The Prophesy division of local technology company New Dawn Holdings could face liquidation, as former executives have lodged an application with the High Court.
The division, comprising one-quarter of New Dawn, focuses on the sale, configuration, implementation and support of the Oracle technology product set and related services.
An application for the liquidation of Prophesy was filed with the Transvaal Provincial Division of the High Court in February, according to two of the three claimants (all former New Dawn executives). The attorney of record, Lobry van Rensburg, has confirmed this.
The three claim a total of about R1.8 million in outstanding salaries, bonuses and leave pay.
"We have tried various, easier means to negotiate with [the company]," says one claimant, who does not wish to be named due to legal reasons.
It may take as long as four to five months to get a court date to settle the matter, notes Van Rensburg. He expects other former staff members to "piggyback" on the application - pushing up the total rand value of the application.
New Dawn boss Elijah Mahlangu says he has no comment on the matter because it is sub judice. However, in a letter to ITWeb this week, attributed to Prophesy CEO Tebogo Makamela, the company says the liquidation application is designed purely to "unsettle the business".
Makamela maintains the liquidation application is without merit. The aspects of the liquidation claim that relate to salaries and leave pay have been settled, he argues.
The other matters, relating to staff bonuses and R3 million missing from the provident fund, will be settled soon, he adds.
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