AHL Group has assured Parliament that the company has taken corrective measures to ensure its financial health and business survival following a record K44 billion loss it registered in 2016.
Speaking when officials from the company appeared before the Budget and Finance Committee of Parliament on Thursday, AHL Group Head of Risk and Compliance, Madalitso Njerenje, said the opening of 2018 Tobacco Marketing Season was a clear sign of revival at the company.
She said the group was restructuring its loans and recapitalising its troubled subsidiaries such as Malawi Leaf the rejuvenate its business.
“What we can assure Parliament and all our stakeholders is that the company is around and very much in business. We have moved way ahead of the loss in 2016,” said Njerenje.
Deputy chair for the Budget and Finance Committee John Chikalimba called on AHL Group to explore more measures to address issues that led to the loss in 2016.
She however asked government to review the commission the company earns on tobacco, saying some of the financial problems started when government reduced AHL commission from 3.95% to 2.50 in 2004.
She said instead of hipping the entire commission on growers, it could be shared with buyers who current don’t pay anything for using the auction floors.
He said AHL Group was of significant importance to Malawi’s economy and that it should not be allowed to collapse.