adminElita Chikwati Agriculture Reporter
The Cold Storage Company and the Agricultural and Rural Development Authority are seeking Government’s approval to dispose their assets for recapitalisation, officials told the Parliamentary Portfolio Committee on Lands, Agriculture Mechanisation and Irrigation yesterday.
Officials from the two parastatals who appeared before the committee separately said the companies had assets that were lying idle that could be sold and the money used for recapitalisation.
CSC chief executive, Mr Ngoni Chinogaramombe said the company was operating at below 10 percent and had registered a loss of $1,4 million during the first quarter of this year and this discouraged investors.
The company last received Government grant in 2009 and is struggling as it has lost market share to private operators following the cessation of beef exports to the European Union.
Mr Chinogaramombe said the company could raise $14 million through disposal of idle assets and be in a better position to attract investors.
“We have an investor who is willing to pump in $80 million that can be used to recapitalise Chinhoyi and Bulawayo plants. We can not access funding because the short term funding that is available is not viable.
“Since 1995, we have wanted CSC to be capitalised. We submitted proposals in 2009 and 2012 but we did not get approval. We proposed another proposal in 2013 but this can only be approved after a forensic audit.
“CSC is sitting on idle assets. The abattoirs occupy a third of the land they are situated at and the other land is not used. We have incurred debts in unpaid taxes and rentals for the idle land. We could sell off the land and reduce costs,” he said.
Mr Chinogaramombe said CSC had staff houses in some towns, a huge garage in Harare which was used by the CSC transport division and was no longer functional and Marondera and Kadoma abattoirs that could be sold to raise funds.
CSC owes creditors $25 million including employees who are taking legal action against the company. This has seen CSC losing some of its assets as workers win court cases.
Mr Chinogaramaombe said CSC buildings were on urban land and this was expensive .
CSC has the capacity to employ over 2 500 people but currently has 413 workers. The workers are paid according to the monthly revenue generated and salary arrears have gone up to $3,5 million.
ARDA acting general manager, Mr Willard Mbona said the parastatal wanted to sell buildings and land to raise funds.
He said 11 estates had partnered with other companies and were now producing different crops that included sugar, soyabeans, seed for different crops and wheat and commercial maize.
“The challenges we have at the remaining 10 estates are that they are operating with aged equipment which is between 45 and 55 years old and requires rehabilitation.
“Arda cannot access long term funding and last received Government support in 2000 for the expansion of the Dande Smallholder Irrigation Scheme which was later abandoned due to underfunding,” he said.
“We can dispose Modzone formerly Cone Textiles building and land occupied by ZUPCO in Harare.
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