Kamlepo Kalua reinstated as Umodzi reports K1.2bn profit

Just weeks after being shown the door, Kamlepo Kalua is back at the helm of state-owned Umodzi Holdings Limited (UHL) in a dramatic turnaround that insiders say was helped by an impressive profit performance and intervention from the very top.

Kalua’s administrative suspension, imposed in October, has been lifted by the UHL board following the release of first-quarter results showing the parastatal posted a K1.2 billion profit after tax, a 14.5 per cent increase on the same period last year.

The comeback is likely to raise eyebrows in government and business circles, with sources claiming that President Arthur Peter Mutharika stepped in after questioning the wisdom of sidelining a chief executive who was delivering strong financial results.

According to insiders, the President was unconvinced by efforts to remove a boss whose company was generating profits at a time when government is demanding that state-owned enterprises stand on their own feet rather than depend on taxpayers.

Kalua has attributed the bumper results to increased business from corporate and government clients at Umodzi Park, home to the President Hotel and the Bingu wa Mutharika International Convention Centre (BICC).

His return marks a remarkable reversal of fortunes and could reignite debate over the circumstances surrounding his suspension in the first place.

For supporters, the numbers speak for themselves. For critics, however, questions may remain about whether strong financial performance alone should determine the fate of senior executives.

What is clear is that Kalua is back in the corner office, armed with a K1.2 billion profit figure and, if sources are to be believed, the backing of State House.