Legal wrangle between CoW and Ramatex liquidators drags on

17 May 2017 10:00am
WINDHOEK, 16 MAY (NAMPA) - The City of Windhoek (CoW) will call for submissions of expressions of interest for the use of the Ramatex Textile facilities once the legal dispute with the Ramatex liquidators has been resolved by the Supreme Court.
“The expression of interest will be for the economic utilisation of Ramatex facilities,” CoW spokesperson Lydia Amutenya said in a recent interview with Nampa.
The matter is currently with the Supreme Court after a legal dispute erupted between CoW and liquidators appointed to administer the affairs of Ramatex.
The bone of contention is the abandonment of the project agreement between CoW and the former Malaysian-owned Ramatex Company when they unceremoniously left the country in 2008.
The liquidators appointed to deal with the affairs are Ian Robert McLaren, David John Bruni, Simon Hercules Steyn and Ramatex Textiles Namibia (Proprietary) Limited, whilst the respondents are CoW, Minister of Trade and Industry and the Minister of Urban and Rural Development, formerly known as Minister of Local Government and Housing.
In 2008, Ramatex was declared bankrupt by the High Court with debts of more than N.dollars 500 million. It closed its doors the same year.
The factory, which was a subsidiary of a large Malaysian conglomerate, registered in Windhoek in 2001 and employed about 7 000 Namibian workers.
The multi-million dollar textile plant operated with an Export Processing Zone (EPZ) status and exported garments mainly to United States of America, but the company struggled to remain profitable, according to the court papers availed to Nampa.
Amutenya said since 2014, interests have been shown by various parties, and seven applications were submitted to lease Ramatex; nine on a long term-term while six were interested to lease the former Rhino Garments Dining Hall and Living Quarters.
(NAMPA)
LD/CT/EKM