Problems follow merger with SA company
James Hall
SWAZILAND - Transport company Western Carriers is going out of business.
The only Swazi-owned major transport company in the kingdom, its closure is a blow to indigenous business people. Owner Terrance Mabila said his company's customers included such major national companies as SAPPI Usuthu, Swaziland Brewers, Swazi Canning, the local Coca-Cola Franchise Swaziland Bottling Company, and Mondi Peak Timbers.
Mabila and his wife founded the company in 1994, and in 1999 entered into an agreement with Imperial Holdings Limited of South Africa, which was given a 70% share in exchange for financing for expansion.
Western Carrier's business tripled during the first year of the merger. The High Court of Swaziland last week approved an application by Mabila restraining Imperial Holdings from removing any company assets from its premises located at the Matsapha Industrial Site. Mabila blames the company's demise on a breakdown in communication between Imperial Holdings, and Western Carriers. A decision last December by Imperial Holdings to restructure the company resulted in Western Carriers retrenching 60% of its work force. In addition to its truck fleet, Western Carrier assets include warehousing facilities at Matsapha.
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