Delta Dairies to be liquidated
Monkagedi Gaothobogwe | Wednesday October 22, 2014 16:19
Sigwele had tried in vain to stop the court from shutting down the company after it was put under provisional liquidation in August.
In granting orders that the milk company winds up, justice Rannowane said its finances were in a perilous state, and quoted various independent audit reports and numerous lawsuits filed by creditors against Sigwele’s company.
Justice Rannowane said as of March 2013, Delta Dairies had amassed cumulative losses of P75. 7 million.In 2012 alone its losses stood at P13.8 million, before posting another P7.5 million loss the following year. In passing the judgment, Justice Rannowane said it was clear that since its inception, Sigwele’s company has never been cash positive and had survived on loans made available to it through CEDA Venture Capital Fund, which “in actual fact represents the tax payers’ money”.Justice Rannowane further highlighted that through the office of the Master of High Court he has been able to access documents that unequivocally point to the conclusion that far from improving, the company’s financial situation has deteriorated as evidenced by the fact that numerous creditors have filed lawsuits against the milk company.
VodaClean sued Delta Dairies for debts of P613,121.31, while Botswana Development Corporation has sued for P6.5 million, while Uti Botswana have sued for P2.2 million. Packaging company, General Packaging have approached the courts and sued for P335, 479.38, while Barclay’s Bank have sued for a combined total of P4.7 million. “Writs of execution have been issued and attachments made pursuant to these judgments…in all fairness the company is truly in financial dire-straits and it is imperative that for the sake of all its creditors that liquidation should be confirmed,” said the judge.
Delta Dairies is estimated to owe creditors P20 million, while workers unpaid waged are in the region of P631 000 for two months.