DECA

Comment re Speculation

RNS Number : 3816L
Agriterra Ltd
05 May 2010
 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

5 May 2010

Agriterra Ltd ('Agriterra' or 'the Company')

Comment re Speculation

 

Agriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, notes the recent speculation regarding operations at the Compagri maize processing facility in Tete, Mozambique ('Compagri'), the Company's second facility in addition to its larger operation in Chimoio which has operated under the DECA brand for six years. 

 

The Board would like to clarify recent events that have occurred at Compagri, in particular in relation to the employment status of Mr. Stewart Goss, Compagri's interim Assistant Manager.  Mr. Goss was employed in January 2010 as an assistant manager at Compagri following the dismissal of the former General Manager.  His position prior to this assignment had been as a farm manager in Vanduzi Lda in Mozambique, controlling a large labour force without incident during his six year tenure.  During his time as Assistant Manager of Compagri he discovered impropriety amongst a number of employees who were subsequently arrested and convicted after he had notified the authorities.  The Board believe that this prompted a trade union backlash and Mr. Goss was subsequently informed that his work permit was cancelled.  Following legal consultation the Company has appealed the matter through the constitutional court in Mozambique and it awaits the outcome and an appeal has also been made to the Minister of Labour.  Whilst the Company awaits a resolution from the constitutional court, the Company has instigated a temporary suspension of operations at Compagri.

 

The Board is confident that this matter will be dealt with expeditiously by the Mozambican courts and will keep shareholders abreast of developments.

 

** ENDS **

 

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves

Agriterra Ltd

Tel: +44 (0) 20 7408 9200

Jonathan Wright

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

Richard Swindells

Ambrian Partners Ltd

Tel: +44 (0) 20 7634 4700

Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Susie Callear

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 


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