Banks blamed for Pula Steel cashflow crisis

He told Parliament this week that there was a working capital shortfall at the cash-strapped steel manufacturing company that could not be financed by commercial banks due to lack of appetite. “This affected the company’s ability to pay off its salaries and wages on time for the months of January and February 2016,” said Seretse.

However, he said no employee is owed any allowance to date, adding that there was overtime allowance for the months of November and December 2015, which were paid this January. Earlier this year, over 70 employees of Pula Steel downed tools over late payments of their January salaries as well as overtime allowances from last year.