Allied Timbers probes mismanagement
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The Allied Timber Holdings board is instituting a review of operations due to overdue export receipts amounting to $3,5 million

Martin Kadzere Senior Business Reporter
ALLIED Timber Holdings Limited has started reviewing its operations amid concerns of serious mismanagement, sources familiar with the latest developments have said.In an apparent show of displeasure with the performance of the executive led by chief executive Dr Joseph Kanyekanye, the business review would be done while he is on leave.

The business review comes after a new board led by Mr Emmanuel Fundira discovered that the company had overdue export receipts amounting to $3,5 million. The outstanding amount is in relation to timber exports to Botswana. Sources said Allied Timbers recently started exporting timber to Zambia and the new board fears the same could happen.

“These are some of the concerns raised by the board when it came in and it has embarked on looking into the situation obviously to ensure similar things, which basically border on flawed management systems, do not occur again,” said one source.

Other board members are Conrad Gotora, Tendayi Mavhunga, Itai Ndudzo, Anne Mutsa Mazita Madzara, Mahommed Orma, Eve Mkondo, Caleb Garura and Charity Moyo.

Mr Fundira confirmed yesterday, but would not go into detail. “The CEO is away pending a business review relative to export markets in light of bad experience and financial losses incurred in Botswana,” he said in an interview. “The board would not like to see the repeat of the same bad experience in new markets such as Zambia and beyond.”

Besides overdue exports receipts, sources said the board also expressed concern over potential liabilities of about $500 000 that may arise from workers who are alleging to have been unfairly dismissed.

Furthermore, the company is also said to have a huge debt in outstanding wages.

“The board is of the view that the business is viable and all what is happening borders on gross mismanagement,” another source said.

“It is the independent business review that will determine the future of the chief executive.  While speculating on this issue may not be proper, it is most likely that Dr Kanyekanye will opt to negotiate for a package and leave the group since there is a fall out already.”

During his absence, marketing director Mr Francis Chinyani is the acting CEO. No comment could be obtained from Dr Kanyakanye at the time of going to print yesterday.

Apart from Allied, Dr Kanyekanye also served as chairman of Rainbow Tourism Group Limited and chairman of Capital Bank Corporation.

He also served as a non-executive director of starafricacorporation Limited and president of the Confederation of Zimbabwe Industries. Allied Holdings is wholly owned by the Government.

Its operations involve plantations, harvesting, processing and marketing of timber such as teak.

The company’s operations are highly concentrated in the Eastern Highlands, Midlands and Matabeleland areas.

The company is currently exporting its products to Zambia, Botswana, Namibia and South Africa and plans to expand its export market.

In a recent interview, Dr Kanyekanye said that the treated pole exports had grown by 80 percent on the back of increased supplies into the Zambian market. He said the company had also started exporting sawn timber into the lucrative market.

Dr Kanyekanye said the surge in exports was expected to translate to improved production on the domestic front by moving most of the country’s timber products into the Zambian market.

 

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