Issue No: 581; 14 March 2001

The DVH Garments Ltd, employing about 400 workers, stopped production last week. It told its workers that it was shutting down production until it got new orders.

It is understood that the company had its orders cancelled because of the instability in the country. The company is a joint venture between a foreign investor and a local investor.

Another major factory, employing hundreds of workers is also in trouble now. The factory was awaiting a satisfactory resolution of the constitutional crisis.

But the impasse, where the Chiefs themselves defied the Constitution, and the failure of the President to make a lawful decision has created further uncertainty in the industry. One industry spokesman stated that with the President being advised to use his reserve powers, the industry has been thrown into greater turbulence. "He said: "What reserve powers are being referred to? There is no reserve power for the President under the law. It just creates further loss of confidence in the country".