New Turnall bosses in a fix

Africa Moyo
TURNALL Holdings Limited’s incoming management face the enervating task of dealing with toxic legacy issues that include a restive staff and a potentially damaging debt. Last week, the asbestos products manufacturer announced the departure of MD Mr Caleb Musonza and company secretary and finance director Mr Kennias Horonga.

Ms Roseline Chisveto has taken over as acting MD while Mr Prince Mutataguta is acting finance director. On September 11, 2016, The Sunday Mail Business exclusively reported how the company, under the stewardship of the departing duo, had ruffled the feathers of both workers and other critical suppliers to the firm.

Last week, Turnall board chairperson Mrs Rita Likukuma refused to be drawn into explaining the circumstances leading to the two directors’ departure. In a media statement last week, the company said the two were leaving as part of “the business’s general cost rationalisation efforts”.

The incoming management face the Herculean task of dealing with restive workers, who endured two pay cuts in April and July, and creditors who are increasingly seeking legal recourse to recover their money. It has been difficult for workers to take in the pay cuts as executive members were largely accused of profligacy.

There was concern that employees were picking up the tab for managers’ holidays to Asia and Europe, in addition to footing their hefty salaries. lose to 80 workers have been retrenched this year. However, there are immediate challenges for the management that is currently holding the fort in the form of creditors who want to attach the company’s property to recover what they are owed.

The size of Turnall’s debt is unclear, but they have been taken to court by Swiss-based asbestos fibre supplier Ramatex SA over US$1,1 million. The company has also been sued by French & Smith (Private) Limited over non-payment of a US$68 523 debt. The company won an award to attach and sell a forklift, bus trailer, concrete tile-making machine, saw machines, tamplet roller machines, asbestos plant and destacker machine, among others.

Turnall pleaded with French & Smith to suspend or withdraw the writ while it it settles its obligations. It could not be established how things stood as of Friday. starafricacorporation secured an order to attach Turnall’s property to recover US$11 279 and interest of five percent per annum with effect from March 2012.

The property included a Ford Ranger vehicle, computers, chairs, office desks, couches, coffee tables and filing cabinet, all attached by the Deputy Sherriff in June. starafricacorporation’s lawyers – Coglan, Welsh and Guest – however wrote to the Sheriff of the High Court requesting suspension of removal and sale of the property, perhaps indicating some sort of negotiations were taking place. For the half-year to June 30, 2016, Turnall reported a loss of US$1,8 million from a profit of US$400 000 in the same period a year earlier.