GABORONE — The struggling Cold Storage Company (CSC) owes Botswana one million pula for cattle it imported from the neighbouring country’s foot-and-mouth disease-infested areas.
Botswana’s parliamentary Public Accounts Committee (PAC) last week heard that the Bulawayo-headquartered parastatal has not been paying for the cattle imported for slaughter for some time.
The PAC was told this when the Agriculture ministry gave account of its annual budget.
According to details of the report, the Botswana government extended its export deal of live cattle to Zimbabwe for an indefinite period, four years ago, as Botswana grappled with foot-and-mouth disease in the north and east regions.
The deal between the two governments involved sending live cattle from Botswana to Zimbabwe’s CSC slaughter facilities in Bulawayo.
The deal was largely seen as some respite to the Botswana Meat Corporation, since the European Union had stopped beef importsfrom Botswana due to the foot and mouth disease outbreak.
Zimbabwe and other African countries seized the opportunity to buy cattle from Botswana.
Agriculture permanent secretary Micus Chimbombi confirmed that CSC was indebted to Botswana.
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“They have owed us for four years now, but have however acknowledged this debt and we regularly communicate with them about that issue,” he said.
“They seem to be willing to pay us, but they do not have funds right now.”
Chimbombi said they had worked well with CSC and would like to maintain the cordial relationship.
He said the government was careful not to sour its relationship with Zimbabwe over a debt that they knew the company would eventually pay.
However, MP for Tati East Samson Guma Moyo expressed scepticism that CSC would settle the debt any time soon considering the long period the firm gone without paying for the imports.
CSC has a huge debt of close to $22 million and has seen production going down to around 10% of capacity.
The company was at one time the largest meat processor in Africa, handling up to 150 000 tonnes of beef and associated by-products each year and exporting to the European Union.
CSC is reportedly left with just 700 cattle and more than $80 million is needed to bring the company back to its feet. — Mmegi/Staff Reporter
