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Enacy Mapakame Business Reporter—

TEMPERS flared yesterday at the David Whitehead creditors meeting as workers accused the judicial manager Mr Knowledge Hofisi of failing to turn around the textile company.As such, they immediately demanded dismissal of Mr Hofisi. The workers, who constitute about 70 percent of the creditors, alleged Mr Hofisi was not doing enough to address the DWTL’s financial problems as the company continued sinking deeper into abyss.

As at November 30, 2016, total creditors amounted to $13 million, largely constituted by employees outstanding allowances. Total assets stood at $16 million.

The employees also charged at former managing director Mr David Chimanye, a major shareholder in the company, whom they accused of mismanagement when he was at the helm of in the early 2 000s. Mr Chimanye is the current DW operations manager.

As tempers flared, Chegutu West legislator Mr Dexter Nduma chipped in, urging workers to work together towards reviving once Zimbabwe’s largest textile manufacturer.

He said the state of affairs at DWTL was a cause for concern and called on stakeholders to move with speed and revive the company to save jobs as well as creating more jobs.

DWTL, which has operations in Chegutu, Kadoma and Gweru used to directly employ 3000 people. The second creditors meeting was meant to appraise shareholders and creditors on the status of the company. The court-ruled reconstruction process is the third since 2004.

In his report, Mr Hofisi said the major challenge facing the company was inability to raise funds to revive the company due to huge debts. He proposed a debt to equity swap to help clean the company’s balance sheet and make it easier for the company to borrow. Mr Hofisi said the company also failed to retool and was using antiquated equipment. In the short term, Mr Hofisi said the company was “cautiously optimistic” that DWTL would secure a facility worth about $2 million during the first quarter of 2017.

“We declare in this meeting that you be set aside as you have failed completely, dismally. We want another consultant; we are tired. Our debt is almost $20 million and you are looking for $2 million; how does it work. People are not happy with you,” charged one Mr Edson Mtemeri.

Workers committee chairman Mr Carlington Dzukamanja said: “This is the third time the company has been put under judicial management, we expect to see positive results in three years and we do not mind to take the debt to equity swap route but we have not been given enough opportunity to air our views.”

Mr Hofisi admitted while $2 million was not enough to retire the company’s ballooning debt, it would be a first step towards starting production.

“What needs to be addressed first is production and the $2 million will be a starting point so that we resume operations then look at scheme of arrangement,” said Mr Hofisi.

He added that the company also needed to consider procurement of new equipment which would help improve efficiency, improve product quality and reduce overheads. Other shareholders said they had lost faith in the judicial manager and there was no guarantee that the $2 million the company intended to raise would help revive the company.

While DWTL disposed of some of its non-core assets to raise funds, creditors argued the funds might have been misused since the company was still struggling even to pay retrenches.

“Zesa even disconnected power due to debt, even after raising some money,” said Mr Chifuriro, a shareholder.

Among other accusations levelled against Mr Hofisi was his failure to take stern action against corrupt former directors whom they said had looted from the company.