Malawi Posts Corporation (MPC) employees will have to wait a little longer before they get their October salaries.
Director of Finance and Administration Noel Fole says in a memo dated October 30 2019 that the loss-making parastatal was hoping to pay the salaries on time but other sources of finance that they were counting on did not come through.
“Management is looking under every stone to ensure that the salaries for the month are paid without much further delay,” says the memo.
This comes at a time when the parastatal has made huge investments in acquiring buses for transport business, a business venture some analysts say is likely to flop owing to the many private buses plying the roads.
MPC obtained a K700 million bank loan using its office complex in Blantyre as collateral to buy seven buses from China.
The procured buses are part of MPC’s business plan to expand its revenue base.
Postmaster General Henry Shamu said MPC is losing at least K500 million per year due to some loss-making post offices. He said the corporation has 180 post offices, but only 30 are making profits.
He said they have to be “innovative to remain relevant on the market; hence, the purchase of the buses.”
Five years ago, MPC operated minibuses for courier and passenger services, but the business flopped and the minibuses were disposed of.