Zimbabwe lands minister misleading Mnangagwa about revival of CSC

The legal challenges include the unprocedural removal of Majoko as corporate rescuer, the illegal retrenchment of CSC workers whose illegality was confirmed by the Retrenchment Board, as well as the legality and validity of the agreement between the government and Boustead Beef.

Under the agreement, 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.

It was also supposed to:

increased capacity utilisation at CSC ranches and abattoir plants;
increased prospects for restoration of the enterprise’s viability and higher throughput;
stemming of further deterioration of equipment which is currently lying idle, and the growth of the local livestock and beef industry.

None of this was implemented.

Under the agreement, signed by Agriculture permanent secretary Ringson Chitsiko and Boustead Beef director Nick Havercroft on 22 January 2019, Boustead Beef should have shown the government proof of funds to the tune of US$130 million four months after signing the agreement but this was never done.

Boustead Beef just announced that Ethos Asset Management is injecting Millions into the CSC with the first tranched coming in next month.

Havecroft told the Sunday Mail: “The amount Boustead has secured from Ethos is substantial, but remains confidential. The first drawdown from this facility will be available in December, but practically Boustead will most likely draw down commencing January 2023.”

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