Is the CSC turn-around being turned into a money-laundering scheme?

Under the joint venture agreement signed in 2019, Boustead Beef was supposed to:

• raise and invest a minimum of US$130 million into CSC over five years, being for both capital expenditures and working capital for the business;
• pay off CSC financial debts totalling US$42 530 597;
• pay rentals of US$100 000 per annum during the first five years of the concession agreement;
• take over and run the management of the following CSC ranches for an initial period of 25 years: Maphaneni; Dubane; Umguza; Chivumbuni; Mushandike; Willsgrove; and Darwendale;
• take over and run the management of the following abattoirs for an initial period of 25 years: Bulawayo; Chinhoyi; Masvingo; Marondera; and Kadoma; and
• take over and manage for an initial period of 25 years, the Harare, Gweru and Mutare distribution centres and residential properties of CSC.

The same agreement stated that, in the first year, Boustead Beef should invest US$45 million 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

Nothing of the sort happened, forcing Lands and Agriculture Minister Anxious Masuku to place the company under corporate rescue. But Boustead Beef managed to have the first corporate rescue practitioner Ngoni Kudenga kicked out citing conflict of interest and is now trying to get rid of his successor Vonani Majoko.

(198 VIEWS)