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The SMEs were evicted from Geddes Building situated at the corner of 6th Avenue and George Silundika Street after the owner allegedly indicated he wanted to sell it.
Sources close to the happenings alleged that the building owed about $34 000 to the Bulawayo City Council and nearly $50 000 to Zesa.
A number of entrepreneurs at the centre yesterday said rentals ranged between $100 and $300 per month, depending on the size of a cubicle.
In an interview yesterday, Geddes Limited chairperson Mr Fred Mutanda accused the financial director of the SMEs centre, Mr Bishop Clement Malaba, of collecting rentals from tenants but not remitting them to Geddes.
Mr Malaba, however, denied the accusation alleging that Mr Mutanda had a hidden agenda in evicting the business people.
“In 2011, we evicted the SMEs from the building, but they forced their way back. In court Mr Malaba pledged that the SMEs would pay $5 000 every month as rent, beginning February 2011. They have not paid a cent to date, although we ignored owing rentals for previous years,” said Mr Mutanda.
He said it was untrue that Geddes Ltd wanted to sell the building.
“We want to set up our factory there. We may have to resort to the courts to recover the money that the SMEs owe to service providers,” he said.
Mr Mutanda said the court granted the SMEs one year in the building, adding that Geddes extended the period because SMEs Minister, Sithembiso Nyoni, explained that they needed extra time to set up elsewhere.
Contacted for comment, Mr Malaba said Mr Mutanda was misrepresenting issues.
“There is nothing like that. He cannot talk about the rent issue because it is still pending in court. We have receipts to prove that we were paying rent at Knight Frank until the agent stopped accepting our money. Mr Mutanda lost his case in court because he wanted to sell the building and the court ruled that as sitting tenants, he should give us the first option to buy it,” said Mr Malaba.
He said Mr Mutanda “shifted goal posts” after losing in court and later said he wanted the building for personal use.
“He wanted $6 700 every month for rent, which we could not afford. The court said we should reach a consensus and he brought in evaluators, Richard Ellis, who set the rent at $5 000 a month. However, our evaluator said we should pay $3 500. He refused to accept our rent and we have been putting it in a trust fund ever since. On the day we reach an agreement, we will pay him,” said Mr Malaba.
He said the SMEs had a separate Zesa account and owed the parastatal only about $12 000.
“We do not know how much is owing on the council bill, as there is a bulk metre and the bill is sent to Mr Mutanda. He should come out and tell people the truth because we believe he has a hidden agenda in destroying all these up and coming businesses,” said Mr Malaba.
He said if the SMEs had been evicted for owing rentals, their wares would have been attached to pay the debt.
“Because this was not done, we believe there is a sinister motive behind our eviction. However, we will not let this pull us down. We are looking for new premises for the SMEs to operate from while we pursue the issue in court,” said Mr Malaba.
The SMEs sector has widely been regarded as an integral part in the quest to revive the country’s economy.
The sector has provided sanctuary to thousands of workers who lost their jobs following the closure of a number of companies.
More than 85 companies have closed shop in Bulawayo, with an estimated 20 000 workers losing their jobs.
Online Reporter