THE Bulawayo City Council (BCC) lost more than ZWR$12 000 after it was forced to write-off a debt owed by PG Industries which delisted from the Zimbabwe Stock Exchange (ZSE) recently.
According to a council financial report, the local authority had to write off a balance of $12 847,41 remaining on several PG Industries accounts following the company’s failure to service its debt. Six years ago, the company suspended trading in its shares on the ZSE.
“The chamber secretary (Sikhangele Zhou) had advised that PG Industries was placed under judicial management and an agreed scheme of arrangement was registered with the Registrar of Companies on October 19, 2018. Payments were made within the stipulated five days and council had received ZWR$3 166,” part of the minutes read.
On February 5, 2019, Zhou, in her memorandum, had advised again that according to the scheme of arrangement the balances remaining after the payment of ZWR$$3 166 should be written off.
“The total of the balances remaining was ZWR$12 847.41. It was, therefore, recommended that the total balance of ZWR$12 847,41 remaining on several PG Industries accounts be written off,” the minutes read.
In 2018, council reported that it had lost more than $1 million invested in financial institutions that had collapsed due to mismanagement and economic problems affecting the country.
Building materials supplier, PG Industries Zimbabwe, this month finally delisted from the ZSE.
It was bought by an Indian firm, Dewei Investments, which also made a commitment to provide fresh working capital and funds required for retooling the company.
Working capital constraints have been one of PG Industries’ major challenges resulting in the firm resorting to short-term borrowings that were unsustainable, which pushed the company into perennial losses.