Delta dairies goes under the hammer
Keikantse Lesemela | Monday August 11, 2014 11:17
A Writ of Execution has been issued against citizen milk producing plant, Delta Dairies, paving the way for the company to go under the hammer in two weeks time. The Writ of Execution was issued by the registrar of the Industrial Court on August 4, after the local company failed to pay its 56 employees a combined sum of P661,000 being three months salaries.
The Industrial Court had ordered the company, founded by local man Howard Sigwele, to pay the workers the outstanding wages by July 31 or face the hammer.
Delta Dairies chief executive, Herman de Lange revealed to The Monitor that CEDA as the major shareholder has not attempted to intervene.
“I informed CEDA about the cort order but up to now they have not responded. I am still waiting for a formal response about the payments but they are not saying anything.
The Monitor has learnt that two local companies and two South African companies are interested in buying Delta Dairies. CEDA which owns 98,5 percent shares in Delta Dairies is already in negotiations to sell Delta dairies.
Maruping said the company’s arguments that the Citizen Entrepreneurial Development Agency (CEDA) was Delta Dairies’ majority shareholder were of no effect as the Agency had not been cited in the case.
“CEDA might be the majority shareholders but they have not been cited in the proceedings as the other respondents therefore it has no bearing in today’s judgment,” Maruping said.
He said the company’s Managing Director, Herman De Lange could take the matter up with CEDA at a later stage to map the way forward for the benefit of the company and the employees.
According to De Lange, CEDA holds 98.5 percent equity in Delta Diaries and has already identified an entity to buy its holdings, even though no timeline for the sale has been provided.
Tirelo Danga, on behalf of the workers, said their only concern was to receive their salaries. Financial woes at the first citizen-owned dairy processing company have worsened over the years, leading to workers suing for unpaid salaries.
Despite public procurement support, Delta Dairies has battled to stay afloat over the years and has been producing milk intermittently since September last year.
The company opened its doors in 2008 with funding from the CEDA Venture Capital Fund.