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.
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