The Sunday News
Midlands Correspondent
THE top management at Lancashire Steel (Pvt) Ltd, a subsidiary of NewZim Steel, has allegedly embarked on a looting spree of company machinery and equipment in a bid to sabotage the giant wire manufacturer’s hopes of revival.
Essar Holdings recently agreed to inject money into Lancashire Steel to facilitate production and the importation of feedstock over the course of six months.
Reports of the alleged ploy to sabotage the company through vandalism and looting was raised at a meeting attended by workers and management as well as by Kwekwe Urban legislator Cde Masango Matambanadzo at the company premises in Kwekwe last week.
Lancashire Steelworkers’ committee chairperson Mr Tonderai Zisengwe said the company management were abusing the permission they got from Government to sell scrap metal, to loot company equipment.
“We decided to approach MP Matambanadzo so that he could rescue this company. We noticed that our management was now looting company equipment, vandalising the machinery and intact structures. They were now looting in the guise of selling scrap metal before sharing the money among themselves.
“Initially, our agreement was that money obtained from selling scrap metal would be shared equally from the top management to a general hand,” he said.
Mr Zisengwe said the management had sold billets, road mills rollers imported from South Africa and rail slippers among other equipment and machinery.
“The company equipment and machinery was now being vandalised by the management. Our fear is that if Essar injects money into the company like they have promised to, we will have to start from scratch.
“We must not be selfish and destroy the company because by doing so we would be sabotaging Government,” he said.
Cde Matambanadzo reportedly stopped a haulage truck believed to have been hired by management which was loaded with relatively new and functional rail slippers and road mill rollers worth thousands of dollars.
He said reports of alleged vandalism at the company was becoming a cause for concern.
“I have approached the responsible ministry to allow us to look for alternative sources of capital to inject into the company so that its starts operating immediately.
“Lancashire requires only $10 million and there are potential investors apart from Essar who are willing to inject money. The reincarnation of Lancashire is taking too long. If Essar are going to come, they would reimburse the investors and take over operations because we want our people to be occupied and fend for their families.
“The management was now being accused of looting the equipment and if we do not do anything now this company will collapse,” he said.
Lanchashire Steel general manager Mr Albert Mafurirana conceded that there was relatively new metal that was being sold as scrap by the management.
He, however, could not shed more light.
“All I can say is that the workers are angry but not much damage has been done. We are ready to operate once the money is injected into the company.
“Maybe management misrepresented facts to me but the company is intact,” he said.
