The Tobacco Industry Marketing Board (TIMB) has revoked Leanrise Tobacco Limited's contract purchasing license after finding them guilty of engaging in subsidiary marketing activities.
On December 12th, 2022, in a letter addressed to Rhonwell Danga, the CEO of Leanrise, Emmanuel Matsvaire, acting CEO of TIMB, accused the company of leasing its contract purchasing license to a company called Munyasha Tobacco.
According to reports, you have violated section 81 (4) of the Tobacco Industry and Marketing Act (Chapter 18:20) for failing to comply with the conditions of the license issued to you under the aforementioned law. It is alleged that you rented out your contract to purchase the license to Munyasha Tobacco P/L, thus directly facilitating the purchase of tobacco by individuals without licenses." Matsvaire stated.
In their response, Leanrise countered accusations that the Tobacco Industry and Marketing Board (TIMB) wrongly applied Section 81(4), stating that it does not specifically outline prohibited actions. They were represented by their legal team from Murambasvina Legal Practice.
According to Leanrise's analysis of section 81(4) of the bill, there is no specific action that is prohibited. Instead, the provision only declares guilty those who violate explicit conditions set forth by authorities, licenses, or permits.
The company further accused TIMB of failing to inform them of explicit license violations.
However, your letter implies that we are renting out our license to Munyasha Tobacco P/L, thereby facilitating the purchase of tobacco by unauthorized individuals.
Firstly, this does not violate any explicit or implicit conditions of our license. It should be noted that any tobacco purchased using the Leanrise license is meant for Leanrise's own consumption. Additionally, the Leanrise license cannot be used to purchase tobacco from growers who have not signed a contract with Leanrise.
Leanrise stated, "We are not engaged in covert marketing, and there is no evidence to support any such accusations." The company defended itself further by asserting its right to allow agents to use their licenses to advance their business.
In this example, Munyasha Tobacco P/L is our agent and is working to enhance our business interests. As of now, we have not determined if their actions violate any regulations, and therefore we will assume responsibility," Leanrise added.
However, Leanrise's defense was unable to save them as TIMB continued to revoke their purchasing license, putting an end to the debacle that began as early as August 2022.
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