The Zimbabwe Independent reports that Gushungo Dairy Estates, owned by former First Lady Grace Mugabe, which was saddled with a US$20 million debt, has shut down, leaving more than 120 workers jobless.
According to the newspaper, Mrs. Mugabe sold about 700 dairy cows to a prominent butcher before the company folded.
Quoting authoritative sources, the newspaper reports that Mrs. Mugabe sold the dairy cows at prices that were far below the market value of the beasts, an indication that she was facing difficulties in running the company.
It’s subsidiary, Alpha Omega Dairy (Pvt) Ltd, according to the newspaper, produced over 400,000 liters of milk per month, yogurt, cheese and ice cream.
The newspaper reports that President Robert Mugabe invested over US$15 million in Gushungo Dairy Estates, which was formerly known as Foyle Farm.
The 1,200-hectare farm was seized by the government and parceled out to the first family at the height of the land reform program, which targeted lucrative farms, owned by white commercial farmers.
VOA Zimbabwe Service was unable to contact Mrs. Mugabe and her nephew Leo Mugabe, who were unreachable on their mobile phones.