The ManicaPost
Nyore Madzianike Senior Reporter
INSTITUTIONAL looting and asset stripping, which has been going on unabated at Allied Timbers for more than a decade has crippled the timber giant leaving it on its knees.
The scenario, coupled with suspected elements of underhand deals stemming across all levels within the timber company saw it losing nearly 80 percent of its processing capacity.
Allied Timbers chief executive officer, Dr Dan Sithole, exclusively, told The Manica Post that negligence could have caused the destruction of two largest plantations in the country including one in Chimanimani.
“There has been institutional cultural looting and stripping of assets that has been going on for about 15 years. This is why the company lost about 80 percent of its processing capacity,” he said.
Dr Sithole said the scenario had been going on from the year 2000 to 2015, which had forced the out-going company’s board to institute an audit that was undertaken by KPMG.
“One of the biggest timber plantations in Chimanimani was burnt down; the second largest plantation in Stapleford was left with no machinery. This is all because of handling of equipment, which was being disregarded. They hardly planted trees. This is why as part of the 100-day plan, Government called for the 6 000 hectare per-year tree planting for the next 10 years,” he said.
Dr Sithole also revealed that his company was sailing in an outstanding unpaid salaries debt of almost eight months.
He said Allied Timbers have huge overhead costs making it difficult to settle the wages arrears at once.
“When we took over we were about 18 months in arrears in terms of wage payments. We have managed to bring it down to about eight months. We still have that backlog pay and we need to pay in time. Yes, we made inroads in phasing out the arrears but a lot needs to be done. We cannot wipe off the backlog of 18 months within a year, it is not possible. But we have made real inroads and you can see our employees now have protective clothing,” he said.
Dr Sithole said Allied Timbers had a national mandate of supplying timber to the nation hence the need to balance their operational costs.
“Remember, we own about 60 percent of the national plantations. Our overheads are huge and we have a national mandate of ensuring the nation a sustainable supply of timber going into the future,” he said.
Dr Sithole said his company was on a recapitalisation process in which it would be resuscitating some forests, which were being abused.
He said his company had gazetted forests with mineral deposits and they had since applied for mining licenses to mine in those forests.
“We have realised that some forests are being abused and destroyed. We need to control them to make sure that they are managed on a sustained basis to ensure sustainability of forests. We are recapitalising. We got forest plantations where we have not made any major investments like in Cashel. It is a huge plantation but we do not have any machinery there. We have been evaluating some investment proposals where we recapitalise and partition new equipment,” he said.
The Allied Timbers CEO said his company was planning to invest in Nyanguyi area in Nyanga.
Dr Sithole said Allied Timbers needed to unlock the value of timber by increasing processing depth.
He said this could be achieved by bringing in new technology in timber processing.
Additionally, Dr Sithole said they had also resuscitated the honey processing plant as part of their recapitalisation programme.
“We have been the largest honey producer in the country. We have resuscitated it. It has been destroyed and neglected but with the new spirit we have resuscitated it. We have 1000 bee hives and our aim is to have 5000. We have sources for honey in Nyanga and Chimanimani and we are looking into expanding so that we have the largest honey producing company in the country,” he said.
Allied Timbers on Wednesday launched its 6 000 hectare per year for 10-years trees planting programme where Minister of Environment, Water and Climate Cde Oppah Muchinguri-Kashiri was the guest of honour.
Cde Muchinguri-Kashiri, who had travelled to Democratic Republic of Congo with President Mnangagwa, was represented by Forestry Commission Board deputy chairperson commissioner, Ellen Gwaradzimba.
