Auction Holdings Limited (AHL) Group record breaking K44 billion financial loss is expected to top the agenda at its 55th Annual General Meeting (AGM) scheduled at the end of this month in Lilongwe, Nyasa Times understands.
Some shareholders have indicated that they will seek answers on how the company has gotten out of the ‘huge loss’ which was registered in one financial year alone in 2016.
“We will seek answers on how the company made this huge loss in the first place and what it has done so far to get out of the financial mess we are in. Was it bailed out by government as usual? What about the people who made this loss, why are they still running the company?” wondered a shareholder in an interview with Nyasa Times.
AHL has been flighting newspaper adverts announcing the AGM which will be held on September 28 2018 from 2pm at its AHL Group Corporate Offices in Kanengo Lilongwe.
Among other items to be discussed at the AGM is to receive and consider for adoption, the report of Directors, reports of Auditors and audited statement of comprehensive income and statement of Financial Position of the Company of the year ended 31st March 2018.
The meeting will also confirm the appointment of three directors and also appoint external independent Auditors for the year ending March 31 2019.
Insiders said the K44 billion financial loss has caused a lot of discomfort among some shareholders which include the Agriculture Development and Marketing Corporation (Admarc) as the largest shareholder which is also sailing in financial turmoil.
AHL Group recently told the Budget and Finance Committee of Parliament that some of the financial problems started when government reduced AHL commission from 3.95% to 2.50 in 2004.
However, some tobacco experts feel tobacco farmers are getting a raw deal on AHL Group commission of 2.5% on the gross earnings on tobacco.
“I think government should allow new players to ensure that farmers have a choice but the way it is now, it’s the farmer who loses at the end of the day as he or she has no choice but to part way with the 2.5% which is unfair to the tobacco farmers. Why should AHL Group be a monopoly on tobacco trading?” said one of tobacco trading technocrats.
AHL Group Head of Risk and Compliance, Madalitso Njerenje, said the group was restructuring its loans and recapitalising its troubled subsidiaries such as Malawi Leaf the rejuvenate its business.Follow and Subscribe Nyasa TV :