Thursday, March 28, 2024

Kawambwa Tea in a crisis

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Zambia Electricity Supply Corporation (ZESCO) has disconnected power at Kawambwa Tea Company for failure by the company to settle K104 million it owes the power utility company.

56 tones of tea leaves worthy millions of Kwacha have been wasted following the disconnection of power.

Presidential affairs Minister Cecil Holmes has described the disconnection of power which has affected operation as unfortunate. Mr. Holmes who toured the company during his visit of developmental projects in Luapala province said such developments should not be allowed to continue.

The Minister said the tea leaves that have been wasted as a result of power disconnection on Monday are resources for the people.

Mr. Holmes wondered why the company has failed to pay ZESCO bill when it is able to export the commodity.

The Provincial minister was saddened to learn of the suffering of the people at the company , which was producing large quantities of tea for exports.

Mr. Holmes who shed tears after he heard women from the tea estate compound complaining bitterly about workers’ suffering stated that there is need to find a lasting solution to the problem.

Mr. Holmes who was accompanied by Luapula Province Minister, Crispin Musosha pointed out that management should assist government in resolving the problem at the company.
Meanwhile factory Manager, George Mwansa who was at the plant during the minister’s visit admitted that the company was operating under severe problems.

Mr. Mwansa said there is need to financial injection either from government or the investors if the company is to prosper.

And earlier, Tea Estate Workers’ union vice Chairperson Blaston Chanssa revealed that employees in the area have become destitutes.

Mr. Chansa said workers have not been paid their salaries and wages for three months adding that some children in the area have even stopped school.

14 COMMENTS

  1. the problems that kafupi left for his tribesmen.kumunzi kwabo kamuntu aka sure!is it true he’s Zambian?we voted for change in 2006 but you went ahead and voted for MMD.too bad for you chaps.

  2. who owns the tea estate?? i’m not too sure if Mr Mwansa the factory manager knows either……if it is privately owned why the hell should GRZ pump in money when it is there to make money?? i’m against my money (tax) being used to prop up poorly managed private firms!!!

  3. It is unfortunate that a company of the standing of Kawambwa Tea Comapny could be operating without meeting some of its obligations-paying creditors. Why let electric bills accumulate to such high levels? Though reasons for that are not known to me,I have no doubt their is an element of poor planning. I have no doubt they (Kawambwa tea Comapny)realise some monies from sales of tea, as such one wonders why they were so irresponsible as to let things reach such levels they way they did at RAMCOZ in Luanshya.As for ZESCO they should have sat down discussed and agreed on a simple part-payment-schedule-resulting in a WIN-WIN situation.Disconnecting the firm was not a right decision

  4. These are companies that have made ZESCO fail to meet its obligations. Kawambwa Tea company why do you want to reap where you never sowed. You should know that to produce electricity you need money and hence to run your company on electricity you budget adequately. Do you have trained accountants to make budgets for you? Perhaps the managers don’t regard the advices from their accountants. Mwatusebanya. Holmes you don’t to sympathise with such companies even you had toured their premises recently. You should call a spade a spade. You are terrible adviser. Liquidate the Company since has no capacity to perform.

  5. So dissappointing indeed. Once i visited Kawambwa tea and it was in the hands of binani, the same crooks who owned lunshya copper mines, RAMCOZ.
    How come tea leaves worth millions of kwacha were damaged yet they have failed to pay up the electricty bills?
    Zesco should also not wait until bills are wayward and the people fail to pay up

  6. Better legalise marijuana and start Ganja Tea industry. It will export ten times more and rehabilitate your failing company!

  7. Another sad story of a poorly managed Zambian firm going under water.If we sell this company,not to Europe but the Beors of South Africa,you’ll see the same company thriving of course the dollars will be banked in south Africa.
    Do you see where I’m going with this?
    This is the same ZCBC to Shoprite.
    Am I saying the company is poorly managed?Yes
    Was there anything government could have done before it reached this stage?Yes.The African governments have too much power but they dont use their power very well.

  8. Continuation.
    I believe government can monitor especially companies like these so tha they are not just another statistic like Mansa baterries and the like.
    We dont have to bring in a westerner in order to be successful(to manage that is).
    Lets take care of our own.How many zambian families will this affect when liquidated?Thats my question of the day.

  9. Who owns Kawambwa Tea Estate? Before condemning management it is necessary to know the shareholders and the Board of Directors. ZESCO needs to collect what is due to it whether from GRZ or private sector.

  10. I am international Tea Expert and worked as a General Manager Kawambawa tea company in 2003- 2004 and produced the highest tea and made the company very profitable and in spit of all these I have not been paid my salary for ten months hence decided to come back to India. At the time of leaving the company the dishonest Directors gave me the post dated cheque which later bounced which is a clear case of fraud, forgery and cheating. I have taken up the matter with various high officials in Zambia but the dishonest directors continue to ignore. You as a independent agency can verify how much efforts I had made to make Kawambawa tea internationally in Kenya auction

  11. All these facts can be confirmed from Mr Mwansa Factory Manager and from the employees of KAWAMBAWA TEA COMPANY.I feel bad about the pathetic conditions of workers who are very hard working and honest

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