Published: 16 April 2014

Chitungwiza based textile manufacturer, Modzone Enterprises, closed shop in 2012 after its Iranian shareholders stopped investing in the firm as they were not recouping anything from the venture, an official said on Tuesday.

Iranians with 83 percent shareholding, jointly own Modzone, which has two subsidiaries Travan Blankets and Irazim Textiles, together with the Government, through Industrial Development Corporation (IDC) with 13 percent.

IDC general manager Mike Ndudzo said the Iranian shareholders, who are a pension fund, felt they were not benefiting from the investment.

"Our partners have said since we invested in Zimbabwe in 1997, we have never gotten a cent," he said.

"When we made profits, exchange controls did not allow us to remit dividends then and we have never got anything. We are a pension fund and our policy holders want the money back. We are not reinvesting," Ndudzo quoted the Iranians saying.

It could not immediately be established how much the Iranians had invested in the textile manufacturer.

Modzone shut down operations in 2012 and is currently under judicial management. The judicial manager, Reggie Saruchera, early this year said valuations were still underway to determine the amount needed to revive the firm. Due to budgetary constraints, Government has not managed to bailout the firm.

In 2012, Modzone officials said the company required at least $12 million for retooling and working capital.

- New Zimbabwe

You might also want to read this

• Air Zimbabwe resumes S.Africa flight after settling debt
• Zimbabwe still to get Embraer operating manual
• Air Zimbabwe using antiquated software
• Credibility of Zimbabwe-led poll observer mission queried
• Air Zimbabwe failing to attract an investor
• Air Zimbabwe acquires new Boeing 777 planes
• New regulations for Zimbabwean Presidential aspirants
• Zimbabwe now a truly cashless society
• Zimbabwe earns US$5bn through exports
• West tightens screws on Zimbabwe