Nestle closure in Zimbabwe an ‘over-reaction’: Tsvangirai
I am bemused sometimes when I read the news which emanates from inside Zimbabwe. We have a Government which encourages investment. We also have a Government which publicly denounces violence, yet after a company is threatened with violence and commercial sanctions by an arm of one of the political parties inside government, none of the principles denounces the threats. The company took a commercial decision and announced some time ago that it would not buy milk from Gushungo Dairies. A decision in any other country which would not raise an eyebrow. BUT…in Zimbabwe..all sorts of motives are attributed to the company.
Later, one of the principles (PM Tsvangirai) in the Government says it is an over reaction. EXCUSE ME !!…their workers were threatened. Their operations were subjected to a visit by the Police and a senior official and threats of a takeover were made. What was the company, a multinational company with a turnover greater than the Gross National Production (GNP) of Zimbabwe supposed to do. They have ample justification for withdrawing all their investment in Zimbabwe. If they do, No serious investment will take place in Zimbabwe for at least 2 years, unless of course the companies are aligned/Sympathetic to Zanu-PF and assured of a massive payback. The wheels have come off the Zimbabwe wagon. They need removed, re-fashioned and re-installed.
(Editor)
HARARE – Prime Minister Morgan Tsvangirai said Wednesday that food giant Nestle had over-reacted in suspending its operations in Zimbabwe, after authorities forced it to buy milk from “non-contracted” suppliers.
“Shutting down a plant… I think it’s something that needs to be looked at. This is an over-reaction which is totally unnecessary,” Tsvangirai told a news conference.
“I am sure the minister of industry, who is responsible, is talking to the directors (of Nestle), is talking to all the concerned stakeholders and that a solution will be found. So that it operates and even expands,” he said.
The shutdown apparently stems from a dispute on buying milk from a farm owned by the family of President Robert Mugabe, Zimbabwe’s long-time ruler who is now in a unity government with Tsvangirai.
Mugabe, who was at the press conference with Tsvangirai, said nothing about Nestle’s decision.
Nestle in October stopped buying milk from the Mugabe farm, which was seized it from white farmers under his controversial land reforms.
The Swiss-based food giant, the world’s largest, on Wednesday said Zimbabwean government officials and police made an “unannounced visit” to the plant on Saturday, forcing staff to take delivery of a tanker of milk from non-contracted suppliers.
Two Nestle Zimbabwe managers were also questioned by the police and released without charges the same day, it added.
“Since under such circumstances normal operations and the safety of employees are no longer guaranteed, Nestle decided to temporarily shut down the factory,” the company said in a statement.
Posted by Dave Fish Eagle
on December 23, 2009. Filed under Local News.
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