PCL Group Sacco is grappling to recover K60 million which People’s Trading Centre (PTC) failed to remit before its liquidation in 2022.
This is according to a statement signed by the Sacco’s board chairperson Francis Mndolo and general secretary Richard Tchereko.
The statement says that after the liquidation, the firm was not able to remit K60 million debt to Sacco.
According to the statement, the Sacco resultantly recorded an unfavourable delinquency ratio due to non-performing loans from the ex-PTC members totalling to approximately K70 million.
“The Sacco has tried to engage the liquidator to prioritise remittance of the money from the proceeds of the disposed PTC assets but there is no positive feedback,” the statement reads.
- Advertisement -
Non-remittance of the debt by the liquidated PTC has also contributed to dwindling liquidity levels in the Sacco.
The unfavourable liquidity position has also resulted from membership withdrawals of ex PTC employees who could not sustain their membership while jobless and closed their accounts.
The PCL Sacco board indicates that the Sacco is implementing a turnaround strategy and it is hopeful that the PTC liquidator will swiftly disburse the funds for the use at the Sacco.
“The Sacco is now operating on an open bond with membership from diverse organisations and companies. It has also intensified its membership mobilisation drive across the country,” the statement adds.
- Advertisement -
- Advertisement -
On October 8 2022, the Commercial Division of the High Court of Malawi ordered that PTC should be liquidated and closed owing to its high state of debts.
