An unknown motor Mechanic - turned black market fuel and dimond dealer bought Chewore north concession this morning for US$5.6 Million (actually 14.6 billion Z$ or 56 million US at the official rate).

Billy Rautenbach of Big Five and his Arab partner were the second highest bidders.

If you work on a maximum of 800 days hunting per year and sell them all at US$1500 per day and sell alot of fishing safaris as well I worked out you could pay US$1.2 million.

Be interesting to see if his cheque bounces! The last two auctions the winner has bounced the cheque and No2 has ended up with it.

Sounds like the black market has been a profitable business endeavor this year!

The rumor is that Billy will sublease it to Chifuti anyway.

I hope all the trackers and staff can save their jobs.

Ganyana - Is this guy on the "banned list", and do you know who will actually run the safari operations IF it goes through? Would be a shame to see this great concession off-limits to US hunters, and/or the PH's who historically have bought quota there (like CM).

When does pmt need to be made by?

Regards, Bill

quote:

Originally posted by Ganyana:

Billy Rautenbach of Big Five and his Arab partner were the second highest bidders.

Well, since I already have a deposit with Big Five for CN, I'll pray it does.

Mark,

Who knows what is going to shake out from this, but I doubt your deposit is in trouble. Now the buff hunt, who knows?

This is such a complicated situation now, it will take a long time to see what happens.

Somehow I doubt this guy will get the concession, and I suspect that this will go to Billy, and then again what will that mean? Will Chifuti honor deposits, raise rates, fire all the staff (including Gibbo!)? If Billy retains some sort of quota for himself, getting hunts there for us dudes may be a real problem.

Guess I would call Big5 about the deposit before that office disappears.

We will just have to wait to see how all this plays out.

That's a purchase price of about $5.60 per acre....Not too bad.

quote:

Originally posted by Will:
Mark,Somehow I doubt this guy will get the concession, and I suspect that this will go to Billy, and then again what will that mean? Will Chifuti honor deposits, raise rates, fire all the staff (including Gibbo!)? If Billy retains some sort of quota for himself, getting hunts there for us dudes may be a real problem.

Well, I can't see Andy and Gibbo not staying together. I was hoping to hunt with Mike again, but you can't go wrong with just about any of the guys I was with there..Pete B, Andy H, Ian, etc..

I'm kinda hooked on the place. Spoiled I guess. Reno is coming fast, so we'll have to see. I heard a few days before Xmas that B5 was in for '07, but people were throwing around Dawson's name too, so???

I trust Ganyana to know more than my contacts there.

Andy was just shooting up quota like everyone else. I don't know obviously what will transpire.

And who knows what will happen now that Chifuti already has Sapi and Dande North and then throwing in Chewore North.

Must be a whole lot of money floating around out there.

The only contact I had with Andrew Dawson was when he flew me into Chewore one time. Maybe he will try to keep Chewore status quo. I hope so.

Chifuiti are in with swainsons for Dande North this year. What will happen with Sapi is anyones guess. This year Chifuti managed to buy only 8 of the 43 camps on offer there. They certainly have enough quota for their regular clients but not if they want to expand

Billy could proably buy the quota and space he needs for his buisness at a fraction of the price from the new lessee.

The guy who had his hand up is a nobody- certainly not on any banned list, and if he does come up with the loot to finish paying parks then who he will use to run his hunts is anybody's guess. He certainly doesn't know an elephant from a buffalo and nobody can make that pay. On top of the 5.6 million he paid for the 5 year lease today, he has to pay US$110,000 concession fee per year and pay trophy fees on top of that- and parks keep putting those up. He has effectively paid US$22000 per buffalo and US$47,000 per elephant to parks - that is before he hires a PH, buys food or puts fuel in a truck!!!!

quote:

Originally posted by Ganyana:
He has effectively paid US$22000 per buffalo and US$47,000 per elephant to parks - that is before he hires a PH, buys food or puts fuel in a truck!!!!

Well, that prices me out of big game hunting.

Anybody want to buy some rifles?

quote:

The guy who had his hand up is a nobody- certainly not on any banned list, and if he does come up with the loot to finish paying parks then who he will use to run his hunts is anybody's guess. He certainly doesn't know an elephant from a buffalo and nobody can make that pay. On top of the 5.6 million he paid for the 5 year lease today, he has to pay US$110,000 concession fee per year and pay trophy fees on top of that- and parks keep putting those up. He has effectively paid US$22000 per buffalo and US$47,000 per elephant to parks - that is before he hires a PH, buys food or puts fuel in a truck!!

Well, boys, I think ???? I'm off to hunt with Chifuti for leopard in May. We will see after my meeting with Andrew in Dallas next month.

Safari auction rakes in $14bn

By Enacy Mapakame

THE Parks and Wildlife Management Authority has raised over $14 billion from the Chewore North Safari Area concession auction.

The public sale was held in Harare yesterday.

Chewore is approximately 45 kilometres from the Mana Pools National Parks boundary and has, among other animal species, buffalo, elephant and warthog.

It becomes the third safari area that the authority has put under the hammer in 2006 following Matetsi units 1 and 3 early this year.

Parks spokesperson Retired Major Edward Mbewe said this year there had been an overwhelming response from bidders coming in to buy hunting concessions as compared to 2005.

He said this higher interest from the public and the advent of new players who also came forward to bid augured well for the safari business.

"Of all our auctions, this one has received an overwhelming response and this shows growing interest among players, which is healthy for the growth of the hunting business.

"This year there has been quite an improvement in the hunting business; it has contributed a lot to the authority through wildlife conservation and management," he said.

Rtd Major Mbewe added that the authority was optimistic of generating even higher revenue in the coming year given the rising number of both local and foreign tourists.

He said they were aiming high because everything was pointing in the right direction.

"When people manage and conserve wildlife properly, business becomes viable; thus, tourism also improves because a lot of people enjoy wildlife; thus, the tourism sector can also improve with more tourists coming into the country to view our wildlife," he said.

Parks director general Dr Morris Mtsambiwa concurred with Rtd Major Mbewe’s sentiments, saying 2007 had all the makings of a better year on the basis of strides made this year.

"Business in 2006 showed a great difference from the previous years. There have been improvements in wildlife management; the auctions we have held this year pay testimony to that," he said.

Dr Mtsambiwa said the biggest challenge the authority was facing was to finish refurbishing infrastructure in all the national parks and invest in more equipment for rangers.

"We have the manpower, but we need to train them and make sure they have all the necessary equipment required in this business of wildlife protection.

"Refurbishing the Zambezi National Park should be concluded so that we move to other parks and cover much ground by year end. When all this is done, we can protect and conserve our wildlife in a sustainable way," said Dr Mtsambiwa.

Road and communication networks are some of the major projects the authority is looking at.

quote:

Originally posted by Ganyana:
He has effectively paid US$22000 per buffalo and US$47,000 per elephant to parks - that is before he hires a PH, buys food or puts fuel in a truck!!!!

If he lets the elephants and buffalo decide "how they want to die", he will be able to sell those hunts for a lot more than what he paid for them.

quote:

Rtd Major Mbewe added that the authority was optimistic of generating even higher revenue in the coming year given the rising number of both local and foreign tourists.

He said they were aiming high because everything was pointing in the right direction.

Sounds to me like they are going to price themselves out of the market, and create a bubble that will have to eventually burst.

Daily rates of US$1500 (as Ganyana mentioned) to hunt in Chewore North seem unreasonably high IMO. Chewore North is a great place, but there are lots of other places at least as good for those prices, or for even less...

quote:

quote:
Originally posted by Ganyana:
He has effectively paid US$22000 per buffalo and US$47,000 per elephant to parks - that is before he hires a PH, buys food or puts fuel in a truck!!!!

Parks must be very pleased with the results!

My only real question is: How can somone who knows the game chase up an auction price to $ 22000 for a buffalo? If the cheque of the Mr. Nobody who bought the area actualy bounces, as Ganyana seems to think is very likely (?), at what price will the concession be offered to the second highest bidder? Who keeps records of who the second highest bidder at an auction is? Just assume that they were bidding in increments of us $ 1000, will Parks offer to Billy Rautenbach at $ 21000? Or will there be negotiations on the price? Or a repeat auction?

I don't claim to know much about the cost of operating a big game concession, but IMHO if a buffalo cost you $ 22000, you had better do some very fancy marketing, like giving the buffalo a choice of how to die , to make selling the hunt thereof into a profitable deal.

Is there a market for some buffalo, even in the best area in the world, at $ 22000 + Operating Cost + Profit? Methinks not!

I would love to hear the opinion of the clever guys on this one.

In good hunting.

Andrew McLaren

If this fellow is a Black Market seller than he probably has the 14.6 Billion Zim dollars to spend. No doubt he can't exchange it for US dollars so it is essentially worhless.

Why not give the worthless money back to the Government and clear some US dollars in the process. Money laundering I think they call it.

Used to happen all the time in Zambia. You have a ton of Kwatcha, which you can't take out of the country, and have nothing to buy in the country. So what do you do? You deal with European companies working in the country for dollars or marks so they can pay their employees or you buy something, like a lodge or concession with the Kwatchas and sell the time in dollars.

Or you go to the casino and gamble high stakes until you lose it but get free drinks.

After all the money handling is completed and if this new owner is still standing, I hope they can market it at current daily rates and reasonable trophy fees. Not much call for $1500 daily rates and $47K elephant hunts I would guess.
Its such a great big game area and the Big Five camps are great, just hope they don't screw it up.

Dak

Hey Dak, yea...from what Mickey says (IF I understand it correctly) is that the scheme is to purchase the concession paying way too much, but in Zim dollars which he has an abundance of but cannot export nor spend in Zim on anything else of value, and which are depreciating all the time due to the ~1100% inflation. So even if this guy sells the hunts at 1/3 the cost paid, he is taking in USD's and in effect "laundering" the money (trading Zim funny-money for USD) which is better then nothing.

Am I interpreting this right Mickey/Ganyana?

Bill C - There are cheeper ways to launder money in Zim. Walk into any of half a dozen "offices" and you can change 250 million zim into a million US$ in a few seconds. When the black market rate is 25,000:1 why go to an auction and effectively pay 125,000:1?

My own interpretation is that he is one of our nouveau riche who wants the concession for "prestige" and entertaining a few select guests. (much like billy did). He will then sublet the remaining hunting at "the going rate"- like Billy did.

For the moment the question is - Will his Cheque bounce? and if it doesn't - who will he sub let to?

quote:

Originally posted by Mickey1:
Money laundering I think they call it.

Either that or the entrepreneur "diamond dealer" knows there's something more valuable than game there.

friends i need suggestion as im planning for lion with mane bufflow leopard sable kudu eland waterbuck and others,this year in march or april,which is the best in ur opinion to go hunting with best trophy quality .kind regards

Can someone who knows anything update us all on what is the latest news about this issue?

In good hunting.

Andrew McLAren

This is an interesting topic. Buzz was saying that the tendering wasn't working out for Chewore so we went another direction. Now I know what he meant. We're going to Chete instead.

The cheque bounced.( What a member of the political eliete bouncing a cheque - Surely not) Parks is in a quandry. It looks like Billy Rautenbach will get it anyway

Seems to me like you would need an established line of credit to bid millions but then again, we're talking about Africa

My Understanding from the legal idiot at Head office (who at the auction said that the man was just being "Patriotic" to bit so much) was expecting Billy to come up with at least 5 million US. Billy I gather told them to dream on, and the last other serious bidder (Ray townsend) gave up at 1.3 Million, Billy has offered 1.4. Parks should re-auction, but that would cause a loss of face to both the Parks and the politicos so it will not happen.

That's even more interesting. Was this a closed bid auction? That seems the only way to have 2nd bidder so far behind. Thanks for the info.

Please help a Mr. Simpsonlston [Brad's father]: I really don't get it. Ganyana, who seems to know very well what goes on, calculates that to pay $ 1.2 M for CN would be reasonable. Later he says that Billy Rautenbach offered $ 1.4 M in response to Ray Townsends' $ 1.3 M. He, Billy, then gave up. All this I do understand. The third highest bidder bid $ 1.3 M for something "worth" $ 1.2 M. Then Billy overbid even more at $ 1.4 M. No problem understanding all of this.

How the #uck did they get from a second highest bid of $ 1.4 M to actually close the sale at $ 5.6 M? The fact that the cheque bounced should play no role in the explanation? Please help this total idiot understand this one? How does an auctioneer go from "I have $1.4M over there" to "Going at % 5.6 M, for the first time.......Sold to the Mr. Nobody there for $ 5.6 M!" BANG.

I really dont get it! Do you?

With sincere thanks to anyone who can explain the process in simple steps.

Andrew McLaren.

Please help a Mr. Simpsonlston [Brad's father]: I really don't get it. Ganyana, who seems to know very well what goes on, calculates that to pay $ 1.2 M for CN would be reasonable. Later he says that Billy Rautenbach offered $ 1.4 M in response to Ray Townsends' $ 1.3 M. He, Billy, then gave up. All this I do understand. The third highest bidder bid $ 1.3 M for something "worth" $ 1.2 M. Then Billy overbid even more at $ 1.4 M. No problem understanding all of this.

How the #uck did they get from a second highest bid of $ 1.4 M to actually close the sale at $ 5.6 M? The fact that the cheque bounced should play no role in the explanation? Please help this total idiot understand this one? How does an auctioneer go from "I have $1.4M over there" to "Going at % 5.6 M, for the first time.......Sold to the Mr. Nobody there for $ 5.6 M!" BANG.

I really don't get it! Do you?

With sincere thanks to anyone who can explain the process in simple steps.

Andrew McLaren.

That was basically my question as well. Without hearing the answer, I thought perhaps it was a sealed bid auction? That seems odd but how else would it occur?

quote:

Originally posted by Ganyana:
It looks like Billy Rautenbach will get it anyway

I hope I can now finish booking my hunt with Big5 for August of this year. Can't wait to chase those buffalo and/or tuskless cow through the thick jess with Gibbo!

Ian is a great PH and I have had some great luck with him. However, I would never tell him that and I love to give him a hard time. On our last hunt, we had my eland in the back of the Landcruiser and Ian was anxious to finish the 3 hour drive back to camp to get the eland out of the heat and to the skinning shed. I really wanted a zebra and spotted one on the way back (I think Ian saw it and didn't want to tell me). Ian said we didn't have the time or the space (back of the Landcruiser was full) to chase the zebra. I said "bullsh_t" and jumped out and shot the zebra. Boy, was he pissed! Seeing the look on his face after the zebra dropped was priceless though.

Can't wait to cause Ian more heartache and trouble in 2007!

Andrew et al

The auction was open. The maximum price realistically possible if you wanted to make a profit was US$1.2 Million.

Billy Rautenbach does not need to make a profit- He is banned from traveling to most countries in the world and as far as I know cannot even go to South Africa- He has a choice of Cuba, North Korea, Lybia or Zim for holidays. The Chewore is worth having for exclusive family holidays or entertaining important clients. The rest of the quota he sells off through Big Five at the “going rate†and writes off the loss as the price of a holiday home.

When Ray and Guy Whittal backed out of the Auction at around the 1.3 million mark, Billy took over bidding against the “New Businessmanâ€. Billy was prepared to go to 5 million for the privilege of keeping the concession and camp he has built up in the last 20 years.

New Businessman kept going one bit (600,000) above Billy. I think he went away to get the money and worked out he had bought himself into a 5 million dollar hole- He would never be able to make as much money sub letting as a reputable, established operator would running things himself. Ie - even if he wanted a cover for money laundering there are cheaper ways of doing it. He has lost his US$10,000 deposit but that is all.

I called the Big5 office this morning and was told by the local that answered that the woman I nomally talk to "does not work there anymore" and they "are not booking any hunts."

Obviously Mr. Rautenbach can do anything he wants with Chewore North, as he has the money to buy the area and all the quota without any dudes showing up.

So how Chewore N. is going to shake out for us dudes I think remains to be seen. I guess I'm just glad I got to go there while it was still accessible.

Mr. Rautenbach sounds like a real character if he's banned from countries. What's the story on him?

YD - Maybe his named should be spelled Mr. Rottenbach?? Sounds appropriate to me.

Larry Sellers

quote:

Originally posted by yukon delta:
Mr. Rautenbach sounds like a real character if he's banned from countries. What's the story on him?

An odd and scary thought but is there anything in place to prevent anti hunting organizations from "buying up" these areas to lock people out for 5 years? A couple million would not be too much for the big ones.

Perhaps they never thought of it and I should just shut up!

Maybe you should delete your post.

quote:

Originally posted by Grafton:
An odd and scary thought but is there anything in place to prevent anti hunting organizations from "buying up" these areas to lock people out for 5 years? A couple million would not be too much for the big ones.

That's essentially happened to some blocks in Tanzania.

And a great area in BC.