31 December 2008
With the apparently incessant closure of the Salala Rubber Corporation (SRC), a vital partner to Liberia's economic revitalization and government's expressed "job creation" initiative, the fate of thousands of its employees still hang in the balance, and there are reports that tension is mounting to the extent that the employees are anticipating a violent action to demand the reopening of the company.
Reports say the multifaceted rubber company is still closed despite sustained efforts by managements coupled with commitment from officials of Government to intervene and have it reopened.
While reopening the corporation is still an issue of contention, with relevant stakeholders appear to be showing lukewarm attitude, reports also have it that the employees can no longer stomach the pinch of the closure and on the move to protest, to salvage what is referred to as "their hope of survival and livelihood".
While the closure is a decision of court, but observers are of the view that the action is too harsh and unfriendly to the good climate of investment, which the government is preaching.
"How prudent is it to close a company that is giving government huge revenue for something that has no iota of comprehension. Granted this is a court issue, I think it is slightly against interest of the country because the state will lose huge revenue and that the many Liberians in its employ may bear the brunt of the situation," remarked the observer.
It may be recalled that the management of the SRC sometimes ago few days announced that its operations had been closed down as a consequence of a Writ of Execution from the 13th Judicial Circuit Court, Kakata, Margibi County, for the payment of the amount of US175, 960.00 and LD 910.00.
According to the Writ that precipitated the closure of the company, of this amount, is a principal judgment in the amount of US166, 000.000 and accrued interests in the amount of US 9,960.00.
The statement issued by the company and carried in the local dailies, said the Writ of Execution stemmed from an Action of Damages for Wrong filed by Counselor Francis Garlawulu on behalf of two individuals, Emmanuel Thomas and Alfred Konatee, who claimed that members of the plant protection force of Salala Rubber Corporation arrested them, stole their money and rubber, and humiliated them.
The two gentlemen whose claims resulted into the current development which has wide national implication said their rubber at the value of US1, 425.00 and cash at the value of LD1, 000.00 were taken from them.
On the basis of this, they filed a lawsuit for special damages in the amount of US207, 000.00 plus LD 10, 0000.00, and also used for general damages in the amount of US 400,000.00.
The statement quoted the management of SRC as saying a trial said to be one-sided was conducted because SRC lawyer at the time, Counselor Isaac Nyepu allegedly did not attend the trial, even though he was served with notice of reassignment.
Instead of reassigning the trial to give the lawyer of SRC the chance to defend his client, which is SRC, the statement said, a defaulted judgment was rendered against SRC, thus awarded Emmanuel Thomas and Alfred Konatee US 16, 000.00 as special damages, US150,000.00 as general damages ,and US 9,960.00 as interest
The management wondered how a claim for the lost of US 1, 425.0 worth of rubber and LD10, 000 cash managed to end at US 166, 000.00 plus interest of US9960.00in a court of law even though the trial was conducted in the absence of Salala Rubber Corporation and its lawyer at the time, Counselor Isaac Nyepu, is a mystery.
Apart from the legitimate concerns it has raised, SRC appears not to be showing recalcitrance toward to court ruling, but is bothered by the global financial meltdown, which is weighing major investments the world over.
"SRC just does not have the means at this time of a global economic meltdown to pay such huge amount, which was never budgeted for, and which does not appear to have any relationship to the claims made by Emmanuel Thomas and Alfred Konatee, even though Salala Rubber Corporation denies the claims," the company statement said.
The closure is a secondary action taken by the Sheriff of the Court as far as the Writ of Execution is concerned. It calls for the seizure of all properties of SRC to pay the amount of US 175, 960 and LD 5, 910.00 and that in an instant where such properties were not available.
As part the decision and the unavailability of the property ordered seized, the Sheriff of the 13th Judicial Circuit Court closed down the operations of the Salala Rubber Corporation. This in essence means that all employers of the Corporation are laid off from work until otherwise advised, something the Ellen-led Government may not want to see happen or encourage.
The management at the time said it was issuing the public notice to clarify what was reported in the media, to the effect that some media houses carried "the false news that the SRC was closed down for its failure to pay taxes."
"Salala Rubber Corporation has regularly paid its taxes and will continue to pay all legitimate taxes, but as for such baseless judgment against it inn such amount," it clarified, but noted that it does not have the capacity to pay and still maintain its operations.
In the wake of these developments relative to the closure of the company, the overwhelming question being asked is "what is at stake" and why the government is not showing much concern to bring the issue to a close and allow the company continue its operations.
Though the authority of the courts cannot be judged, Liberians who are following the developments said there was need for the government, particularly the Ministries of Justice and Agriculture, to review the issue and salvage the entity.
"Liberia needs the SRC to put its citizens to work, give government needed revenue boost to pursue its development goals, observers are saying," analysts say, adding "we should not quash our chances to political bigotry."
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