Update 6 January 09:40 Vevey, Switzerland (GenevaLunch) - Swiss food multinational Nestlé’s Zimbabwe operations have begun to process milk again, two weeks after suspending production because of government pressure. Government-run newspaper The Herald says workers were back in place and milk was being processed normally after a “misunderstanding” that closed the plant 23 December. The Nestlé operation is one of Zimbabwe’s largest suppliers of milk and has been running for more than 50 years.
Nestlé’s Swiss head office provided GenevaLunch with the following statement Tuesday 6 January, confirming that processing has begun again: “On 19 December 2009, Nestlé suspended the activities at its Harare factory (Zimbabwe) as normal business was no longer possible and the safety of its employees could not be guaranteed. Since then, the local Nestlé management has been in regular contact with the Zimbabwean authorities to find a solution.
Harare, Zimbabwe / Vevey, Switzerland (GenevaLunch) – The government in Zimbabwe Sunday 11 October announced that it may have found two “irregular” transactions in the accounts of Nestlé, which has a Zimbabwe subsidiary. The company’s five bank accounts were blocked Sunday, Zimbabwe’s finance minister told the Associated Press. The Zimbabwe Independent reports that the accounts have since been unfrozen.
A week early, 4 October, the company stopped buying milk from a farm owned by Grace Mugabe, the wife of President Robert Mugabe.
Vevey, Switzerland (GenevaLunch) – The Nestlé subsidiary in Zimbabwe buys milk produced on Gushunga Dairy Estate farms seized from their owners between 2002 and 2004, the UK’s Sunday Telegraph reports 26 September.
The dairy farms are part of an estimated 4,800 hectares of prime agricultural land reportedly owned by Robert and Grace Mugabe. Both are on what the EU has labeled “targeted sanctions” lists, with visa and some trade restrictions set for more than 20o individuals and some 40 countries. These were first imposed in 2002 in the wake of the seizures of lands owned by white farmers, part of Mugabe’s land reform. They were extended following the disputed presidential elections in June 2008.
Switzerland also adopted targeted sanctions, in line with those of the European Union [ed. note: UK media have incorrectly reported that Switzerland does not have sanctions because it is not part of the EU], but the Gushunga Dairy is not on the identical EU and Swiss government list of blacklisted businesses. A spokesperson at the finance ministry in Bern told GenevaLunch Monday that the ministry contacted Nestlé when it became aware of the milk sales and it has been assured that the sales are entirely the business of its Zimbabwe subsidiary. “Nestlé confirmed that no individuals or companies in Switzerland were in any way involved in the relevant transactions. Therefore, no further investigations are planned at the moment.” The Bern office noted that the “Swiss legislation on international sanctions, including the sanctions against Zimbabwe, deploys its effects only in the territory of Switzerland. Foreign subsidiaries of Swiss companies are not subject to the Swiss legislation. The dealings of Nestlé Zimbabwe (Private) Ltd are therefore not in violation of the Swiss sanctions regulation against Zimbabwe.”
Swiss and EU sanctions involve only transfers of money or transactions with companies outside Zimbabwe: Even if Gushunga Dairy were on the list, the sanctions would not apply.
