Admarc gives AHL K6bn salary arrears bail out
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.
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Borrowing to pay salaries is not wise, it’s not sustainable. That’s borrowing to consume and it is not good for admarc which I do not think will recover the loan, and also not good for ahl because the loan will not be spent on investment, hence will not generate returns.
Chimanga munakongola chija osatiuza, mupereka liti ndalama…timabweretsa chimanga Osatiuza kuti ndalama mupereka liti….
Another prime example of kicking the can down the road
Kodi ku MCP’ku maso adatani?
Komaditu; wina ndi uja mumati Ezanihowa Miliki, ali maso tuzuuu ngati akufuna kulawula njoka
Good move admarc
Do everyone think that AHL will be back on its feet soon? We will see AHL demanding another Loan from ADMARC soon
its their mother body so akapemphanso