Chemspec workers’ black Friday

Durban - There is little hope in sight for the 400 workers who were retrenched after Chemical Specialities (Chemspec) closed its doors earlier this week and went into liquidation. All the men have extended families and are now without an income with which to care for them.

On Wednesday, the Durban High Court granted an order to have the listed company provisionally liquidated. The order followed an urgent Durban High Court application on Monday in which First Rand Bank called in a R74 million loan. The bank holds a general notarial bond as security for the loan.

But employees told the Sunday Tribune that they were worried that proceedings from a scheduled auction of the company’s physical assets would go first to the creditors, and they would be the last on the list.

Bekezelani Mabaso, 33, of Mpangeni, Sibusiso Sibiya, 38, of KwaMaphumulo, and Muzi Mgenge, 32, of Ndwedwe, claimed that they and many of their colleagues had been working for a labour broker – Bugatti Trading – which was contracted to Chemspec. Sitting outside their humble rented shacks in the Canelands informal settlement, the men shared their fears on Friday.

They were trying to formulate a way of creating a new livelihood for themselves and their families. Mgenge suggested that he might take a driver’s course once he received whatever payout was offered by the liquidators. The other men said they might try a course in security if they were able to afford it.

Mabaso said he had worked in the maintenance section at Chemspec since 2011 and he had been shocked when he was placed on short time. He said that his girlfriend was due to give birth soon and he was devastated at the thought that he might not be able to provide for his child.

“I feel desperate about the situation. I need to pack my bags and go home for the weekend but I do not have cash for transport,” he said. “I have asked my brother to deposit money to help me get home.”

Mabaso, who is paying back a bank loan of R7 000, has requested a letter from the employment agency to inform creditors about of his plight.

“I do not know how to pay back the loan. I took the money to upgrade the family home,” he said.

Sibiya and Mgenge said that although Friday was pay day, they would get little because they had only worked one day this week before getting the news of their retrenchments.

They were both earning R684 a week. They pay R250 for rent and send the rest of the money to their wives, who live elsewhere. They left the comfort of their homes because they wanted to be closer to work and save money on daily transport costs.

“I am going home empty-handed tomorrow. I cannot spoil my children with sweets and biscuits like I used to. This is a black Friday and I have no idea what next week will hold for us after the proposed meeting on Tuesday.

“The most painful moment will be when my wife calls to say she needs money to buy food, and I have none to give her,” said Sibiya.

ANC ward 16 councillor, Simphiwe Mzimela, said the move to shut down the plant would have a negative effect on the local elections next year. He claimed that more than 100 people renting accommodation in the area have to move back to their homes, where there was no work.

“To me this is a political crisis and we will lose lots of votes. Also, if resident numbers go down, development opportunities disappear. According to the previous voters roll, we had close to 3 000 people in this area.”

Baron Schreuder

Chief executive officer

Schreuder was appointed to the board in January 2013. He has worked in the coatings industry for more than 25 years. He is the former managing director of Plascon, a position he held until the end of 2012.

Bruce Mackinnon

Chief operations officer

Mackinnon joined Chemspec in May 1997 as divisional accountant and was later promoted to group financial manager. He has held the positions of financial director, managing director and chief executive officer in the company. He became chief operations officer in January 2013.

William Waller

Industrial sales director

Waller joined ChemSpec as industrial coatings general manager. He joined the board in April last year as industrial sales director.

Jonathan Maehler

Chief financial officer

Maehler has been guiding the business through the past three-and-a-half years.

Ivan Clark

Former chairman

The well-known businessman and former Grindrod Group chairman, along with other investors, acquired a significant holding in ChemSpec in 2011 as the company was seeking rescue. Clark was CEO of the shipping and logistics group in the mid-2000s when Grindrod was rated the top listed South African company and top global shipping company. ChemSpec announced it had commenced with voluntary business rescue proceedings, stating it was “financially constrained” in March, shortly after Clark resigned.

Strath Wood

Former chairman/CE

Wood stepped down as chief executive in November 2010. The Pietermarizburg High Court ordered him to repay more than R3 million plus interest to International Financial Advisors, which owns IFA Hotels and Resorts and Kuwait Investment Company KSCC. This arose after a share sale dispute. He left for the US. In November 2013 he was provisionally sequestrated in the Durban High Court and court-appointed trustee Kurt Knoop announced an investigation into his financial affairs, claiming he was hiding millions in two sham trusts.

Wood was accused of fleeing, leaving a trail of debt.

nkulukelo.nene@inl.co.za

Sunday Tribune

• Liquidation looms for Chemspec

• End of the road for Chemspec

• The death of an industrial dream