Airtel profits skyrocket as shareholders drags company to court to be de-listed from Malawi Stock Exchange

Airtel Malawi plcprofits have hit unprecedented K22 billion at the time Malawians are complaining of high data bundles as well as high airtime costs.

Chavula: We cannot comment on any case which is in court

This is a 28 % increase from K15. 9 billion posted in 2019.

The company’s financial statement shows strong revenue growth recorded at K110 billion from K92 billion, attributable to 46 per cent data usage, as most people worked from home at the peak of the pandemic.

Co-signed by Alex Chitsime and Charles Kamoto the board Chairperson and Managing Director respectively, the Airtel board  admits that the telecom business has emerged as a key and essential service supporting the economy during the pandemic.

In his analysis ICT specialist and President for ICT Association of Malawi (ICTAM) Bram Fudzulani describes the results as a vindication that ICT services have relevant economic value that can accelerate economic development of the country.

Meanwhile, Airtel Malawi plc shareholders have dragged the company to court, seeking that it be de-listed from the Malawi Stock Exchange (MSE), accusing the compnat  of concealing  to prospective investors information about a K5.7 billion court case when it was being listed on the stock market in 2019.

Claimants Frank Harawa and Chandrakant Makadia, in Commercial Case Number 83 of 2021, through lawyer Burton Mhango, contend that the concealment, including botched profit forecast, deprived them and other potential investors a fair and reasonable opportunity to assess the potential loss that the company could suffer and clear reflection of its liabilities if found liable in the said pending litigation.

Apart from Airtel Malawi plc, the other defendants are Plastone Alex Chitsime, Charles Mustafa Kamoto, Alok Bafna, Ian Ferrao, Neelesh Pratap Singh and Kayisi M’bwana Sadala.

They state that they proceeded to acquire shares and to make investments in the company and feel the directors breached their fiduciary duty to act reasonably in the circumstances and to disclose details of any pending litigation as required by law.

The case in question, currently in the Supreme Court of Appeal, relates to a K5.7 billion demand by the Malawi Revenue Authority (MRA) from Airtel Malawi as non-resident tax, dating to 2012.

Besides, the claimants argue that a financial statement on December 20 2019 provided in the prospectus indicated a profit forecast of K18.088 billion for the year-ending December 2019, but by the 31st of that month, it showed a profit of K15.908 billion, which is 12.05 percent lower that the profit forecast.

Airtel Malawi public relations manager Norah Chavula on Thursday acknowledged the company’s receipt of the court summons, but refused to comment on the matter “as per the sub judice rule.”

Lawyer Mhango said they served Airtel Malawi plc “orginal summons” on March 11 2021 and the  “amended summons” was also delivered on March 29 on their lawyers Racane Associates.

Airtel Malawi plc was listed in February 2020.

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Justice for all
Justice for all
1 month ago

Data must fall simple but the main is leadership must not sleep on their desk

Telco expert
Telco expert
1 month ago

There is a private member’s bill waiting in Parliament to nationalise telecommunications in the country. Ethiopia and other fast growing economies are doing that. Others like Rwanda has a strong ‘spy machine’ that monitors the volume of business, charges, revenues and taxes that mobile phone companies report. That is why data charges in those countries are only 10% of what airtel and others are charging Malawians. Akutisenda zikopa (G. Kazako, 2020).

Nyusesi
1 month ago

But what is Kazako doing regarding these exorbitant data charges? Where is kachilima mfana oganiza bho have? Anyani amenewa andikwana kwabasi. Our data cost are the highest in the entire world and yet we are the poorest country. And we earn very very little, why should our data cost this much??? But do we really have government in Malawi???

Public Opinion Organisations
Public Opinion Organisations
1 month ago

Malawi Govt should encourage other Telecom.Companies to Come to Malawi for Investment into this Sector and Malawians will be Benefiting from the same

bentby
1 month ago

meanwhile, TONSE govt including, chakwera, chilima and gospel kazako, are playing dead and sleeping on the issue of data must fall. Yehovah kumwambako muwakhululukire wanthu amenewa ponamiza anthu wanufe, potengera mwai pa mavuto athu…

Black berry
Black berry
1 month ago

Some of us are also shareholders. We were not consulted of this issue. The court should not entertain this issue until we are also consulted..

Bon o bon
1 month ago
Reply to  Black berry

Consulted , kupusa iwe summons, sukumva soaps, why not joining the wagon as interested party?

RKC
RKC
29 days ago
Reply to  Bon o bon

Those that filed the petition are those that follow &/ perhaps know their rights as shareholders & have done that in their capacity as shareholders. Inuso know & exercise your rights as you feel infringed ….

Za business as usual, Malawi wake siwalero…

Last edited 29 days ago by RKC
Zuba
Zuba
1 month ago

Data must fall, we are being ripped off left and right in form of bank fees and data bundle.

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