With two outstanding accounts from government departments, a local security company struggles to secure their employees’ festive joy this December.
The two outstanding accounts add up to R5 million, a trusted source within the company told the Record. The employees haven’t seen a payslip in three months. Around 100 employees are affected, which include the management of the company, and operations are near-impossible to sustain with the low cash flow. A resident who is closely related to one of the employees confirmed this with internal communication about the pending payments, of which the documents are in the Record’s possession. The departments involved have been mentioned but not yet confirmed with company management.
“It is a very difficult period for this small company,” the source told the Record.
Over two years ago the company won the two government tenders to provide security services.
“This sort of problem gives small businesses a bad name.
“You stand the chance of losing your tender because you cannot deliver your services, but what do you stand to do without the resources to pay employees and cover operational costs?”
The resident reported that fellow residents would have a difficult Christmas because of non-payments. While some of the households are run off two salaries, others depend on the single salary from the security company. Communication upon communication from the company announcing hopes for delayed payments almost weekly provide neither comfort nor a solution.
Despite the latest company communication that spreads hope for payment by Wednesday 11 December, the company and its employees remain at the mercy of the defaulting departments.
“We are giving them until Wednesday next week, after which the company will have to follow the legal route – we’ll be left with no other option.”
