The Eastern Cape government is on a mission to save the East London based manufacturing company, Yekani from liquidation. The electronics factory faces closing down after it allegedly failed to make payments on a bank loan.
Holding Statement: Media Reports on the “Closure of Yekani Manufacturing Smart Factory in East London” pic.twitter.com/UAttNX3EY0
— Yekani_ZA (@Yekani_ZA) January 21, 2020
Launched in 2018, the company did not open its doors in 2020 after struggling to pay salaries from August 2019. 500 jobs are on the line and the manufacturing of TV decoders, cell phones and computers is now on hold.
Yekani is a multimillion rand company that stood as a beacon of hope for job creation in the Eastern Cape. But now the buzz of roaring machines has vanished and liquidation may be on the horizon.
This is a bitter pill to swallow for the 500 employees. Employee Namhla (Not her real name) says she is unable to get her UIF and provident fund because the company gave her the wrong forms.
The Eastern Cape government, which invested over R200 million in the company, says Yekaani can still be saved. HOD for Economic Development, Mickey Mama, says they are working on getting a business rescue and hope they can stop the process of liquidation.
In a country battling to grow the economy, the closure of a company like Yekani is a major setback that will have ripple effects.