Committee wants agreement revised
http://www.theindependent.co.zw/
Thursday, 03 March 2011 19:49
Paidamoyo Muzulu
THE Parliamentary Portfolio Committee on Agriculture, Lands and Resettlement
wants the ambitious US$600 million Chisumbanje ethanol project partnership
agreement revised to curtail businessman Billy Rautenbach’s free hand and
reflect the Agricultural and Rural Development Authority (Arda)’s
shareholding.
The committee said the 20-year partnership agreement should be aligned with
government’s new indigenisation policy, which requires locals to hold a 51%
stake in any joint venture worth more than US$500 000.
Rautenbach’s company, Ratings, entered into an agreement with Arda under
which it was allocated more than 10 000 hectares of land to produce
sugarcane for its ethanol production plant. Ratings also had to repair
irrigation infrastructure, set up the blending plant and operate it for 20
years before handing it over to government.
Muzarabani MP Edward Raradza was unhappy that Arda was not represented at
management level in the joint project which has a potential annual turnover
exceeding US$100 million.
“We did not see anyone from Arda in senior management when we visited
Chisumbanje,” said Raradza. “What kind of partnership is that where one
party is not represented in the day to day operations of the company? That
should not be allowed to happen. This agreement needs revision.”
His sentiments were echoed by Mhondoro MP Bright Matonga who said: “I think
for it to be an equal partnership, Arda should recommend employment of
senior employees from itself, such as an accountant or operations manager,
while Ratings can appoint the general manager and finance director.
That will also improve accountability and help government oversee its
investment.”
Arda chairman Basil Nyabadza concurred saying the agreement was concluded at
a time when the agricultural authority lacked enough capital to have much
say.
Nyabadza added that although the deal needed revision, Ratings had
resuscitated the defunct Chisumbanje and Sabi estates and is set to bring
government the much needed revenue once production starts.
“This is not a perfect agreement. We will get it corrected. We entered into
the deal when we did not have anything except land. Chisumbanje and Sabi had
collapsed,” Said Nyabadza.
The project is expected to produce 40 million litres of fuel by November
this year, reducing the country’s high fuel importation bill.