MKB Group director, Andrew Botha, said that MKB Properties (Pty) Ltd had been operating at a loss for the last ten months and that it had been maintained during that time by significant capital injection from other profitable companies in the MKB Group stable. He added that the construction business had become a liability in a difficult market for several reasons, which included irregularities in middle management, changes to the National Credit Act, the downturn in the residential property sector, reduced work flow from lower demand and an overall increase in construction and overhead costs. Botha said the company has outsourced all current and future construction requirements to well-respected industry professionals, thereby maintaining the high quality, the MKB brand is well known for.

Jonathan Molyneux-Killik, a director of the MKB Group said that the management was saddened by the loss of so many skilled workers but that they had to take into consideration the overall affect of continuing to carry the liabilities of the construction division on the shareholders and other Group companies. He stressed that MKB Properties (Pty) Ltd had no financial liability to any financial institution and that the other Group companies had funded the completion of all outstanding projects.

Botha said that the remainder of the Group Companies - MKB Property Developments, MKB Design, MKB Tactical and Security would continue to operate business as usual.