GOVT RUNS TO COURT TO STOP 50-YEAR LEASE WITH TUNTEX

MBABANE – The days where Tuntex enjoyed a nominal rental fee of E50 per year could soon come to an end.

The Swazi Government wants the 50 year lease entered into with Tuntex Garments (Pty) Ltd cancelled and for the company to vacate the premises within seven days following a breach of the agreement. The lease, in respect of plot number 764 measuring 63 000 square metres, was where Tuntex undertook to utilise the land by constructing a manufacturing factory within the premises and manage operations for a period of 50 years.

During the course of 1999, government entered into a pre-incorporation written lease agreement where it was represented by Stella Lukhele while Tuntex was represented by Yang Te-Sheng. The State provided Tuntex with a fully serviced land.
In an affidavit that has been attached to court papers filed by government, Ministry of Housing and Urban Development Principal Secretary Clifford Mamba explained that at the end of the lease, Tuntex was to hand over the factory and premises back to government.

Mamba explained that according to clause five of the lease agreement, in the event Tuntex was for any reason unable to continue the manufacturing operations as agreed the lease agreement would lapse and become void, the land and premises shall revert to government with all the improvements. Tuntex ratified the pre-incorporation lease agreement by constructing and manufacturing immediately after its incorporation.

Mamba said in July 2013, government discovered that the respondent had ceased all operations which were taking place within the premises as per the lease agreement.

“By ceasing all operations which were taking place, the lease agreement lapsed and was automatically cancelled. Tuntex also failed to vacate and surrender the keys of the premises, an act that amounted to be in breach of the lease agreement,” reads the affidavit in part.
It was also stated that despite lawful demands by the government, Tuntex had refused and or neglected to surrender the keys and vacate the premises.

“Tuntex defiance or refusal to vacate the premises and surrender the keys has left the government with no choice but to approach court for redress,” it was mentioned.
In the lease, it was pointed out that Tuntex had expressed an interest in assisting the government in its economic endeavours by investing in the expansion of its garment manufacturing enterprise in Swaziland.      

The government said the state was also desirous of attracting Direct Foreign Investments (DFI’s) as will be particularly labour intensive to alleviate the unemployment situation in Swaziland. The allegations contained in the court papers cited above are yet to be verified in court, where the matter is still pending.

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