HomeBusiness DigestMinister's bid for David Whitehead fails

Minister’s bid for David Whitehead fails

Paul Nyakazeya

THE Minister of State for Policy Implementation, Webster Shamu, tried unsuccessfully to push for a consortium to take a controlling stake in David Whitehe

ad Textiles Ltd when its judicial manager invited new investors to revive the ailing company earlier this year.

The bid was eventually won by Eglet Investments, a company controlled by Zimbabweans in the United Kingdom. Eglet Investments paid US$5,4 million.

There were 25 investors that bid for a stake in the textile company. Shamu approached the judicial manager, Cecil Madondo of Tudor House Consultancy, to push for a company called Parrogate.

It also emerged that before the judicial management two years ago, Shamu had successfully pushed for Parrogate to get a contract to be the sole supplier of David Whitehead.

This was rejected by the then chief executive and major shareholder, Edwin Chimanye. Thereafter Chimanye was pushed out after a protracted labour unrest. Parrogate is owned by Indians.

Shamu is said to have made informal approaches to Madondo to push for Parrogate. After the bid collapsed on the basis that it was not complete Parrogate then presented a joint take over proposal with the Industrial Development Corporation (IDC).

Following the failure of the two attempts Shamu is understood to have approached Madondo demanding an explanation why Parrogate’s bid has failed. Shamu also queried why Eglet had won the right to invest in David Whitehead when the consortium was made up of people who were out of Zimbabwe.

Madondo then wrote a letter to Shamu on November 1 in an attempt to explain why Parrogate’s bid had failed.

“The committee rejected the bid by IDC/Parrogate as not being a final bid. There was no clear commitment of the necessary foreign currency being made available,” said Madondo in the letter dated November 1.

A special report presented soon after Chimanye’s exit said there had been continued meddling in the affairs of the company by “influential” politicians who have been instigating labour unrest at David Whitehead factories in Chegutu and Kadoma.

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