Malawi govt bails out AHL Group on K44 billion debt
Government has bailed out troubled AHL Group which had two of its Auction Floors put up for sale by a local bank last week as a result of a huge K44 billion loss.
Secretary for Agriculture Grey Nyandule Phiri boasted during a Tobacco Conference in Mangochi last week that government would not allow the Auction floors to be sold.
“Let me assure you that government will do everything possible not to let the Auction Floors be sold,” Nyandule assured the tobacco players.
Just two days after this pronouncement, AHL Group flighted adverts in local newspapers assuring the public that the two auction floors, Mzuzu and Chinkhoma would not be sold.
“AHL Group wishes to inform Tobacco industry stakeholders, tobacco farmers in particular and the general public that all its existing tobacco selling floors including Chinkhoma and Mzuzu Floors are not on sale and will continue to be available for use by all our stakeholders as normal.”
“AHL Group appreciates that these facilities are of national strategic importance and an asset to the to the Malawi economy. The floors are there to provide a market place for tobacco farmers so that they can sell their tobacco smoothly, earn a living and support their families and communities,” reads the statement in part.
KThe statement, however, fails short in mentioning how AHL Group will pay for almost K4 billion that the local bank is asking for the two auction floors.
However, inside sources privy to the issue, disclosed that government has provided a bail out using tax payers money to save AHL Group.
“Government stake in AHL Group through Admarc is about 43% and the rest are private shareholders and one wonders why government should use our hard earned tax money to bail out a private company. Did they get Parliament approval? Something fishy is going on here,” said the source.
“The Public Affairs Committee of parliament has the powers of summoning the Minister of Finance and other officials to explain to Malawians on how and why they arrived at a decision of bailing out a private company,” added the source.
“This loss of K44 billion was made by people who are around and no punishment was given to them but are being rewarded everyday and it is unfair that poor people should be paying for negligence of others just because they are related to the powers that be,” he said.
Insiders believe that the AHL loss was as a result of diverting resources for other uses for the ruling DPP through its Chief Executive Officer Evance Matabwa who is a relation to President Peter Mutharika and that government decision to bail out AHL Group is as a result of this connection.
All the other managers who served under Matabwa when the loss was recorded were sacrificed leaving out Matabwa only
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Apumbwa tsopano diverting the money for party funding, of all the bailings we need in this country’s parastatals, how could u jump fast into this AHL group one ? I smell a rat here
This government eeish.
One minute this govt has no money for medicines, teachers salaries, maize then the next it has money for buying nadolo bailing out AHL etc Parliament is sleeping!!
May government bail out struggling College of Health Science also. Please.
So when we are saying this govt is thieving govt someone says no. When we say this govt is nepotistic someone says no. When I say this employed top jobs brothers and sisters of lhomwe tribe someone says no. Really someone can say dpp will win 2019 elections are you out of your senses. DPP never come back in govt and all these are drained and we need it returned come 2019.
Woow! This is total crap! Of course this narrative of bailing fat cats doesn’t usually end well and we know how this will end. An opportunity for the people on the other political divide to seize and take the Sons of the Father Party to task but sadly over confidence is rife in their camps. They think they can go it alone and topple the Prince of Thieves. If Legeni Guy, The Pastor, Masten or Baby AAM think they can win by going alone, we I have news for you: you will spend the five years in wilderness. You will… Read more »
Here is the best solution which the government does not lose money. Sell it’s 43% stake in AHL and use the money to invest in health care.
Why should AHL who transacts all Tobacco in the country and tobacco is the main cash crop fail to pay their bills? Where is the money going? I smell a rat here and government jumps in fast to pay the bill..mmh
Paja ku FDH kuli ndani mwini wake? Ndiujanso adagula msb bank
This money has been stolen. It is in dpp top thieves pockets. Goodall, Ben botolo at treasury and his accomplice pitala should be held responsible. They are the first ones to be put in jail on 23rd May 2019.