Former Kwese TV Employees Yet To Receive Retrenchment Packages Two Years Later
Strive Masiyiwa’s pay-TV Kwese has failed to pay employees their retrenchment packages two years after they were retrenched.
Kwesé was launched by Econet Media – which is owned by Zimbabwe’s richest man Strive Masiyiwa in 2015. It also offered a Roku-based VoD streaming service, Kwese Play which was launched in 2017.
Kwese TV has struggled to succeed in a market dominated by Africa’s largest pay-TV operator, MultiChoice, owners of DStv.
In November 2018, the company abandoned its initial model and turned its concentration to free-to-air content distribution, a service that will continent to operate in Africa.
A former Kwese TV employee has revealed that the company has failed to process his retrenchment package a year after he was shown the exit.
“Once again more lies from Strive and his gang of thieves!! After asking numerous times to please let people know if they will I fact make payment, they send this today!! It’s been over a year now, and the lies just continue!!,” Twitter user Gavin Carter wrote.
Once again more lies from Strive and his gang of thieves!! After asking numerous times to please let people know if they will I fact make payment, they send this today!! It’s been over a year now, and the lies just continue!! pic.twitter.com/f2S3riOr72
— Gavin Carter (@GavinCarter83) August 27, 2020
Kwese TV sent an email notifying its former employees that they will not be receiving retrenchment packages this month.
The email seen by Savanna News reads,
Dear Colleagues
We refer to the last communication on the payment of your retrenchment package.
We are pleased that we have now been able to clear the A and B grades and to date have paid a cumulative 43% to the C — E grades. This has been done under very difficult economic circumstances and has required sacrifices from current staff of the Group whose salaries have been delayed and some of whom have had to take a 20% pay cut to ensure that we meet our commitments to our creditors including to you.
We had hoped to make a further payment of 15- 20% by 31 August 2020 across C — E grades. This will not be possible due to a worse than expected liquidity position for Group mostly on account of COVID19 which has delayed asset disposals.
We are making every effort to pay an additional 10 — 15% of your outstanding balance by 30 September. We will update you again in the coming 21 days.
We are aware that this was not the news you were expecting and understand and share in your disappointment and frustration. We are deeply sorry for this.
Thank you for your understanding.
Best regard
Econet Group
There was news that Econet Media pay-TVwhich trades as Kwesé was being placed under administration.
In an interview with South Africa’s BusinessDay, Joseph Hundah, Econet Media’s CEO, said Econet’s pay-TV company, which operates under the “Kwese” brand name, will soon begin talks with creditors to rescue the business. Econet Media reportedly racked up more than US$130 million in external liabilities and was unable to pay suppliers. The company has appointed accountants Ernst & Young to manage the process.
Efforts by Savanna News to get an official comment on the position were fruitless at the time of publishing.