Govere facing collapse?

david_govereHARARE - The empire of business tycoon David Govere (Pictured) is reportedly facing collapse.

The owner of Harambe holdings, which in turn owns Trinpac, a company that is into confectionery, owes Muga foods a substantial amount of money after the latter delivered cake flour to Trinpac worth more than US$1 million. Govere recently ran press statements in the local media trying to separate Harambe holdings from the rest of its subsidiaries in a bid to distance himself from the liabilities of Trinpac, Superbake and Freshbake bakeries among others. But this is strongly disputed by Muga foods.

“Govere is crying for sympathy from the public in general, and the business community in particular. The fact of the matter here is that Trinpac, a company under Harambe group, owes Muga foods $1 147 000, for the flour David Govere was supplied upon request,” reads part of the Muga foods statement. Muga foods also published details of transactions that took place between Govere’s Harambe Holdings and their company.

However the move by Blue Ribbon Industries to take over Trinpac could have come as a relief to Muga foods as Blue Ribbon indicated that they would be inheriting the $800 000 debt incurred by Trinpac. Blue Ribbon Industries have also made formal communications with Muga foods that they would be taking over the debt from Harambe’s baking interests.

“This serves to confirm that Blue ribbon is currently in talks with Harambe holdings with the ultimate aim of Blue Ribbon Industries taking over bakery assets in Trinpac which is a subsidiary of Harambe Holdings and certain defined liabilities of which Muga foods is included,” read a letter signed by BRI secretary Mr Charles Botso.

The High Court recently issued an order of payment of the money with interest and cost of suit for cake flour delivered to Trinpac and Muga foods is demanding an interest of 5 percent from the date of the issuance of summons to the date of final payment as well as 10 percent in capital debt.

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