The Sunday Mail
BLUE Ribbon Industries workers have criticised Grain Millers’ Association of Zimbabwe (GMAZ) for petitioning Government to block acquisition of their company by a Tanzanian firm, Bakhresa Group, without consulting them.
Bakhresa Group is understood to be after a 75 percent stake in BRI but wants to defer compliance with indigenisation regulations by up to 10 years.
Broadly, Zimbabwe’s empowerment regulations require foreigners to hold no more than 49 percent equity in companies worth at least US$500 000.
GMAZ, through its chair Mr Tafadzwa Musarara, recently petitioned Government to turn down Bakhresa’s proposed 10-year indigenisation moratorium and added that the sector in question was in any case reserved for locals.
BRI is hamstrung by funding constraints and a US$30 million debt and needs around US$40 million to resume full operations.
The company is under judicial management.
BRI’s workers’ committee wrote to Mr Musarara on January 13, 2014 and copied the letter to the Industry and Indigenisation ministries, and BRI judicial manager Mr Reggie Saruchera, among others.
They accuse GMAZ of filing a petition without consulting BRI employees and management.
“It must be noted that the GMAZ was the first to know the challenges bedevilling BRI, surprisingly you failed dismally to initiate any meaningful help. It must be noted that BRI falls under food manufacturers (and) not millers outright.
Consequently the argument that the milling sector is reserved 100 percent (for) local does not apply to BRI,” reads part of the letter.
They said only three firms in the food sector – Dairibord Zimbabwe, Schweppes Limited and BRI – had empowered workers via employee share-ownership schemes “yet there are a number of milling companies in Zimbabwe that are wholly owned by foreign nationals”.
“So we wonder if the association is concerned about the compliance with the law or are afraid of the competition that will come from BRI-Bakhresa (if the) deal sail(s) through.
“. . . (it) will result in BRI employees going back to their former positions, which will enable them to meet daily challenges. Secondly the deal will empower us with 10 percent stake in the first year not 10 years as alleged by your members,” said the workers.
They said instead of blocking investment, GMAZ should actually be promoting the developmental goals of Zim-Asset.
United Food and Allied Workers’ Union of Zimbabwe (Ufawuz) general secretary Mr Adoniah Mutero also wrote to Youth, Indigenisation and Economic Empowerment Minister Christopher Mushohwe on January 8, 2015 asking him to ignore Mr Musarara’s petition.
The correspondence was copied to Chief Secretary to the President and Cabinet Dr Misheck Sibanda, Mr Musarara, Mr Saruchera and the BRI workers’ committee.
Mr Mutero accused GMAZ of being motivated by “pure greed and callous profiteering”.
He said GMAZ’s actions were “not surprising because the downfall of Blue Ribbon, a major player in the milling industry, is an elimination of competition on their (millers) part and they would rather see it fold than survive”.
“In being proponents for the rejection of the intended Blue Ribbon transaction, the millers are showing no consideration whatsoever for the plight of the workers and their families who have gone for the last two years without being paid,” reads part of the letter.
Mr Mutero added that GMAZ was aware that “while indigenisation is the rule, exceptions can always be granted in deserving circumstances”.
He said the BRI transaction did not seek to do away with indigenisation but merely to defer application for a specified timeframe to allow investors to realise the value of their input.
“It is a logical and more expedient route than to let Blue Ribbon be saddled with another mountain of debts over the next several years and even decades with interest accruing on those debts.
“A big brand like Blue Ribbon should receive favourable consideration due to its impact on the economy and the size of its workforce and direct and indirect dependants,” said Mr Mutero.
He challenged Minister Mushohwe to check with GMAZ if all its members were complying fully with the Indigenisation and Economic Empowerment Act.
Mr Mutero said if given an opportunity to “have audience with your good office, we will be able to provide evidence to the effect that members of the Grain Millers’ Association of Zimbabwe are not complying with the enabling laws”.
BRI is known for maize meal brands Ngwerewere and Chibataura.
It had five divisions including BRI Logistics, Blue Ribbon Foods, JA Mitchells and Nutresco Foods.
