Kawambwa Tea Company (KTC)has acquired a K6 billion boost from a loan from the Zambia National Commercial Bank PLC for recapitalization and to settle outstanding debts the firm owes including various government institutions.
This brings a total of K 8 Billion the firm owes the local bank from the K 2 billion loan the Tea company had acquired from the bank.
The firm which had ceased its operations for about a year due to non remittance of dues towards debts, recently resumed operations following the cash injection from the bank.
This came to light during a fact finding tour of the company at its Kawambwa estate by State House Chief Analyst for Policy implementation and monitoring (PIM) Tobias Mulimbika.
He was accompanied by Kawambwa District Commissioner Wilbroad Mumba and other officials,during a tour of the company yesterday.
The Kumar Holdings owned Kawambwa Tea Company (KTC) owes Zanaco K2 billion in arrears from a loan earlier obtained from the bank to help settle its previous Africa Development Bank (ADB) debts.
Management at the factory which was at pains to explain why the firm had stalled operations for over a year and had outstanding salary arrears for its 800workers earning between K210, 000 and K 370,000 respectively, explained that owing to its debts, the firm had struggled to cope with operational costs.
They said the bank sent a team of experts to assess the company’s viability before approving the loan and were satisfied with its potential.
But when further queried whether tea had no market and was not profitable, management said produced commodity had readily available market and was sold through legal channels refuting claims that the firm was selling on the black market.
They said the recovery plan was the best alternative for the company to sustain operations given the previous lack of ploughing back of proceeds for recapitalization and operational costs.
“We have been legally conducting our business despite owing various organizations because in the case of exports to neighboring DRC we raised export documents through Zambia Revenue Authority (ZRA) which is legal documentation, so this is against allegations that we have been trading on the black market,” said one of the Zambian KTC factory management staff.
Management at the factory said following the resuscitation of operations the company had projected a recovery plan which included an operational cost of K3bn which would generate an estimated K8bn from its 412 cultivated hectares of tea targeted to produce 900,000tonnes of processed tea.
They said the tea had readily available market from the local and international markets, such as the DRC and Kenya’s Anjeli Tea Auction floors, where it used to fair very well.
Kawambwa Tea Company has an estate covering over 2000hactares which has never experienced expansion of the cultivated hacterage.
The firm also owed other firms such as ZESCO K127million,NAPSA K255million,ZRA K598Million and accrued terminal benefits of K560million to its employees.
However, management said the company had started settling the debts after negotiating with the various creditors on repayment plans.
They said the firm was paying ZESCO K25million per two weeks and recently paid the electricity firm a K30million bringing the balance to about K60million and had settled outstanding council levy dues it had with the Kawambwa Local Authority.
Management also revealed that the company was paying NAPSA K50million per month under the arrangement while it was also committed to also pay ZRA K50million on a monthly basis to offset the accrued tax dues.
They said workers at the factory had started receiving their regular salaries which were being paid together with one month’s accrued salary arrears from the 11months dues the company owed them.
“Workers have started receiving their dues and what is happening is that a months pay is being given at the same time with an accrued salary from arrears as a way of knocking of outstanding salaries at the company,” said the management staff.
They also said the company had procured fertilizers for enhancing the yield of tea and protection gear for some workers which was yet to be given to all the sections.
And addressing the management at the Factory Mr. Mulimbika said Government was concerned with the problems that the company has faced for a long timedespite its potential to be sustainable and vibrant.
ZANIS/DN/ENDS/MM
Hmmmm! Is that the best idea??? :o):o):o)
Kawambwa Tea has just deepened its problems! Selling is the better option!
Maybe the goverment should come in and save it from total collapse. But again anything run by GRZ is….. :o):o):o)
Hope am No.1 for a change
Hi Baby C! Hope you are good.
Bloggers, were are you :x:*:o)
#2 you are right, they have just pushed themselves in more trouble,,, how do they plan to repay the loan???
Hi Baby C u r no where 2be seen in the Liquor thread?Are u trying 2be Holier than thou?
Aha Ba Baby C mwacha sana. Congrats though
Baby C congrats 4being l-):)>-n 3 in a row
Zoe
No dear! i was targeting nambala one!
Sister
Morning! Nincha bad lelo! I hit 1-3!!!
Baby C, you had a field day today. any way we are busy on the confiscated beer thread. that is where evryone who matters is!!
#12 OUCH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
My province naicha nayenaka!
Ba sister and Baby C
How are you?
Please talk to ba Zoe ulubuli baleke balentendeka. :-j:-j:-j:-j
Lady Chiza
I dont care!!!! [-x
Hopefully that money will not be plundered or syphoned out of this country.Kawabwa tea is one best in the world and the industry has the potential to supply the entire Africa and beyond with quality tea.In addition,it has the potential to create and offer employment to thousand of jobless youths.
Matworld nakupapata leko fibukile kumbi,so if u knw wats gud 4u,let me be.Have u 4goten my blackmail? Oohh Hold yo fire.
#12 Kindly apologize 2 Baby C bamwine
Zoe
Naleka boyi.Please ^:)^^:)^^:)^
My apologies Baby C. didnt mean to hurt you Sir. I thought it was a joke used with no malice aforethought. My apologies one more.
#19 l-) time. Dnt mess wth Zoe
Am off this thread. too much hostility or friendly fire from colleagues. see you on the liquor thread or a new one. But when I c that certain names are there, wont be part of it.
Zoe, you seem to be a kafwafwa guy, whats up.
Can you tell me to move to the other side , but no show.
Are you playing tricks.?
The Kawambwa Tea Compant rip off is yet another reminder of how often Africans in positions of authority are easily duped by young Asian and European conmen. that chap cant run that company.
Ba Honey tht was mistaken identity. I was thinkin u r sumbody i knw,hence i ask for yo email n asked wether u r a man o woman
Morning bonse.
Baby C l-)
Bruder L thanks for the mail. Have not even tried it yet.
Matworld thanks for the mail. Will reply when I settle down.
Hope it works for Kawambwa Tea. Abangeleshi banwa tea iyabula sugar so guys ku Zed poseniko amano.
Good morning Baby C l-), Zoe, Ba Honey, Lady Chiza’s legs, Matworld, 3RqU, Tionge & the others.
Bruder L, where art thou?
Thanks God it’s Friday!<:-p Oh, I forgot to greet the prof. Waminga. Greetings sire.
Nine Chale
:-h:-h:o):o)
28. Nine Chale
Good morning all
Nine Chale “Einem geschenkten Gaul schaut man nicht ins Maul”
which simply means “if you are given something it would be wrong to question it”
I hope when biz assumes they will pay all the outstanding salary arrears and then go ahead with production!!
I hope this could have been the case with Zambian Airways!!
Baby C
:-h >:d< Whatever this :o) means??
Yes thank God its Friday. <:-p<:-p:o):o)
#30 Bruder L, the idiom is in relation to gifts but this is a debt. I wonder how long KTC can operate on borrowed funds?:-?
Nine Chale
did you read Matworld’s Story on the previous thread? I have not finished reading it yet! So let me scoop
Baby C, I guess this :o) means “let’s get it on!”8-> or “Ferkel Alarm!” in German~:>
#34 BRUDER L, no I didn’t. Which thread? Let me also scroll…
# 36. Nine Chale
The story is on the thread about expired liquor in Livingstone.
A resident in Tanzania has sued GTV Tanzania for breach of contract,claiming monhly subscription and money spent on buying decoders,dish and cables.What is Shikapwasha doing about this please help us because we dont ve money to hire the lawyer.
Kawambwa Tea Coy being run by Kumar Holdings. I think there is something amiss with management at that firm.Increasing debt from K2Billion to K8Billion may sound normal. Zanaco should keep a watchful on that coy otherwise borrowed funds may find their out to offshore banks. Then we shall hear that KTC has been placed under recievership by Zanaco. Zanaco believes that by further loaning the company funds it will be able operate viabily. Wait and see. As for poor employees they should be paid all their dues in full and get new contracts other wise that company in the hands of Kumar Holdings will never tick. Believe or not. Zanaco has put its funds in a bottomless pit.ZESCO, NAPSA, ZRA etc wake
May be it was an error 900,000 tonnes of processed tea and the company not doing very well. Such huge tonnage would have made Kawambwa District golden place. ZRA, NAPSA and other creditors should look at the survival plan the coy has come up with otherwise they will end with nothing. I have nothing personal about Kumar Holdings running KTC but my concern is out of patriotism. Please enough is enough. Are these not the same chaps that destroyed Serios in Luanshya including the mine. Kawamabwa is well located in high rainfall belt and the locals are hard working. What is wrong with these guys who advise politicians should we assume they get kick bucks and fail to act becuase their hands tied.
GOOD MORNING KAWABWA.TEA MAKES MY MORNING.GRANDMA FROM CONGO THOSE WHEN IT WAS ZAIRE SHE COULD ALWAYS SAY KAWABWA WAS THE BEST OF THE COUNTRY IT IS GOOD TO KNOW THAT TEA IS A SYMBOL OF A GOOD MORNING KAWABWA.
MANY GOOD EVENING AS TEA CAN MAKE UP WHEN THE TEMPERATURE IS COOLER IN THE EVENING THEN WE CAN SAY GOOD EVENING WITH A CUP OF TEA GROWN IN KAWABWA. CIAO. SALUTE. ITALIANO.