Mozambique: Workers demand explanations from the court regarding the Cimentos da Beira insolvency case

 

Cimentos da Beira workers again staged a protest at the Judicial Court of Sofala Province, which declared the company insolvent, demanding explanations about the appointment of a third administrator at a time when the factory is bankrupt, and about the former court-appointed administrator allegedly withholding seven million meticais.

The insolvency process of the Beira cement factory, decreed in October last year with a 90-day deadline, is far from being concluded, and there is a tug of war between the 98 workers and the court.

The workers again staged a protest on the court premises in order to hand over several documents they say proves that the factory was not insolvent, and that it went bankrupt only after the court’s decision.

According to workers, a month after the court declared special insolvency, numerous financial problems began to emerge at the company, which contributed to the factory’s shutdown.

The workers met the judge in the case and asked whether the third insolvency administrator, also appointed by the court, would provide financial incentives to the company.

The workers accuse the second insolvency administrator of having been in possession of around seven million meticais from the sale of cement, which they say should have been used to pay salaries.
The court, through its spokesperson, said it would not comment on the case, as it has been forwarded to the Superior Court of Appeal, where it awaits a decision