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Prosper Ndlovu, Business Editor
THE Cold Storage Company (CSC) is pleading with the government for permission to dispose its non-core assets and have its $30, 9 million debt ring fenced by the Treasury to allow recovery.
Paddy Zhanda, the Deputy Minister of Agriculture Responsible for Livestock told Acting President Phelekezela Mphoko during a tour of the troubled parastatal in Bulawayo yesterday that the request was part of their turnaround strategy, which has not been approved since 2014.
“What we’ve requested from the Finance Minister is ring fencing of CSC debt and permission to sell our non-core assets such as idle land and buildings that are scattered across the country,” he said.
Deputy Minister Zhanda said this would allow the cash strapped entity to “raise between $10 to $15 million, which can do us wonders by giving us non-interest money for recapitalisation”.
He said the money would be used to finance short term recovery initiatives such as boosting the CSC cattle herd, growing the feedlot scheme and slaughtering beasts.
He said CSC has a huge opportunity for growth but was hamstrung by debts and lack of funding to realise its full potential. “We need to do a study on market viability and explore other lucrative markets outside the traditional EU market. There’s a growing market in DRC, Angola and Equatorial Guinea,” he said.
Deputy Minister Zhanda said his ministry would adopt a feedlot approach as a quarantine strategy to curb the spread of foot and mouth disease.
He said CSC was a major agriculture entity and critical arm in the economy but admitted failure in turning the firm around.
“I’m at pains why CSC is not working. This is a very big letdown, we’ve let the company fail,” said Deputy Minister Zhanda.
Acting board chairman Peter Nyoni said delays in approval of the company’s turnaround strategy has resulted in loss of properties through litigation as creditors seek to redeem their monies. He reported that the company has lost 400 cattle, residential properties while 38,000ha of its land and all furniture at its Bulawayo headquarters has been attached over debts. “CSC needs a creditor protection instrument as a matter of urgency. Without ring fencing, everything we do will be eroded by creditors,” said Nyoni.
Bulawayo Provincial Minister of State Eunice Nomthandazo Moyo described delays in approval of CSC strategy as “sabotage” to the economy, which has robbed Bulawayo people of jobs. She said such delays were forcing people to blame the government and lose faith in the leadership of the province in particular.
Acting President Mphoko pledged to take urgent action to ensure CSC issues were resolved and pave way for the revitalisation of the company.
Online Reporter