JOHANNESBURG - A German company with a branch in South Africa has busted the EU targeted measures against President Robert Mugabe and his wife, Grace, by building a state-of-the-art dairy processing plant to process milk from their Gushungo Dairy Estates.

The dairy, costing US$13,5 million, has been built by Guth South Africa, a leading supplier of equipment to the local dairy, food and beverage market. It is a subsidiary of the German-owned GUTH Ventiltechnik.
The first family seized Foyle dairy farm in the fertile Mazowe Valley from its rightful owner - Ian Webster. It used to be one of the best dairy estates in the country.

Sources at Guth said the equipment would be installed at a big factory at Mugabe’s rural home in Zvimba, not on the Gushungo Estates. It is presumed the milk will be trucked across the country from Mazowe to Zvimba.
“The dairy will produce anything you can think of in terms of dairy products – milk, yoghurt, ice cream, cheese and juices,” said the source
The Mugabes are unable to sell their milk to American or European Union (EU) companies, which are banned from doing business with the octogenarian leader and his inner circle or businesses linked to them, under a raft of targeted measures imposed on them for human rights abuses.
Zimbabwe’s largest milk processor, the parastatal Dairiboard, which is riddled with mis-management and corruption, was unable to pay the Mugabes for the milk. They therefore began selling to Nestle – the Swiss-based multinational – but public outrage around the world forced Nestle to stop dealing with them.
Sources at the factory in Johannesburg told The Zimbabwean this week that the dairy equipment was built over the past two years through funds channeled by the Reserve Bank of Zimbabwe (RBZ), where one of Mugabe’s closest allies, Gideon Gono is the governor. It is not clear whether the Mugabes refunded the Reserve Bank from their own resources – or whether taxpayers’ dollars were used for the project.
Mugabe’s official salary for the past 30 years does not amount to US$13,5 million.
“We began to build the factory in 2008 and have now almost finished. Anytime it will be hitting the road to Zimbabwe. We are just waiting for Mugabe’s people to come here and give their satisfaction before it leaves,” said an employee at Guth.
On how the alliance with the Mugabes began, the workers said that one of the company managers was a close business associate of Grace, following many other “jobs” they have done for her.
“This boss is the only one who handles Mrs Mugabe’s orders because he seems to have earned her trust. Her people always come here to check on the equipment and they only deal with him,” said the source.
Other workers said the Mugabes had become popular and regular customers at the company, which is expected to send its experts to install the dairy in Zvimba. The company will also continue to supply spare parts and after sales service to the dairy, which will be up and running before the end of this year, according to the sources.
“They want to supply not only the Zimbabwean market, but other countries in the region with dairy products,” said a source with the Central Intelligence Organisation (CIO), from which Mugabe draws most of his company managers. He also uses managers from the agricultural parastatal ARDA as well as Joseph Made, the minister of farm mechanisation as his personal staff.
Despite several attempts, no official comment could be obtained from Guth SA, as the company’s manager – identified only as Andrew by the receptionist - was said to be out of office, and he had not responded to telephone messages at the time of going to print. His deputy refused to comment, saying “Only Andrew can talk about that.”

By The Zimbabwean