Wondercrust staff unpaid for 2 months

Grace Kombora

WORKERS at Wondercrust bakery, formerly Aroma, have gone for two months without pay due to disputes in the top management and lack of working capital which started late last year.
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Managerial differences between the majority shareholders in Wondercrust bakery are crippling the operations of the business, creating cash-flow hitches.


Human resources executive for Wondercrust bakery, Moses Shumba, said there were differences of principle and styles of operations, which had caused a rift in their management. Shumba said the company was facing many problems and confirmed that employees had not received their February salaries. He said the workers would be paid by mid-month.


“Working capital is a problem at the moment and we cannot meet other expenses,”said Shumba. “Our levels of production have decreased from the time the shareholders had differences,” added Shumba.


Workers at Wondercrust instead blame the then managing director, Armitage Chikwavira, for the problems the company is facing.


Chikwavira was the major shareholder in Wondercrust with a 32% stake. The other unnamed two from top management have 24% each while workers control 20% shares in the company.


Chikwavira moved out of the company and is now running Qtees Bakery. He refused to comment on the allegations that he abused company finances and referred all comments to George Mutonhori, the financial manager of Wondercrust.


Having lost the major shareholder, Wondercrust bakery invited other interested parties to buy shares.


Mutonhori denied the allegations against Chikwavira but said the company did not have money.


Mutonhori said the company applied for funding from the central bank’s Distressed Companies Fund but they had not received anything as yet.

“We are seeking funding in order to have working capital because at the moment we have a cash-flow problem,” said Mutonhori.


He added that the company was negotiating with the Ministry of Industry and International Trade for assistance to save the jobs of employees of the company’s seven branches around the country.