Five months without salary for Cottco staff amid a corporate crisis
Employees at Cotton Company of Zimbabwe (Cottco) claim they haven’t received a dime in pay from the financially distressed parastatal in five months.
Speaking with the ZiMetro News, the employees claimed that because the business was not fulfilling its duties, they were finding it difficult to provide for their families and pay their expenses.
This occurs concurrently with the government calling representatives of the Cotton Company of Zimbabwe (COTTCO) to provide an explanation for the company’s nonpayment of the US$6.8 million it owes cotton growers.
Lands Minister Anxious Masuka stated that the government anticipates COTTCO to pay the outstanding US$6.8 million owed to farmers by the end of this month during last week’s question and answer period in Parliament.
Speaking about their welfare, Cottco workers who wished to remain anonymous out of concern for retaliation stated: “We haven’t been paid in five months, and we’ve been pushed from pillar to post, but nothing has happened. We are in pain and unsure of how to go. We need to pay our rent, our children’s school fees, and our medical costs, but we don’t have any money.
According to the worker, in order to make ends meet, some employees had turned to borrowing money from friends and family, while others had taken up odd jobs.
There was a severe situation at Cottco, according to another employee. He said that insufficient capital had been obtained by the business to maintain operations and settle obligations.
“Cottco is in dire need of immediate assistance. The business has been losing money for years and has racked up enormous debt.
The primary stakeholder, the government, has not offered any financial assistance. Due to its bad credit rating, the firm has also been unable to obtain loans from banks and other organisations,” he stated.
Along with low cotton output, he said the corporation has suffered from side-marketing by farmers and corruption by some of its executives.
The company’s reputation and competitive advantage have faded. Additionally, the business has been embroiled in a number of scandals and controversies that have damaged its reputation,” he stated.
According to him, the business required a thorough makeover and reorganisation in order to become viable and profitable again. To turn around, he claimed, the business required new relationships, new technology, new strategies, and new management.
We are pleading with the authorities and other interested parties to step in and prevent the collapse of Cottco. The business has enormous potential to improve the economy and the lives of a great number of people. To overcome its obstacles and accomplish its objectives, the organisation needs a new beginning and a new strategy, he stated.
Constance Makoni-Thodhlana, the manager of corporate communications at Cottco, was not answering enquiries at the time of publication.
For feedback and comments, please contact ZiMetro News on WhatsApp: +27 82 836 5828.
