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| Business |
| PEW under the hammer |
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by
Mc Donald Chapalapata, 01 October 2003
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18:34:45
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The High Court in Blantyre will next Wednesday hear an application to wind up Plumbing and Engineering Works (PEW) Limited which has been failing to pay its debtors almost K12 million.
Steel Supplies Malawi Limited have been flying adverts in the local press this week on the petition to wind up the company which comes barely two days after creditors of Grain and Milling Company asked the High Court in Blantyre to put the company under provisional receivership after one creditor asked sheriffs to auction the company’s milling plant.
Lawyer James Masumbu of Tembenu, Masumbu & Company said in an interview on Tuesday that apart from Steel Supplies, he has also received instructions from Mac Steel (Formerly known as HP Steel and Wire) and also Dulux Limited to support the petition to wind up PEW.
“PEW owe my clients a substantial amount of money which has been outstanding for sometime. We have had several meetings trying to find a way how they were going to pay and we are left with no option now but to go to court and wind up the company,” said Masumbu.
He, however, declined to disclose the amount PEW owe the companies saying “it is not ethically correct to discuss our clients financial status in the media.”
But insiders confided that PEW owe more than K12 million to various companies and financial instutitions.
Asked on what would become of the 200 strong workforce should the application to wind up the company succeed, Masumbu said the workers entiltlements are provided for in the Employment Act and the Companies Act.
“The workers will be paid their benefits within a prescribed period as stipulated in the Employment Act and also the Companies Act,” said Masumbu.
PEW general manager a Mr Kapezi, the only person mandated to talk to the press, was reported to be out of the country.
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