Modubule Questions Liquidation Of Lobtrans

The company's headquarters was located in Lobatse where many of its employees were also based. Nearly 500 jobs were affected when the company went to the wall last week. The company has been placed under provisional liquidation following a successful court application by Standard Chartered Bank and Barclays Bank to recover debts said to be running into millions of pula.

"Many people have lost their jobs," says Modubule. "They have not been paid their benefits. Some of them have been paid for January only. If the company is liquidated, the affected workers are not likely to get much." Modubule points out that although the Labour Act stipulates that workers should be paid when a company goes into liquidation, the Insolvency Act says something else, giving preference to creditors.