Agriculture Development and Marketing Corporation (Admarc) Limited has come in to rescue Auction Holdings Limited (AHL) Group from their financial problems by giving them a K6 Billion loan.
Confirming the development to NewsDay Malawi, Admarc Board Chairperson Alexander Kusamba Dzonzi said the decision to bail out AHL was arrived at because AHL controls 32% of the country’s economic Global Domestic Product (GDP).
“It is true that Admarc has bailed out AHL, and the reasons are because AHL is actually our baby as Admarc, and it controls 32% of our economic Global Domestic Product and we cannot play games with such type of a company because failure to bail out AHL means stealing our own economy”, said Kusamba Dzonzi.
According to Kusamba Dzonzi, AHL is a subsidiary to Admarc and plays a key role in the country so that farmers get their livelihoods.
“Our economy is agro-based and AHL does the key role in ensuring that out tobacco growers as well as ordinary farmers get some kind of livelihood”, said Kusamba Dzonzi.
Stressing that giving a K6 billion loan to AHL will not affect Admarc’s operations, Kusamba Dzonzi told NewsDay Malawi that Admarc is on the verge of revitalizing AHL’s operations by bailing them out from the financial challenges which has seen some of its employees going 4 months without receiving their monthly salaries.
The Board Chairperson said AHL will foot the loan when operations are back to normal.
“We are actually trying to bring back AHL to its feet. The moment our baby is able to stand and walk, they will start repaying the loan, but we could not allow our baby to go to the bank and borrow from the banks while we had a chance of assisting them”.
In her words, Auction Holdings Limited Public Relations Officer Tereza Ndanga confirmed to NewsDay Malawi that Admarc has released K6 billion to AHL to be used in paying out salaries in arrears.
Ndanga could not comment further on the deal as she told our reporter that she was looked up in a meeting with Admarc officials on the load deal.
Auction Holdings Limited has been going through financial snags as it has failed to pay its employees salary for four months.