Fight for CSC is more for its US$100 million assets than reviving operations

The Agreement also said that Boustead Beef should invest US$45 million in the first year, as follows:

• Refurbishing of abattoirs, canning factory, distribution US$6 million.
• Working capital abattoirs, canning factory, distribution US$5 million.
• Logistic fleet, vehicles, distribution- abattoirs US$2 million.
• IT systems/meat matex/stock control/etc US$3 million.
• External cattle purchase facility US$5 million.
• External buy back facility for processed beef US$5 million.
• Capital expenditure ranches and feedlots US$4.5 million.
• Working capital ranches and feedlots US$3 million
• Logistics fleet ranches, vehicles US$1.5 million
• Cattle purchase US$10 million

None of this was done. Besides, though the agreement said that Boustead Beef must provide proof of funds four months after signing the agreement, this was never done.
Although Chitsiko told CSC management not to interfere with Boustead Beef to speed up the CSC’s revival, it was clear by September 2019 that Boustead Beef did not have the capacity to revive the company.

It had not invested any money and was using rent from CSC properties to pay workers paltry wages. It closed operations telling workers that it was refurbishing the plant and would re-open in four months. But after the four months, it advised workers in February 2020, that it was retrenching them to make a clean start.  The retrenchment packages were so pathetic that one worker who had served 43 years was told to walk away with less than US$300.

It was,however, only on 9 September 2020, that new Lands and Agriculture Minister Anxious Masuka told Parliament that Boustead Beef had failed to revive the CSC.

Asked by Mzingwane legislator Levi Mayihlome about the future of the CSC, Masuka replied: “As the Hon. Member might be aware, the CSC has gone through very turbulent times over the past 10 to 15 years to an extent that it is operating at between 8 and 10% capacity and all its ranches are literally moribund.  

“To that extent, Government scouted for a partner that came on board with certain performance parameters.  Unfortunately, those performance parameters have not been fully met and Government is in the process of reviewing that arrangement so that CSC can get back to what it used to be – to develop the lives of industry and complement Government efforts especially in the light of the recently launched livestock growth plan.”
When asked whether the government had no capacity to do proper due diligence on a partner before engaging them, Masuka replied that this was not the case.

Continued next page

(260 VIEWS)