The controversial bailout is now the subject of a ministerial investigation after Zanu (PF) recently blocked a similar planned state bailout of Renaissance Merchant Bank, whose officials are reportedly closely linked to the MDC-T.
Lobels announced in a statement last week that it had appointed the state majority-owned CBZ Bank Ltd as its 'financial advisers'. The announcement came days after a huge quantity of company goods, including bread pans, vehicles and high-voltage generators were auctioned to pay off a creditor, after the High Court ordered the insolvent company's goods attached.
Apparently, CBZ is one of Lobels' largest creditors, along with Metropolitan Bank.
“The concept frame of the transaction has been prepared and has obtained the agreement, in principle, of the banks which are owed significant amounts by Lobels,” the company said, without stating the amounts, which are said to run into millions.
Lobels added that trade creditors would soon be engaged to get their input before the arrangements can be formalised. The besieged firm urged it's creditors to “be patient” while it put together money to settle it's massive debts. No time-frame was given for the 'transaction' to be concluded so creditors could be paid.
Meanwhile, the Ministry of Labour is probing how the National Social Security Authority (NSSA) agreed to advance money to the Zanu (PF) company before investigations are completed into the reported theft of millions of dollars at the firm.
Lobels last year sacked it's chief executive, Burombo Mudhumo, accusing him of pilfering $7 million. No progress has been reported on the case.
NSSA is chaired by lawyer, Edwin Dube, whose firm has been appointed 'legal adviser' in the transaction.
The events at Lobels follow a familiar pattern where Zanu (PF) takes over a large, profitable company, strips it of assets and funds and goes to government and quasi-state entities for salvation, usually in the name of saving jobs.
Post published in: News