Maravi

(HERALD) Central bank ready to assist CSC: Gono

Central bank ready to assist CSC: Gono
Business Reporter

THE Reserve Bank of Zimbabwe is prepared to assist the Cold Storage Company to overcome its current problems. RBZ Governor Dr Gideon Gono said that the central bank was interested in what was happening at the parastatal. "We are definitely interested in what is happening at CSC, it’s a company that we can look at and assist where we can," he said.


Dr Gono was responding to questions from journalists in Bulawayo last week soon after addressing a meeting of the Chiefs’ Council. The central bank governor, however, said there was need to understand the nature of CSC’s problems first before acting on them.

CSC has been battling to fulfil its export quotas as well as supply beef to local market despite having been given the task of supplying beef throughout the country.

This followed the suspension of most abattoirs after the price freeze in June last year.

CSC was last year on the verge of losing a multi-billion dollar beef export deal to Hong Kong after failing to ship the first consignment of 15 tonnes of the beef as part of the deal that was sealed the previous year.

In addition the company has also failed to export beef to Malaysia due to operational challenges.

The parastatal had been expected to start exports to Malaysia by the end of last year.

The operational challenges have seen the parastatal failing to pay its workers on time in some instances.

In December 2006, CSC chief executive Mr Ngoni Chinogaramombe said over $80 billion was required to recapitalise operations. The figure must have climbed significantly because of inflation.

The company is also battling to rehabilitate infrastructure at some of its abattoirs notably the one in Marondera.

Labels: BANKING, GIDEON GONO

posted by MrK @ 6:58 PM