Fraught-stricken real estate firm DN international has been given an ultimatum of up to Friday this week to pay off all its workers or face closer.
The company is yet to pay about 30 to 40 of its employees contracted to work on its Green Park Villas project in Rusororo, Gasabo District, Kigali.
The project resumed recently after a nine months halt since last year.
Gasabo district mayor, Willy Ndizeye, confirmed to Business Times that the agreement was reached when the firm’s employees came to his office on Monday complaining of nonpayment.
“I am following up the matter and in case it continues that way, we might even stop the construction on their site; the only option is to close them (down) until they pay all the workers,” he said.
When contacted for comment, Nathan Loyd, the CEO of DN International insists that 90 percent of the complainants have been paid and those not yet paid are on clear programme.
“The challenge we have been having are the sub-contractors who did not pay their workers; so we are now not making payment to sub-contractors without the “Baturage”; any payment is going to be paid in the presence of “Baturage”,” he said.
But this to Baturage (workers) is another gimmick to keep them waiting after the company promised to pay them at the end of May.
“We have been patient since last year, we have families and children. They need to eat and go to school and we don’t have money,” lamented one of the complaints who had endured the scorching sun at the site in Rusororo.
Executive Secretary Rusororo sector, Jack Uwimana, said that when Lloyd was contacted yesterday, he told them that there were delays with KCB, the company’s banker and should be allowed till Friday to
clear the remaining lot of Baturage.
The Managing Director KCB Rwanda, Maurice K Toroitich said he was unaware of delays by the bank to extend cash to the company.
He was however, unwilling to divulge more details.
“I am not allowed by regulations to discuss issues of my customers,” he said, adding that any issue concerning the customer should be directed to them as the bank cannot disclose details.
The mayor noted that he is yet to establish whether all the complainants are genuine workers or have been influenced by one Mugabo, a sub-contractor, who is to be sued by the company for shoddy work.
Mugabo claims that he did his work as agreed but the company is yet to pay to enable him to pay off his workers.
“We are yet to find out the truth whether this sub-contractor is speaking the truth and is not using ghost workers to riot, but we have asked the company to pay workers and take the sub-contractor to court,” the mayor added.
Lloyd said that the company has lost almost Rwf15m in paying all the workers whose money was taken by the sub-contactors adding that: “The Rwf15m (paid) was out of sheer remorse of the Baturage and we want to keep our reputation.”