BULAWAYO-based businessman Delma Lupepe’s business empire continues to collapse with two of his prime residential properties in Bulawayo set to go under the hammer next week over an outstanding debt to Premier Banking Corporation.
by PAIDAMOYO MUZULU
The financial institution recently obtained a writ of execution against Lupepe’s company, Merspin.
Lupepe, however, is not alone in the debt predicament as many other businesses are closing shop or being placed under judicial management as the economy continues to decline.
Holland Auctioneers yesterday published a long list of fixed properties that would be auctioned in Bulawayo next Friday. Mesrpin is a textile manufacturing company specialising in towelling and at its peak exported its products into the region.
Besides Merspin, Lupepe had diversified investments in Bulawayo that included companies in the manufacturing and telecommunications sector and also ran a Premier Soccer League team, Amazulu.
At the same auction, the beleaguered Zimbabwe Football Association (Zifa) and its chairman Cuthbert Dube will lose a building in Bulawayo for an unspecified debt to CBZ Bank.
Zifa in the past three months lost some office furniture and other movable assets attached in relation to its debts to various service providers and dismissed workers. This month, Dube had to renegotiate with the Deputy Sheriff who had visited his house to attach household goods and vehicles in relation to a Zifa debt which he had guaranteed.
Economic analysts say in the prevailing conditions, many companies may go under if interest rates remain high and business remains depressed due to the liquidity crunch.
At the end of January, the Reserve Bank of Zimbabwe said the country was experiencing negative inflation which could lead to deflation.
Deflation is a term referring to low aggregate demand of goods as opposed to inflation where a lot of money chases a few goods.