Nestle probed after Mugabe milk sours

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Zimbabwe's central bank chief says the government has frozen Nestle's local accounts and ordered an audit after Nestle stopped buying milk from a farm owned by President Robert Mugabe's wife.

Reserve Bank governor Gideon Gono told the weekly Zimbabwe Independent newspaper Saturday that two possible "irregular" transactions were found in the company's accounts.

Nestle's finance director Farai Munestsi told The Associated Press that access to funds at five banks had been blocked.

The international food company stopped buying milk from Grace Mugabe's farm this month after facing worldwide boycott threats.

The suspension of funds could cripple its Zimbabwe operations.
 
How daft of them to hold their accounts in Zimbabwe. Actually how daft was it of them to buy from Mugaap's wife in the first place. At the very least they should have transferred their funds prior to their announcement.
 
This is just proof that the unity government has failed dismally and nothing has actually changed in zim.
 
Awesome news and i hope nestle do not get their money back for supporting such horrid people.

Good lesson to learn.
 
Karma is a Grace Mugabe ;)
 
Nestle suspends Zimbabwe operations

http://www.br.co.za/index.php?fArticleId=5295875

Swiss food company Nestle has suspended operations in Zimbabwe two months after pulling out of a deal to buy milk from a farm owned by President Robert Mugabe's family, the company confirmed on Wednesday.

A Nestle spokesman gave no explanation, but a source close to the matter said company executives were questioned by police this week.

In October, Nestle stopped purchasing milk from Gushungo Dairy Estate after international criticism of the deal entered into in February.

The farm had been seized under a controversial land reform programme.

At the time, Nestle said its business with the farm accounted for 10-15 percent of its local milk supply and that it had a long-term commitment to Zimbabwe.

"Nestle's Zimbabwe operations have been temporarily suspended," Nestle spokesman in South Africa Ravi Pillay said, adding a statement would be issued later today.


The source familiar with the situation said Nestle Zimbabwe officials, including expatriate managing director Heath Tilley had been under pressure since the company's decision to stop buying the farm's milk.

They were not charged but it had been suggested there might be problems with Tilley's work permit, the source said.

Mugabe's seizure of white-owned commercial farms to resettle landless blacks has been blamed by his critics for ruining the southern African country's once prosperous economy.

The veteran leader, in power since independence from Britain in 1980, denies the accusations, saying the economic crisis was caused by sanctions imposed by Western countries opposed to his land reforms.

In February, Mugabe formed a power-sharing government with bitter rival Morgan Tsvangirai, now prime minister, following disputed elections in 2008. - Reuters
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Bad news for those who will lose their jobs. But you can't deal with the Devil and expect life as normal.
 
This is the way of business in Africa. Get in, rape for profits in as short period as possible, get out.
 
Frankie said:
Shouldn't that read "get raped" by African leaders.
Click to expand...

Not really - you bribe the right officials, make your profits and get out before the next coup, regime change, etc.

This is because the new chief will most probably
a) nationalise the assets you bought from the previous chief
b) nationalise your profits (increased taxes, BEE, etc.)
c) allow his hordes to steal, kill and destroy all you've build up
d) etc.
e) all of the above

Africa is simply too much of a risk for any long term investment.
 
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