Tanzania's Lumber Thieves

Forests play a critical role in the fight against global warming by removing carbon dioxide from the atmosphere, which can hold down global temperature increases. Tanzania has 33 million hectares of forests and woodland, but the country has been losing more than 400,000 hectares of forest a year for two decades. 96 percent of trees cut in Tanzania are illegally harvested. An offender who is caught with a consignment of logs worth Tsh. 100 million ($59,000) would be fined Tsh. 500,000 ($294). "These low fines do not always deter illegal activities since the offenders can always afford them," said Athumani Lunduli, a forest conservation official at Chumbi village in Rufiji. 

Illegal logging is devastating native forests in coastal Tanzania's Rufiji district. Hundreds of tonnes of trees are being smuggled out of the district each month by timber traders to feed a lucrative construction market and furniture industries within the country and abroad, said district forest officials. Illegal harvesting of logs in the district threatens the survival of natural forests.

Loggers, who often invade forests at night, are targeting indigenous tree species, notably mninga, and mpodo, which are now on the verge of local extinction due to high demand for their wood.

"The loggers seem to be very well organized and armed. Unfortunately our local forest guards do not have the capacity to confront them," said Shamte Mahawa Mangwi, village executive officer in Rufiji.

An assessment conducted by the Journalists Environmental Association of Tanzania (JET) in November said that illegal logging in the Rufiji forests is fueled by a growing demand for wood products and charcoal making. According to the residents, logs are ferried through unofficial routes assisted by a network of local police officers, who often pretend to be inspecting vehicles for smuggled timber when they are in fact helping them to flee.

"I don't have any trust with the police force. They sometimes arrest suspected criminals and release them without charge," Justin Mfinanga, of Ikwiriri village explained. 

White collar international fraud

The Democratic Republic of Congo and the Republic of Congo are losing at least $12m annually in tax avoidance by logging companies, Greenpeace says.

The environmental group says it has evidence showing how firms like German-owned Danzer group have set up "elaborate profit-laundering schemes". In its report, Conning the Congo, Greenpeace alleges the amount of tax lost each year is 50 times the DR Congo's Ministry of Environment's annual operating budget.Greenpeace says it has documents showing that Danzer's Swiss subsidiary company (Interholco AG) buys timber from its African sister companies (Siforco and IFO) at below the market price and then makes up the shortfall by depositing money in offshore bank accounts. In so doing, the group evades paying big corporate tax and export duties.

Environment Minister Jose Endundo told the BBC's Focus on Africa programme."What I can say about forestry, is that the commission in charge of setting the minimum export prices for timber has not met since 2000. So the logging companies took advantage of the situation to export timber at a price under its real value. It means that the Congolese government has suffered losses in terms of foreign currency earnings and taxes."