adminBusiness Reporters
LION Match Zimbabwe’s factory was on Friday sold for US$1,68 million to an Indian businessman who outbid several other businessmen of Asian origin. Bidding for the factory, which includes several warehouses, three blocks of offices, two store rooms and safe rooms, residential houses, canteens, boiler area and ablution facilities, started at US$1 million.
The factory is one of several properties that were being auctioned by Rub Auctions Real Estate on behalf of their clients.
The factory was being sold to offset about US$1,1 million that was owed to 163 employees led by Mr Vincent Mupumha in outstanding salaries dating back to 2009.
In an interview Mr Mupumha said he was elated with the price and said he hoped that the money raised will be able to cover their dues.
“The company owed us US$1,1 million in October 2013 for 17 months’ salary among other packages.
“The figure has since increased due to an accumulation of 10 months’ salaries and interest to date,” he said.
Lion Match has had long standing problems with its workers over the payment of outstanding salaries.
In 2010 the workers camped at the company’s premises demanding their pay after having gone for close to two years without being paid.
Early in that year, the workers took the company to the labour court and won their case but were not paid anything despite an arbitration ruling that had ordered the company to pay the workers’ salaries and allowances for 2010.
Online Reporter