G.P. Zachariades response to the smear campaign

There appears to be a smear campaign against G. P. ZACHARIADES (Overseas) Ltd. (“GPZ”) in some local newspapers in Bahrain. GPZ is renowned for its high quality work, reliability and integrity in dealing with its Clients, employees and Government Ministries over a period of 40 years, having built some of the most prestigious projects in the country. The defamatory allegations made in those articles are false and have seriously injured the business of GPZ, which fully reserves its rights under the laws of the Kingdom of Bahrain.

During the past 10 months GPZ has faced a cash flow crisis causing delays to the payment of wages and salaries. This is due to the cumulative impact of non-payment of its entitlements for projects mostly concerning its Private Clients. 

GPZ was awarded over BD 7 million on two major arbitration disputes against a prominent Bahraini Developer and one of Bahrain’s major Banks associated with the said Developer. These arbitral awards were issued by the tribunals constituted under International Chamber of Commerce (ICC) Arbitration Rules. Currently these awards are in the process of being enforced by the Court of Execution in Bahrain. 

GPZ has released complete details of outstanding receivables including names of Clients, Project Titles and amounts due, to auditing and legal firms, Government Departments and major banks operating in the Kingdom of Bahrain.

At the request of GPZ, the Government released the amounts outstanding on a major project and GPZ used such funds to pay wages, salaries and repatriation costs in accordance with what had been agreed with the Ministry of Labor and Social Development (“Ministry of Labor”). For the purpose of releasing the above payments, and acting in a spirit of co-operation and transparency, GPZ agreed to open an escrow account operated jointly by GPZ and the Ministry of Labor. GPZ is expecting further release of outstanding funds concerning a prestigious project successfully completed for the Government of Bahrain.

Concerning those defamatory articles, GPZ categorically denies all allegations against it, and wishes to place on record the following facts:

•GPZ has been closely cooperating with the Ministry of Labor as well as the relevant Embassies throughout this unprecedented 10-month cash flow crisis, which caused late payment of wages and salaries. 

•Ministry of Labor has acknowledged that GPZ has an excellent 40-year track record with the Ministry and that during the past 10 months GPZ demonstrated genuine intentions in resolving all pending labor issues, and co-operated fully with the Ministry. 

•There is and there never was any blacklisting of GPZ by the Ministry of Labor.

•All comments relating to GPZ not being able to recruit new employees, renew staff visas or sign any new agreements with subcontractors as a result of such a blacklisting are simply false.

• All existing employees have received their salaries up to 31st of July 2017 and salaries for the month of August have been paid to 75% of GPZ’s workforce while the remaining 25% will receive their salaries in the next few days. 

•Regarding GPZ’s relationship with the Indian Embassy, it is confirmed that during a meeting held at the premises of Ministry of Labor on August 22nd 2017 at 10.00 am, in the presence of Ministry of Labor Senior Officials as well as Embassy Officials, pending labor issues were discussed and the Embassy Representatives expressed their satisfaction on GPZ’s cooperation and efforts.

•GPZ paid more than half a million Bahrain Dinars (BD 500,000) on salaries, wages and other expenses to workers and staff covering periods during which they did not attend their duties. 

•GPZ liaised with other companies in the industry and achieved to secure employment in Bahrain for almost 500
employees.

Furthermore, an important meeting took place on 20th September 2017 at 10.00 a.m. at the Ministry of Labor attended by representatives of the Ministry of Labor, Embassies of India and Philippines, GPZ, and also representatives of former employees of GPZ, including various categories of workers.

During the above meeting, a mutual understanding was reached between all parties concerned, on all pending labor issues, including payments, repatriation, and concessions towards Bahraini employees, GPZ also submitted detailed statements concerning pending accounts of various categories of staff.

GPZ is now concluding a plan for the payment of all its creditors and is also engaged in selective tendering for the purpose of continuing its operations in the Kingdom of Bahrain, particularly in the sector concerning prestigious Building Projects, complex Industrial Projects and specialized Interior Decoration Works.