VR Laser accounts closed
‘Gupta link’ affects staff payments
Production came to a halt at a Gupta-associated company in Boksburg yesterday as about 300 employees picketed, demanding to be paid their August salaries.
Workers at VR Laser Services, which deals with the manufacturing of army vehicles, were supposed to be paid on Thursday last week, but were left in the lurch.
This latest blow to a Gupta company comes in the wake of state arms maker Denel announcing last week that it was cancelling its partnership with a similar Gupta-linked company in Asia.
Denel awarded a subcontract to the value of R238.6million to VR Laser for cutting steel for the army’s new combat vehicles in April last year.
VR Laser, partly owned by Ajay Gupta’s eldest son, Kamal Kant Singhala, registered a joint venture with Denel Asia in Hong Kong. The deal has been the subject of controversy and it was also declared illegal by National Treasury.
The Guptas were also dealt a huge blow last year when South Africa’s four biggest banks closed their companies’ accounts.
Disgruntled workers yesterday said they should not be affected by political squabbles between Guptas and the government.
Employee Jackie Mokgaditse, 37, said they are not politicians but workers with responsibilities.
“We did not vote to be unemployed, how are we supposed to take care of our families if we are not paid.
“They are punishing the rich Guptas, using poor workers. Our cupboards have run dry and we cannot afford to pay our children’s school fees,” said Mokgaditse.
Lucky Muleya said their problems started in March.
“Sometimes we would get paid late or not paid at all. We understand the problem is with the banks as they do not want to be associated with the Gupta family companies, but it is the workers who are suffering at the end of the day.
“We will only go back to work when we have been paid,” Muleya said.
The company’s relations manager, Wikus Weber, said the problems were caused by the closure of the company’s bank accounts. “It must be remembered that VR Laser still has a bank account with Bank of Baroda. The recent challenge, however, is new, as payment is being withheld without proper notice and reasons to management. We believe it is linked to the recent onslaught by the banks against Oakbay companies… We share the workers’ frustration and we have a top team working on an array of options to see how best we can survive the current scenario,” he said.
In the past two weeks the Guptas have sold their shares in The New Age and ANN7 to Mzwanele Manyi.