Zimbabwe signed US$130 million deal with “British” investor without proof of funds, now blames workers for sabotaging agreement


According to the court papers, Masuka said Boustead Beef could not implement its agreement with the government because:

  • Former employees refused to cooperate with the investor. They deleted company information from company computers and destroyed important documents.
  • The Zimbabwe Asset Management Company threatened to sell the Bulawayo abattoir and the canning factory over a debt of Z$3 712 498.
  • There are several pending court orders which can be executed any time.
  • Many creditors are demanding immediate settlement of debts.
  • There was rampant corruption and unlawful dissipation of assets by some executive members, board members, and government officials resulting in more than 10 000 cattle being misappropriated.
  • Former board members and executives have allocated themselves, family and individuals various ranches and homesteads denying the investor access to these assets.

The court papers say unless something  is done, the noble intentions of the government to revive the CSC will be quashed.

Masuka was a member of the CSC board until May last year when it was dissolved, a week after cabinet announced the deal with Boustead Beef. The board was not involved in negotiating the agreement.

Most of the management that Boustead Beef accuses of frustrating it had left the company before cabinet announced the deal.

According to the agreement between the government and Boustead Beef 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.

It is not clear whether this was done or not but on 22 May, the day the four months expired, CSC board was dissolved.

Four months later after the cabinet announcement, Boustead Beef sent all workers on four months leave claiming it was rehabilitating the plant but after the four months  it advised the workers that they were being retrenched to give the company a clean slate to start operations.

Continued next page


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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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