Council drags CSC to court Cold Storage Company premises in Bulawayo
Cold Storage Company premises in Bulawayo

Cold Storage Company premises in Bulawayo

Mashudu Netsianda Senior Reporter
THE Bulawayo City Council (BCC) has dragged the Cold Storage Company (CSC) to court over a debt of more than $335,000 in unpaid rates water charges.

The local authority filed summons at the Bulawayo High Court recently seeking an order that compels the CSC to settle a debt of $335,146,64 accrued over a six-year period.

The council through its lawyers, R Ndlovu and Company said despite demand, the country’s marketing and beef processing firm has neglected, failed or refused to pay the money.

In the court papers, BCC is the plaintiff while CSC was cited as the defendant.

“During the period extending from October 2009 to July 2015, the defendant failed or neglected to pay monthly water charges in full and accumulated arrears amounting to $335,146,64,” said council in its summons.

The council’s lawyers said on August 5, they wrote a letter of demand to CSC and it acknowledged the debt, but the beef company has failed to settle it.

BCC is demanding that CSC pays the money with interest calculated at the rate of six percent per annum and cost of suit at attorney-client scale.

CSC has not yet filed a notice to enter an appearance to defend the summons. The company has 10 days to file opposing papers with the Registrar of the High Court.

BCC has resorted to taking defaulters to court as the cash strapped local authority seeks to recover money owed as rates and water charges.

The council is being owed over $90 million by defaulters.

On the other hand, CSC is equally struggling to remain afloat and is reportedly clinging to one abattoir and 700 cattle.

The company’s fortunes have been blighted by allegations of mismanagement, corruption and heightened competition from private abattoirs.

Over the years, CSC has been involved in negotiations with potential suitors willing to operationalise its depots in Masvingo, Kadoma, Marondera and Chinhoyi, but analysts say the $22 million debt overhang has been a major put-off for investors.

In all, it is estimated that more than $80 million is needed to bring the company back on its feet.

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