Published: 10 June 2013

WALLACE Laboratories, a cosmetic manufacturer owned by former deputy minister Phineas Chihota has been thrown into liquidation after it declared insolvency.

Creditors met at the High Court to consider the report of judicial manager Mr Knowledge Hofisi of Aurifin Capital and agreed the firm's operations be wound up.

According to the report presented by Mr Hofisi, the market value of the immovable property occupied and owned by Wallace Laboratories was pegged at US$2,2 million as at January 25, 2013 against liabilities of US$2,7 million.

Liabilities had increased by 170 percent from US$1 million as at August 4, 2010.

"The liquidity, solvency position and those relating to the financial structure of the company revealed that it is sliding into a state of insolvency," said Mr Hofisi.

Wallace Laboratories was placed under provisional judicial management on April 14, 2010 culminating in the appointment of Dr Cecil Madondo of Tudor House Consultants as judicial manager.

Dr Madondo resigned over disagreements with the shareholders and Mr Hofisi took over last year.

In January this year, about 50 employees slept at the company premises demanding their outstanding salaries accrued since 2009.

The company's operations have been declining steadily over the last four years and its capacity to discharge its financial obligations as they fall due was seriously constricted.
- TH