adminRichard Muponde
THE Cold Storage Company suffered a major blow last week after six of its properties were attached by the Sheriff and are due for public auction next month to offset over $500 000 in salary arrears for over 200 employees and subscriptions to the company’s workers union.
Once Africa’s largest meat processors, the parastatal used to handle up to 150 000 tonnes of beef and associated by-products a year, exporting to the lucrative European market. However, since the illegal sanctions imposed on the country by the West, the company’s fortunes took a down turn.
The owed workers then approached the courts and got orders to attach the company’s property. Recently the Sheriff attached three of the company’s houses and a farm in Bulawayo, a house in the border town of Beitbridge and another farm in Mberengwa. Bulawayo High Court judges Justices Martin Makonese and Maxwell Takuva granted the orders early this year.
The Deputy Sheriff has since instructed Hollands Auctioneers to put under the hammer four of the attached properties to recover over $500 000 owed to workers and the company’s workers’ union in salary arrears and subscriptions back dating two years ago. Hollands Auctioneers has since advertised that it will sell the properties on Friday 6 November in the city.
“Jacob Mafume and others vs Cold Storage Company; Certain piece of land being Stand number 11970 Bulawayo Township, situated in the district of Bulawayo measuring 1683 sqms being 20 Mary Burrows Rd, Ilanda, Bulawayo.
Certain piece of land situate in the District of Beitbridge being stand 220 Beitbridge Township of Beitbridge. Certain piece of land in the District of Belingwe being Shangrila West of Kromdraai Estate measuring 4451, 4605 hectares.
Certain piece of land situate in the District of Bulawayo being stand 8195 Bulawayo Township in extent of 2156sqms being 105 Matopos Road, Hillside, Bulawayo,” advertised Hollands Auctioneers on Friday.
Mr Dumisani Dube of Mathonsi Law Chambers is representing the CSC workers and the workers’ union.
The parastatal has over the years lurched from one crisis to another, underlined by a $25 million debt and the closure of its plants in Kadoma, Marondera and Chinhoyi in recent years.
It has also run up losses of around $6 million annually for the past decade. Over the years, CSC has been involved in negotiations with potential suitors willing to operationalise its depots in Masvingo, Kadoma, Marondera and Chinhoyi, but analysts say the $25 million debt overhang has been a major put-off for investors. All in all, it is estimated that more than $80 million is needed to bring the company back to its feet.
The parastatal is operating one abattoir in Bulawayo and leasing out 9 200 livestock units and only 700 cattle are reportedly left, down from 10 000 at the turn of the millennium.
derick.khumalo