Sheriffs lock up Phikwe textile factory

Onalenna Kelebeile | Thursday October 24, 2013 15:33

A worker who did not want to be named told Mmegi that the court sheriffs told the workers that the factory would be opened for business only after the rental arrears of P582,808.82 is paid to the Botswana Development Corporation (BDC).

This has left workers without their last month’s salary as this happened before they were paid and they are now unsure about the future of their employment.

“They told us that they were given an order by the High Court to lock up the building. We have not been working since then which means there is no production.

“This happens at a time when the director is out of the country for medical attention,” said the employee.

When contacted for comment from Johannesburg, South Africa, director of the company Ashwin Singh said he was aware of the tragedy at his factory.

He explained that the matter with BDC is around the fact that Microlith, which is one of the oldest tenants of the corporation’s factory shells, has for the past three years not been able to use one of the units it is renting.

He said they are unable to use the unit because it has no electricity but they continue to be charged monthly rentals for it.

He said the firm had suffered huge losses due to vandalism even though the BDC has security on the premises.

 “This happened in 2010 when we had to suspend our operations due to a matter between government and the company which went to court and is going back to court as we speak,” he said.

He added that his company made all efforts to communicate with the highest decision makers at BDC, including the managing director and the board of directors but in vain.

“If we can compare the damages we incurred from vandalism and the rentals we are billed for the unit that we cannot use, then we are owed money by the BDC.

“This has also resulted in loss of earnings as our equipment is lying idle because of lack of electricity,” he said.

Singh added that the company is in the process of handing over the factory to workers to operate but said this has stalled for some months due to his ill health and that he is unable to travel at the moment.

He decried lack of active support for private sector businesses by government, which forced the company to retrench 1,100 workers between 2007 and 2008.

Currently the company has only 50 workers after it suspended its operations for some time.

 He said the closure of the building by sheriffs would result in the company losing tens of thousands of Pula daily.

“We are currently seeking legal advice on the matter,” he added.

Past correspondences between BDC and Microlith show that the issue of rental bills for the unit that is not operational has been going on since 2010.

In a communiqué to Microlith on 21 March 2011 BDC expressed displeasure over what they termed lack of progress on the matter.

“Unless we receive any substantive payment towards the account we will proceed to execute all remedies at our disposal.

“By copy of this mail, Microlith is given until close of business tomorrow to remedy the situation, the absence of which, the matter will be handed to the legal division for execution of the due process,” reads the communiqué.

 In one correspondence that Microlith wrote to BDC the company expressed concern that the issue had been ongoing since 2010 but remains unresolved.

“The situation is really sad because BDC ignores our requests despite many promises.

“We believe that since we cannot use the premises why should we be billed for the rentals,” it reads.

It further states that since 2010 BDC was paid a total of P339,856.00 in rentals towards the unit in question that the company believes must be refunded.

It states that in fact BDC owes the company P142,319.55.

 BDC spokesperson Boitshwarelo Lebang confirmed that the factory shell had been locked up.

She said it was the last option that remained after BDC exhausted all efforts to assist Microlith to pay the rentals.

“We did all we could and that was the last option. We followed all procedures and processes and engaged the company to come up with a plan to pay up but it kept reverting to the initial status of defaulting,” she added.

Lebang noted that BDC had investors’ interest at heart because they wanted to see them thriving but at the same time rental obligations have to be honoured otherwise their position would be affected.

“If tenants keep defaulting it would not do us any good because BDC has to recover and it would disadvantage other Batswana. We have to stay viable so that other organisations can be pushed forward,” she added.