Sembule Steel lays off 70 workers
Mar 25, 2007
SEMBULE steel Rolling Mills has laid off over 70 staff amidst fears that the company’s books of accounts do not balance, sources have said.
By Charles Bwogi
SEMBULE steel Rolling Mills has laid off over 70 staff amidst fears that the company’s books of accounts do not balance, sources have said. The company has also failed to pay its creditors.
“Those laid off are middle and lower management employees plus factory workers,†an employee said.
Sources said the lay-off allegedly triggered off a disagreement between the outgoing managing director, Francis Sembuya, and the group’s chairman, Christopher Sembuya. Francis proposed liquidation of some land in order to capitalise the company.
Christopher assumed the position of managing director and showed Francis the exit.
“I am disappointed with his idea of assuming all responsibilities and quashing advise from our bankers to liquidate some properties,†Francis said, adding that the company has a strong asset base like a lot of land in Nalukolongo Industrial Area.
He said the liquidation would enable them build capacity to pay off the creditors and remain competitive.
Christopher said: “To the best of my knowledge, everything is okay. We have no problem. In fact, we are working on improving the steel mills.†He said every company has creditors.
SEMBULE steel Rolling Mills has laid off over 70 staff amidst fears that the company’s books of accounts do not balance, sources have said. The company has also failed to pay its creditors.
“Those laid off are middle and lower management employees plus factory workers,†an employee said.
Sources said the lay-off allegedly triggered off a disagreement between the outgoing managing director, Francis Sembuya, and the group’s chairman, Christopher Sembuya. Francis proposed liquidation of some land in order to capitalise the company.
Christopher assumed the position of managing director and showed Francis the exit.
“I am disappointed with his idea of assuming all responsibilities and quashing advise from our bankers to liquidate some properties,†Francis said, adding that the company has a strong asset base like a lot of land in Nalukolongo Industrial Area.
He said the liquidation would enable them build capacity to pay off the creditors and remain competitive.
Christopher said: “To the best of my knowledge, everything is okay. We have no problem. In fact, we are working on improving the steel mills.†He said every company has creditors.