SIPA DEMANDS OVER E2.6M FROM KANGFA FACTORY

MBABANE – It’s more troubles for Kangfa Knitwear Swaziland (PTY) Limited. The troubled Siteki-based textile company has been taken to court by SIPA, where it is demanding over E2.6 million in respect of arrear rentals.

SIPA is the Swaziland Investment Authority, a government department which is responsible for the promotion of investment and trade in the Kingdom of Eswatini.

Demanding

The exact amount which SIPA is demanding from the textile company is E2 633 896 64.
The plaintiff (SIPA) does not only want the textile company to pay the aforementioned amount but is also seeking for the cancellation of the lease agreement and subsequent ejectment from its premises.

This is not the first time the company finds itself in trouble as since 2011, it has been rocked by violent strike actions which most often were sparked by salary delays, poor and unsafe working conditions.

Roaming

At some point, workers demonstrated over dogs, which belonged to the company director, which were roaming the premises and attacking workers during working hours. This resulted in the closure of the company.

In the present case, SIPA stated that on July 1, 2010, the parties entered into a lease agreement in terms of which the plaintiff as a lessor, leased to the defendant (Kangfa Knitwear Swaziland) factory premises at Portion 1, Farm 713, Siteki in the Lubombo Region. 

It is alleged that in terms of the agreement, the lease was to commence on July 1, 2010 and terminate on December 31, 2013 with a 12 months renewal option.
According to SIPA, when the agreement was concluded, it was represented by Phumelele Dlamini and the defendant by James Zhang Binhum.

“The lease between the parties was entered into in line with the plaintiff’s policy to attract and/or promote foreign direct investment, by providing factory space to investors at a subsidised cost of establishment and operations at initial stages of their businesses,” reads part of the particulars of claim filed by SIPA’s lawyers from Howe Masuku Nsibandze Attorneys.

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