Boustead Beef taking government for a ride again but this could be short-lived

Although the government initially appointed Ngoni Kudenga as the corporate rescue practitioner, Kudenga was disqualified at the first creditors’ meeting after some creditors argued that there was a conflict of interest as Kudenga was closely linked to Lands and Agriculture Minister Anxious Masuka.

Vonani Majoko was appointed the CRP instead, so it is not clear whether he is implementing the same plan the government set out in December which included examining the operations of Boustead Beef and whether it had the capacity to revive the CSC as Boustead Beef is already at work according to Shoko.

It is also not clear whether Boustead Beef is still a government partner or a creditor because the company filed a claim for $3.5 billion as a creditor. The claim dwarfed all the claims by other creditors put together.

“We are very disturbed by the stories that are running in the State media,” a workers’ representative said. “They are more of a public relations exercise for Boustead Beef which makes us wonder they are paid for or not.

“Boustead Beef was not asked to partner the government to repair compressors but to revive the CSC.  The compressors were working when Boustead Beef took over and it stripped them, now it is simply putting them back and someone claims that is progress.  Why is the media not pinning down Boustead Beef on implementing what it agreed with the government which led to the CSC being placed under corporate rescue?”

According to the workers’ representative, CSC current and former employees had filed a court application in which they were questioning the disqualification of Kudenga and the appointment of Majoko, arguing that the meeting that passed those resolutions was not properly constituted.

Kudenga has also reportedly filed an application against his disqualification and so has the government which was reportedly shocked when Boustead Beef filed a claim as a creditor.

The workers also said Majoko was conflicted as he was one of the creditors to the CSC.

A list of CSC creditors shows Majoko and Majoko as one of the 10 law firms that have filed claims as creditors.

“We can’t wait for the courts to reopen so that the various court applications can be heard,” a former employee said. “Hopefully justice shall prevail and CSC can head back to the rescue path that government intended.”

See also: https://insiderzim.com/were-mnangagwa-and-mthuli-ncube-taken-for-a-ride-by-boustead-beef/

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