THE STORY BEHIND THE HAVENCROFT GRAND DECEPTION INVOLVING THE RECONSTRUCTION OF CSC USING BOUSTEAD BEEF – only in Zimbabwe

EDITOR’S BRIEF 22 SEPT 2022: Havercroft deceived Chiwenga & Govt but the CSC-Boustead deal is already dead

Even ardent Zanu PF supporters would have struggled to suppress a chuckle as they read ZimLive’s exclusive report detailing how Cold Storage Company investor and Boustead Beef boss, the former Marondera farmer Nick Havercroft, managed to deceive an entire government, including its evidently slumbering intelligence services.

As vice president Constantino Chiwenga gave elated remarks, at what was meant to be the official reopening of the CSC Bulawayo processing plant, one of Havercroft’s trusted hands was on the roof above, carefully pouring in a stream of water to give the impression of an industrial condenser in action.

There is an element of contempt in Havercroft’s crude tactics, which suggest a low regard for his victims. Having told outrageous and contradictory lies but somehow gone unchallenged, Havercroft grew in confidence.

Diligent as he is, the cheap cleverness of his deceptions would not have survived even a superficial investigation. Havercroft prevailed, not on account of a brilliant criminal imagination, merely the dereliction of duty at several levels of government.

This multi-level failure includes economic intelligence operatives at Mhlahlandlela in Bulawayo. Despite receiving a tip-off, they took no action. The failure to act on information is particularly egregious for those who boast intelligence titles.

Given the colourful reports carried by state media on the supposed progress Boustead Beef was making, one can see why the spooks may have relaxed. Surely editors would not publish falsehoods, claiming non-existent refurbishments?

In June of 2019, the Business Chronicle reported observing “a lot of infrastructure rehabilitation was being undertaken”.

Thankfully, not everyone was asleep.

Facing growing pressure to deliver, Havercroft found an opportunity to buy precious time. A CSC tenant had millions of dollars worth of solar panels stored in defunct cold rooms that they were leasing. Havercroft saw an opening and pounced.

Claiming the panels belonged to ‘Boustead Solar’, destined for a 23 megawatt solar power plant, Havercroft again won the generosity of gullible newspaper editors.

“CSC in massive solar project”, a senior business staffer at the state-owned Sunday News reported with the inspiring headline.

Continuing: “Work on the solar project started two weeks ago at the company’s headquarters in Bulawayo where a three megawatt plant is being set up at a cost of about US$9 million”.

Two years later, the state-owned Chronicle reported that the Zimbabwe Energy Regulatory Authority (Zera) had “received an application from Boustead Solar to construct a 23.5MW solar power plant in Bulawayo’s Belmont industrial site”.

Havercroft’s luck was about to run out.

Zera’s CEO Edington Mazambani had apparently caught wind that the panels did not belong to Boustead. Ever diplomatic, Mazambani said he was prepared to grant the licence if Havercroft submitted importation documentation for the panels.

“Why does he want to see the invoice … for my CSC equipment? It has nothing to do with ZERA, what I am spending here, it’s confidential,” Havercroft said, feigning anger as he sought to control the media narrative.

In reality, Havercroft knew it was game over.

Twenty lorries had arrived at the CSC plant to collect the panels, much to the shock of security. Havercroft’s remaining card was to accuse Zera of throwing spanners in the works.

While the requirement for a permit to generate power is bureaucratic overreach – connecting to the grid should be the only target of regulations – Zera’s CEO demonstrated the power of diligence.

Indeed, the Agriculture ministry could have ended this charade three years ago if it had been equally diligent.

Clause 4 of the Livestock Joint Farming Concession Agreement ceding control of CSC assets to Boustead Beef stipulates “conditions precedent” without which the agreement is voided.

These deliverables included proof of US$130 million in funding within four months of signing. No such funding was demonstrated. Why are lawyers at the Agriculture ministry not raising this material violation? There is a thin line between corruption and gross incompetence.

When Havercroft failed to present proof of funding, that constituted a material breach and the agreement should have been, and was effectively, terminated. The question is why the Agriculture ministry is unwilling to exercise its rights?

Beyond that clause, US$45 million in Year One capital expenditure and working capital was stipulated, including US$15 million in cattle purchases. Three years later, where are the cattle? Boustead Beef has failed even the Year One US$2 million in vehicle purchases for the CSC fleet.

These are facts the Agriculture ministry cannot possibly be unaware of.

_Kukurigo.