Selebi-Phikwe — Microlith Textile Company of Selebi Phikwe has suspended its operations for three months because it is struggling financially.

The company employs about 600 people, most of them women. A few weeks ago, the firm laid off about 200 employees and last week, the remaining employees and some town council authorities received letters informing them that the firm has decided to halt its operations for three months as it wanted to recover running costs from clients who had not yet paid.

Efforts to get a comment from company management on the latest development yesterday were fruitless. However, Selebi-Phikwe mayor Amogelang Mojuta, who had received some correspondence on the matter from the company, said Microlith had not closed down. "According to what they communicated to me and other relevant departments, they have not closed down but halted operations for three months because the firm has to recover the money owed to it by the clients so that it can continue running. It will resume operations after three months," Mojuta said.

Employees interviewed said that they fear the investors might fly away without paying them, as others have done, hence their decision to wait inside Microlith company premises.

In a previous interview, company manager Devar Arul blamed the present situation on the "delays in dispatching the employees salaries". However, Arul would not answer further questions on the grounds that the "Human Resource Department has been consulting with the employees" on the issue.