Mulungushi textiles investor now stripping factory

Mulungushi textiles investor now stripping factory

Mohamed Enterprises Textiles Limited (METL), the Tanzanian investor who took over Mulungushi Textiles on lease is now demanding to remove the remaining equipment with a motive to strip the company of its assets and later give up the company.

Zambian officials sign MOU with Tanzanian businesmen in July

Zambian officials sign MOU with Tanzanian businesmen in July

A source close to the agreement between PF government and METL told the Watchdog that METL officials were in the country recently and demanded for the amendment of the agreement to allow them take the scrap material in the plant. They are also demanding to have some estates that belong to the company so that they put them on rent.

“They are not straight forward guys and now they want to have the scrap material, once they are given that they will strip the factory and disappear. They also want the flats at the Chinese quarters and other estates so that they put them on rent, this is a big scam and people must rise up and prevent the rot,” he said.

Mulungushi textiles is jointly owned by the Chinese government and the Zambian government through the ministry of defence but was given out to METL in July last year and METL chairman Gulam Dewji promised to revamp the company within three months. At the time of the lease agreement President Edgar Lungu was minister of defence, a position he has still retained in his government.

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