TOP executives at the Cold Storage Company (CSC) are in the eye of a storm after they allegedly sold themselves top-of-the-range company vehicles for a song, prejudicing the parastatal of over $143 000, Southern Eye has learnt.
BY SILAS NKALA
The struggling parastatal owes workers over $715 000 in unpaid salaries since 2009.
A confidential document — titled Profit or Loss on Disposal Summary as at December 31, 2012 — leaked to Southern Eye shows that eight senior managers, in 2012, bought company vehicles after allegedly writing off their value within two years instead of the stipulated four years.
The vehicles were procured by the company in 2011, only to be sold to senior managers in 2012.
One manager allegedly bought a Toyota Hilux that was initially purchased for $25 000, but was depreciated to a net value of $6 250.
Another top manager bought a Mercedes Benz ML 320 worth $48 336 for $12 080.
Other senior staff members listed on the document got Nissan Navaras worth $26 868 for $6 717.
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Another Toyota Hilux worth $25 000 was sold to a manager for $6 250, while one manager secured a Ford Ranger worth $20 419 for a paltry $5 104.
Several other managers also bought Ford Rangers for a pittance.
The document shows that the total write-off as net book value was $143 383,75.
The document also shows that proceeds obtained from the deal were $49 657,75.
This comes as the company was struggling to pay workers, who have not been fully paid since 2009.
“It is sad that when workers had gone for so long without salaries, management could dare acquire luxurious vehicles,” one worker said.
CSC finance manager Pascal Marufu said the parastatal was currently undergoing a forensic audit as ordered by the government.
“It (the matter) is, therefore, at this stage sub judice, so to comment on issues which are under investigation as it has legal implications,” he said.
“At the appropriate time, in the near future, it may be possible to get responses from our principals. We trust that you will appreciate these circumstances.”
CSC workers recently got a writ of execution to attach company property over the $715 000 salary arrears.
But the company, a week ago, filed an application at the Bulawayo High Court seeking an order staying the execution.
The Deputy Sheriff had advertised the sale of six CSC houses attached by Bulawayo Branch employees, which were set for auction on Friday.
The employees had also attached 430 cattle and six company houses for their outstanding salaries in a case where Jacob Mafusire and others sued the company for $453 110.
It is indicated that the 430 cattle were sold, realising $211 325.
CSC also reportedly owes pension funds in excess of $4,6 million for contributions it has not been remitting on behalf of workers.
The parastatal’s operating loss before interest and tax was $3,4 million in 2011, from $8,7 million in 2010, with its going concern status threatened by a $11 million negative working capital position.
