New twist to Delta dairies saga
Monkagedi Gaothobogwe | Monday October 13, 2014 16:08
De Lange says he was with the liquidator on Thursday the day before the story appeared, when CEDA assured them that they terminated all discussions of a sell back with Sigwele after the company was put under provisional liquidation on August 20.
John Little of Corporate Services is the provisional liquidator.
When the BusinessMonitor sought confirmation from the company MD on the new developments, De Lange was surprised. “What the liquidator and I found out is that Sigwele has been trying to get a loan from a local bank. But it is highly unlikely that the loan will materialise anytime soon,” he said. Last week Sigwele told Mmegi that he had bought back the company although CEDA declined to either confirm nor deny the development.
“As far as we are concerned the company has not been bought back by anyone.
Sigwele has been telling some workers since August that he has taken over, although we know it is not true”, said De Lange. Sigwele and some workers at the milk company sympathetic to him last Monday opposed the liquidation at the High Court. The ruling will be delivered early this week. “ If he has the money he does not have to worry about liquidation since he can buy the company out of liquidation, if he has the funds”, commented the MD.
It is estimated that the milk company is valued at P400 million. It also owes CEDA, some P85 million, which they pumped into on several occasions as bailouts.
CEDA has since backed off from further bailouts, resulting in the company shutting down for good in April this year.
The company won a tender of P65 million to supply school children with milk in May but government has since rescinded the tender after learning that the company has closed shop.Since it was opened in 2007, Delta Dairies has received preferential treatment from government, as it received P300 million worth of tenders for school feeding.