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Herald Reporter
THE urgent revival of meat processor Cold Storage Company (CSC) remains a top priority for the Government, Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, has said.
In a statement yesterday, Dr Masuka said as the country strives to execute the Agricultural and Food Systems Transformation Strategy, the CSC will “increasingly become an important cog” of the Livestock Growth Plan.
To address corporate governance and administrative malfeasance and attend to viability issues at the CSC, proceedings for corporate rescue were instituted in the High Court in 2020 resulting in the appointment of BDO Zimbabwe Chartered Accountancy’s Mr Ngoni Kudenga as the corporate rescue practitioner.
However, the appointment of Mr Kudenga was not confirmed at the creditors meeting held in March 2021, resulting in the attempted appointment of Mr Vonani Majoko by the Additional Master of the High Court, said Dr Masuka.
Government, BDO and Wilfred Masunda challenged this appointment by filing applications for review in both the Harare and Bulawayo High Court. There were three cases in the end.
Ngoni Kudenga v Additional Master of the High Court Case Number HC 2528/21 has been heard but is awaiting judgment, as is Wilfred Masunda v Additional Master of the High Court Case Number HC 1687/21. The Minister of Lands v Additional Master HC Bulawayo is yet to be heard.
Dr Masuka said in order to address concerns on the current state of the CSC as a company and the security of national assets in its custody, he recently engaged Boustead Beef-CSC with the intention of finding a lasting and efficient solution to the current impasse.
He also toured the new plant at CSC headquarters in Bulawayo.
“We take note of the 90-days provision for corporate rescue as provided by the law and I am consulting the relevant stakeholders to find a definitive way forward. The Government remains committed to the successful resuscitation of CSC within the legal framework of the country and the agreement between Boustead Beef and Government,” said Dr Masuka.
He said periodic updates will be issued on efforts to resuscitate the CSC.
The Government and Boustead Beef, an investor from the United Kingdom, entered into a US$400 million agreement in 2019 for the revival of CSC.
The agreement allowed Boustead Beef to use the CSC’s assets and extinguish the company’s liabilities.
However, the deal has faced some hurdles.
Online Reporter