AG revelation of CSC debacle exposes criminal laxi...

AG revelation of CSC debacle exposes criminal laxity of Government custodianship

· No audit for 8 years
· Accounts of 2018-21 not yet submitted

The Auditor General’s report that Cold Storage books have not been audited for eight years and that financial reports for 2018-2021 have not yet been submitted shows that government representatives in the partnership have not taken their role seriously.

CSC is outstanding on the ANNEXURE “B”: AUDITS IN PROGRESS AND BEING FINALISED where it is the only that has run for so long without presenting its books to the Auditor General’s office.

It is a mystery how responsible custodians could show such total disinterest in a State asset that is crucial to government revenue, food security, national pride, employment creation and impacts on a large number of lives.

Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement is the responsible authority with former permanent secretary Ringson Chitsiko having inked the Public Private Partnership deal that has turned from a promised US$130 million investment into a US$3,5 billion claim against the government.

Parties to the agreement 22 January 2019

· Government represented by then Agriculture Permanent Secretary Ringson Chitsiko
· Boustead Beef director Nick Havercroft

Agreed terms

Boustead Beef to show government proof of funds worth US$130 million within four months to be used to:

pay off CSC financial debts totalling US$42 530 597;
pay rentals of US$500 000 over 5 years
Run Maphaneni, Dubane, Umguza, Chivumbuni, Mushandike, Willsgrove, and Darwendale ranches for 25 years
Run Bulawayo; Chinhoyi, Masvingo, Marondera, and Kadoma abattoirs for 5 years
Run Harare, Gweru and Mutare distribution centres and residential properties of CSC for 25 years
US$6 million into refurbishment of abattoirs, canning factory, distribution.
US$5 million working capital for abattoirs
US$3.5 million for operational fleet upgrade
US$3 million for ICT systems
US$15 million cattle purchases
US$5 million external buy back facility for processed beef.
US$4.5 million capital expenditure on ranches and feedlots
US$3 million working capital for ranches and feedlots

What happened

September 2019

· Boustead Beef shut down the factory in claiming it was refurbishing the plant

December 2020

· Government put the company under corporate rescue
· Boustead Beef filed papers as a creditor claiming some $3.5 billion.
· First corporate rescuer Ngoni Kudenga was disqualified on allegations of conflict of interest
· Second liquidator Vonani Majoko was allegedly shut out

August 2022

· Boustead Beef invited Vice-President Constantino Chiwenga to officially open the plant
· 14 cattle were slaughtered for the show
· Boustead Beef consultant Reginald Shoko claimed that the company was retraining workers and full operations would resume in four to six weeks.

The big questions

· Why have CSC books been allowed to lie unaudited for 8 years, against all protocol?
· What exact role have state custodians of the PPP been playing over the past two years?
· How did they allow a whole VP to get invited to an official opening of an enterprise that never was?
· Is it possible for Boustead Beef to have kept a charade without complicity within government?
· Who invested Boustead Beef with the gumption to file a US$3.5 billion claim in return for delivering hot air?