Final blow for Bay company

Last assets of Masakeni to be auctioned today

IT is the end of the road for a Port Elizabeth construction company, with its last remaining assets going on auction today. Masakeni Construction, previously based in Markman, was declared insolvent in May and had to let go 300 employees in July.

The company’s former director, Khwezi Blose, applied for the liquidation after business rescue efforts were terminated.

Blose, 43, said that after doing everything in his power to save the company from liquidation, his hand had been forced.

“Construction is a very difficult sector and right now I do not see myself involved in any construction-related work in Port Elizabeth,” Blose said.

“We had to opt for liquidation because we were just getting ourselves deeper into debt and could not get ourselves out.”

The company specialised in construction services for townships and general civil engineering.

The company was forced to apply for liquidation last year amid claims that the municipality had failed to pay R117-million for work it had completed. In terms of the business rescue plan, Mazotrix (Pty) Ltd, trading as Faku Family Enterprises (FFE), acquired Masakeni’s shares.

It originally provided debt funding in the form of a shareholder’s advance of R10-million, but the amount later increased to R44-million.

The initial funding was used to pay Masakeni’s creditors.

At that stage, Masakeni was completing several projects for the municipality.

They included the installation of civil services in Rosedale, Missionvale and Motherwell, and the construction of sewer works in Chatty and Despatch.

“It was a very tough decision to make because we had about 300 people employed and we fought tooth and nail to make sure we kept the company afloat for [several] months.

“The banks started looking into our personal assets and it affected us, more so my partner at the time because he had to dispose of his houses at some point,” he said.

Blose said the majority of his former employees, who included engineers, were still unemployed.

“This hit us really hard because at least 90% of them are still looking for a job,” he said. Masakeni, had most of its assets auctioned last year, including a fleet of about 48 vehicles.

When made aware that the remaining items were to be auctioned off today, Blose said all matters pertaining to the auction were being handled by D & T Trust.

Items include stationery cabinets, conference tables and chairs and desks.

In May, the Port Elizabeth High Court provisionally wound up Masakeni, ordering a commission of inquiry in terms of the Companies Act.

The company was placed under business rescue in December 2015, with an official business rescue plan adopted in March of the same year.

Blose said that after the final date of liquidation, he had lost contact with municipal officials on the matter regarding the money he was owed.

“We just hope the metro will be able to assist small companies and [increase their] survival in Port Elizabeth,” he said. “It is a very small town. “There is nothing for the generations to come to get involved in and for the metro to allow companies like ours to die is something that is not moving our country forward.”