900 JOBS SAVED AFTER LIQUIDATION OF VIP SECURITY

MBABANE - The 900 employees of VIP Security Protection Services (PTY) Limited, who were apprehensive about losing their jobs following the liquidation of the company, can now heave a sigh of relief.

VIP Security Protection Services (PTY) Limited has been purchased by one of the giant South African companies, Stallion Security Services, which will absorb all of the employees. Stallion Security was founded in 1991 and has organically grown into a multi-faceted corporate organisation.

It is one of the largest companies in South Africa that provides safety and protective equipment, which keep work sites secure and help companies ensure full compliance with safety regulations. The sale of VIP Security Protection Services (PTY) Limited, which is one of the oldest and reputable security firms in the country, was confirmed by its liquidator, Senior Lawyer Jose Rodrigues. “We did our utmost best to ensure that there was no job losses as that was the major concern.  

Absorb

“The company which took over the business, Stallion Security Services, will absorb all the employees, save for a few who did not take the offer,” said Rodrigues. He further highlighted that during the liquidation process, the utmost concern was job losses, which they managed to avert.

Rodrigues went on to state that they were still working on paying the employees their terminal benefits. He was, however, quick to mention that the winding-up process was still ongoing as they were still collecting monies from VIP’s debtors and they would report back to the master of the High Court.  

The major cause of the company’s financial difficulty relate to a dispute it had with the Eswatini Revenue Services (ERS). ERS has imposed a liability for E37 958 159.45 in respect of unpaid VAT.  This was disclosed by the management of the company when it motivated the application to be placed under liquidation. A company usually applies for voluntary winding up if its liabilities are more than its assets. This essentially means that the company cannot operate its business function anymore and can apply to be winded-up (liquidated).

On December 14, 2021, the security firm addressed a letter to ERS seeking to enter into a payment arrangement for the settlement of this debt and attempted to make payment thereof. However, ERS rejected that proposal and instead reportedly placed what the company described as stringent repayment terms that made it impossible for it to trade.
As result of the company’s failure to address the concern, it was unable to obtain tax compliance certificate, which in turn meant that it was unable to tender for any work.  The company was unable to meet its financial obligations and debts as and when these arose.

The ‘artificial claim’ of ERS reportedly created an insolvent state of affairs. Statements for the year ended June 30, 2021, revealed inter alia that the total current and non- current assets of the security firm amounted to E11 294 192, while the liabilities amounted to E30 990 000.38. During the liquidation process, which was eventually made final by the court, the company was represented by Lindokuhle Mthupha.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: