Over 3,000 Workers at Zambia’s leading Coffee producing company, Mubuyu farms in Mazabuka have called on President Mwanawasa to intervene before the process of liquidating the farm is completed. The loan has grown from US $ 5, 000 in 1999 to US $17 million today. Human Resource Manager, Paul Chabala told ZANIS in Mazabuka that the company has not failed to liquidate the debt of $ 17 million it obtained from Barclays bank in 1999.
Mr Chabala said the problems have been caused by the drought that impacted negatively on Coffee production from 2001 upto 2005.
Mr Chabala explained that workers are now looking up to President Mwanawasa to rescue the farm as all the avenues to reason with the bank management on the need to reschedule the loan have been exhausted.
He said the company allegedly failed to service the loan which stood at $ 5,000 in 1999 and has accrued to $ 17 Million over the years.
Mr Chabala said the drought that affected Mazabuka in 2001 upto 2005 is not something to hide because all the people who use the Mazabuka -Kafue highway saw its effects on Coffee.
He said Banks should exercise leniency on customers other than imposing prohibitive conditions that result in liquidating big companies.
Mr Chabala complained that putting of the farm on receivership has serious economic consequences on Mazabuka and the nation as a whole.
Meanwhile, Mr Chabala has called on the Immigration department to investigate why two foreign nations sent to work at Mubuyu farms do not have proper documents allowing them to do so.
Meanwhile, President Levy Mwanawasa is tomorrow expected in Antananarivo, Madagascar for a three day state visit.
Dr. Mwanawasa who will be accompanied by First Lady Maureen Mwanawasa and Foreign Affairs minister Kabinga Pande is expected to arrive at D’ Ivato International airport in Antananarivo at 15: 30 local time
What has Mwanawasa got to do with your financial incompetence? You want him to pay the loan? Be real
If this is true, then wow!! How is is this different from those Vulture loans sold by Romanian govt. I think Barclays should be ashamed of this. Where in the world can you grow 5000 dollars to 17 million dollars in less than 10 years by just running a loan facility? If this is what is legally happening in Zed, I want to form my own bank. The profits are outrageously huge. This is simple exploitation of the poor by these foreign banks who claim to help us develop. Am sure Barclays got back 10 times the money they put on the table on this one and the rest is just house money. Just do the right thing and write off the loan
#1 I think you have missed the soul of this story. As Easterners say you “you grabbed the smoke and left the fire”. The Guy wants the president to help reason with the bank to reschedule the loan than liquidate the company. And as I said in #2 Barclays have surely made back their money on this investment many times over. And it’s sad they can’t reason on this one. Am sure this is being done to many of our people out there by these banks and is this really right?
I don’t believe this story until I hear the side of Barclays. There is something fishy here. I just run my calculator and it shows that if all the debt is liquidated, Barclays would make 340 000 % return. That is not just possible in this age and no management would sign for such a loan. Hope LT do a follow up
If it is true that the load has ballooned from $5000 to $17 million in less than 10 years, then it is terrible robbery on the part of Barclays. This is the reason why IMF and World Bank insisted on the privatization of ZANACO. Shame on Barclay if it is true. They need to wipe off the debt. now, imagine how our country is being milked of it’s billions of dollars from those international loans.
[4] I agree with you. From $5,000 to $17 million in 8 years? Our interest rates are not that high, surely? Considering just inflation, the $5,000 in 1999 would be worth about $20,000 today. Bank lending rates have surely not been no more than 50% the last coupla years. From my crude calculations, I do not expect that loan to go beyond half a million dollars, and that is stretching it too far. I suspect there is a mistake with the figures. If this is true, I need to pool some money together & go into banking!
The loan was US$5 000 000.
Ko konda nkongole
Did any of you guys find Zambian coffee on sale at any STARBUCKS coffee houses?do you know how much it is sold for? $10.00(approx.ZMK 35,000)Do you know Starbucks?someone is not telling the truth as always the loans should be repayed what the hell is wrong in Africa?why?why?why?we can’t get shit right anytime everytime we seem to be anti-development the rest of the world is light years away,some one compare south korea and zambia 1964 and today you will be shocked!!!
With all that high-grade coffee we have, we do not even have a coffee chain like Starbucks. But kwena tuli ncushi!!!
I have seen Coffee from Zambia in MUG & BEAN in South Africa, M&B is the starbucks version of South Africa
Before you borrow you needed to know what the consequences of not servicing or repaying the loan are. I want to believe that Chabala knew the consequenses. Why did he didnt he ask for govt help earlier? Now Chabala wants barclays to be linient? Business is Business boss! The principal of borrowing is pay back on time or face consequences! So bwana Chabala dont complain!
US$ 5,000 of 1999 grown to US$ 17,000,000 in 8 Years! Unbelievable!
its EGYPT 1 CAMEROON 0
SHAME!
I EXPECTED BETTER COMMENTS!
BBZ IS DOING BUSINESS… DO HAVE NAY IDEA WHAT THAT MEANS? YOU CANNOT INFER MUBUYU’S MISMANAGEMENT TO THE BANK. FOR WHAT?
BEFORE GET A LOAN, YOU SIGN CLEARLY STIPULATED TERMS AND CONDITIONS. IF YOU DONT PAY BECAUSE OF YOUR POOR PLANNING AND MANAGEMENT.. THESE ARE THE CONSIQUENCIES… DONT PASS THE BLAME ON OTHER PEOPLE!
ITS PIPO LIKE MUBUYU FARMS THAT MAKE BANKS HAVE NAIVE SECURITY TERMS ROBBING THE VAST MAJORITY OF ZAMBIANS A CHANCE TO GET FINANCE!
WHO DO YOU THINK WILL FINANCE US SMEs? YOUR GOVERNMENT?
GOOD LUCK!
SHAME ON MUBUYU FRAMS! VIVA BARCLAYS!
Why are the owners of Mubuyu farm hidding in the background?. These bazunguzus are now pushing people like Chabala to the front because they are in problems. I am sure when they were contracting this loan with Barclays they were Chabala was no where near. I bet he did not even know the contents of the contract until matters boiled over.
BBZ,we thought u we here for the people and development.The farm experienced draught,an act of God.unless there’s an element of misappropriation of funds.Even so solt out the coulprits.
Please,BBZ save the company and find another way to recover your mooney.
Also borrower beware of the unforeseeable things.
Barclays, another example of “Exploitaters of the common man”. 1999 – 2008, barely 9 years. $5 000 – $17 000 000. It’s too shameful for words.
On the other hand, I very much doubt LPM is capable of resolving this issue. There are very few things he’s capable of doing
I know this company very well. What they have always done is invested in the training of thier staff, as well as social development opportunities for all of thier people. It would be a great shame to see these people with no jobs as a result of liquidation as i do not see any company stepping up to full the shoes left at Mubuyu
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