no body is quite detrimental and should be abandoned forthwith, as corrupt officials capitalized on the assumption to continue looting the country," sources concluded. The government banned export of logs in 2004 and reaffirmed its commitment in 2006, yet different lame excuses were given to issue permits to traders who are paying insignificant amount of revenue and pocket the huge profit.
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