Starafrica’s top brass step down

of the CEO, came as a surprise to the market. Mr Sithole was appointed CEO in 1997.
The Zimbabwe Stock Exchange-listed firm yesterday said the two had tendered their resignations which the board had accepted.
Mr Sithole will leave the firm at the end of this month while Mr Masawi’s resignation was effective from the end of last month.
“The board is in the process of restructuring the company and recruiting a new chief executive and an announcement will be made in due course. The board wishes to thank Mr Sithole and Mr Masawi for their contribution during the long periods of service under very difficult circumstances,” said starafrica.
The resignations came at a time starafrica has been struggling to restructure in an attempt to turn around its fortunes.
Last June the firm announced plans to rid itself of debt, dispose non-core and loss-making operations and recapitalise its operations to the tune of US$22 million.
Disposals started off well and raised over US$10 million, but were reportedly affected by tight liquidity in the local market.
Starafrica said disposal of some immovable property raised US$8 million, disposal of West Bev resulted in a US$2 million loss while its wholesale arm and R. Chitrin are under liquidation.
Starafrica on Tuesday said that it would ask the shareholders to approve a US$10,8 million debt arising from borrowings taken above limits provided in the article of association. Chairman Mr Passmore Matupire said the sugar refinery and logistics firm would seek ratification of liabilities at the next annual general meeting.
Mr Matupire disclosed the excess liabilities in a statement accompanying the firm’s financial results for the full year to March 31, 2012.
Starafrica said the US$10,8 million debt it contracted was a consequence of the losses that the company incurred.
In the financial results for the period to March 31, 2012 starafrica indicated that its huge debt had contracted finance costs of US$2,7 million.