KWEKWE City Council says it is toying with the idea of selling its loss-making traditional beer brewer, Kwekwe Breweries, in order to settle debts accrued over the past four years.
BY BLESSED MHLANGA
The brewery, according to recent special council minutes, was currently saddled with a $1,3 million debt.
City treasurer, Rejoice Maweni, urged councillors dispose of the loss-making business unit and use proceeds from its sale to settle debts owed to FBC Bank, Zimbabwe Revenue Authority and National Social Security Authority or risk having their accounts garnished and property attached.
“The liquidity position of the brewery was still better as at December 2014, since the net book values of assets stood at $1,78 million against creditors of $1,32 million such that if they sold the brewery they would be able to pay off creditors and remain with something,” the munities read.
FBC Bank was owed $55 277 borrowed when Kwekwe Brewery was under the management of Limsol Trading, which had been hired to turnaround its fortunes.
Mayor Matenda Madzoke was, however, pushing to ensure that Limsol Trading paid 50% of the debts, while council paid its own share to avoid putting the company on sale.
The special council meeting, held end of August, was adjourned after councillors led by Morris Chinwada protested the sale of the entity.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Chinwada proposed that the residents should be consulted before council endorsed the decision to sell the unit.
Councillors were yet to agree on whether to sell the brewery or not but they have since resolved to settle the FBC Bank debt, and other debts amounting to $10 000, which have standing court orders to avoid attachment of council property.
