NUNW awaits response on N$155m hotel purchase offer
OGONE TLHAGE
WINDHOEK
The National Union of Namibian Workers (NUNW) will know by next Thursday, 15 April, whether its bid to buy out TransNamib and Legacy Hotels’ stake in the Swakopmund Hotel has been accepted.
Both companies are joint-shareholders in the hotel, which hasn’t paid employee salaries for more than a year due to acute financial challenges.
The union approached TransNamib with a view to buy out its stake as well as that of Legacy Hotels, the other partner in the hotel.
“Of grave concern to our client is that staff salaries at Swakopmund Hotel have not been paid from 1 May 2020 to date. Every right to fair labour practices has been abrogated by the failure to pay staff salaries and our client reserves all its constituent members’ rights in respect thereof,” Richard Metcalfe, the lawyer representing the NUNW, wrote to TransNamib CEO, Johny Smith.
Employees of the Swakopmund Hotel are currently owed N$10.3 million in unpaid salaries.
In order for the hotel to meet its obligations, NUNW offered N$155 million.
No debt
“This is conditional upon our client acquiring such shares without any debt whatsoever. The offer made will include all movable and immovable assets of Swakopmund Hotel,” Metcalfe said.
NUNW said they are not willing to work with Legacy Hotels should its offer be accepted.
“Our client has no interest whatsoever in continuing any contract with the Legacy Hotel Group as it is a foreign entity and our client has local entities who are more than capable of managing the hotel successfully and profitably,” Metcalfe wrote.
Smith yesterday confirmed receiving the offer to purchase the hotel, and said they have not yet responded.
Metcalfe on his part said his clients were waiting for a formal response from the hotel shareholders, saying 15 April was set as a date for feedback on the matter.
Public enterprises minister Leon Jooste previously instructed Namibia Post and Telecommunications Holdings (NPTH) to purchase the hotel. NPTH, however, decided against the purchase, opting to pay a dividend to government for it to spend at its own discretion, Namibian Sun reported recently.
WINDHOEK
The National Union of Namibian Workers (NUNW) will know by next Thursday, 15 April, whether its bid to buy out TransNamib and Legacy Hotels’ stake in the Swakopmund Hotel has been accepted.
Both companies are joint-shareholders in the hotel, which hasn’t paid employee salaries for more than a year due to acute financial challenges.
The union approached TransNamib with a view to buy out its stake as well as that of Legacy Hotels, the other partner in the hotel.
“Of grave concern to our client is that staff salaries at Swakopmund Hotel have not been paid from 1 May 2020 to date. Every right to fair labour practices has been abrogated by the failure to pay staff salaries and our client reserves all its constituent members’ rights in respect thereof,” Richard Metcalfe, the lawyer representing the NUNW, wrote to TransNamib CEO, Johny Smith.
Employees of the Swakopmund Hotel are currently owed N$10.3 million in unpaid salaries.
In order for the hotel to meet its obligations, NUNW offered N$155 million.
No debt
“This is conditional upon our client acquiring such shares without any debt whatsoever. The offer made will include all movable and immovable assets of Swakopmund Hotel,” Metcalfe said.
NUNW said they are not willing to work with Legacy Hotels should its offer be accepted.
“Our client has no interest whatsoever in continuing any contract with the Legacy Hotel Group as it is a foreign entity and our client has local entities who are more than capable of managing the hotel successfully and profitably,” Metcalfe wrote.
Smith yesterday confirmed receiving the offer to purchase the hotel, and said they have not yet responded.
Metcalfe on his part said his clients were waiting for a formal response from the hotel shareholders, saying 15 April was set as a date for feedback on the matter.
Public enterprises minister Leon Jooste previously instructed Namibia Post and Telecommunications Holdings (NPTH) to purchase the hotel. NPTH, however, decided against the purchase, opting to pay a dividend to government for it to spend at its own discretion, Namibian Sun reported recently.
Comments
Namibian Sun
No comments have been left on this article