BARELY five months after being appointed chief executive officer of the Cold Storage Company (CSC), David Mfote has quit the organisation after allegedly refusing to sign financial statem
ents enabling the parastatal to access cheap funds from the Reserve Bank of Zimbabwe.
Mfote took over at the CSC in March.
The financial statements would be used to apply for funds from the central bank’s productive sector facility which attracts an interest rate of 50%.
Mfote has already forwarded his resignation to the CSC board chaired by Antony Mandiwanza, chief executive officer of Dairibord Zimbabwe Ltd.
Mandiwanza was this week not available for comment as he was said to be on holiday.
Mfote refused to comment on the issue.
Before his CSC appointment, Mfote was a deputy secretary responsible for agricultural economics and marketing in the Ministry of Agriculture.
Deputy CSC board chairperson, Walter Chidakwa, this week confirmed that Mfote had quit.
“We had him employed about five months ago,” he said. “And as the board we are really surprised by his decision. As you know Cold Storage is not in a good shape to borrow money from financial institutions.
“So we made a decision to access money from the productive sector facility and the auditors came and did their work. He refused to sign what the auditors had done, which is surprising because what he was going to sign were not results of his tenure but of the period before we had even employed him. I tried to talk to him about it with other members of the board but he was very emotional about it.”
Chidakwa said the board had accepted Mfote’s resignation.
Government was forced to inject $10 billion into the CSC in May to retire its outstanding debt which had ballooned to $12 billion. CSC owed several institutions that had secured High Court judgements in their favour, further threatening the organisation’s viability.