Ramatex was not honest: Minister

“THEY were not very honest. When Ramatex closed down, they told Government less than 24 hours before the day before they locked out the workers – how can you deal with someone dishonest to such an extent?” These were the words of Trade and Industry Minster Immanuel Ngatjizeko in Parliament on Tuesday.

He was responding to questions from the opposition after the Minister delivered a statement on the sudden closure of the Malaysian textile factory two weeks ago, which left over 3 000 workers jobless. “Government, like the citizenry of Namibia, is dismayed by the abrupt manner in which Ramatex took and conveyed its decision to close its business operations in the country,” Ngatjizeko said in his ministerial statement.”Government condemns the way in which the company conveyed its closure to its workers – by way of a lockout.It is the position that Ramatex must live up to all its obligations,” the Minister added.”It transpired that the company may not have been completely honest and transparent in its dealings with Government and the country,” Ngatjizeko said in his speech.Ramatex had to adhere to Namibia’s Companies Act and the Labour Act stipulations on winding up a business, the recognition agreement with the labour unions and adequate compensation to workers – both local and foreign – and other creditors, the Minister told the House.This would include the rehabilitation of the sites where Ramatex and its affiliates “disposed waste water in terms of Namibia’s environmental policy and applicable by-laws”.Government had conveyed these sentiments to Ramatex after being notified of the closure, he said.In 2006 the State gave N$13 million to the Windhoek municipality to work with Ramatex and a Government team in designing and setting up a proper wastewater treatment plant, but it has not been constructed yet, mainly because the company and the City could not agree on the price the municipality would charge for the treated water.”Government will – in consultation with other stakeholders – being the workers’ representatives and the City of Windhoek – bring into action all the necessary legal and policy instruments to ensure that the company meets all statutory and contractual obligations,” Ngatjizeko promised the National Assembly.The Office of the Prime Minister would see to it that Ramatex honoured all its obligations, he said.The site on which the Malaysian factories operated belonged to the Windhoek municipality and Government and the infrastructure could be used for other employment-creating activities, the Minister said.Ngatjizeko admitted that Ramatex had installed an “incomplete effluent treatment plant, which never became operational”.This posed a danger to the environment.Pressure exerted on the company to live up to its environmental obligations, “saw the suspension and closure of its dyeing operations and eventually other textile operations, namely spinning and knitting,” the Minister said.He said the company had already informed Government in May 2006 that it was making losses, blaming this on the alleged “uncompetitive economic climate for its investments in Namibia.”Other factors cited by Ramatex were “unfriendly industrial environment, high labour wages with low productivity and high costs regarding infrastructure, transport, logistics and utilities as well as shifts in product demands and adverse publicity overseas.”It was agreed with Government to jointly map out a turnaround strategy and Ramatex was requested to give 24 months’ notice should it close shop, but the company only “opted for 12 months.”At that time, Government discovered that Flamingo Garments on the same site “had started dismantling most of the equipment – without prior notice to Government”.”Government without hesitation halted Ramatex from further dismantling and exporting machinery until it had clarified its intentions to Government and met its obligations to workers and the state, such as paying outstanding PAYE [pay-as-you-earn] tax deductions for its foreign workers,” Ngatjizeko said.”Government, like the citizenry of Namibia, is dismayed by the abrupt manner in which Ramatex took and conveyed its decision to close its business operations in the country,” Ngatjizeko said in his ministerial statement.”Government condemns the way in which the company conveyed its closure to its workers – by way of a lockout.It is the position that Ramatex must live up to all its obligations,” the Minister added.”It transpired that the company may not have been completely honest and transparent in its dealings with Government and the country,” Ngatjizeko said in his speech.Ramatex had to adhere to Namibia’s Companies Act and the Labour Act stipulations on winding up a business, the recognition agreement with the labour unions and adequate compensation to workers – both local and foreign – and other creditors, the Minister told the House.This would include the rehabilitation of the sites where Ramatex and its affiliates “disposed waste water in terms of Namibia’s environmental policy and applicable by-laws”.Government had conveyed these sentiments to Ramatex after being notified of the closure, he said.In 2006 the State gave N$13 million to the Windhoek municipality to work with Ramatex and a Government team in designing and setting up a proper wastewater treatment plant, but it has not been constructed yet, mainly because the company and the City could not agree on the price the municipality would charge for the treated water.”Government will – in consultation with other stakeholders – being the workers’ representatives and the City of Windhoek – bring into action all the necessary legal and policy instruments to ensure that the company meets all statutory and contractual obligations,” Ngatjizeko promised the National Assembly.The Office of the Prime Minister would see to it that Ramatex honoured all its obligations, he said.The site on which the Malaysian factories operated belonged to the Windhoek municipality and Government and the infrastructure could be used for other employment-creating activities, the Minister said.Ngatjizeko admitted that Ramatex had installed an “incomplete effluent treatment plant, which never became operational”.This posed a danger to the environment.Pressure exerted on the company to live up to its environmental obligations, “saw the suspension and closure of its dyeing operations and eventually other textile operations, namely spinning and knitting,” the Minister said.He said the company had already informed Government in May 2006 that it was making losses, blaming this on the alleged “uncompetitive economic climate for its investments in Namibia.”Other factors cited by Ramatex were “unfriendly industrial environment, high labour wages with low productivity and high costs regarding infrastructure, transport, logistics and utilities as well as shifts in product demands and adverse publicity overseas.”It was agreed with Government to jointly map out a turnaround strategy and Ramatex was requested to give 24 months’ notice should it close shop, but the company only “opted for 12 months.”At that time, Government discovered that Flamingo Garments on the same site “had started dismantling most of the equipment – without prior notice to Government”.”Government without hesitation halted Ramatex from further dismantling and exporting machinery until it had clarified its intentions to Government and met its obligations to workers and the state, such as paying outstanding PAYE [pay-as-you-earn] tax deductions for its foreign workers,” Ngatjizeko said.