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.”
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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.
