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Business Writer
The appointment of Cottco “care taker” manager John Chikura came under spotlight on Tuesday after the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Climate and Rural Resettlement demanded to know his role at the firm.
Chikura, former chief executive of Deposit Protection Corporation, was appointed care taker manager of Cottco in March this year on a six months contract, the move which the legislators questioned.
Chikura’s contract will expire this month and it remains unclear whether it will be extended.
It is understood that Chikura was seconded by the Zimbabwe Asset Management Company, a subsidiary of the Reserve Bank of Zimbabwe created in 2015 with a 10-year mandate to rid the banking sector of all non-performing loans after which the special purpose vehicle is anticipated to wind down its operations.
Questions have been raised on the rationale of Chikura’s appointment, given that no similar arrangements have been done on some of the companies bailed out by ZAMCO.
These include among others diversified miner RioZim, food processing company Cairns Foods and sugar refining entity starafricacorporation. ZAMCO inherited over $1,2 billion worth of non-performing loans from banks.
At the beginning of the proceedings, committee chairperson Justin Mayor Wadyajena, insisted Chikaura took the oath after Pious Manamike had indicated he and head of operations and marketing Maxmore Njanji would speak on behalf of the company.
“What is he doing there (at Cottco),” Wadyajena, who is also Member of Parliament for Gokwe-Nembudziya asked Manamike, who was about to make a presentation on company’s operations before the committee.
Immediately, Wadyajena then asked cotton companies that had been invited to make presentations, journalists and other stakeholders to leave to allow for private deliberations.
After deliberations, the committee resolved that Cottco should provide information on who “appointed” Chikura, his letter of appointment and a resolution to appoint him. Chikura appeared to have wanted to give an explanation but the committee maintained that the responses be provided in writing.
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