Employees of a company owned by the Chippa United boss are worried about losing their jobs after learning that the club boss was about to lose a fleet of his
refuse compactors due to his failure to keep up with monthly instalments.
Siviwe “Chippa” Mpengese entered into an agreement to purchase 10 garbage compactor trucks from Faw Vehicle Manufacturers SA in March 10 last year for his company Chippa Training Academy.
Mpengese entered into the sale agreement as a principal debtor of the company and his wife Phumeza as its guarantor and co-principal debtor.
Mpengese’s company breached the sale agreement when it failed to pay instalments on the vehicles. This resulted in Faw Vehicle Manufacturers SA sending letters of demand to the controversial businessman to surrender the vehicles.
News that the vehicles were on the cusp of being repossessed reached the ears of employees who are now at their wits’ end and worried that they might join the job seekers’ queue.
“The employees are worried and fear for their jobs. Where would they go if these trucks are repossessed and sold?” asked a company employee who did not want to be named.
Another employee said they were scared to ask Mpengese if the company was in the red.
The employees’ claims were collaborated by a letter written by Faw Vehicle Manufacturers SA’s lawyers recently.
In the letter, which we have seen, the company’s manager, Marthinus Jacobus Pienaar, said Mpengese’s company defaulted on the vehicles’ instalments and was in arrears of over R2.2-million.
They said the two accordingly agreed to pay the arrears in the region of R2 273 442.96 by way of six equal instalments, in the monthly sum of R378 907.16 with the 1st instalment to take place on or before the 25th day of December 2022 and monthly thereafter on or before the 25th day of each and every month, until the arrears are settled.
After the agreement, said Pienaar, they reinstated the sale agreement and said should Mpengese and his wife fail to remit payment on time, the full outstanding amount and arrears would become due and immediately payable.
He also said the company might, without further notice to Mpengese and his wife, issue the necessary warrant and execute it to receive the outstanding money.
Pienaar said they would also proceed to cancel the instalment sale agreement and repossess the commercial vehicles from them.
They also, he said, agreed that the agreement would be made an order of court after a period of 14 days should Mpengese and his wife be in breach of any of their obligations.
Mpengese feigned suprise and said he did not owe the company any money.
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