Financially struggling State produce marketer Agricultural Development and Marketing Corporation (Admarc) has given a bail out of K6 billion to cash strapped trader Auction Holdings Limited (AHL).
The money will help AHL, a subsdiary of Admarc, pay salary arrears for its employees who had gone over four months without pay.
The Auction Holdings Limited is experiencing financial challenges.
Alexander Kusamba Dzonzi , Admarc board chairperson confirmed the grain trader has released K6 billion meant to support AHL in settling the salary arrears.
According to Dzonzi, the funds given to AHL are in form of a loan and the company is expected to pay back the money once it gets back on its feet.
Reacting to the development, Joseph Mwanamvekha, former minister of finance welcomed the move.
On his part, Dr. Betchani Tcheleni, an economics expert with the Polytechnic has cautioned Admarc against overspending, saying this may disrupt operations of the grain company.Follow and Subscribe Nyasa TV :