By Deogratias Mmana:
The government is struggling to settle K6 billion it owes Mpico plc, a development the firm claims to have affected its operations.
Mpico plc shareholder Joe Maere said the debt has negatively affected the firm’s operations.
Maere said this during Mpico’s 50th annual general meeting held in Lilongwe on Friday.
“The government’s delays to pay rentals have affected the dividend. The government has a debt of K6 billion and that is a lot of money which is just idle. It would have been put to some use or [been] paid to shareholders. We have asked the directors to collect the money,” Maere said.
According to Mpico’s statement from the chairperson Edith Jiya, government debt increased to K6 billion as at December 31 2022 from K4.8 billion in 2021.
“After the reporting date, further engagements with government did yield positive results. Promissory notes amounting [to] K2.9 billion were collected on 5 April 2023. Government is promising promissory notes amounting to K2.6 billion and committed to release them by 31 May 2023,” the statement reads.
Spokesperson for the Ministry of Finance and Economic Affairs Taurai Banda said the ministry paid all audited arrears.
“We issued them with promissory notes for all audited arrears. All audited arrears were duly settled,” he said
Jiya said, in her statement, that the company made a profit of K8.1 billion in 2022 up from K6.4 billion in 2021, representing a year-on-year increase of 27 percent, due to improved total income.
The statement said rental income increased by three percent to K6.8 billion in 2022 from K6.6 billion in 2021 due to rent reviews and increased occupancy levels.
Total operating expenditure for the year marginally increased by one percent to K4.85 billion from K4.79 billion in 2021.
