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


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Nothing was said in the court papers about why Boustead had failed to implement its monetary obligations agreed with the government namely that  it would invest US$45 million within the first year, that is, by end of January when it decided to retrench workers instead.

According to the agreement, Boustead was to invest in the following in year 1:

  • 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

Instead the government is now seeking to place CSC under judicial management of Kudenga BDO.

The company is expected to carry out a full inventory of all of the CSC assets and businesses.

All legal action pending will be stayed.

CSC employees who have been obstructing the operations of Boustead will be dismissed.

It is not clear what role Boustead will play in the new arrangement but the court papers say  Kudenga will come up with a new enhanced agreement.

The Insider, however,  understands that the government is diplomatically trying to ease Boustead Beef out without incurring any legal costs. By shifting all the blame for the failure of Boustead Beef to take off, the company will now be hard-pressed to prove that it has the funds that it said it had as well as the orders it claims to have sealed.

See also:

Can Havercroft really revive Zimbabwe’s largest meat processor?
https://www.insiderzim.com/can-havercroft-really-revive-zimbabwes-largest-meat-processor/

Something fishy seems to be going on at Zimbabwe’s Cold Storage Company
https://www.insiderzim.com/something-fishy-seems-to-be-going-on-at-zimbabwes-cold-storage-company/

Zimbabwe’s largest meat processor shutting down for 4 months-Workers threaten to camp at factory until grievances are addressed
https://www.insiderzim.com/zimbabwes-largest-meat-processor-shutting-down-for-4-months-workers-threaten-to-camp-at-factory-until-grievances-are-addressed/

Zimbabwe duped by “UK investor”-workers say
https://www.insiderzim.com/zimbabwe-duped-by-uk-investor-workers-say/

Mnangagwa and his entire cabinet should be taken to task over CSC deal
https://www.insiderzim.com/mnangagwa-and-his-entire-cabinet-should-be-taken-to-task-over-csc-deal/

What a travesty – Zimbabwe’s CSC to retrench workers, package less than US$300 after 43 years’ service
https://www.insiderzim.com/what-a-travesty-zimbabwes-csc-to-retrench-workers-package-less-than-us300-after-43-years-service/

How can Mnangagwa allow this?
https://www.insiderzim.com/how-can-mnangagwa-allow-this/

Were Mnangagwa and Mthuli Ncube taken for a ride by Boustead Beef?
https://www.insiderzim.com/were-mnangagwa-and-mthuli-ncube-taken-for-a-ride-by-boustead-beef/

Cold Storage Company managers threaten to take Boustead Beef Zimbabwe to Labour Court
https://www.insiderzim.com/cold-storage-company-managers-threaten-to-take-boustead-beef-zimbabwe-to-labour-court/

Can Masuka sort out the mess Shiri left at CSC-Boustead-Beef?
https://www.insiderzim.com/can-masuka-sort-out-the-mess-shiri-left-at-csc-boustead-beef/

Was State media sold a dummy by British CSC investor?
https://www.insiderzim.com/was-state-media-sold-a-dummy-by-british-csc-investor/

British investor puts Zimbabwe government in a tight spot
https://www.insiderzim.com/british-investor-puts-zimbabwe-government-in-a-tight-spot/

CSC workers urge government to act quickly on failed “British” investor
https://www.insiderzim.com/csc-workers-urge-government-to-act-quickly-on-failed-british-investor/

Zimbabwe Cold Storage Company workers vow to put on a good fight over retrenchment
https://www.insiderzim.com/zimbabwe-cold-storage-company-workers-vow-to-put-on-a-good-fight-over-retrenchment/

Boustead Beef to sell more than 200 Cold Storage Commission cattle tomorrow
https://www.insiderzim.com/boustead-beef-to-sell-more-than-200-cold-storage-commission-cattle-tomorrow/

(276 VIEWS)

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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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