Grace courts Nigerian tycoon over bankrupt Omega Dairy

via Grace courts Nigerian tycoon over bankrupt Omega Dairy – The Zimbabwe Independent November 27, 2015

First Lady Grace Mugabe has turned to Nigerian billionaire Tony Elumulu to save her family’s struggling Gushungo Holdings which is reeling under an unsustainable US$20 million debt amid theft and mismanagement at the company.

Elias Mambo

The First Lady reportedly asked the billionaire, who has a net worth close to US$1,6 billion, to consider investing in Gushungo Holdings before looking at other areas.

Elumulu was in Zimbabwe to explore possible investment opportunities in the fields of agriculture, financial services, insurance and healthcare among others. He was scheduled to meet with various captains of industry who included Zimbabwe Tourism Authority chairperson Chipo Mutasa, Schweppes boss Charles Msipa and First Mutual Life’s Group CEO Douglas Hoto, among others, but failed to do so.

Sources told the Zimbabwe Independent Elumulu was discouraged from meeting the business executives he wanted to, although he honoured his meeting with Reserve Bank of Zimbabwe governor John Mangudya.

Elumelu is an economist, investor and philanthropist who has massive investments across Africa and is the chairperson of several firms including Heirs Holdings and Nigeria’s largest conglomerate, Transcorp.

In an interview with the Independent this week at a local hotel he confirmed meeting Grace, but refused to disclose what they had discussed.

“I am here to explore investment opportunities. I have already met with the First Lady and I expect to meet other business people,” he said.

President Robert Mugabe’s family has been looking for an investor to pour fresh capital into the multi-million-dollar Gushungo Holdings, touted as a model of success of the controversial land reform programme even if it is not. The company has a US$20 million debt. The situation is being exacerbated by continuous losses incurred by its subsidiary Alpha Omega Dairy (Pvt) Limited. Mismanagement and misappropriation of funds has also affected the company.

Alpha Omega’s former general manager Stanley Nhari previously said local banks, in particular the Industrial Development Bank of Zimbabwe (IDBZ) and CBZ Bank, sustained operations at the company. The Alpha Omega Dairy plant has a capacity to process 70 000 litres of raw milk per day, but had been targeting to double raw milk output to 40 000 litres per day by year-end, from the current 23 000 litres per day.

Mugabe has expressed his frustration over the looting of his company, suggesting corruption was rife there.

COMMENTS

WORDPRESS: 6
  • comment-avatar
    waSvosve 7 years ago

    The situation at Gushungo Holdings makes sad reading given the impliocations to the nation and the stakeholders. One wonders why the owners who are the so-called ‘succesful’ leaders are failing to manage such a micro-environment compared to the size of Zimbabwe that they lead. If true it simply depicts their capabilities. And will the Banks be repaid their funds? Or they will be forced into liquidation, weighed down by loans to such political heavy-weights? Corporates are different from the State where you can LOOT and expect citizens to pay for it!

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    Hamuzvigoni Izvi 7 years ago

    Good effort by ignorant people. Running a company is different from political rallies where you cheat suffering Zimbabweans by cheap slogans. Pamberi neichi; pamberi neichi; mhururu nemuridzo! Pasi nanhingi; pasi nanhingi. Chiitai tione. People can even boycott products from a heavily favoured company because of politics. One thing you cannot do in the economic world is force people to buy your sub-standard products. Apa slogan inokunya.

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    Chidumbu 7 years ago

    See what happens when you steal things, you stole that farm because you thought that you wanted what the white man had. You told the village idiots ‘look at the whites, they have everything’ what you didn’t tell your village idiots is that the whites only had what they had through hard work and financial discipline all of which you have no idea because of your grade 1 education. At least you want to now rape and pillage your own kind because the western whites you hate so much won’t even chuck pennies into your begging bowl. How the hell do you manage to incur $20 million worth of debt, what idiot gave you that kind of credit, they also deserve to go bankrupt

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    garikayi 7 years ago

    Mugabe’s business does not pay utilities, stole a farm, they dont pay workers, they steal state resources but still cannot run a business. F $#@ng first family

  • comment-avatar
    Darryn 7 years ago

    @Chidumbu – You could not have said it better!! 100%

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    amina 7 years ago

    The stealing at Gushungo is nothing if ever. The looting committed by Mugabe to the entire country can never be never that. He has impoverished more than 12 million people through his mismanagement and excesses.