HARARE -- Swiss food giant Nestl has appointed the leader of Zimbabwes main representative body for industry to head its Harare subsidiary that was last year embroiled in wrangle with President Robert Mugabes allies after turning down milk from a farm owned by the veteran leaders family. Confederation of Zimbabwe Industries (CZI) chairman Kumbirai Katsande, who is currently managing director for Harare horticultural concern Ariston Holdings, will take over as the new managing director at Nestl Zimbabwe in June, sources told ZimOnline. The sources at Nestl said Katsande, who is also the milk processors chairman, was being rewarded for they way he handled the dispute with senior government ministers over milk from Guhsungo Dairy owned by Mugabes wife, Grace.
“The management in Switzerland felt that Katsande was the right man for the job given how he managed the milk wrangle last year,” a senior source within the group said. “It was felt he was the best man for the job. In short, he is being rewarded for his performance.A new chairman will be appointed soon.”
It was not possible to get an immediate comment on the matter from Nestl while Katsande confirmed he was leaving his current employers but would not disclose where was headed. “For now I cant say were I am heading as an announcement will be made soon to that effect,” he said.
Nestl, which until last October had bought between 10 and 15 percent of milk processed at its Harare plant from Gushungo, stopped accepting milk from the farm after international media coverage of the milk purchases put the firm under the spotlight.
Some human rights groups incensed at what they perceived as Nestls support for Mugabes controversial farm seizure programme had threatened to call on consumers to boycott the companys products if it did not stop buying Gushungo milk.
Grace was allocated Gushungo under her husbands chaotic and often violent land reforms that also saw senior members of the military and Mugabes Zanu (PF) party, their friends and allies handed some of the best farms seized from whites.
Nestl came under immense pressure from Mugabes militant supporters to reverse the ban on milk from Graces farm but they relented after the company last December closed the Harare factory, putting about 200 jobs on the line, while analysts warned the shutdown was damaging the country’s efforts to attract foreign investors to help shore up its battered economy.
The factory was only re-opened last January after Nestl received assurances from the government that its operations would not be interfered with.
Post published in: Economy