Sheriffs on Monday sealed Peoples Trading Centre (PTC) head offices in Blantyre, on instruction from Rab Processors over non-payment of more than K300 million debts.
Rab Processors lawyer Lusungu Gongwe from Ritz Attorneys at Law and new managers of PTC, Tafika Holdings, confirmed the development in separate interviews Tuesday.
According to Gondwe, the debt dates back to two years ago when Rab Processors was supplying goods to PTC on credit.
Gondwe added that the two parties agreed that the debt be paid by June 30 2022, but Tafika Holdings failed to honour the agreement, hence sheriffs were instructed to act.
“The actual worth of the goods supplied is K300 million but due, to interests, it is now close to half a billion and they promised to pay by June 30 but they have not,” Gondwe said.
While confirming the development, Tafika Holdings Executive Chairperson Arson Malola was quick to say that the offices were to be re-opened [yesterday] after discussions between lawyers of the two sides.
He, however, lamented that Rab Processors resorted to sheriffs instead of advancing talks.
“It will be unsealed today (Tuesday) after consultations between Rab Processors and PTC Limited attorneys. It is very sad that Rab Processors took such drastic measures.” Malola said.
The Business Times understands that the sheriffs also sealed a Spar shop at Ginnery Corner in Blantyre, which was the only PTC shop open in the city.
Since Tafika bought PTC from Press Corporation, the company is sailing in turbulent waters and, lately, Electricity Supply Corporation of Malawi cut off power from some shops over unsettled bills.
A leaked letter from now suspended senior managers of PTC, which surfaced a month ago, indicated that PTC liabilities are increasing at an alarming rate of K300 million per month and are unsustainable.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.