“There was Maitlands, where again another Stalap/Zimre related company Zimre property Investments (ZPI) was collecting money on the pretext of ‘managing’ the development of the land whereas in reality they were being paid for doing nothing,” Chibanguza said.
“Previously in 2012, another piece of land measuring 330 hectares had been sold to Fidelity life by CFI at around $1/square metre when the market price was at least 5 times that amount. The stands were then, after a basic servicing, sold at a price of $60/square metre,” Chibanguza said.
Additionally, Chibanguza said Unifreight another company related to Stalap/Zimre director was also using CFI retail units free of charge and there were other land related transactions involving Stalap /Zimre and their nominees which were also detrimental to CFI.
“If one looks at the history of CFI, one sees that the company was deliberately run down so as to strip all its assets on the pretext of saving it from creditors,” Chibanguza said.
Chibhanguza , who took over as the managing director of the CFI subsidiary Farm and City in mid-2016, said by then the company had limited stocks, operating at a loss and owed all its suppliers money.
“This (transactions by Stalap directors) will now be investigated and we will have a forensic audit on all land related issues” Chibanguza said.
Shingirayi Zinyemba who chaired the EGMs said a new CFI board will be announced in due course following the exit of Stalap nominated directors.
“We now have a conflict free board which will grow the business for the benefit of all shareholders, definitely a lot better than the last 12 years,” Zinyemba said.
CFI has been a perennial loss maker over the past years resulting in accumulated losses amounting to $66.02 million as at March 31. The agro industrial company, which used to be one of the blue chip companies on the ZSE, has lost significant value over the past decade, with total assets declining from $132.6 million in 2013 to the current $96.5 million.
The group’s revenue generating capacity has been declining over the years, with revenue declining from $67.4 million in 2013 to $24.9 million in 2017.
Analysts say the fight for control indicates CFI’s promise because of its strategic business units across the agriculture value chain. It has three divisions in poultry, retail and light manufacturing and property, all potential gold mines once the economy is on the recovery path. – The Source