August 26 Holdings chief executive officer Colonel George Kaxuxwena has said that there are closing down three subsidiaries that are insolvent.
One of the companies is August 26 Textiles that makes shoes and employs about 86 workers.
August 26 Holdings is 100%b owned by the government of Namibia through the Namibia Defence Force.
According to Col. Kaxuxwena, the affected subsidiaries are insolvent.
Late Wednesday, there were reports that no worker would lose their job because of the closures.
Col. Kaxuxwena’s confirmation of the company closures and the retrenching of the workers came a day after Eagle FM spoke to Rtd Brigadier-General Silas Hamunyela, the managing director of August 26 Textiles.
Rtd Brigadier General Hamunyela told Eagle FM Wednesday that he was only informed this week that the subsidiary he is heading, will be closing its doors this February.
Workers, Eagle FM spoke to also said that they were not informed about the closure and that no communication was made to them regarding the security of their employment.
Several sources Eagle FM spoke to Wednesday said the two subsidiaries are being closed down because there is a new entity coming up.
Col. Kaxuxwena, however, denied this.