Own Correspondent|Former President Robert Mugabe owned Gushungo Holdings is reportedly on the verge of collapse after it emerged that the company was struggling to keep afloat and was failing to pay workers’ salaries since September last year.

According to one of the workers’ leaders, a Dr Elson Sweva, Gushungo Holdings owes workers substantial amounts of money in salaries and commission.

Sweva said the situation worsened when the company reduced salaries without the workers’ consent.

“Things have not been going on well since March last year, but the situation became worse after our salaries were reduced from $250 to $100 in September,” Sweva said.

He said the company stopped paying commission last year as it was experiencing high product returns.

He said most workers received a two months’ salary of $196 following a meeting held on February 1.

“Following a meeting on February 1, we were given two month’s salary totalling $196 and, surely, what would one do with that amount in this economy? Even housemaids are paid better salaries,” Sweva added.

But Gushungo Holdings managing director, Lameck Chinoera said the company does not owe workers outstanding dues, claiming that it was the other way round because some employees were still to repay advanced loans.

“We don’t have anyone who is owed a salary. Those who work for commission are paid for what they would have worked for. It’s not for the company to give people extra commission, it’s calculated. I have a payroll indicating that some people actually have loans,” said Chinoera.

On the viability of the company, Chinoera said they were being affected by foreign currency shortages like any other business in the country.

“We might have closed down one or two products on account of shortages of forex like most companies, but we are actually working on two shifts,” he said.

Sources said Gushungo Holdings reduced its workforce by half since March last year and has been hit by resignations of key personnel.

Last year, former First Lady Grace Mugabe, told 106 workers at Gwina Farm in Banket that she was not going to pay them terminal benefits even if they went to court.

Gwina Farm was reportedly grabbed by Grace from Supreme Court judge Justice Ben Hlatshwayo, who was then allocated another land.

According to reports, the former First Family owns over 10 farms in the country.

Source: NewsDay