• December 5th, 2019

Pharmacy faces liquidation over N$8m debt



Josephina Mwashindange

OMUTHIYA - Liquidators have shut down doors of Quality Pharmacy among other businesses that operate under the now insolvent M&P Investment cc, due to debt that reportedly amounts to over N$8 million. The winding up of the business is being spearheaded by liquidators from Cronje and co.

According to an affidavit filed by M&P managing director Charles Magwira with the Master of the High Court, the company has become insolvent, as it has failed to honour monthly expenses, including loan repayments. The company, represented by its owner Muonde Muridzo, already has three pending cases in court in which it is being sued by Safland for breaching a leasing agreement while renting space at the Gwashamba Mall in Ondangwa.  The second case was instituted by Nampharm and a third by FNB Namibia. Magwira said in court papers that the company had no asset base that can enable it to generate an income and resuscitate itself. He also claimed he had loaned Muonde an amount of N$1 162 908 to revive the business, but that effort also failed. “The first respondent does not have valuable or readily available assets to meet its liabilities. 

Currently, the company only has an immovable property situated in Omuthiya at a force value of N$3.6 million. On the contrary, the company has debtors such as the Public Service Medical Aid Scheme to the tune of N$413 000, as well as the Private Medical Aid to the amount of N$20 000,” stressed Magwira. 
Nine employees from Tsumeb and Omuthiya have been affected by the closure, and they have not received their October salaries. 

According to one of the employees, they were left reeling in shock when a messenger of the court ordered them to vacate the business – with only their handbags and cellphones. On his part, Muridzo, who acknowledged the liquidation, claims to be surprised by the business closure. Instead, he said the pharmacy was initially placed on the market. He further went on to say that it was a voluntary liquidation aimed at saving the ailing business and its employees, because the company was facing challenges. 

“I met the company liquidators and agreed to market the business for sale, as it was in the best interest of staff, clients and suppliers. After everything was handed over to the liquidators, there has been no communication; the next thing I heard is the business has been closed. I have been to their office several times last month, seeking answers on several aspects but to no avail,” explained Muonde.  Another employee, who did not want to be named, stated the company could have prioritised the wellbeing of the employees, rather than sending them home.“We have rent and school fees to pay, as well as other monetary obligations to fulfil. How are we going to make ends meet in this difficult economic situation?” questioned a fuming employee. 


Staff Reporter
2019-11-15 08:22:30 | 20 days ago

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