Cash-flow problem hits Shalk security guard
The failure of some clients, including state entities, to pay on time has created hardships for Shalk Electronic Security Limited, which is having difficulty paying some of the guards it employs.
The Sunday Gleaner has learnt that some of the guards employed to Shalk were not paid their fortnight's salary on September 7 as scheduled. That was not handed over to the guards on September 21.
Salaries due on September 21 were, however, not paid and the guards have been told that money will be lodged to their accounts by Wednesday.
According to the security guards, they were not told that they would not be paid on time until about 7:30 p.m. on September 7, when they received a text from the management.
"Shalk Electronic regretfully (has) to inform our faithful security personnel, that we are unable to meet his pay week period due to financial constraints. We therefore ask you all to bear with us we are working to pay as soon as we can," read the text.
But the security guards say they are struggling to survive, with bills piling up and creditors knocking on their doors.
"How are we to survive until Wednesday," lamented one guard who claimed he had not been paid one dollar since September 7.
Efforts by The Sunday Gleaner to get a response from the company's management have so far been unsuccessful.
A source close to the leadership of the company, who said he could not speak on the record because he was not authorised to do so, told The Sunday Gleaner that it is facing a cash-flow problem as a result of the failure of some clients to pay on time for services already delivered.
The source said it is standard procedure for the company to bill its clients for services it rendered and it is usually paid on time based on the agreed credit terms, but this has changed in recent time.
With the security guards demanding payment and insisting that they overextended themselves for the start of the new school term and are facing severe financial hardship, the source said Shalk is stepping up efforts to collect the outstanding amounts, particularly from government entities.