Ramatex stitches up Govt

RAMATEX has rejected Government’s proposal on a turnaround strategy for its Windhoek textile operations.

Government’s action plan, it says, is too much of a “drawn-out” procedure and the company’s financial position militated against it waiting. Instead, the company has reiterated its offer to Government: buy the factory, and commit to this by Tuesday next week, or the offer will lapse.This was conveyed to Prime Minister Nahas Angula in a letter on Monday from Malaysia, penned by a former Malaysian High Commissioner to Namibia, Dato’ Vengadesan, on the instruction of the Ramatex Board of Management.The Namibian understands that the proposal Government made to Ramatex would include increasing service incentives for the company, as well as the subsidised training of Namibians to better do their jobs in the textile industry in light of complaints by Ramatex that productivity was not up to scratch.Ramatex responded that while it “appreciates” Government’s proposal – made to Ramatex Executive Director Albert Lim during his visit to Namibia three weeks ago – and its willingness to address issues highlighted by the company, in its view it only represented a concept paper or action plan.There was no timeframe for implementation, the letter said.”In the meantime the financial situation being confronted by Ramatex has assumed a critical dimension.Ramatex is under tremendous pressure to explain to its bankers concerning the losing operation in Namibia,” added the letter.”Under these circumstances I am directed by the Board of Management of Ramatex to obtain a definite financial commitment from the Namibian Government to buy over the entire operation.”Ramatex has said that Government could choose to take over the operation by itself or jointly with a Namibian private-sector partner.Should Government not agree to this proposal, Ramatex would have to consider “other options”, the letter said.Vengadesan signed the letter in his capacity as Executive Chairman and Country Head of the Ramatex Group.In a joint press release issued by Ramatex Textiles Namibia and the Prime Minister’s Office last week, the parties maintained that reports of the company’s impending closure in Namibia were inaccurate and premature.Ramatex also complained that service providers had threatened to discontinue services to it, or demanded advance payment before doing so, because of fears that the company planned to shut down.Since last week, fibre2fashion, a garment, textile and fashion website, has reported in more than one news release that Lim has said that if the Namibian Government did not buy the factory, the company would be left with no option but to close.It also reported that during 2005, Ramatex registered net sales of N$2,6 billion and net income of N$128 million.Yesterday, workers were incensed about being kept in the dark about developments at the factory.More of them have been forced to move to the garment section, as the spinning and knitting factories have now been cleared out.”We are not interested in what Government is offering any more.We don’t have the patience.They weren’t listening when we told them our situation long ago,” said one worker The Namibian spoke to.”For four years Government wasn’t listening to the workers.How can you be productive if you are hungry and tired?”Instead, the company has reiterated its offer to Government: buy the factory, and commit to this by Tuesday next week, or the offer will lapse.This was conveyed to Prime Minister Nahas Angula in a letter on Monday from Malaysia, penned by a former Malaysian High Commissioner to Namibia, Dato’ Vengadesan, on the instruction of the Ramatex Board of Management.The Namibian understands that the proposal Government made to Ramatex would include increasing service incentives for the company, as well as the subsidised training of Namibians to better do their jobs in the textile industry in light of complaints by Ramatex that productivity was not up to scratch. Ramatex responded that while it “appreciates” Government’s proposal – made to Ramatex Executive Director Albert Lim during his visit to Namibia three weeks ago – and its willingness to address issues highlighted by the company, in its view it only represented a concept paper or action plan.There was no timeframe for implementation, the letter said.”In the meantime the financial situation being confronted by Ramatex has assumed a critical dimension.Ramatex is under tremendous pressure to explain to its bankers concerning the losing operation in Namibia,” added the letter.”Under these circumstances I am directed by the Board of Management of Ramatex to obtain a definite financial commitment from the Namibian Government to buy over the entire operation.”Ramatex has said that Government could choose to take over the operation by itself or jointly with a Namibian private-sector partner.Should Government not agree to this proposal, Ramatex would have to consider “other options”, the letter said.Vengadesan signed the letter in his capacity as Executive Chairman and Country Head of the Ramatex Group.In a joint press release issued by Ramatex Textiles Namibia and the Prime Minister’s Office last week, the parties maintained that reports of the company’s impending closure in Namibia were inaccurate and premature.Ramatex also complained that service providers had threatened to discontinue services to it, or demanded advance payment before doing so, because of fears that the company planned to shut down.Since last week, fibre2fashion, a garment, textile and fashion website, has reported in more than one news release that Lim has said that if the Namibian Government did not buy the factory, the company would be left with no option but to close.It also reported that during 2005, Ramatex registered net sales of N$2,6 billion and net income of N$128 million.Yesterday, workers were incensed about being kept in the dark about developments at the factory.More of them have been forced to move to the garment section, as the spinning and knitting factories have now been cleared out.”We are not interested in what Government is offering any more.We don’t have the patience.They weren’t listening when we told them our situation long ago,” said one worker The Namibian spoke to.”For four years Government wasn’t listening to the workers.How can you be productive if you are hungry and tired?”