'Aid' Leads to Bankruptcy in Malawi, Mozambique & Kenya

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'Aid' Leads to Bankruptcy in Malawi, Mozambique & Kenya

The Chronicle Newspaper (Lilongwe)

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Lilongwe

Used clothes, donated by European and American consumers for " a good

cause " , are turning into a dubious industry that is believed to have

cost more than 40,000 jobs in Africa's emerging textile industry. In

Malawi, the country's leading textile company had to close down, and

similar trends are seen in Mozambique and Kenya.

Around the Western world, Western consumers put used clothes

into " charity " drop-in boxes, believing these will aid the poor. One

of this drop-in box operators is the controversial Danish

organisation Tvind, which runs lucrative commercial operations under

its cover name Development Aid from People to People (DAPP).

Among Scandinavian trade unions, the operations of Tvind are

increasingly criticised as more of its practises are uncovered.

Recently, Norway's main trade union (LO) advised against donating

used clothes to Tvind (locally known as UFF) because these clothes

from Europe were " breaking the back of the textile and ready-made

clothing industry in Africa's poor countries. " According to the

Norwegian union, " the biggest textile company in Malawi had to close

down because it could not compete with the used clothes from

Scandinavia. " Bankruptcies had also been observed in Mozambique and

Uganda and in Zambia, textile workers have organised strikes to meet

the threat.

In the Mozambican capital, Maputo, large quantities of used clothes

from Europe are sold at very low prices in the middle of the town

quarter where small and medium sized companies are running clothing

workrooms, trying to establish a local textile industry. Competition

is uneven. Tvind (locally known as ADPP) is reckoned to control more

than half the used clothes business in the country.

Only in Kenya, used clothes of a total value of 60 euro million are

imported each year, which, according to LO, makes it the country's

seventh largest import category. Kenya's emerging textile industry

subsequently faces serious backlashes.

Totally, the Scandinavian unions claim that more than 40,000 workers

in Africa have lost their jobs due to the under-priced imports of

clothes from the North. Only recently, seven big textile and ready-

made clothing companies have had to close in the region, leading to

the loss of 15,000 jobs.

NorWatch, a group mapping Norwegian business practices in low cost

countries, expressed strong concern over Tvind's (locally known as

DAPP) operations in Malawi. NorWatch observers, visiting the country,

had observed how Scandinavian used clothes companies " totally have

monopolised the textile market " in Malawi.

DAPP allegedly had managed to convince Malawian authorities their

operations had to be classified as development aid. Thus, the Danes

had achieved a special treatment from customs authorities, paying

less than half the import taxes paid by other textile importers.

Tvind however categorically rejects these critiques. The 30-year old

Briton Ann , running DAPP's used clothes operations in

Malawi, says that her organisation's aim is " to improve people's

living conditions by giving them the possibility to buy used clothes

and shoes at affordable prices. " - This strikes you as a strange

motivation in Malawi, NorWatch researcher Stenerud

says. " People have clothes, " he adds. " Indian businessmen have run

used clothes sales for decades and UFF [DAPP] clothes aren't even

cheaper. " The group also criticised the quality and hygiene of

clothes exported to Malawi.

Also Jesper Pedersen, heading UFF's Norway offices, claims all these

alleged problems are only constructed by journalists. " Mass produced

cheap clothes from China and Turkey are a bigger threat " to jobs in

Africa's textile industry, Mr Pedersen claims.

Although operating with large revenues, Tvind is still registered as

a charity organisation in Norway. " We are constructing child care

organisations and schools for this money, " says Mr Pedersen. Tvind

operates schools and child care centres in several continents.

However, these schools and centres are also the target of massive

critiques.

In Europe and North America, Tvind often has been characterised as " a

secular cult " , allegedly brainwashing children and youths to become

willing disciples of the money-making organisation.

Even in Africa and Latin America, DAPP's schools and centres

allegedly produce neat revenues for the Tvind executive. In Malawi,

government is now probing activities of DAPP Malawi, following a call

for help by students of its Mikolongwe Vocational School.

The Malawian students accuse DAPP of " forcing them to work like

slaves with little time for learning, " Bright Sonani from 'Malawi

News' recently reported. Further, scholarships and other funds meant

for Malawian students allegedly have been channelled to Denmark -

something authorities are looking into.

Also in Mozambique, where Tvind's ADPP is running five teacher

training colleges (Escola de Professores do Futuro), there are

allegations of messing up teaching and works for Tvind. The " future

teachers " are also set to do construction works, agricultural works

and other work associated with Tvind's operations.

As Tvind's operations have become more known during the last years,

it has been met with increased resistance. In Sweden, its charitable

status has been withdrawn. In France, Tvind is officially classified

as a cult and was pursued by the French tax authorities for tax

evasion. In Britain, Tvind (here known as Humana) was closed

following a fraud investigation.

Tvind founder and alleged leader Amdi sen in 2001 was found to

be living in a multi-million dollar luxury apartment in Miami after

having been on the run from Danish police for over two decades. He is

now charged with fraud and tax evasion by Danish prosecution on

account of euro 25 million involving Tvind's Humanitarian Fund. A

sentence is expected to be handed down late 2005. afrol news