Hwange Workers Accuse Bosses of Siphoning Mega Bucks
Published: 2016 February 21 06:31:59 (4126 Views)
WORKERS at Hwange Colliery Company Limited, who are fighting to have the coal mining giant placed under judicial management, have alleged that management and the board of directors mishandled eight contracts costing the firm millions of dollars.
They claim that directors and management have allegedly been involved in a number of schemes to "siphon money" from the company.
This is contained in a High Court Application, dated 15 February 2016, in which workers have added the Assistant Master of the High Court as the Second Respondent with Hwange Colliery Company Limited remaining the First Respondent as in the earlier application requesting judicial management of the company.
The employees also want Hwange Colliery Company Limited to be given five days to respond to their application to have the company placed under judicial management or risk the court awarding a default judgment in their favour.
In the application, the workers allege that "current management has conducted cumulative practices which have impacted negatively on the performance of First Respondent (HCCL)".
They allege that this is seen in the manner in which they handled some contracts involving the company.
However, the workers allege that fees of directors are reportedly always paid on time even if there are salary arrears with respect to the employees. The workers say the company can only be saved from sliding into bankruptcy by being placed under judicial management.
They say the company is “technically insolvent” and its published half year results for last year reflected a loss of about $20 million from a previous year of $7,6 million.
The company had not responded to the court application at the time of going to press.
- Sunday News
They claim that directors and management have allegedly been involved in a number of schemes to "siphon money" from the company.
This is contained in a High Court Application, dated 15 February 2016, in which workers have added the Assistant Master of the High Court as the Second Respondent with Hwange Colliery Company Limited remaining the First Respondent as in the earlier application requesting judicial management of the company.
The employees also want Hwange Colliery Company Limited to be given five days to respond to their application to have the company placed under judicial management or risk the court awarding a default judgment in their favour.
In the application, the workers allege that "current management has conducted cumulative practices which have impacted negatively on the performance of First Respondent (HCCL)".
They allege that this is seen in the manner in which they handled some contracts involving the company.
However, the workers allege that fees of directors are reportedly always paid on time even if there are salary arrears with respect to the employees. The workers say the company can only be saved from sliding into bankruptcy by being placed under judicial management.
They say the company is “technically insolvent” and its published half year results for last year reflected a loss of about $20 million from a previous year of $7,6 million.
The company had not responded to the court application at the time of going to press.
- Sunday News
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