Matsapha, Swaziland - Afinta Motor Corporation (AMC), the bus manufacturing company, finally closed down yesterday, after making an announcement that it was retrenching all of its 42 workers. The workers were told not to come back to work yesterday and that they would be notified through their union when to collect their termination benefits.
This came the same day as The Star reported that AMC South Africa, which is under provisional liquidation, was tipped to win a R20 billion taxi recapitalisation programme. What is confusing is that no formal notification was made by the company's management.
The unsuspecting workers reported for work as usual in the morning, but were told by a security guard that an order had been issued to keep them off the premises. The guard told the workers that he had been informed on Sunday evening by Sandile Zwane, the general manager, that the company had closed down.
This was confirmed by Chris Nene, an official of the Swaziland Manufacturing and Allied Workers' Union. The reasons for the closure of the company, which has been rocked by a massive decline in customers because of the poor quality buses and trucks it sells, were not clear.
Nene said Zwane had complained that there had been property amounting to R500 000 that had been stolen by the workers.
However, Nene said the union had been informed by management that it would retrench only 21 people, about half the total number of those employed. However, we have since agreed that, since there is no production going on, people should be paid what is due to them and go home, he said. Zwane could not be reached for comment.
Three weeks ago, officials from the customs and excise department stormed AMC premises and removed components used in the manufacture of buses because the company had defaulted on customs duties.
Efforts are being made to save the company, which was placed under provisional liquidation after a High Court application.
The South African Bus Operators Association complained that AMC vehicles were registered as builtup which meant they were either manufactured from used material or were not new. In Swaziland, operators under the Swazi Commercial Amadoda Road Transport Association have expressed the same grievance.