Revival of CSC beefed up

Agriculture Reporter
THE Cold Storage Company (CSC) has been put under a court-approved corporate rescue practitioner, who is expected to lead its revival to avoid liquidation.

The revival plan is expected to bring CSC back to profitability and contribute to the Livestock Growth Plan and the National Development Strategy 1.

Mr Ngoni Kudenga, of BDO Zimbabwe Chartered Accountants, will take over management of CSC as the board and directors have been divested of their management status.

The Ministry of Lands, Water and Rural Resettlement entered into a joint venture agreement with Boustead Beef (Pvt) Ltd on January 22 last year with the investor agreeing to use CSC’s assets and extinguish the company’ s liabilities or debts.

The process was delayed by a myriad of issues which necessitated the placement of CSC under a corporate rescue practitioner.

Minister Lands Minister Dr Anxious Masuka yesterday said Mr Kudenga would ensure CSC remained solvent for the benefit of the company’s creditors and workers, among other stakeholders.

“The corporate rescue plan is implemented along guidelines provided by the Insolvency Act Chapter. The plan must also incorporate the Livestock Growth Plan and the National Development Strategy 1.

“The corporate rescue practitioner will report directly to the Minister and Permanent Secretary,” he said in a statement.

The mandate is to investigate the company’ s affairs, business property and financial situation in terms of the Insolvency Act, investigate previous CSC operations and expose the weaknesses within the systems and recommend possible solutions, and investigate adherence to corporate governance principles and recommend aspects that require strengthening.

Minister Masuka said Mr Kudenga will also confirm the number and status of all CSC assets and investigate employment and dismissal of employees from the date the joint venture was signed.

“The corporate rescue practitioner will examine Boustead Beef (Pvt) Ltd’s current operations, investments made and operational initiatives implemented since the signing of the agreement and establish whether or not it has capacity to revive CSC and advance the Livestock Growth Plan.

“The Minister will be guided by the corporate rescue practitioner and urges all parties and stakeholders to work with the corporate rescue practitioner to achieve the intended objectives,” he said.